Help

Help! Closeouts and Other Specials

Help! We have been purchasing closeouts and other specials and selling the merchandise at 50% -70% off of the regular retail. This is not working. What are we doing wrong? Our customers are looking for deeper discounts!
Just because you are offering such deep a discount does not mean people want the goods you are selling. There could be a few issues at work here. First, your situation may simply mean that the customers do not want the goods. A closeout is a closeout. You purchased someone else's slow selling or discounted merchandise. On the surface, there is nothing wrong with that strategy. However, the promotion must be merchandised properly. If you never established the regular retail by offering the items at regular retail prices for a period of time, the customer may not be recognizing the value. Secondly, if the sale is perpetual, you have removed the sense of urgency. A third reason, and
I think the most serious, is that you have created a false impression to the customer. Since you never offer the items at regular retail, the customer is accepting your low price as the established regular price. This is why they are demanding lower prices. Customers are not naïve. They realize that constant sales offering 60% discounts and higher need to be scrutinized. That is what they are doing and they are sending you a major message. They are telling you that they do not believe you. I think it is time that you rethink your strategy.

Promotions should be part of your mix and should not remain on sale indefinitely. When purchasing your promotions, think of your customers. Will they be as enthusiastic as you are? The price may be great but it is only great if the customer appreciates the value and responds.

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