When you want to garner more interest in an item and boost sales on overlooked products, you need a discount area. Here is why clearance sections are important in retail.
Reduce Backstock Inventory
Customer demands change over time, and the product you thought people would pull off the shelves turns into a bust.
Instead of absorbing the cost of that wasted product, you can sell it at a discounted price. While you can’t change the style or look of the item without further investment, you can make the most of it with a clearance section.
Clearance sales are a great way to reduce backstock inventory of items you can’t sell quickly at full price. If you have newer products that need to get on the shelf, a clearance section gives you the best of both worlds.
Appeals to New Audiences
People enjoy finding the best deals and thinking they’ve won the day with their shopping. While you can use plenty of tactics to entice a customer, giving people the illusion of saving money when buying is the oldest trick in the book.
You can even make the signage more attractive and display your clearance products with style. Try building your signs with these ideas in mind:
- Be bold with your lettering and use simple catchphrases.
- Use attention-getting colors to grab customer attention.
- Place your signage in high-traffic areas to increase visibility.
Appeal to the coupon-clippers and penny-pinchers with a well-stocked clearance section. The higher the percentage off, the more people will justify spending the extra money on your low-priority items.
Make the Most Of Every Dollar
You spent time and money collecting a product line and offering it to your customers. But if those items sit on your shelves untouched for a long time, you know it’s time to move on.
Remember that these products won’t sell at the price point that gives you a nice profit. You must consider these items as lost revenue and work to make any money you can on them.
Learning why clearance sections are important in retail can help business managers make the most of their inventory. With a few well-priced deals, you can garner more business out of a failed product.
To your growth!
Eric S Burdon