Sales have dual benefits

Seeing a 50 per cent discount signage increases our adrenaline rush and inspires a sudden urge to shop. While this may seem to be an exciting deal to a shopper, have we ever wondered what goes on at the other side of the fence? Well here is a sneak peak.
The dual deal

Sale signboards are a sure shot way of enticing customers into a store. A serious shopper would definitely walk in the direction where he is likely to get the best deals. But being a customer have you ever wondered why the retailers put up these sales? And if they offer such high discounts how do they cover up their costs?  

Raison d'être
Besides getting a customer to a store to convert him into a buyer, there are several other reasons why a retailer puts up a sale. Some retailers come out with multiple collections in a year and not all of them get sold so the remaining forms the stock. Instead of having this as a liability, they put it up for a discounted price. The saying ‘something is better than nothing’ is quite apt here. Some retailers also put up sales to stand neck to neck with their competition. If they will not do so, the footfalls at their store will witness a considerable fall, so to keep the customer traffic going, they would also offer discounts for their customers just like other retailers do. So, definitely all retailers do rake in a lot of moolah at the sales, and it is evident when you visit the stores and find a huge number of people at the billing counters. While some retailers are happy to get some profits, the others are glad to get rid of their stocks.  

Competitive spirit
We usually find brands in clusters at either a high street or a mall. The threat of co-existence is what increases the level of competition among brands. So if one retailer puts up a sale you can be sure that the others would follow suit. And now one does not have to wait for the season to end to get into queues for getting their favourite merchandise, because retailers are offering sales at different time periods. 

Extended hours
Retailers have realised the potential of sales and their target audience so they now offer discounts at odd hours in their stores. The working class, usually consisting the youth, have jobs to go to which takes up major chunk of their time in the day. So to accommodate them, retailers are opening their stores at odd hours so these people can also be a part of their sales. Quite recently, Benetton was offering 50 per cent discount on their merchandise and was running these discounts from seven in the morning to 11 at night. Levi’s too following the same trend was running sales at its stores from early in the morning to 11 pm at night.  

So if you have sales on around at your favourite brand then just rush and get the collectibles! And if you are a retailer, you should be delighted that the holding stocks will now be converted into flowing cash! 
 

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