Annual and Semi Annual Sales Schedules

2008-08-04 17:12:05

( Insurance )



The Truth About Retail Pricing

Most products you buy from retailers have already been marked up several times, due to the number of intermediaries in the supply chain. When a piece of merchandise leaves the factory and gets delivered to the wholesaler, the wholesaler charges the retailer a higher price than the original cost. Then when the retailer sells the item to consumers like you, it also chargers its own mark up.

So by the time the product is offered to you, it will have been marked up at least 70% of its original cost. If you buy the product at the full price, you are actually paying more for mark-ups than for the real cost.

Annual and Semi Annual Sales - Another Retailing Strategy

However, not all merchandise stocks get sold out, so the retailer may find himself stuck with old unsellable inventories. The retailer needs to get rid of these old stocks to make room for newer stocks that may be more attractive to customers, otherwise he loses out on the sales potential of new stocks.

This is where the retailer is forced to mark down the prices for the old stocks. And since he has marked up the items by as much as 50%, he can afford to offer the stocks to you for the same level of discount. In fact, he still profits from the sale if he marks down the stock by 20-30%. At 20-30% off, the prices will already draw buyers and simultaneously help the retailer get rid of old stock.

Retailers often have annual or semi annual sales events. Dates vary depending on the retailer. Retailers who are leasing store spaces inside malls or department stores often go along with the same yearly sales schedules of the malls.

Taking Advantage of Annual and Semi Annual Sales

If you are carefully watching your budget, you should be quite aware of selling prices of goods. Unless you consider the product to be a necessity, you should wait till the price is marked down at yearly sales events before you buy it.

Be early in getting to the sale venue so that you wil still have a lot of choices. Retailers usually put out only whatever remaining stocks they have, and with many other customers who want to buy the same product, you might lose the chance of buying it.

Most retailers send out notices of their yearly sales events through newspapers and on their online sites, so that you and other consumers will be informed beforehand.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.