Shopping
Clearance sales – What are the benefits of distress prices
Have you ever encountered a clothing item for a particular price, only to find it marked down significantly a few weeks later? This phenomenon is known as distress pricing. It is a strategic move by companies to clear out excess inventory. While it might seem confusing at first, these deep discounts translate into exciting opportunities for savvy shoppers. Some companies market this phenomenon as clearance sales to improve their transactions and sales amounts. What are distress prices and clearance sales? Distress pricing is a practice companies adopt to clear their stock rather than discarding or discontinuing it. This strategy is usually employed when sales have slowed down due to a particular reason or market conditions. Distress pricing helps companies to improve sales and generate better cash flow. Most commonly, companies organize clearance sales to help with distress pricing and clearing out of stocks. There are various benefits to shopping during clearance sales. Quality investment Clearance sales are not limited to off-brand or local products. Do not be filled by the stereotype. If one stays on high alert, one can come across advertisements and promotions for clearance sales with designer products included. Think of clearance sales as an opportunity to stock up on products that will soon be in fashion again when the line or design is eventually revived.