Why do retail stores have sales?

Question

I am absolutely clueless about retailing and marketing. Why do stores and business have sales like Black Friday or some random sale for some random reason? I know one reason why they have sales to get rid of old stocks, but there got to be more than that!

Wouldn't having sales hurt the business in that they are getting less profit for the amount of stuff they sale when compare to non-sales days. Also, how do stores put up with their patrons who only come during sales and rarely visit during non-sale days? When I was lining up for a sale, a lady behind me taught me the trick of going to the store a day in advance, figure out what you want to buy and try the stuff, and then come back on the day of the sale to speed things up.

Answer 1

Black Friday is a great idea. If you can get people out shopping at 5AM they will buy the loss leaders the probably keep shopping even after lunch. So if you go buy your brother a microwave for $39 you might not have found anything for your sister so you don't need to beat $39 you need to beat microwave. Then since you are done shopping with a month left you have plenty of time to find more perfect gifts. You go out the next week to look for something for mom and find something you really want to buy your sister so you do. Now you have to buy your brother another gift and with them getting two each you should get something else for mom. Then you have time to do the food shopping. You can end up spending more between Thanksgiving and Christmas than you do the rest of the year.

I always buy myself much more than I buy other people because I don't go in stores unless it is to buy something.

Answer 2

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Answer 3

Sales are a game played by the retailers. If you buy a widget for a dollar and can sell it all year for $5.00, but wish to get more people into your establishment, you put the widget on "sale" for maybe $3.00, as you are certainly not losing any money, and hopefully this will bring in more business to offset the discount on the widgets.

People love the word "sale", even though no one has yet figured out that sale is the price the item should actually have been in the first place. Clearance is a real sale.

Answer 4

Sales, clearances, discounts etc are all used to lure customers in to spend their money. Yes you are correct, they do not gain as much of a profit margin from the sales, but they still do gain profit. But they are actually still generating a lot of revenue (sales), for example, on non-sales days they may sell 10 units of Product A and make $10 profit, but during a sale, they may sell 100 units of Product A and generate $70 of profit. Black Friday is set-up perfectly with the timing of the sales. It is right after a major holiday where family members are all together, majority of people do not work, and is right before another holiday where people buy stuff for friends & family.

Answer 5

There are several reasons why retail stores have big sales. One is to get rid of excess inventory. Another is to create cash flow. Offering people great discounts can generate many dollars in revenue while creating good will from customers.

Answer 6

i'm a manger in a outfits keep and the least confusing thank you to spice up sales is to coach your team to consistently choose for an upload-on sale, i.e. if somebody is figuring out to purchase a skirt, prepare them the best suited that fits, then the shoes and probably some upload-ons. finding on your shops refund coverage, you are able to tell the customer that they could take them domicile and attempt them on and get kin opinion - in the event that they do unlike them they might carry them back (maximum folk do no longer carry something back!). to maintain team candy, you are able to motivate them, provide them responsibilies and enable them to take possession of a element or accountability interior the keep. in case you would be serious, make it valuable, and not forget which you're their BOSS, no longer their chum!! properly completed for procuring the job, and better of luck! :-)