Low prices and retail promotions help attract customers to the store. Upon entering the store, a number of other marketing and visual marketing factors take over “control” to convince the customer to make the purchase decision. However, far too low prices can attract customers, but can affect profits, preventing retail stores from keeping up with costs. The inevitable question for customers who see such low prices is: “how do they manage to win stores?”
How do retail stores sell so cheaply?
The first step is to build a strong strategy that highlights the ability of stores to attract customers at low prices, without losing.
- Acquisition of products in volume. Retailers often benefit from significant discounts when they choose to fill their inventory in volume. Thus, by buying a large volume of products at substantially lower prices than those in retail, sellers can sell products at what appear to be very low prices. In reality, prices are built to the advantage of the trader.
- Loss sale. This risky method consists in selling products at very low prices in order to attract as many customers as possible. Once customers are attracted, the result expected by retailers is that people will make other purchases. It is hoped even for purchases of more expensive products, which will increase profits.
- Liquidation of stocks. Products that have been on the shelf for a long time must be constantly replaced by new collections. The very low prices of the products sold in the stock sales are very easy to understand. They are already in stock at retail stores and the budget for them has already been spent. If the entire stock is not sold, the losses can be very high for the store. But, by selling them, no matter how low the price is, the store manages to reduce losses or even recover its initial investment.