Etini
Valued Contributor
A clearance sale is when a product or products are sold below the fixed price and market price to clear it's inventory. It is a thing that businesses do at one time or the other. So, how does clearance sales benefit a business?
1) Reduction of storage costs: Businesses incur costs as they store products. The longer the product stays without being sold out, the higher the storage costs incurred on it which can erode profitability.
2) Clearance sales provides immediate cash flow: Making clearance sales would give the business some cash that can be used to buy new products or take up some improvements projects in the business.
3) Clearance Sales attracts new customers that might end up being retained: With the reduced pricing in clearance sales, there would be an influx of people who might not have patronized the business before come in to patronize the business. Some of them can turn to repeat customers for other products depending on how the business can build relationships with these people.
1) Reduction of storage costs: Businesses incur costs as they store products. The longer the product stays without being sold out, the higher the storage costs incurred on it which can erode profitability.
2) Clearance sales provides immediate cash flow: Making clearance sales would give the business some cash that can be used to buy new products or take up some improvements projects in the business.
3) Clearance Sales attracts new customers that might end up being retained: With the reduced pricing in clearance sales, there would be an influx of people who might not have patronized the business before come in to patronize the business. Some of them can turn to repeat customers for other products depending on how the business can build relationships with these people.