Why do shops have sales

Thus, providing consumers with more meaningful savings increases purchases. This provides an important cue for consumers. All consumers have a minimum and maximum price they are willing to pay for a product or service.

Consumers soon learn that if they wait, they will get a better deal. This is why many Australian retailers offer consumers a guarantee of lower prices. The certainty associated with deals posted weekly gives consumers a sense that prices are not increasing and helps the brand to form a lower price image.

As we can see from the research into how prices affect consumers, we love a bargain. We analyse products through a number of different lenses, including our preconceived notions about the product, brand and store. Share this post. To move excess inventory Businesses usually use tools like computer programs and barcode scanners to figure out what items they have in stock and how much they need to order.

Conclusion Companies always have a purpose for holding sales. Topics allowance Android App bank bankaroo bankaroo for schools Bankruptcy BlackBerry Budget cash Cash Flow charity chores credit card currency Danielle demo education event family gifts Goals google holiday iPad iPhone Kids lemonade stand loan marketing mobile Money points presentation Saving savings School security shopping Teaching technology theme tutorial Updates Work.

Promotions and clearance sales increase store traffic, especially from value-based shoppers. The lure of lower-priced goods may increase the range of customers that can afford to purchase products from the company or may offer an attractive purchasing option to existing customers. Sale sections placed toward the back of a store encourage purchases of regular priced merchandise as customers must peruse other sections on the way to the clearance areas.

Clothing, decorations, accessories and other products often feature a seasonal component. Businesses offering these types of goods must shift inventory to reflect seasonal demand. Clearance sales can help move goods from a prior season to free up space for the next season's merchandise.

Clearance sales offer customers a way to access a company's goods at a lower price point. For some types of products, like beauty supplies, clearance sales encourage customers to try new products. If customers like the product, they may become a repeat customer at the regular price point.