Wednesday, October 28, 2009

Discount Stores... Some of the best places on Earth

There are few places that I can get lost in for hours and not mind it. A great discount or secondhand stores is hours of fun and enjoyment in my world. Even at these stores there is some rules you should follow. I found this article at one of my favorite blogs, it really has some good ideas.

With the current crisis experienced by almost all people around the globe, consumers always keep in their heads to budget their money. That is why most shoppers nowadays, buy their favorite products in places where they are sold at a low price or with discount prices. Discounters are receiving numerous products from big companies and retailers that are liquidating their inventories. These products sold by these retailer companies such as the Victoria's Secret, Banana Republic, and American Eagle to mention a few are sold at a very low price or with big discounts in stores and websites after following the supply processing channels of the discounters.

These branded products sold through discount channels are discounted apparels, which are sold at a portion of their original prices. The discounts of these branded apparels range from 10% to 50%, and sometimes even reach as high as 75% of the original price. Generally speaking, these discounted products are big disadvantages to these big labeled companies. So, in order to save their welfare from harm, these discounted apparels are generally bound to various terms and conditions.

These bigwig retailer companies are using certain method to protect their trading business. This method is by limiting the places where these discounted products are sold by contractual agreements. With this method, the big retail chains will have the advantage to gain control over the sales and distribution transactions of their merchandise. In addition to that, this will help them maintain the control on their brand equity, and as well as the distribution of the products after liquidation.

Another method used by retailer companies is through defacing their product labels. In this method, the most common way they will do is to completely remove the labels by cutting the tag with a pair of scissors or with a magic marker. In this way, the customer buying in a discount store will be discouraged to buy the product. And in return, the customer will go to the store where he or she can buy the branded product at its original price.

All in all, discounted apparels are already good bargains for the consumers. Plus, if they are not worried about marked or cut labels, then it would be a great bonus for them to buy the original products at a cheaper price.

As Seen on BBC News, FORBES and CNN Money
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