They say that the best time to buy is when there is a SALE. But before you dive into the store and buy everything that’s discounted, let’s find out why stores are putting their products and services on sale.
1.) To Attract Customers
Look at the stores in your place. You will find a big SALE poster plastered into the front display. Sale items are like baits used to attract customers to come into their store.
This marketing technique has been used for ages because this is so effective. People often see discounts as a big opportunity to save money and enjoy a product or service for a whole lot less. In fact, discounts usually influence customers to buy more products or services than they initially planned. They love to ‘take the opportunity’ because the same products may not be so cheap tomorrow.
2.) To introduce and test the product or service in the market
For new product or service to penetrate in the market, it needs to be tested to see if it will sell and if there is a demand. A great way to test and let the people know that if the product exist is to cut down the price to lure people to try.
If a customer is satisfied and happy with a product or service, it is but natural that they like to share their experience with other people.
3.) Slow moving stocks and near its expiration date
For items that have been staying long in the shelves because it is not selling well, there will come a time that they have be moved out to give way to fresh stocks. Instead of throwing products it away, stores marked it down with the hope that these stocks will be sold-out before the new products would arrive.
4.) Competitive Advantage
When a product is displayed in the shelf together with other brands, the best way for it to stand out is have it at a discounted price. Discounted items are usually displayed in a more visible area with more attractive tags.
Now that you know the reasons why the product or service is discounted, how would you know if you were able to get the best deal out of the SALE?
The key is your own needs.
Let’s take this example. If you already have already bought a big bottle of shampoo, and the same item is now on sale, would you buy it?
You might say, “Yes. I will be using it in the future when I run out of shampoo.”
But try to think again. With the money that you have right now, is it more than enough for you to buy this shampoo for future use? If yes, go ahead and buy it.
But if your money is just enough, then use your money for more important purchase. You don’t need to fall into the bait of discounts and deals.