Which is better?
50 Cents NOW or $1 in July…maybe 1.
After my post a couple of weeks ago about moving out the last of your sale merchandise at steep discounts, I got pushback and many questions about it.
(These are actual emails and FB posts.)
Freaking out a bit, but also sick of starring at this winter crap! I am also worried that if we do this we are going to be left with nothing! And I worry about my profit! I don’t want this to catch up with me and hurt me later. How many times can you safely take a bath on old goods? At this point we usually pack up what’s left for July sidewalk sales because we start then at 50% off and we usually are not left with much. Thoughts???
Ack! I can’t decide what to do for a Super Bowl sale this Sunday, and I have to write the email tonight (like NOW). Is anyone doing any kind of sale on Sunday? In the past, we did pre-game day on Saturday, $1 off a yard of fabric, then Sunday, game day, $2 off a yard. Cathy suggested using 50 in the promotion, because it is the 50th Super Bowl and doing 50% off clearance. I don’t know if I am brave enough to do that – it would put the fabric below cost. But it’s old inventory that could be turned into cash. but only a little bit of cash. Any golden advice from the smarties?
My response to both was:
LISTEN TO ME: I would rather that you have 50 cents in your pocket NOW then wait until July and MAYBE get $1.
We did this quick video for you.
So that is the secret! Don’t be afraid to take it way down and get the 50 cents!!
Of course this is ONLY after following the Killer Clearance Sale Formula which gives you much opportunity to sell at intermediate markdowns. Any questions – just ask on FB.
AFTER SALE UPDATE:
Lynn posted: We did over 1800 yesterday and 1600 today! You know how much stuff we had to sell at such discounts to get to that? We moved a Ton of stuff! We have hardly anything left! Our pinkies didn’t let us down! Can I get a woot woot?!
Lara said: Final count was 111 empty bolts. I had several people say “thank you for doing this” when they checked out. Lots was bought by women who sew charity/donation projects, so that was a good thing and it was nice they were thankful about it. But, I have to tell you, I am not sure how I feel about this sale. We got rid of a lot of old product, we put money in the bank, but most of the days sales were below what I paid for them. I think I need some enlightenment on how to view this.
Cathy here – I so appreciate her honesty. She was still struggling – and this is what her fellow Profit Club smarties said:
Maeve: But if you had not sold it what would you have done? 75% of last 3 days was well below cost but I have money and empty shelves. Win win not to mention lots of happy fingers and a few thumbs.
Michelle: AND we can use that money to buy new merchandise that will turn quickly and give us more profit! I’ve been doing this for two years now and my maintained markup is rising despite the SACS and huge markdowns. Keep your chin up, Laura, we all dread that part. I had customers telling me they felt like they were stealing from me. They felt guilty. I told them I had it too long and needed it to go so I can get in something new and thanked them for helping me.
Amber: While it seems counterintuitive, the two years I have been doing this has also improved all my numbers. I have developed several super pinkies who we call and they are there 5 minutes later. And my thumbs love the opportunity to get something they had been looking at for a little less.
Dot: It really does work, Lara! Just like Amber said, my MMU is going up every year despite these whacky sales way below cost at the end. You are going to take that money and make it work now! It’s hard to see it sometimes, but those items collecting dust and making your shop look stale will cost you way more than the money you lost on those few days of bottom barrel blowout. Plus, your customers had a blast and that will make them come back! You most definitely created a Win Win for yourself…
Lara: Thanks for the responses. You know I follow the advice my Maven gives, I needed a new way to view this sale.
Any questions just ask.
I am here to help you!
This blog post is re-blogged with permissions from Retail Mavens. Original blog post can be found here.