In addition to running my regular consulting business, I also work part-time as an Ad Set Supervisor for a national retail store. During this time I have learned many of ins and outs of retail business and how to get most bang for my buying dollar. If you follow these same ten tips I guarantee that you too will save more money. Following are ten of best inside tips I’ve learned about retail world since becoming part of it. 1.How to Get Best Clearance Price in Stores In most retail stores, clearance is marked down at beginning of month. And for stores that use tiered clearance system, where items fall in price as month progresses, you will find that best time to get lowest price for a clearance item is toward end of month.
2.Yellow Tag, Red Tag Clearance Method - When Best Price Isn’t Always Final Clearance Price Stores that use yellow tag to red tag clearance method also use a tiered system to incrementally mark down items on clearance. Generally, items are placed on clearance at beginning of month and will be gradually marked down as month progresses. Any remaining yellow-ticketed items are then red ticketed for final clearance at beginning of following month. Because this system is percentage based, when yellow-ticketed price drops to its lowest percentage off (usually 50% off yellow-ticketed clearance price) makes this best item to buy. This way you can save as much as 80% off regular price of an item. However, if you wait until same item is red-ticketed for final clearance, you will pay a higher price and only receive about 50-60% off regular price. This is a clearance strategy used by many major retailers.
3.Too Early/Too Late For a Great Sale – Not Anymore Most retail stores have an unpublished policy that allows customers to receive sale price for an item either a day before or a day after begin and end dates of an advertised sale. You just have to ask to receive sale price.
4.Price Adjustment – Too Late, Not Necessarily Most retailers have a published policy allowing customers a specific timeframe to receive price adjustments and an unpublished policy that actually extends this timeframe anywhere from 7 to 14 days. Even if you are outside official timeframe for a price change, make request, as most stores will honor adjustment based on unpublished policy and because they won’t risk losing a customer.
5.Buy One, Get One Free and Buy One, Get One ½ Off Sales (BOGO) – Great for Retailer, Bad for Customer The national retail store I work at part-time as Ad-Set Supervisor usually has a Buy One, Get One Free, and Buy One, Get One ½ Off Sale, also know as BOGOs, twice every sale cycle (12 weeks). It always amazes me how many people flock to store for these sales because in retail industry, these are known to be one of worst sales for customers. How? By breaking numbers down one can quickly see just what I mean. Let’s say you need a pair of jeans and find that there is a BOGO sale at your favorite store offering you ½ off second purchase. If you paid $20.00 for first pair and $10 for second pair (since it was ½ off) your total purchase amount on two pairs of jeans is $30.00, with an overall savings of $10.00 or 25%. But more than likely, these same jeans usually go on sale for 30 to 40% off during one of store’s regular sale events. That means if you had purchased these same jeans during a regular 30% off sale you would have paid $14.00 per pair or $28 for two pairs a savings of $12.00, or 30% off saving you an additional $2.00 than BOGO Sale. At 40% off you would have paid $12.00 per pair or $24.00 for two pairs, or 40% off saving you an additional $6.00 than BOGO Sale.
Buy One, Get One Free Sales are only good if you plan on purchasing two of same items anyway. Otherwise, they force customers to purchase more than they had planned causing them to bring home two items they only wanted one of in first place. A way around this dilemma is to shop with a friend or relative who intends to purchase same type of item that you are going to purchase. Stores love these sales because it is a way of getting customers to spend more money, reduce store inventory quicker, and increase sales figures.