Auntie Kate The Resale Expert

Last week, we asked readers about their merchandising strategy for the very tail end of their clearance sales: goods which hadn’t sold during a scheduled markdown, then didn’t sell at the seasonal clearance sale either. For

the cheapest of the cheap,

what’s their preferred way of moving these items out of their shops?

Here’s the results of our poll:

• 34% of respondees counted on the single-price last-ditch sale idea, such as a 99-cent sale.
• 28% didn’t worry about clearing out the dregs in one big event, because they liked to maintain a super-low clearance rack, such as a Dollar Rack, as a part of everyday business.
• 22% use a Bag Sale where they encourage shoppers to stuff a bag for a given price.
• 7% of respondees felt that any such “final dregs” selling opportunity did not fit in with their overall marketing strategy and so do not hold such promotional events.
• 4% said their customers really liked BOGO events, and they used this method.
• And 4% have found that pricing the final dregs not only cheaply, such as at 99 cents, but also marketing the event as a multi-item sale with a focus on, say, 10 for $9.95, was their optimal strategy.

What we learn from this poll:

There are many ways to clear out and clean up, and each shop has to find a way to do so that works for them and their shoppers. And, of course, their merchandise. It’s hard to have a bag sale on furniture!

For example, I found that BOGO deals just did not work in my shop. Even when the 2nd piece was a penny, people said But I just don’t want anything else, and I felt like I was forcing more “stuff” on them: hardly the message of “own only what you love, bring the rest in so we can find it a good home” I chose for my shop.

It is interesting to me that only 7% of respondees mentioned that such drastic price cuts were not, they felt, part of a marketing plan they have in place. After all, you don’t see Neiman Marcus having bag sales. I tend to fall into this camp: if a shop promotes itself as great-deals-but-grab-’em-before-they’re-gone…. having an item priced at 10% of what it started out at seems to negate this marketing stance. I’d rather not make the last little dime on something if it meant I was encouraging my regulars to think wait, it’ll probably go for a song later on.

Why “Final Dregs” planning is important:

How a shop handles the no-one-wants-this items has an effect on how the shop is perceived by the public, and this perception can enhance or detract from the shop’s 365-day-a-year image. A stuff-a-bag sale is great fun for staff and shoppers… but if you work 364 days a year to emphasize that you do not accept incoming goods “in garbage bags”… does a bag sale work against you?

Click to add to your Resale Business Library

Choosing what your shop does with the last remaining unsold items  should not be an casual choice. Plan it out because it is part of the larger picture of how you position your business. Choose wisely! For more on conducting the type of sale you choose, read Bag Sales, Dollar Racks & BOGO Deals: Clear it Out and Clean Up

Bottom line:

Your marketing and merchandising plans for even the last sad pieces of merchandise must coordinate with your overall big-picture strategies.

See the poll (which is now closed.)