Why is it that department stores have end-of-season clearances and sales? To put it simply, any products that they don`t sell within that season are not profitable for them to hold on to for the long run. Styles and models for many different products from clothing to consumer electronics are constantly changing. For a retailer to stock items past their shelf life is costly for them to do. In order to clear out their inventory; prices are slashed to help them move out of the store quicker to make room for newer products and styles. A retailer would much rather slash a products price by 25% rather then losing valuable stock room space to store an item for another year.
Did you noticce that stores begin stocking Christmas products in October? Stores will adjust to a season roughly two months before the season starts. This is done to build buyer anticipation and to attract all the early birds who like to get a jump on their shopping. It`s also done so that retailers have an extended period of time to sell their newest products prior to the beginning of the actual season. The goal of this is to generate as much revenue as possible before the season actually starts; and then to clear out the inventory by the midpoint of the season.
So how do you take advantage of this? The simple way is to know what your shopping for and when to buy it. When it comes to seasonal clothing, it`s best to wait until the middle of the season to buy clothing for that season. For example, summer clothing will normally hit the shelves during the month of March or April. Depending on where you live, you may not need to prepare for summer this soon. If it does start early, and yoour clothes aren`t too dated; you should be able to get by the first two months of the season without any issue. Start shopping for summer clothes around May and June and you`ll notice that the clearances for summer are already starting!
In the world of electronics, there really aren`t any defined seasons. The latest and greatest technologies are the ones that carry the premium price. When shopping for a digital camera, you might find that the newest model carries a 25% price premium over the previous model. Do you really need the newest model? Does the old model carry all the features you need? The fact is the typical consumer won`t use more then 50% of the features available on any electronic device, for a digital camera most people may not use more then 25% of those features! Think about it; how many buttons does your television remote control have and how many times have you used each button? Unless you are taking the time to read the manual and test every feature, you
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