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How do outlet stores work? How do they keep their prices so low?
September 28th, 2009 | 
Author: I believe originally outlet stores sold merchandise that was damaged or imperfect. At a later time, companies started manufacturing items specifically for their outlets — items that might be at a slightly lower quality than you’d find in the regular retail stores. I recently found a Sears outlet that had amazing prices on flat-screen TVs. How do they do this? Is there something wrong with the TVs? Why would somebody buy the same TV at the regular store when you can go to the outlet and buy it for much less (unless that’s the catch… it’s not the same TV)? Basically, what’s the catch with outlet stores?
There is no catch.. It’s buyer beware. Sometimes you can buy things from a retailer for less than at the outlet stores.
People have been so fooled into buying STUFF. There are huge markups on so many items.
A shirt might cost $1 to manufacture and sells for $60-$100
If you buy in volume or cut the label the price changes.
Outlet Stores are just MORE stores and places to shop til u drop. It is a misconception that you will always buy at an outlet store for less.
People who make TV’s MUST keep selling TV’s, they will do whatever they have to. The will add a letter to the model number and call it a new/different model, or change an option. The old ones go to the outlet store and the main store no longer carries that "old" model.
It’s the SAME QUALITY TV… they need to keep moving merchandise. Ever thought about how many of ANY item is in stock and available for sale througout the world ??
The people who make them don’t stop making them, especially electronics.
Cel phones will work for many years, but they want you upgrade every year or two,, it doesn’t stop.
People are addicted to spending money on more STUFF.
Posted in outlet stores
the catch is to get u to buy something that has no use in the actual store, an outlet store carries something that may be damaged or have even the slightest imperfection some in which u cant even tell theres anything wrong with it–which is a good thing!! cuz if people are paying a lot of money for an item they dont want ANYTHING wrong with it at all really, so out let stores are there for u to buy the same thing with just a noticeable or unnoticeable deffect
hope that helped ya
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You are right about the outlet stores selling items with slight (often so minor it cannot be detected) damage. But, also, outlet stores give the manufacturer a way to sell direct to the consumer, cutting out the middle man. If I make shoes and I sell those shoes to you via my outlet store they are my cost plus a reasonable markup for profit. If I sell those shoes to Walmart who then sells them to you guess what, I still make my profit and now so does Walmart. However, the reason that all manufacturers don’t do that is that some items don’t make enough money on single purchases to justify a store. If I make toilet paper and sell through an outlet then I have to sell a lot of toilet paper just to make the store rent. However, Albertson’s or Safeway or whoever you have makes a little off the toilet paper and a lot off the apples and little off the bottled water and lot off the beer…etc.
References :
There is no catch.. It’s buyer beware. Sometimes you can buy things from a retailer for less than at the outlet stores.
People have been so fooled into buying STUFF. There are huge markups on so many items.
A shirt might cost $1 to manufacture and sells for $60-$100
If you buy in volume or cut the label the price changes.
Outlet Stores are just MORE stores and places to shop til u drop. It is a misconception that you will always buy at an outlet store for less.
People who make TV’s MUST keep selling TV’s, they will do whatever they have to. The will add a letter to the model number and call it a new/different model, or change an option. The old ones go to the outlet store and the main store no longer carries that "old" model.
It’s the SAME QUALITY TV… they need to keep moving merchandise. Ever thought about how many of ANY item is in stock and available for sale througout the world ??
The people who make them don’t stop making them, especially electronics.
Cel phones will work for many years, but they want you upgrade every year or two,, it doesn’t stop.
People are addicted to spending money on more STUFF.
References :