[quote=mzsooz]I would like to address the sale and clearance prices on our fabrics. When you see these fabrics on the clearance table and are marked down considerably just remember this.....they are probably selling those fabrics at BELOW their own cost. And when you see the 20% or so discounts they are probably selling their fabrics AT COST. That means NO PROFIT. They are counting on you coming in for those discounted items and being impulsive and buying other regularly priced items. They used to call these "loss leaders". Not sure if that term is still used but I know this practice is quite common.
Promos and sales have been around as long as man has been selling. The issue isn't the lure factor it's the mark up factor'the hook'. I have worked in different fields even in dental it is done. In the majority of cases stores have made a deal with the wholesaler for the promo item and have themselves been cut a big break so a sale of 20% off is not a serious loss to them. damaged goods can be returned to the mnufacturer unless the store owner has not negotiated that or is spineless. I don't feel sorry for the stores on their mark ups/markdowns. It is a well known practice to mark items up then cross out the price and make it appear as though they are sacrifically doing something for you that is a loss tothem financially. Granted a smaller store has less negotiating power then a large one or a chain, but none the less they still have control when it comes to buying goods. If you think they are taking a sacrificil loss think again- the higher prices make up for what they didn't get the fist time around. The mistake many smaller shops in our area have made is snobbery- believing if they are gracing everyone with their mere existance and people will automatically and unquestionably flock to their doors. We have a small business too and competing in th market with the big dogs isn't easy so we find our own nitch, provide complete customer and client care and take on the challenge of the big dogs when needed. With the economy the way it is it is fool hearty to assume you will have customers flocking to you- you have to compete. Frankly that's no a bad thing, when someone has a corner on market that's a problem.