The Wrong Way to Set Up Your Outlet

February 1, 2021

I don’t know why businesses who sell at a discount don’t think they have to operate the same way as regular retail stores.

Regular retail brick & mortar stores generally sell at 2.0-3.5 markup. But at $20 sell at $50-$60.
Surprise…. That’s exactly what Off Price, Discount Outlets and Liquidators do. They simply buy at a lower price, so are able to sell at lower price. The mark up generally is the same.

That said, the most successful outlets present and market their product almost exactly the same way as regular retailers. Clean, pleasant ambience, good lighting, organized stores and friendly & helpful employees.

But of late, I’ve noticed that a lot of “discount” outlets are more chaotic than they should be with messy shelves and aisles, and no pricing on product.

That’s a huge mistake. Don’t be disrespectful to your buyers.

When you set up your outlet store, think like a shopper. The easier it is to see the product, know the price as well as original retail, the better your results will be.

Keep your store, shelves and aisles organized and clean. Clearly mark your price and the original retail…. don’t exaggerate the retail. Everyone has a smart phone and can check what the market price is. If they think you lied to them, they won’t be back. If shoppers have to be careful where they walk, for fear of tripping, you’re setting yourself up for a lawsuit.

Arrange small displays, organize by product type and have good lighting. I’d also recommend a chair or two to sit on and some available water.

Shoppers honestly don’t care how hard you work, that you’re short staffed or any other excuse for chaos. Though most of us would understand, it won’t make us come back to your outlet store to shop. Remember selling anything is a business transaction. Treat your shoppers they way you want to be treated.

The truth is, humans don’t want to work hard to get a deal. Convenience and ease of shopping is more important than the deal. Why do you think Amazon has grown so quickly? It’s easy.

Retailers work really hard to create a wonderful shopping environment. Off Price sellers must do the same. Shoppers choose where they want to shop. It’s not always about price.