The Wrong Way to Set Up Your Outlet
February 1, 2021
Why do businesses who sell at a discount think they don’t have to operate the same way as regular retail stores. Instead of doing it the wrong way to set up your outlet store, do it the right way.
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. It’s the wrong way to set up your outlet.
When you set up your outlet store, think like a shopper. The cleaner the store, the more organized it is makes it easier to see the product. Shoppers want to quickly know the price as well as original retail. tYour results will be better.
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. Shoppers don’t want to be careful where they walk, for fear of tripping. Keep your aisles clean or you’re setting yourself up for a lawsuit. A shopper doesn’t want to climb or get dirty.
Arrange small displays or room settings. Organize by product type and have good lighting, music and air circulation. Keep your shelves, organized, tidy and have sections by type of product. Make sure product on shelves is easy to see and not strewn about. I’d also recommend a chair or two to sit on and some water made available.
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 be understanding, it won’t make us come back to your outlet store to shop. Remember selling anything is a business transaction. Make it a pleasant experience. 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 now more important than the deal. Why do you think Amazon has grown so quickly? It’s easy.
Main street retailers work really hard to create a wonderful shopping environment. Off Price sellers must do the same. Remember, shoppers choose where they want to shop, and it’s not always about price.