Price Promotion Is Also A Skill.

Price reduction refers to lowering the original commodity price. clothing It is very common to reduce prices in stores. From the past to the present two, clothing stores are typical of frequent use of price reduction strategies, because clothing has obvious timeliness and seasonality. For seasonal and seasonal commodities, their market value is greatly reduced. If they do not release in time, the stores will be in trouble. Although the over season goods can be sold again next year, it will cause the shops to get into trouble next year. Although the over season goods can be sold again next year, but whether they are popular next year, whether there is a sale or not, even if the market is promising, the high interest rate hoarding in a year will eat all the profits. Therefore, the sale of clothing stores is inevitable.

Sale is not unprofitable, because clothing often brings high profits, sometimes the profit rate of the fund can reach 100% or even 200%, even if the sale price is reduced, 20%~50% sales will not lose money.

The main reasons for the price reduction are as follows:

(1) store goods are backlog. When market Oversupply, store inventory backlog serious, need to expand sales, but the use of other non price means competition, such as increase sales force, improve products, strengthen sales promotion can not achieve the purpose of expanding sales, shops should consider reducing sales promotion.

(2) the market share declined gradually when the store encountered fierce price competition.

(3) after the product enters the cost period or the mature period, the average cost decreases with the increase of sales volume, and the store increases through the price increase. Sale To get more profits.

(4) when the new products of the same store or other stores are listed, they will sell their products on a reduced price.

Price cuts may lead to oversales and may lead to unsalable sales. Therefore, it is necessary to reduce prices for commodities. Generally speaking, the price reduction in off-season is better than that in the peak season; the price of the same product will lose market share too much; the price reduction in the short term can prevent new brand from entering; the new brand reduces the price effect better than the old brand; when the sales volume falls, the price reduction effect is not ideal. Specific shop price reduction techniques are as follows:

(1) cut prices for commodities

At present, many stores in China buy goods when they buy goods, that is, they can be returned to suppliers when the sales are not moving. This way of purchase reduces the risk of shops, but inevitably causes the high price of goods purchase, which is not conducive to the formation of store competitiveness. In order to reduce the cost of stock purchase, some shops, especially foreign-funded shops, have bought buyout, that is, all goods that can not be sold will be borne by the shops, so that there will be a problem of lowering prices for unsalable or defective products.

First, we should sum up our experience and improve our work. Clothing products cut at prices are often defective. After the price reduction is processed, we should seriously investigate and study the responsible accidents in the damaged commodities, find out the causes, handle them appropriately, and further establish and improve the necessary systems, improve the maintenance and management of commodities, and reduce and prevent the appearance of damaged and deteriorated commodities.

Second, reduce prices elsewhere. If we deal with the price cuts and accessories in this store will affect the image of the shop, we may consider setting up other venues for price reduction or resale the rest of the goods to other shops in a whole batch, so that they can reduce their prices.

Third, explain the reason of price cut. When dealing with defective commodities, it is necessary to separate the damaged and deteriorated commodities from the good ones, such as putting the damaged articles in the float car to make the customers clear at a glance and not affecting the sale of the seasonal merchandise. Generally, the words "over season", "damaged" and "promotion" are tagged on the price tags of problematic or seasonal clothing, so that customers can understand the reasons for the price reduction.

Fourth, depending on the extent of damage, the price of damaged and deteriorated commodities needs to be cut down in principle. According to the different degree of damage of each commodity, different prices can be stipulated, and the prices can not be cut according to the varieties, and generally cut down according to a price cut.

(2) limited price reduction

Limited price reduction is a good way to promote the sale of goods by using the psychology of customers' profit. For example, the "good suit" suit shop in Japan is a successful example in this respect.

(3) reduce the price and gradually reduce the price.

The price reduction has an important impact on the promotional effect of price reduction. A small price cut is too small to attract customers' attention, often can not play a promotional role. When a price cut is too large, customers will be misgivings about the value of the goods and the quality of the products, which will also impede the sale of goods.

And gradually reducing prices can also achieve good results. For example, a shop that runs ties, said on the bulletin, "the 70 original ties of 100 yuan imported from Italy were sold at the price of 600 yuan initially, only 12 or three articles were sold, and the cost was recovered. It took half a month. Since then, the price of this shop has been dropping down. In about four or five months, 2/3 has been sold. The remaining 1/3 is sold at the original price, which is 100 yuan each. Because the boss is making money publicly, customers are happy to buy expensive and happy to buy bargains. The store is booming.

(4) timing of price cuts

The key to choosing a price reduction is to look at the sales situation. If the goods can be sold smoothly, stores can choose to delay the price reduction. If the price reduction has enough stimulation to customers, it can speed up the sale of goods and choose to lower prices early. Late price cuts and early price cuts have their advantages.

Early price cuts can make room for new products and speed up the turnover of store funds; the implementation of this method is that when prices are still very strong, the sale of goods can greatly stimulate consumers' desire to buy; early price cuts are comparable to those at the end of the selling season, and only need less reduction to sell them. The main advantage of late price reduction is to reduce the decrease in profits due to price cuts. Stores can have the opportunity to sell ports at the original price to avoid frequent price cuts interfering with the sale of normal goods.

The more popular way of reducing price is to combine early price reduction with late price reduction. For example, many fashion The clothing store cut its price by 20% in the first few weeks, then cut the price by 30% in a few weeks, until it is sold out. This method can increase profits more than those with low price but large price cut. This may be because customers believe that they are more cost-effective when buying goods before they are sold out.