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In addition to running my regular
consulting business, I also work part-time as an Ad Set Supervisor for a
national retail store. During this time I have learned many of the ins and
outs of the retail business and how to get the most bang for my buying
dollar. If you follow these same ten tips I guarantee that you too will
save more money. Following are ten of the best inside tips I’ve learned
about the retail world since becoming part of it.
1. How
to Get the Best Clearance Price in Stores
In most retail stores, clearance is marked
down at the beginning of the month. And for stores that use the tiered
clearance system, where items fall in price as the month progresses, you
will find that the best time to get the lowest
price for a clearance item is toward the end of the month.
2. Yellow
Tag, Red Tag Clearance Method - When the Best Price Isn’t Always the Final
Clearance Price
Stores that use the yellow tag to red tag
clearance method also use a tiered
system to incrementally mark down items on clearance. Generally, items are
placed on clearance at the beginning of the month and will be gradually
marked down as the month progresses. Any remaining
yellow-ticketed items are then red ticketed for final clearance at the
beginning of the following month. Because this system is percentage based,
when the yellow-ticketed price drops to its lowest percentage off (usually
50% off the yellow-ticketed clearance price) makes this the best item to
buy. This way you can save as much as 80% off the regular price of an item.
However, if you wait until the same item is red-ticketed for final clearance,
you will pay a higher price and only receive about 50-60% off the regular
price. This is a clearance strategy used by many major retailers.
3. Too
Early/Too Late For a Great Sale – Not Anymore
Most retail stores have an
unpublished policy that allows customers to receive the sale price for an
item either a day before or a day after the begin and end dates of an
advertised sale. You just have to ask to receive the sale price.
4. Price
Adjustment – Too Late, Not Necessarily
Most retailers have a
published policy allowing customers a specific timeframe to receive price
adjustments and an unpublished policy that actually extends this timeframe
anywhere from 7 to 14 days. Even if you are outside the official timeframe
for a price change, make the request, as
most stores will honor the adjustment based on the unpublished policy
and because they won’t risk losing a customer.
5.
Buy One, Get One Free and Buy One, Get One ½
Off Sales (BOGO) – Great for the Retailer, Bad for the Customer
The national retail store I work at part-time as
Ad-Set Supervisor usually has a Buy One, Get One Free, and Buy One, Get One
½ Off Sale, also know as BOGOs, twice every sale cycle (12 weeks). It
always amazes me how many people flock to the store for these sales because
in the retail industry, these are known to be one of the worst sales for
customers. How? By breaking the numbers down one can quickly see just what
I mean. Let’s say you need a pair of jeans and find that there is a BOGO
sale at your favorite store offering you ½ off the second purchase. If you
paid $20.00 for the first pair and $10 for the second pair (since it was ½
off) your total purchase amount on two pairs of jeans is $30.00, with an
overall savings of $10.00 or 25%. But more than likely, these same jeans
usually go on sale for 30 to 40% off during one of the store’s regular sale
events. That means if you had purchased these same jeans during a regular
30% off sale you would have paid $14.00 per pair or $28 for two pairs a
savings of $12.00, or 30% off saving you an additional $2.00 than the BOGO
Sale. At 40% off you would have paid $12.00 per pair or $24.00 for two
pairs, or 40% off saving you an additional $6.00 than the BOGO Sale.
Buy One, Get One Free Sales are only good if you plan on purchasing two of
the same items anyway. Otherwise, they force customers to purchase more
than they had planned causing them to bring
home two items they only wanted one of in the first place. A way
around this dilemma is to shop with a
friend or relative who intends to purchase the same type of item that you
are going to purchase. Stores love these sales because it is a way of
getting customers to spend more money, reduce store inventory quicker, and
increase sales figures.
6. Shopping
Day Savings Passes, Just Ask
Several national retail stores
offer Shopping Day Savings Passes, coupons offering the customer anywhere
from 10-20% off every purchase made throughout
that day. These “savings passes” are available at customer
service desks. All you need to do is ask. One large retailer that offers
these passes is Macys.
7. Those
People with the Scanners – They Know More Than You Think
Ever go into a store and see
some of the associates with a scanner scanning items? Well, more than
likely those are “Ad Setters” responsible for placing sale signs for
upcoming sale events. Almost every store has an Ad Set Crew. Some stores
have the Ad Set Crew set ads for upcoming sales after store closing. Most,
however, have the Crew start setting ads a few hours prior to closing. Shop
during these hours and seek these people out. Why? They are the most
knowledgeable about what store sales are the best for customers and when
these sales are going to occur since they know about upcoming sales weeks in
advance. If you are wondering if an item you are interested in purchasing
is cheaper during the current sale or cheaper during an upcoming sale, they
can usually scan it and tell you. I
have helped countless customers save this way and then proceeded to tell
them about the day prior, day later rule covered in tip number three. Most
regular sales associates don’t have this inside information about upcoming
sales, nor do they have the ability to find out what upcoming sales prices
are going to be on items - that’s why
you need to speak to an Ad Setter.
8. Imperfections
= Discounts, Even Packaging
Everyone probably knows about
getting an additional discount on imperfect merchandise, but many don’t know
that imperfect packaging gets the same discounts. The store I work at, like
most stores, has a policy that allows at least an additional 10-20% discount
on damaged items. Even if the only damage is to an item’s packaging, we
gladly give this discount when someone asks. As a result, I have learned to
purposefully seek out items that have damaged packaging and to always ask
for this extra discount. To date, I have always received it. Being willing
to purchase items with damaged packaging creates a win-win situation for
both customers and the store: the store gets rid of slightly blemished items
and customers save money.
9. Forgot
Your Extra Savings Coupon – No Problem, Just Tell the Cashier
Many stores send out extra
savings coupons to holders of their credit cards or loyal customers on their
mailing list. Sometimes, however, customers get to the register only to
realize that they forgot to bring their “Extra Savings Coupon” with them.
If this happens to you, no problem, since most stores have a policy granting
the discount to the customer anyway just by telling the cashier that you
forgot your savings coupon.
10.
The Clearance Merry-Go-Round
Most stores have what is
called “back stock.” This usually refers to clearance items that have not
sold during the previous season’s clearance sales. These items are placed
in a designated area in the stockroom and then brought back out onto the
sales floor during a store’s next seasonal clearance event. For example,
January and February are two good months to find last season’s bathing suits
on clearance in many stores. May and June are good times to find heavy
coats and leather jackets at rock-bottom prices. I know our store does this
routinely, and have found this to be true for several other major retailers
as well.
I hope you are able to save tons of
money as I have by using these ten tips. Prior to working in retail I would
have considered myself a frugal and smart shopper but have since become even
better and saved more. By learning the ins-and-outs of the retail world and
by using these tips, I now pay less for brand-new brand-name clothing,
shoes, accessories, and home goods than I had previously paid at thrift
stores and I hope you do too. Happy Shopping and Saving!
- by: Jona E.
Kessans
Jona is an instructional
designer, web and graphic designer, and technical and business writer. When
she isn’t working on client projects, she can be found updating her personal
project,
www.simpleandfrugal.com, a website dedicated to those seeking to
simplify their lives.
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Copyright 2005 Jona E. Kessans. All rights reserved. |
