Skip to main content

How companies are making money in Garments sales by offering Buy 2 get 1 free offer or 50-70% discounts on MRP?

Companies that offer "buy 2 get 1 free" or significant discounts on the manufacturer's suggested retail price (MRP) in the garment industry can still make money in several ways:



Photo Courtesy by Ivan Samkov, Pexels.com


  1. Increased volume: Offering discounts can lead to an increase in volume of sales, as customers are more likely to buy more when prices are lower. This increase in volume can offset the lower profit margins on individual items.

  2. Clearing old inventory: Companies may offer discounts as a way to clear old inventory and make room for new products. By selling old inventory at a discount, they are able to make some profit rather than having to dispose of it.

  3. Brand exposure: Offering discounts can also help to increase brand awareness and attract new customers. The hope is that these new customers will continue to buy from the company even after the discount period has ended.

  4. Upselling: Offering discounts can also encourage customers to buy additional items that they may not have otherwise considered. This upselling can lead to higher overall sales for the company.

In conclusion, companies can still make money from offering discounts and promotions, even if the profit margins on individual items are lower. By increasing volume, clearing old inventory, attracting new customers, and encouraging upselling, companies can generate additional revenue.

Comments

Post a Comment

Popular posts from this blog

NetScreen on Windows: Skit | Memories from 2006

[A skit written for our internal corporate event in 2006]   NetScreen on Windows: Skit    Story, Dialogue Mohan Krishnamurthy Starring: Rajesh  – An overly aggressive sales guy who believes every phone call is a golden opportunity to close a deal. Ramesh  – Rajesh’s faithful backend support, always on standby. His primary skill: Googling frantically. Mrs. Mumtaz Ali  – A practical housewife looking to buy net screens for her windows to keep out mosquitoes and houseflies. Mr. Ahmed  – Mumtaz’s husband, an average computer user who knows just enough about technology to be confused but not enough to escape Rajesh’s sales pitch. Setting: Pan-Emirates, the town’s go-to hardware shop, has its phone ringing nonstop. Rajesh’s direct number, 8915691, is often mistaken for the shop’s main line, 8915961. Typically, wrong numbers frustrate him—except today, when fate delivers an accidental lead that perfectly matches the product he sells. Time to strike! Act 1 – T...
Post a Comment
Read more

What are the new things happening on Internet similar to ChatGPT?

  There are a number of new developments in the field of natural language processing and machine learning that are similar to ChatGPT. Some examples include: OpenAI's GPT-3: GPT-3 is a more advanced version of GPT-2, it was released a few months after GPT-2, and it has been demonstrated to have even better performance on a number of natural language processing tasks. Google's BERT: BERT is a neural network-based model for natural language processing that has been trained on a large dataset of text and can be fine-tuned for a variety of natural language processing tasks, including sentiment analysis and question answering. Microsoft's Turing-NLG: It's similar to OpenAI's GPT-3, Turing-NLG is a text generation model that can be fine-tuned to perform a variety of natural language generation tasks, such as question answering and text summarization. Facebook's RoBERTa: RoBERTa is an optimized version of BERT, which was trained on a much larger dataset of text and has...
Post a Comment
Read more

What is a Presales Consultant Checklist?

  What is a Presales Consultant Checklist? Please share one!   Presales Consultant Checklist Presales consultants play a crucial role in bridging the gap between technical solutions and customer needs. This checklist outlines key steps to guide you through the pre-sales process and ultimately increase your success rate. Remember, this is a general framework, and you may need to adapt it based on your specific industry, solution, and customer. Before the Meeting: •  Understand the customer and their industry:   Research their business, challenges, and competitors. •  Review the sales opportunity:   Familiarize yourself with the sales team's goals and qualification criteria. •  Identify key stakeholders:   Understand who will be present and their decision-making roles. •  Prepare your presentation:   Tailor your message to address the customer's specific needs and pain points. •  Practice your presentation:   Ensure you can deliv...
Post a Comment
Read more