Here Is Why Factory Outlets Sell Goods At Cheaper Price Than At The Showrooms

Who doesn’t want to indulge in branded products? However, most of the time they are priced at such shockingly high rates, that we often tend to let go of our luxuriating desires. One way to gratify our wants is to head to the Factory Outlets of such brands. And if you have always wanted to do so but were left doubting their genuineness, here is some information that would make you change your mind. The products sold at a Factory Outlet are usually lesser in cost as compared to those sold in stores/ malls/ showrooms, although they belong to the same brand. This is due to a number of factors. Now, these factors may be of some importance to people who want to spend only on the current and ongoing fad or just for that mental satisfaction of purchasing something from a mall/store. However, believe it or not, these factors are of little significance if you are not fussy about these things.

Let us take a look at some of the reasons due to which the goods end up being sold at their respective factory outlets with discounted price:

1. Clearance of stock

Let us start with one of the biggest reasons for such price differences. If a line of products of a brand has not sold as expected, then the safest way to get done with their sale is selling them at factory outlets. This mostly happens when a new/ latest version of the same stuff is launched in the market. If there is stock left from the previous version which will now be considered as outdated, manufacturers would at least want to recover the costs, if not make profit. So, this stock is then sold in factory outlets at a lower price. Now, when a branded product is offered at a good price/discount, buyers usually don’t mind spending their money on it as compared to shelling a bigger amount for the same in a store. And for people who do not care much about donning an older version or from the ‘previous season’ which can even be as little as a few weeks back, it becomes a perfect deal. Moreover, if you missed out on a particular style from the previous season, you know where to check now!

2. Minor labeling defects

At times, a product is slated for a sale in a retail store; however, it bears a minor defect in its tag/ washing instructions/ size tag/ style type tag, which might not even be that prominently visible to a buyer. These types of products are then sent to a factory outlet for sale at a lower price as keeping them in the retail store hampers the image of the brand. So next time you try something on in a factory outlet and are trying to find out the defect in that product, look for these things closely. If you can locate one and it happens to be at a place which will not be visible to the others, you can confidently go ahead with the purchase!

3. Minor design fluctuations

At times, products being displayed at a store may have a difference in thread work or shades of colours of the fabric/ buttons/ zips/ threads, etc. The buyer might not notice these abnormalities but ethically, the right thing to do would be selling that product at a lower price at a factory outlet. Who knows, a buyer might be ready to ignore these minor discrepancies and still be happy to purchase a branded product at a lower price!

4. Inconsequential issues

There may be an instance where there might have been some complaints about the quality of a particular line of products in a brand. And upon realisation, the last thing a manufacturer would want is to let that effect the brand image. Therefore, that particular product is sold at a much lower price just to recover the manufacturing costs as returning them for a corrective action would require higher costs to be incurred.

5. Result of an oversupply

This is another case in which the products would have a minor difference in quality or a minor defect. However, this time the seller may divert this stock to their factory outlet along with their new and revised stock, as returning the same would incur big expenses. The factory outlets would in turn have an excessive stock, causing them to take down the prices of the defective goods even more. And if the defect is not that significant, it surely is a steal!

6. Cost of manufacturing

The brands might want to provide customers with a range which is more affordable and bears a lesser manufacturing cost, while keeping the lineage of the brand alive. Such products, as compared to their counterparts sold in stores, would have differences which are negligible but make a significant difference in the manufacturing costs. These variations could mean a different finishing or usage of a comparatively cheaper labeling method. These differences are not that prominent and are not easily visible as well. It is a win-win situation for both the buyer and the seller.

7. Cancelled orders

At times, there are buyers who change their minds after placing an order or receiving it. They return the product and the endless reasons could range from ‘change of mind’ to ‘defective item received’. There may also be instances where due to a difference in the purchasing pattern of buyers, the seller decides to take off the products from the store shelves. All these products are then sent to their factory outlets and sold at a cheaper price.

A point worth mentioning is that usually the factory outlets inform you about their products, if any of them bear a slight defect. And if they don’t, you must not hesitate to enquire. After all, you are the buyer and the goods are there for a reason. It should also be understood that although, it is better to be aware of what you are buying, not all products available at a factory outlet are defective. So, do not think that if that product is being sold at a factory outlet it is inferior or must have a fault. As, now you are aware that the reasons which cause a product to land at the factory outlet are much more than just being defective. So, happy shopping!

Also read- 17 Tricks Used By Shopping Places To Make You Buy More