Creating a Going Out Of Business Hype for A Store Closing Sale
A store closing sale is unlike any other sale that an independent retailer will conduct.
When it’s done, it’s done.
Because of that, it has to be done with precision to be a success, especially if the retailer is seeking to close with a profit.
Most importantly there is no “do overs” if mistakes are made – they get one shot at it or risk losing money, time and their reputation.
Why a sale is conducted, however, is almost as important as how it is conducted.
Some retailers can see problems coming and steer away from them with a professional cash flow event or sales promotion, thereby avoiding being forced to close their store.
For others, however, this is not possible, and closing the store becomes the only realistic option.
When this happens it is usually because a retailer has found himself or herself in a cash flow crunch.
These kinds of problems require immediate attention but not all merchants realize this.
Most do not know what to do or where to turn even if they do notice a problem.
Others don’t take the time to stop to think about what caused their problems, and so nothing changes for them.
When retailers do not stop to analyze the problems that they have with their business and their cash flow, the situation can deteriorate quickly.
imagine your store looking like this at the start of the closing sale
Hype created, long lines of customers and minimal discounts
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And looking like this after the Store closes
If it worsens too much, it can become ‘unsaveable,’ and therefore the store has to close.
But don’t believe the going out of business hype…just because a store has to close doesn’t mean that there isn’t any more money to be made.
It is highly possible the inventory that the store still has and can obtain can be converted to a healthy cash return.
This can be done relatively quickly, if the store will hold a professional going out of business or store closing sale.
These professional sales provide the merchant with a chance to get rid of the inventory that he or she still has and to make money doing it.
However, many instead lose money trying to simply ‘get rid of’ what is still left in the store. Not a good strategy.
Naturally, there is often a little bit of inventory left over, as it is extremely difficult to sell everything right down to the last item.
This is most likely old merchandise that no one wanted in the first place and it would not be cost effective to keep a store open with only a few dozen items on the shelves.
However, even selling inventory in lots or large groups at a discount near the end of the sale can be beneficial and create a profit if it is done correctly.
Independent retailers, unfortunately, do not always know how to handle these sales effectively
Because it is unlike anything they have ever done before.
This can stop them from making the profit that they desire, and that they could make if they knew of better techniques.
What items to mark down and when to mark them down is but one of the many challenges that owners face with this type of sale.
Remember this is not business as usual.
In reality, a store closing sale is much different than the preconceived notion that a retailer has about it.
It is so very different from the regular sales that are held throughout a merchant’s career that he or she is often caught unaware by some of the challenges they will face in order to make the sale a success.
Most have no idea about how to conduct, let alone market a sale of this nature.
A retailer that has done his homework can usually determine, however, what kinds of situations need to be addressed so that a store closing sale can be effective.
For example whether their issue is lack of customer flow, marketing or actual sales in a certain area.
The independent retailer knows their business better than anyone and should never be required to resort to gimmicks and a sacrifice of dignity to move merchandise.
There are some retailers that will do these things in the hopes of selling a lot of merchandise very quickly, but it has been proven that savvy consumers soon lose their interest in these types of sales promotions.
These efforts almost always attract people who are bargain hunters only and will wait out a sale to the final days, instead of true customers looking for a fair deal.
A well-done and professionally conducted closing sale is much more likely to bring in a large number of true customers and create a high level of profit.
Consulting companies can help an uncertain merchant prepare his or her business for a store closing sale without allowing him or her to get caught up in all the hype that can often surround it.
This leaves the store owner to be free to do all the duties of running their business, with the peace of mind that the right consultant will run a successful store closing sale.