Why you can find products with lower prices in outlet stores
When you want to shop for a particular product, you would probably want the cheapest version of that product that would give you the least quality you want. However, even if you are not looking for the cheapest version and you have a taste for a particular brand or model of a product, you would want to get the product at the least possible price. Once you are sure that they are the same model, are both original and all other conditions being equal especially that you won’t have to spend extra to ship the cheaper version, you would always go for the cheaper version of that product. If you have been wondering where you can get products at lower prices, then you might want to consider outlet stores.
What are the outlet stores?
Outlet stores are stores that are owned by the manufacturer of a particular product where they sell directly to consumers. Things are moving so fast in the business world today that goods no longer have to pass from the manufacturer to a wholesaler and a retailer before they can get to a consumer. It is now possible to buy products from the outlet store of the manufacturer, which in this case eliminates the role of the wholesaler and the retailer.
Why are products cheaper at outlet stores?
The major reason why products are cheaper at outlet stores is due to the fact that the wholesalers and retailers are not involved. Imagine that the production cost of a product is 100 USD and the manufacturer intends to sell it for 110 USD. They would be selling at 110 USD to wholesalers who would have to ship those particular products down to their location. By the time they consider the cost of shipping, the cost of their warehouse, the cost of paying their staff, the running cost of business, the price of the product could have risen to 120 USD. They would also have to make some profit on the product, leading to a new price of between 120 USD and 130 USD. The retailer would then get some of the products from the wholesalers and also incur his own expenses. By the time the retailer adds his cost and profit, the price of the good might have already increased to over 150 USD. However, when you buy directly from an outlet store, you would be able to get the product at the 100 USD the company intends to sell it and at worse, you could incur an extra cost of a few dollars to ship it down to your location that would not be up to a total cost of 120 USD including the cost of the product. Most online stores today, including outlet stores, provide free shipping. The bottom line is that no matter what happens, you won’t have to pay more than 125 USD for a product you bought from an outlet store compared to a minimum of 130 USD from a wholesaler or a minimum of over 150 USD from a retailer.
How can I find outlet stores online?
The best way to find outlet stores online is to go to the official website of the company that produces the product. You could read reviews about the factory outlet store to know more about available outlet stores and their reputation with delivering goods to customers and price. With this, you would be able to know which outlet stores that are safe for you to patronize and those you should avoid.