As a reseller, most of my inventory comes from thrift and resale stores (mainly due to keeping my cost of goods relatively low). However, there are times when I try to diversify my inventory by shopping at other locations, such as outlet stores and discount retail stores. Today, let’s discuss outlet shopping from a reseller’s perspective along with some tips on how to find the best deals at the outlets!
Prior to moving to Florida, I lived about 2 hours away from the closest outlets so it was never really a part of my reseller business. Now, on the other hand, I live less than 20 minutes away from the Tampa Premium outlets and a little over an hour away from both sets of outlets in Orlando. With the outlets being within such a close distance, I have been incorporating them into my current business model.
Let me share with you 3 nuggets of info that I have learned from shopping at the outlets here in Florida:
Tip #1: Not All Outlets are Created Equal
Over the years, the outlets have evolved in many ways. When the outlets were first introduced to the United States in the 1930’s, they were specifically designed for store employee’s to purchase damaged or excess goods at lower prices. Then, they expanded to sell these same items to non-employees (similar to how they are set up today).
Outlets have always been extremely popular for budget-seekers but not all outlets are created equal. As stated previously, outlets were originally designed to sell damaged or excess goods at lower prices. However, that is not how outlet centers are set up today.
Outlets have gained in popularity over the years and retail companies were unable to keep up with consumer demand. They just didn’t have enough damaged or excess goods to meet consumer needs. So instead, they decided create lower quality merchandise made specifically for the outlet centers. These items are not damaged or excess goods, but instead outlet-exclusive merchandise created in higher quantity and with much lower quality than the retail product.
So if you are shopping in a Kate Spade outlet store thinking that you are finding a gem from a Kate Spade retail store, think again because more likely than not, it is an outlet-exclusive piece of merchandise.
However, Some Stores Still Use the Old Model.
I don’t want you to think that all outlet stores use this model. Some outlet stores that still use the old model are the Disney store outlets ( which carry excess items from the Walt Disney World and Disneyland theme parks), and luxury designer stores (which carry merchandise from previous fashion seasons that didn’t sell in retail stores).
Tip #2: Make Sure that You are Actually Getting a Good Deal
One common shopping psychology trick that outlet stores love to use to give the illusion that the consumer is getting a good deal is to mark an item up very high and then offer a massive discount. There is one store that I know that LOVES to use this trick and it is the Kate Spade Outlet. If you ever look at the retail price of their outlet items, you’ll notice that it is usually marked up to $200+. However, they will always offer a discount of 70% off with an additional 20-30% off of clearance. This definitely sounds great, right?!
By the time that you actually do the math and get to the new price, the bag will cost you around $125 which is the average outlet price for a mid-range designer bag. So then why do I need to go through all of the hoops, when it is going to cost the average price of a mid-range designer outlet bag?? Simple- to give the consumer the illusion that they got a great deal.
When it comes to reselling items, so many of us use this same technique to a smaller extent. We price the item up higher and then send out an offer at a much lower price. As a consumer, people feel like they saved money and got a great deal, while we as the resellers made back our investment and made a profit. Everybody is happy.
Note: Some stores that still use the previous model (aka excessive goods model) actually do have some great deals. There are a few stores that I frequent that have items that more than 50% off of retail.
Tip #3: Befriend Employees and Don’t Be Afraid to Ask Them Questions
Since I frequent the outlets often, I am a familiar face with many store employees. (I have no shame lol!) Store employees are extremely friendly folk and are there to answer any questions that you have. Depending on the store, some employees are more forthcoming with information than others.
One store that I frequent often is the Disney Outlet. They actually closed the Disney retail store in Tampa a few months ago so the Disney Outlet store is now an outlet-retail store hybrid. Living in Florida, I learned that there is a Disney Outlet craze, especially in the Orlando outlets. People are crazy for the merchandise found in these outlet stores which causes wait times to be around 2 hours just to get into them.
What does the Disney Outlet store have to do with anything?! I’m getting there, I promise. One time, I went to the Disney Outlet and innocently asked a cast member how often they get new items into their outlet stores. The cast member immediately shut me down and said that they are unable to give out that information, however, a few minutes into the transaction, she retracted her statement and told me that they received new shipments in twice per week at that particular location. As someone who shops at the Disney store often, I found that to be some pretty valuable information that I would not have obtained unless I asked.
Store employees can also be helpful when it comes to searching for additional sizes in the back, hinting at upcoming sales, and providing insight on additional discounts that you might not even know about.
In Conclusion
When it comes to outlet shopping, you can find some great deals as a reseller and as a consumer. It is important to go into your outlet shopping trip as an educated consumer so that you can spot the best deals and not be tricked by outlet retailers’ marketing tactics. If you would like to learn more about my experience with the other outlets, visit THIS post.
I hope that you enjoyed this post and if you have any questions at all, please reach out! I would love to talk to you!
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