When Should You Run Your Store Closing Sale?
Your peak selling period is usually the best time to run an Inventory Reduction Sale or Store Closing Sale. Most retailers say, “but why? We will be giving away margin.” f you follow good pricing tactics you will more than make up any loss margin with increased sales, greater store traffic and lower advertising expense. It is a lot easier to increase store traffic when your customers are in a buying mood. Or as my old grandpa said, “the best time to go fishing is when the fish are biting.”
Many times the worst time to run a sale is at the end of season. Your customer has already bought everything that they really wanted and the only way to generate increased customer traffic is to increase advertising expense and take deeper discounts. That’s when you are really “giving away margin.”