Quote Originally Posted by lax101 View Post
I've been told that traditional retail has three pricing targets for any given item:

1. MSRP - best case scenario, high profit, helps subsidize loss leaders.
2. Low to moderate sales - The actual price in which the retailer expects the item to move at, and reflects what they think is a more than reasonable bargain.
3. Clearance - Selling at cost or sometimes at a loss.

The next level after #3 would be selling to a TJ Maxx, a sample sale company, or another third party reseller that is buying stock for practically nothing. At that point, the retailer often isn't even recouping the cost of the product.

I also prefer when retailers offer "true pricing" and don't constantly offer sales, but that's going to leave them with little recourse when a product doesn't sell.
Id say #4 would be Testing the waters at TJ Maxx or Marshalls one store I worked at a long time ago, did just that gathered some jeans that didnt sell well and we packed them up and they were being shipped to TJ Maxx to test would it sell there . We never did it again so I guess it didnt sell.

#5 would be Selling at TJ Maxx