25 Ways on How to Make Money on Clearance Sales Business

1. Get the reason why Company Use Clearance Sales

Retail businesses must balance inventory, prices and promotions to maintain profit levels.

Clearance sales are used as a promotional strategy by many companies.

As an inventory management tool and as a focal point for price-conscious consumers.

Most clearance sales are associated with the retail industry.

But these sales can also be effective for events, activities and service-related offers.

Clearance sales can be scheduled on a seasonal basis.

On an as-needed schedule or used as a constant presence in a special section of a physical or online store.

2. Get the business background

The ability to sell someone something – whether it’s a product, a service, or an idea – is the fundamental skill at the core of many.

Many jobs in the business world (especially ones with commission-based pay).

When it comes to closing a sale, it’s not all about smooth-talking your buyer.

It’s just as important to be able to listen intently, think critically.

And to intelligently apply effective sales techniques.

By doing these things, not only will your personal sales increase – your business’s will as well.

3. Study your product. 

If you are able to convey knowledge about the product, and to answer questions that customers may have.

Then they will understand that you really care about the product.

If you find the product worthwhile, they are more likely to as well.

• It is absolutely vital to know your product inside out.
• If you do not know something a customer asks of you, try saying something like “I don’t know the exact answer for that, but I’ll be happy to look into it and get back to you right away. What’s the best way to contact you when I find the answer?”

3. Emphasize the perks of the product to customers.

As well as getting good product information to the right people.

It is important to translate the product‘s features into benefits.

This makes it easier for the customer to see why they should purchase the product.

Think about things like:

• Will the product make the customer’s life easier?
• Will the product create a sense of luxury?
• Is the product something that can be enjoyed by many people?
• Is the product something that can be used for a long time?

4. Satisfy your customers.

Above all else, try to keep your customer happy and satisfied.

Humans aren’t perfectly logical creatures – if someone likes you.

They‘re more likely to buy from you, regardless of the deal you’re offering.

Be friendly, charming, and open with your customer.

Give her peace of mind. Whatever your customer is looking for, that’s what you should try to provide.

• This applies both to your conduct and to the thing being sold.
• Not only should you be a customer’s friend up to (and after) the point of the sale.
• You should do your best to convince the customer that whatever you’re selling will give him exactly what he wants – that it will solve his problem, save him money in the long run, etc.

How to Make Money on Clearance Sales Business

5. Listen.

It’s pretty difficult to satisfy a customer if you don’t know what she wants – luckily, most of the time.

All you’ll have to do to figure this out is to simply listen.

This isn’t hard – at the beginning of your pitch.

Ask a customer what you can help with and let the customer describe her problem or desire.

Once you know what she wants, you’ll be able to decide which products, services, etc. best meet her needs.

• Don‘t just listen to what a customer says – try to pay attention to how she says it in terms of facial expressions, body language, etc.
• If, for instance, a customer seems impatient or tense.
• You’ll know that you can probably satisfy him by offering him a quick.
• Easy solution to his problem, rather than giving him a lengthy sales pitch for your whole range of products.

6. Give your full attention.

When a customer is considering making a purchase.

You want to give the impression that you’re available to fulfill any needs or answer any questions that may arise.

You don‘t want to give the impression that you‘re distracted or that you’re attending to your customer as an afterthought.

Whenever possible, interact with customers on a personal, one-to-one basis, returning to your other duties only when the job is done.

• This being said, try not to be an annoyance to customers. When you’ve gotten a sale, you can back off somewhat and allow your customer some breathing room. For instance, you might say something like, “Great, I think you’ll be happy with this purchase. I’ll meet you at the register when you’re ready!”

7. Demonstrate your product/service’s value.

When it comes to convincing a reluctant customer to make a purchase.

Flowery, glowing praise for your product or service is only going to get you so far.

To really get the customer on your side.

Show your customer how the thing you’re selling will make their life better.

Whether it will save them money and time, give them peace of mind.

Or simply make them feel good.

Make sure your customer understands exactly how the item you’re selling benefits him in real, practical terms.

• This is a common sales tactic. For instance, car dealers let customers go on test drives and guitar salesmen let customers play on their instruments – even department stores let customers try clothes on before they buy them. If the thing you’re selling is intangible or something you can’t let customers touch before buying, think of another way to show customers its value. For instance, if you’re selling solar panels, you might help customers estimate the savings they’ll have on their electricity bill.
• An old saying goes, “Sell the benefit, not the product.” Focus on what your product or service allows your customer to do, rather than on the product itself.

How to Make Money on Clearance Sales Business

8. Know your field.

Customers like buying from salespeople who seem knowledgeable without being condescending.

Be a friendly resource for your customer.

Ideally, not only should you know the products and/or services you‘re selling like the back of your hand.

But also those of your competitors.

If you know this information, you’ll be able to make comparisons that cast your product or service in the best light possible and your competitors’ in a less favorable light.

You’ll also be able to intuitively recommend certain products based on your customer’s unique situation.

• For example, if you’re selling televisions and you’re approached by a single father wrestling to control 3 unruly children, you might want to use your knowledge of your products to recognize that a certain model has extensive parental control options and to use this information as a selling point.

9. Close.

It’s relatively easy to get a customer to like a product.

But your commission ultimately depend on whether your customers buy your products.

Which is another matter entirely.

Try to get a commitment from customers the same day you first meet them – a customer that leaves the store to “think about it“ might not come back.

If a customer is reluctant to make a purchase immediately.

Try to sweeten the deal – offer a minor discount or “throw in“ extra bonuses in exchange for a customer’s commitment.

• Additionally, try to streamline the purchasing process so that it can be completed with a minimum of hassle. Accept multiple methods of payment, offer options for enrolling in an installment plan, and keep paperwork to a minimum. Not only will this make your customer’s overall experience more positive, but it will also reduce the likelihood that customers will get cold feet before completing the process.

How to Make Money on Clearance Sales Business

10. Build relationships with your customers.

Customers that feel that they’ve been respected and satisfied by a business are likely to give it a good review to their friends and may even return for future purchases.

Building happy, respectful relationships with customers is a great way to give yourself a long-term sales boost.

Try to genuinely connect with customers – when all’s said and done.

Even if it can be tempting to think of customers as nothing more than numbers on a balance sheet.

Remember that these are real people with real emotions and that nearly all of them appreciate human warmth.

• After making a major sale, consider sending a quick note or making a phone call to make sure your customer‘s enjoying his or her purchase. This can give the impression of a friendly, personal relationship. However, don’t overdo it – most customers will eventually want to be left alone.

11. Create the impression of urgency.

Most customers, whether they‘re conscious of it or not, hate the idea of missing out on a good deal.

Giving the impression that, by passing on a sale.

Your customer is missing a special offer or a limited-time deal is one of the oldest.

Most effective tricks in the book for getting reluctant customers off the fence.

To do this, try to call attention to certain deals that won‘t be offered forever.

Or certain products that are almost out of stock and encourage customers to “jump” on these opportunities.

• Some business even take this to a borderline-unethical extreme, increasing a product’s price so that a big, appealing, limited-time deal reduces its price to normal levels.
• This sort of trickery is unfortunate, but, sadly, common.

How to Make Money on Clearance Sales Business

12. Flatter shamelessly (but subtly).

The stereotype of the salesperson as a slimy flatterer isn’t entirely unearned – by playing to a customer‘s ego.

You can increase your chance for success on almost any given sale.

The trick here is to genuinely flatter your customer without seeming transparent, cloying, or phony.

Pour on the honey, but don’t overdo it: when your customer takes your exclusive deal on a new car, she’s smart, not an absolute genius.

When a heavy customer tries on a suit, he looks slim, not astoundingly dashing. Flatter, but be reasonable and realistic.

• When in doubt, it’s hard to go wrong by complimenting a customer’s taste at having picked a certain product. A simple “great choice!” or “ooh, nice!” can work wonders.

13. Make customers feel obligated.

Most people are more likely to do things for others when the other person has already done them a favor.

Particularly sly salespeople can take advantage of this fact by giving the customer the impression that they’ve received some favor or act of kindness.

Sometimes, being attentive and responsive to a customer is enough – for instance, a shoe salesman who tirelessly runs back and forth from the storeroom.

So that a customer can try on a dozen pairs of shoes has demonstrated serious kindness simply by doing his job well.

Other times, small “actual” favors are necessary, like getting a customer a drink or clearing time out of your schedule for an appointment.

• For best results, make sure your efforts are noticed.
• For instance, if you have to schedule an appointment with your customer.
• Pull out a schedule book and visibly cross out another appointment when you write theirs down.

14. Don‘t rush a sale.

It’s tempting, especially if your commission is on the line.

To pressure a reluctant customer into a sale, rush him to the cash register, push him out the door, and forget about him.

Obviously, this isn’t a smart way to make sales.

Customers don’t like the idea that they’re being tricked or swindled.

So sales tactics that rely too heavily on making fast.

High-pressure pitches can build hostility.

Even if these tactics result in short-term sales gains.

Negative word-of-mouth can cause long-term downturns and tarnish your image.

• The smartest salespeople present convincing pitches to the customer, then let the customer decide to buy the product, rather than pushing them to do it. While good salespeople do everything in their power to play up their product’s benefits and minimize its downsides, they never attempt to actually make the decision for the customer.

How to Make Money on Clearance Sales Business

15. Be responsible and reliable.

Other, slier sales techniques have their place.

But if you do nothing else as a salesperson.

Try your best to have personal integrity.

When you make a promise to a customer, deliver on it.

When you make a mistake, offer a sincere apology.

Respect is at the center of any sales transaction.

Customers want to respect a salesperson enough to be confident they won’t be swindled.

Salespeople want to respect customers enough to assume they’ll get a good review for their hard work.

And businesses want to respect customers enough to assume they’ll be paid for goods or services rendered.

When one of these respect-based relationships breaks down, sales suffer.

So do your part and earn your customers‘ respect by being a respectable human being.

How to Make Money on Clearance Sales Business

16. Time it right.

Quarterly seasonal clearance makes sense for most retail businesses.

You want to sell products at the tail end of the season, while they’re more attractive to customers. (For example, it’s easier to move parkas in January than April.)

If your products aren’t particularly seasonal, a clearance every six months may work.

Just don’t let too much unsold stock build up.

17. Choose your wares.

Using your point-of-sale/inventory management system.

Identify the products that are least profitable and slowest moving so you can pull them for clearance.

18. Create your clearance display.

Don’t hide your clearance in the back of the store.

You can often tempt shoppers to come into your store by putting clearance items relatively close to the door.

Limit the total space you devote to clearance. It’s OK if the products are a little crowded.

You don’t want so much clearance that your retailer looks like a thrift store or as if you’re going out of business.

Try putting some small clearance items near the checkout line.

You’d be surprised how many people can’t resist this.

19. Price it right.

Using actual prices rather than percentage-off signs typically attracts more bargain hunters.

No math is required to see that “$10 each” is a good deal.

Try sectioning products by price — a $10 display, a $20 display, a $5 and under display, etc.

20. Kick it off with a bang.

Ever been to a “clearance” sale that offers 15 percent off? (Eye roll.)

That’s not nearly enough to tempt true bargain hunters.

Start with 50 percent off — possibly even deeper discounts depending on your industry.

Your competition and what types of discounts you’ve offered throughout the year.

21. Market online and off.

Market your clearance through email, online advertising, social media, on your website and/or direct mail.

Greet customers at your entrance and let them know about your clearance specials.

Point out the sale racks or shelves and maybe even suggest an item.

Giving shoppers a bag or basket to shop with can entice them to buy more, too.

How to Make Money on Clearance Sales Business

22. Sweeten the deal.

If your product doesn’t sell on 50 percent clearance, don’t hang on to it.

Your primary goal is to move the items out of inventory.

So increase the discount every day of the clearance.

50 percent the first day, 60 percent the second day, etc. — to motivate buyers.

23. Let it go.

What if at the end of your clearance, you’ve still got stuff left? Don’t try to sell it next season.

One shoe store I shop at has an annual clearance sale.

Where at least half the inventory is shoes that didn’t sell at the last sale! Know when to cut your losses.

24. Act quickly.

If a product doesn’t sell, have a plan for disposing of it at the end of the sale.

You can try liquidators, remarketers or donating the items to charity for a tax write-off.

How to Make Money on Clearance Sales Business

25. Connect with new customers.

Make a special effort to get new customers on your mailing list.

Ask them to sign up for your email newsletters or loyalty reward program.

For those who are bargain oriented, asking, “Would you like to know about our next clearance sale in advance.

So you can get a better selection?” is generally all it takes to get them to sign up.

Conclusion:

What will you start learning about How to Make Money on Clearance Sales Business?

The word “clearance” is overused these days when many retail chains seem to offer weekly clearance deals.

However, when clearance is done sparingly, it can be a highly effective marketing strategy.

Clearance can attract not only your regular customers.

But bargain-hunters who might not otherwise stop into your store.

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