Why End Of Season Sales are an Eyewash ?

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Why End Of Season Sales are an Eyewash. 

 The moment the seasons are about to turn, the end season sales start happening.

The gullible customers think of making the most of end of season sales by buying products which they will end up using during the next season.
                                                            (Image Courtesy: flickr. com)

Deal savvy customers do not know one real law of sales field.

Wanna know what that law is ?

Well that law is that all "Sales" offers are meant first for the benefit of business persons then for the customers.

End of season sales are meant to clear stocks of seasonal products like summer wear at the end of summer season or winter wear products at fag end of winter season.

Traders or Manufacturers plan End of season sales for clearing stocks of these seasonal products at less profit .

End of season sales are master ploy by traders and manufacturers to release the capital stuck or blocked in stocks of seasonal products. If the traders or business persons or companies do not resort to this end of season sales then they will end up holding inventories till the next season , which literally means holding working capital for another six seven months.

Holding working capital in unsalable stocks till the next season is not a healthy business decision. It will be much better to liquidate stocks at less profit and raise capital to invest in the stocks of products for the coming season so as to earn profits.

Thus end of season sales end up serving dual purpose for the business persons i.e. releasing capital from unsalable stocks and investing those funds in salable products thus earning profit .

So by selling winter wear products at discount before winter ends,traders, manufacturers get their capital released from the winter wear.

The funds earned through sales of seasonal products at discounts is then invested in purchase stocks of summer wear.

The benefit to the customers is not big if you think of customers blocking their money in products which for six to eight months till the next season arrives. 

There is no use blocking funds in unproductive manner when the cost of capital is high.

So end of seasons sales are the best way to recoup capital invested in almost dormant products till the next season.

Hope it helps!


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