Shopping Buzz Words

Whenever an item is for sale to the public for 40% to 80% below retail, common sense tells us there’s a reason. Usually it will fall into one of several categories. All these categories are valid reasons to mark down an item, although they are not always presented to the consumer in a forthright manner. If the seller doesn’t (or won’t) reveal why he’s selling it so cheap, chances are it falls into one of the following categories:

End of Season
Pertains to merchandise that is seasonal in nature and is discounted before the season is finished or at the beginning of the next season. Usually first quality, these items are often seen at seasonal department store sales… after Christmas sales etc. Many discount operations carry last seasons merchandise at 50% savings or better. Discounts should be a minimum of 30% at “End of Season Sales”.

Special Purchase or Purchase Product
Often indicates a situation when the merchandise is below the usual quality of the manufacturer. This is product especially made for a sale or outlet store. This deception is seen a lot at major sales and at factory outlet malls. The implication is that whatever is in a certain maker’s store is made by them. If it is, chances are it is of inferior quality, design and/or materials. This product has not been sold anywhere else at a higher price.

Closeouts
Generally pertains to discontinued products that are no longer manufactured. In most cases this does not affect the merchandise, but if and when there are parts that must be replaced it could present a problem. The term can also mean that the retailer simply needs to make room for more merchandise. It’s also important to ask “Who is doing the closing out?” If it’s the factory, the price should be excellent and BELOW wholesale.

Irregulars
Merchandise with minor imperfections, often not discernible. Perhaps a piece of lint got caught in the fabric and there’s a “flub” in the material. In apparel it could mean a different or “off” cut that could effect fit.
Seconds
Merchandise with more of an imperfection, usually visible but doesn’t effect use. In apparel, this should be indicated in some manner, but sometimes it isn’t, so look items over carefully. A seam might have come undone ... easy to fix or perhaps a variance in dye lots which could be a problem. In china or crystal it’s usually very minor, such as a blurred imprint on the bottom…or maybe none at all.

Discontinued
Product that is out of production. Could be a problem later on, if replacement parts are needed.
Factory Overruns AKA Overproduction
Manufacturers usually make more than they need to handle reorders, so often there is a certain percentage left.

Overstocks
A different story here indicates that the retailer ordered more than he could sell. Sale prices should be only slightly over wholesale.

Liquidated Stock
When a manufacturer or retailer is going out of business, rather than sell of the merchandise piecemeal, they will call in a liquidator who bids for the lot and may sell it to the public. Some of the very best deals are at liquidation sales.
Freight Damaged
Items where the box is damaged on not presentable to the general public. Sometimes the product is damaged, sometimes it’s just fine. Any sales of these items should be fully inspected and tried.

Refurbished Product
This product was either a customer return or freight damaged product and has been inspected and serviced as necessary to guarantee it will perform to full manufacturer specifications. The safest buys are when it’s refurbished or serviced at the manufacturers factory or factory authorized dealer. Look for stickers that say Factory Refurbished. It should come with some kind of a warranty.

Samples
These are the initial products that are made to present to buyers. Most companies produce samples before they put it into production. These samples may not go into production and as a result are a “one of a kind item”. In apparel they may be “mock ups” where the quality isn’t as high as the production line or a small production used by reps to present to buyers.

Floor Samples
Floor samples are actual demos of the item. Floor samples in electronics or furniture often are good deals with only a minimum of use and savings of 30%-50%. In electronics, the drawback may be that once they sell the floor model it is last seasons technology.

Scratch and Dent
Products with cosmetic blemishes which does not effect operation or use of product. These can be floor models, customer returns or items damaged in shipping.