What Are The Reasons Behind The Discount Of Seasonal Garments?

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Xiaobian network to introduce to you is the season of clothing why discount?

The reason why seasonal garments are discounted is that they have a great demand for price elasticity, and the sale of them can generally increase sales volume.

When the seasons change, when we go to many city's clothing stores or commercial streets, we can see that many season changing costumes are being staged "collective bargain sale" to attract consumers to buy.

Why do most of the clothes sell at a discount rate as the season changes, and the intensity of the discount is still great? And other commodities, such as rice, cooking oil, etc., will not be discounted in season. This needs to be solved from the principle of price elasticity of commodities.

Price elasticity of demand is a widely used concept in economics.

It refers to the reaction degree of the change of commodity demand to the price change of a commodity in a certain period of time, that is, the ratio of the quantity demanded by the commodity to the price variable.

If the ratio of demand change to price change is greater than 1, then it can be said that

It is a commodity with elasticity of demand; if the ratio is less than 1, it indicates that this commodity is a commodity lacking elasticity of demand.

We all know that according to the general demand rule of commodities, their demand is negatively related to price, that is to say, the decline of commodity prices will bring about an increase in demand for commodities.

Therefore, if demand is elastic, the reduction of prices will lead to a substantial increase in the sales volume of the goods; however, for the commodity with a lack of elasticity, the price change has little effect on the market demand.

The reason why seasonal garments are often discounted is that their demand is flexible and the price elasticity of demand is very large.

Therefore, the sale of these products can generally enhance the sales volume of products.

On the contrary, commodities like rice and edible oil belong to necessities of life. No matter the price rises or falls, people must consume, so the price elasticity of demand is very small.

Again, household appliances are also commodities with a lack of elasticity.

First, because of the long service life and the popularity of household appliances in China, the demand for household appliances has gradually stabilized, and the intensity of purchasing many times has not been great. Two, the price of household appliances is high, and the small discount will not have much impact on sales volume.

Therefore, unless there is a very large discount, the sale promotion will help little to improve the sales of home appliances.

Demand through

We can also understand some other phenomena in life by using elasticity theory.

For example, during the Spring Festival, a train ticket is hard to find. Some people suggest that train tickets should rise in price, which will greatly reduce the number of passengers and ease the tense situation of train tickets.

If we are familiar with the theory of demand price elasticity, we know that this proposal is not feasible.

Because the train tickets for Spring Festival are to some extent a necessity for the people who are badly in need of home reunion, and the increase in price is very little to reduce the number of train tickets purchased.

The price increase of train tickets in Spring Festival can not alleviate the difficult situation of one vote, only increasing the cost of returning home to ordinary people, especially many low-income people.

As far as enterprises are concerned, the key is whether the demand for commodities is elastic or not.

For example, the products of some famous international brands have never been discounted, and the strategy of selling at high prices is precisely because their demand for products is relatively stable.

Sales is not the best strategy to maximize profits.