Reasons Why Factory Outlets Sell Goods At Cheaper Prices Than The Showrooms

Factory Outlets Sell Goods At Cheaper Prices Than Showrooms

Today’s world is just full of shimmer and glitter when it comes to lifestyle and dressing sense. Everybody wants to wear branded clothes and accessories to set standards and stand apart from the crowd. But rocking branded stuff always has financial consequences. Especially when eyeing the best and trending brands in the market. That’s why we must have seen a lot of people going for quality and affordable brands than a trending luxury. But these days, factory outlets are becoming a thing.

It is becoming more accessible and easier to own clothing from the biggest brands in the market. Usually, factory outlets are stores where you get original branded goods for a low price at minor consequences. Well, not a big deal for someone who wants to keep up with today’s trends. There may be several cases of a product ending up in factory outlets. Here are the reasons why factory outlets are cheaper than retail stores or showrooms.


1. Stock Clearance

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The biggest reason one can buy expensive branded stuff at low prices in factory outlets is that when a trend or new line gets outdated, people stop showing interest in buying the stuff. So in order to at least recover the production cost and prevent the loss, the factory outlets sell the same pieces of clothing or accessories at a lower price than in the actual market.


2. Minor Defects

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There are many defects while manufacturing pieces of clothing, including defective tags/ washing instructions/ size tags/ style type tags. However, such defects are not very prominent and may not even be visible if not looked at closely. So, instead of dumping acutely defective goods, it is sold in factory outlets at a cheaper price as compensation, as if these goods are included in retail, it may harm the brand image.


3. Inconsequential Defects

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In many cases, a line of products belonging to a company is not really pleasing and is treated mid or reviewed poorly by the customers. In that case, it will be a huge loss if the brand takes the responsibility of replacing or upgrading the product on personal grounds. So, to keep up with the brand image and prevent the loss, the entire product line is shifted to the factory outlet and sold at a cheaper price.


4. Minor Design Fluctuations

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There are high chances of design defects in clothing products. It includes differences in thread work or shades of colors of the fabric/ buttons/ zips/ threads, etc. But, as mentioned above, if one is interested in keeping up with trends and the design/fit isn’t an issue, why not buy a cheap version of branded clothing that may otherwise serve for a long duration?


5. Oversupply

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If a minor defect is noticed in the goods, the respective seller relocated it to the factory outlet along with the fresh goods. Although the factory outlets already sell the products cheaper, the oversupply caused by the relocation of defective goods forces the outlet to sell them even more, cheaper as compensation for the quality. But if one is lucky enough to find a product labeled as defective that doesn’t possess many visible defects, then it’s a win for the customers.


6. Production Cost

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Sometimes, in the conquest of manufacturing cheap and affordable goods, brands end up creating a product that is already cheap enough to be sold at a factory outlet price. In such cases, the corresponding counterparts of products that are supposed to be sold in the outlets are designed off a cheaper fabric to slash their price, even more, to make them outlet worthy.


7. Canceled Orders

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Several cases of returned orders arise when items are purchased from the web. From change of mind to a defective product, all the returned products end up in a factory outlet. So, there are high chances of finding a perfect defect-free item at an insanely cheap price. Sometimes, sellers relocate items too when they notice a change in purchasing patterns, and there is no scope for demand in the future.

In other words, factory outlets are just a win-win for the customers. Not all products that end up here are defective and may bear any of the above reasons. A point worth noting is that it is already mentioned in the factory outlets about an item’s quality. In spite of that, the customer owns the right to enquire about the product to be bought. So, to sum up, there exists no real risk in paying a visit to an outlet of your favorite brand as you may shop at a cheaper price without compromising the quality.

These are the reasons why factory outlets are cheaper. Have you done shopping from factory outlets? How was your experience? Share with us in the comments below.

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Praneet Samaiya
the authorPraneet Samaiya
Entrepreneur, Movie Critic, Film Trade Analyst, Cricket Analyst, Content Creator