Harmony Bracelets have not worked for us. While we have sold 35% of our stock, the rest has sat for close to two months. This morning I made the decision to get out of the remaining stock this weekend and put the $9.95 bracelets on sale at $1.00. Now, less than three hours in they’re selling very well. We should be done by the end of tomorrow. This frees floorspace for us, giving us an opportunity for a new product story.
Too often I see newsagents hold onto product for the sake of hoped-for margin in the future rather than discounting and taking the cash today. Okay so we have lost money on the bracelets. The loss I am realising today is less, I suspect, than the loss because of non-performing product taking up floorspace.
You can’t bank margin from products that don’t sell.
So, when I decide to quit an item I set pricing for it ti actually sell out. The usual starting point is between 33% and 50% off. next is 75% and finally we move to a $$ price point. In the case of the Harmony Bracelets, their recent performance was such that I felt I needed to go straight to the $$ price point. hence the $1.00 price. It is also helping that school holidays have just started.
One customer bought 14 bracelets.