Why brands discount

The Art of the Discount

This holiday season, you are probably seeing many of your favorite companies on sale. Here is why:

Imagine you are having a dinner party for 10 people. You go to the grocery store and start buying food. How many pounds of meat do you get? How many potatoes? Will people eat half a potato each or a full potato? Do you think anyone will eat brussel sprouts? This is what inventory planning is like.

What makes inventory planning even harder is that you often have to order product 6-12 months in advance, so you are really guessing:
A. What will be in style 6-12 months from now
B. What the world will look like 6-12 months from now

During the last few inventory buying cycles, the world has been crazy.

In 2020 demand surged during COVID and nobody had enough inventory in stock (Not enough food at the dinner party).
 
During 2021/2022 there were supply chain issues (You couldn’t buy more food for your dinner party).

While in 2023 demand has been lower due to interest rates and other macro economic factors but supply has increased (Now the table is full of amazing food, but no one is hungry).

To stick with the dinner party analogy, we are in a time where most brands need to clear to food off the table to make space for new food.

Which is good news for you, the consumer. We are in the first macro economic cycle in many years where brands have more supply than demand.

What it means for you

Deals, deals, deals. You are in a position where you can be picky with what you want and what price you want it at.

My recommendations:

1. Don’t buy anything this year that you don’t need. It’s easy to get caught up in a good deal. Don’t buy something just to buy it. Think about if you’ll actually use it, the last thing you need is more unopened packages at your house.

2. Negotiate with brands. Ask them to retroactively give you their Black Friday Offer (you’ll be shocked by how many companies will say yes to this).

3. Shop Local/Small Biz. If you want to make an impact, support businesses where your purchase means much more.

If you read all this and still want to shop, feat is doing a 60% sitewide sale for Cyber Monday! (Don’t email me for better discounts than this, this is as good as it gets). Shorts for $25 and hoodies for $47!!! Get the deal now 🙂 

-Taylor, CEO/Co-Founder @ feat

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