Bargain Finder Glossary
Bait and Switch
Beware of “Bait and Switch” tactics designed to lure you into the store. Once you arrive that particular advertised item is magically “sold out”. You may be lead to a higher priced but similar item by the sale staff. This is a deceptive practice.
Cancelled Orders
Many times a company may decide for a variety of reasons to cancel an order with a licensed factory or distributor. These items get offered at liquidation sales, sample sales and liquidators who may term them manufacturer overstock, overruns or factory remains.
Closeouts
Closeouts are 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 other merchandise.
Customer or Store Returns
Product that been purchased and then returned to a store for refund or exchange. Many stores do not return the product to the manufacturers and resell returned items in bulk below their cost. These items may be defective or missing parts and usually do not have warranties.
Discontinued
Product that no longer in production. Could be a problem later on if replacement parts are needed. There may not be a warranty.
Distressed Merchandise
If one or two items in a freight derailment, for example, are damaged, the insurance coverage deems the entire lot as “damaged.” The entire shipment would be deemed damaged and sold for pennies on the dollar.
End of Season
Merchandise that is seasonal in nature (such as swimming trunks in summer or christmas trees in December) and is discounted before the season is finished or at the beginning of the next season.
Factory Overruns
Manufacturers usually manufacture more than they need to handle reorders, so often there is a certain percentage left over that is sold at a lower price.
Floor Samples
Floor samples are actual demos of the item. Floor samples in electronics or furniture often are good deals with only a minuimum of use and savings of 30%-50%. They may not have all accessories or original box.
Freight Damaged Items where the box is damaged on not presentable to the general public. These are sometimes the best deals because only the box may be damaged. Any purchase of these items should be fully inspected and tried.
Hidden Models
These are different labeled models manufactured to make it impossible for the consumer to comparison shop merchandise from one store to another. The only difference between models is usually cosmetic in nature. An example of this practice is in the mattress industry with the same mattresses by the same manufacturer having a dozen different names.
Irregulars or IRs
This is merchandise with minor imperfections, often not discernible. In apparel, perhaps a piece of lint got caught in the fabric or a button is missing.
Liquidated Stock
When a manufacturer or retailer is going out of business, they opt to call in a liquidator who bids for the lot and may sell it piecemeal to the public. Some of the very best deals are at liquidation sales.
Loss Leader
A loss leader is a product sold at a low price (at cost or below cost) to generate traffice to a retail location to hopefully genrate sales in other profitable items. The price can even be so low that the product is sold at a loss.
MAP
MAP is the Minimum Advertised Price that a manufacturer will allow the retailer to advertise the product for. It doesn’t mean the retailer must sell it for that price, just that they can’t advertise it for less.
MSRP
Sometimes referred to as the List price, is the Manufacturers Suggested Retail Price. The MSRP is the price the manufacturer suggests the product to be sold for and is often marked on the package.
Overstock
Items that have larger inventoryon an item than the retail business can possibly sell at rgular price in a normal time period
Private Labeling
Most major retailers often contract with the same companies that manufacturer for many other branded labels. The private labell may be made of the same materials with the same level of workmanship but priced differently depending on how valuable the brand or designer name put onto it.
Refurbished Product
Refurbs are re either a customer return or a frieght damaged product that has been inspected and serviced as necessary to guarantee it will perform to full manufacturer specifications. The safest buys are when it’s refurbished at the manufacturers factory or factory authorized dealer. It should come with some kind of a warranty.
Samples
These are the initial products that are made to present to buyers before they put it into production. The samples may not go into production and as a result are a “one of a kind item”.
Scratch and Dent
Products with cosmetic blemishes which does not effect opertaion or use of product. These can be floor models, customer returns or items damaged in shipping. Usuallybrand new and have warranty.
Seconds (sometimes called Irregulars)
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.
Shelf Pull
Brand new product that been pulled off the shelves to be liquidated. Usually discontinued or seasonal items.
Unilateral Pricing
Ever wonder why the same appliance at a dozen different stores sells at the same price? A loophole in federal law allows a manufacturer to tell a retailer that if they sell an item at below the Unilateral Price, that manufacturer will no longer ship them that product. This is a method of price control since it allows the manufacturer to effectively set the prices for it’s products. The retailer can still discount the product if they want to but risk losing further shipments from that manufacturer. This puts a stranglehold on market competition. This practice is easily seen in large appliances, audio and video equipment, video games and other areas.
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