[Video] How to Drive Profit (Even on Clearance Items)
In This Video, We Cover…
Learn why tracking cost of goods is crucial for driving profit on clearance items
Compare items with a 50% COGS and 80% COGS and learn how to treat items with different costs
Learn whether or not you should advertising clearance items
Look at how to set a target contribution margin for clearance items
Ready to Upgrade Your Shopping Campaigns?
Clearing Out Clearance Items — And Making Profit? Is It Possible?
Overstocked on last season’s items?
Looks like it’s time to start marking down clearance items!
Where possible, you want to drive a profit. Where not, you want to at least break even. To make sure you either drive a profit or break even you need to…
1) Track costs within product segments
2) Set different targets for different items
Most agencies skip tracking costs at the SKU level—but this is a crucial step towards maximizing profit. Tracking costs will also help you set targets for different items such as top performers and weak performers.
In this video, we’ll show you how to treat items with varying Cost of Goods Sold (COGS) differently, and how to maximize profit on individual clearance items.
The approach gives you a lot of control over where your spend goes.
Alternatively, software and automation will not offer these options. You can’t discuss the benefits of maximizing margin on the segment level. You can’t discuss the challenges that come with spending less on clearance inventory.
That’s why we suggest this method. Regain your control—and start driving profit on your clearance items today!