by
Rohit Sharma , Consultant , Bahrain Financing Company
Stock Clearence, to push an immediate sales inorder to make space for the new products , or when the stock is outdated n selling slowly & generally seen when a company is going out of business they sell thier products at throw away prices.
Intresetingly so, when the competiotion between homogenous products from different manufactures grows harder it gives birth to price wars, resulting in low prices.
Most of the new market entries (product or companies) resort to penetrative pricing practice inorder to enter the market, result again low prices.
Company first calculate the loss or profit achieved with those selective products.If profit is in positive digit,then determine the reduction price rate at which consumer would be encourage to buy and no risk of loss money for the company.Reduction priced sale helps to create new customer from the low or limited earners.On the eve of new year,annual festival most of the old model product are declared to reduction priced sale offer.Then, new products can fulfill the market for regular consumers satisfaction.
