re: How Are Outlet Stores Able to Sell Products A Lot Cheaper?

I don't feel like anyone should need this explained to them but.....but let's use Nike as an example. They pay around $3.00 per unit (or less)for a mass produced dri fit shirt made in a factory in Asia or South or Central America. With their massive overhead, they likely have $10-$12 in the shirt when it finally available to the consumer. They then put about 80% of that particular run of product in typical retail stores both brick and mortar and online at $35 to $40. (About a 300% mark up)This is for the mass of idiots who they know will pay the crazy over inflated price point for a globally recognized brand name. They retain 20% for factory outlets and TJ Maxx, Marshalls, etc.. This is to give the illusion that at $24 the consumer is getting a "hell of a deal." In reality, they are still paying a 100-150% markup. It is just a smart way to move product while still making an insane profit while also continuing to insure brand domination in an industry.