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

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Nowadays companies actually make cheaper versions of their normal products that they only sell in outlet stores. It used to not be this way.

This is why outlet stuff never seems to last as long.

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Yep

Not all outlets, of course. Allen Edmonds, for example, sells factory seconds. Le Creuset is fine in my experience. But Brooks Brothers often has total trash. Saks Off Fifth has Saks-branded shite they'd never sell in a store.

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Gap and Old Navy

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Banana republic is the one you are thinking of

And if you grab one of their polos in the outlet you'll often find they lack any structure or fitting by comparison. Grabbed one unwittingly once-- Sleeve holes were huge, fit like a sack and managed to have fewer buttons too. One of the worst shirts I ever had. I don't love their normal ones but they are at least serviceable

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Then why the frick does people pay so much more for the products when they can get them a lot cheaper at an outlet?

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These days brand names actually make a cheaper, less quality product for their outlet stores. So, no, you're not getting a deal usually.

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Im actually the smartest person on this board.

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You have changed your avatar pic but I still picture you as Sheldon. Y'all are similar.

Neither of you can dunk.

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.

Always bring a tape measure to an outlet store if you're planning on buying pants. You don't want to to get home to find that each leg on your bargain slacks is a different length.

There are two different types of outlet stores:

1. Manufacturers that make a different, cheaper version of their clothes for outlet sales -- see Brooks Brothers.

2. Manufacturers that sell factory second goods or goods that didn't sell at traditional retail stores (this was the traditional outlet model). Allen Edmond's still does this.