30 August 2011

Are clearance stocks, overruns and salvaged items authentic?

Right off the bat, we'll address one of the leading questions concerning designer brands. When you get the branded merchandise at a much cheaper price, you'll often hear the seller say that the stuff are clearance stocks, factory overruns or salvaged items. Are any of these authentic?

Quick answer: yes... but the three are not synonymous. 

Clearance stocks are old merchandise acquired on discounted pricing. The primary reason that the boutiques and outlets let go of the products at 50 to 70 percent off the normal market price is to make way for newer stocks and styles.

To avid shoppers, the disposal of old stocks at rock-bottom bargains goes by several names: inventory sale, clearance sale and close-out sale. The event often happens at the end of each year, and bi-annually for some retail outlets.

Overruns are commonly known as surplus items. The manufacturer overproduced a particular product or style, so the supply exceeded the order demand. Compared to clearance stocks, the acquisition of overruns is rarely enjoyed first-hand by the common bargain hunter. 

Big companies get to the stocks first at wholesale pricing and then distribute the merchandise to small boutiques and individual resellers. 

Although the authenticity of the material is not an issue, some overruns may be the outcome of unauthorized, under-the-table production activities. Legit overruns do not come with factory defects. The reason for the overstock could be the cancellation of orders, which is normal in trading.

Salvaged items are your typical factory rejects. The stocks simply did not pass the manufacturer's benchmark of quality, hence these were deemed defective and unfit for distribution.  

Slight flaws such as a misaligned tag does not render a garment unwearable, which is why some enterprising people find ways to sneak off items for reselling. Most high-end companies dispose of rejects before these ever reach the market.

Acquiring salvaged items presents serious ethical concerns. Chances are the items are pirated, and the manufacturer never received a penny for the sales.


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