Pricing has always been an essential factor in purchasing goods and services, and if we talk about daily needed things, then the price is the important factor in shopping. Markets in the USA have always tried to make commodities cheaper for the general public, and that’s the reason stores like Walmart, Big Lots, and Target are famous in the USA. Let us know ‘Why Is Big Lots Of Cheap 10 Reasons Why?’.
The low price of a commodity always attracts a large number of people, and also, if a product is new in the market and has been offered at a low rate, then people tend to try the product. This way, a business can earn more profit by selling a cheap product to a large number of people.
Big Lots
Big Lots are community stores in many parts of the world that offer great discounts on goods they offer and have become famous for being one of the cheapest selling stores in the US.
Founded in 1982, Big Lots’ history dates back to 1967, when a corporation was set up with the motive to form Big Lots. Its first store is in Columbus, Ohio. It is a wholesale store which offers a wide variety of products and they are cheaper than the normal retail store, which is the main reason why big lots have become so famous.
Why Are Big Lots So Cheap 10 Reasons Why?
we will see 10 reasons why Big Lots so cheap
1. Big Lots is a liquidation store
One of the reasons why big lots are so cheap is that they are liquidation stores, meaning that they purchase items that are not sold in other stores in the competition and sell them in their store, and the purchase comes with discounts as they have not been sold in other stores.
2. Big Lots is America’s largest closeout store
As big lots, over time, have become one of the largest stores around, thus it has become attached to their suppliers, and suppliers sell them all the clearance goods that have not been sold.
The goods are sold to big lots at a cheaper rate because the flow of suppliers is large and to maintain the flow, they sell to big lots at cheaper rates.
3. Some items present in-store are nearing their expiration date
The goods purchased from different sellers are things that have not been sold in other stores, which is why some products have their expiration dates near and they need to be sold fast.
4. The store purchases items in bulk
As the sales in big lots are in large quantities, so they tend to buy goods from their sellers in large quantities, and buying in large quantities frequently helps the seller to clear their stores, so they give a heavy discount on the purchase.
And as the purchase has been at a low rate, they sell those same goods at a lower rate as compared to other stores.
5. They have strong omnichannel initiatives
The store has an omnichannel way of providing the best services to its customers, which means that frequent customers have a database stored with the store and at every purchase, they get some kind of reward or benefit.
And during the pandemic, all the businesses around the world went online and home delivery businesses saw a heavy boost in their market. In the same way, big lots also tried to maintain the same with their omnichannel initiatives.
6. They keep things simple in the store
The stores of big lots have simple and classic stores that do not require timely cleaning and renovation, and thus the in-store expenses are very low, and as the expenses are low, the store doesn’t feel any need to increase the price of the commodities they do have profits in selling.
The stores have low-cost floors and cheap items that exhibit the goods, and this becomes one of the reasons for cheap selling.
7. They have an efficient supply chain system
The big lots company believes in having good relations with the vendor sellers and their other sellers, as, without a good relationship, it’s hard to build trust.
As the warehouse and vendor sellers have been connected with the business for a very long time, they tend to work efficiently for the goods. They make timely deliveries and collect their payments, so there is never a shortage of any goods and thus the pricing never becomes an issue for the store owner.
8. They always have offers, promotions, and big rewards going on in their stores
One of the reasons behind big lots’ having a record of selling products very cheaply is that they have discounts and offers that are always in their stores.
The company also came up with a big reward scheme where customers who are daily visitors or are regular customers, as well as new ones, get a chance to win some rewards or discounts on their products, and thus it has boosted sales and lowered the price at the same time, and selling a large number of products at a minimum margin makes them good profits.
9. Big lots reduce their losses by closing their underperforming stores
The big lot company has simple yet complicated rules. If any store around the states doesn’t have that many sales or is seeing depression time, then after some time, the company “calls off” the store. That means they close that store to reduce the losses that would have been incurred if it was open.
10. They operate on an effective market strategy
One of the factors behind big lots’ having success with such low prices is that the company has an active campaign, and in these campaigns, they ask their customers for their experiences, which are then shared among other people. This not only brings more customers to the store but also helps in maintaining a good relationship with the old ones.
Conclusion
Big Lots is a US-based company that is famous for its cheap prices in its stores for goods and they have become quite famous in the market. They maintain these cheap prices with their strategies and different policies that minimize the losses and expenses as low as they can. This helps in minimizing their costs that would have eventually ended up on customers, and apart from this, they purchase products in bulk and items that are not sold in other stores. These are the 10 reasons behind the cheap rates. Stores like these should be promoted and opened all around the world to help customers.
