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Shoppers who are always on the hunt for a bargain may consider shopping at outlet malls to get a better price on their goods.
Oftentimes, you can get brand name clothes and other items for a lot less money.
That said, it’s important to question whether or not you’re really getting the best deal, no matter where you’re sourcing the things you’re set on purchasing.
So, do you really save money shopping at outlet malls? Or are the lower prices hinting at something many people overlook? Finally, are they the best option for bargain prices?
Let’s take a closer look at the advantages and disadvantages of outlet stores, considerations to have, and some things you should know before you take a trip to your local outlet store.
Top Tips for Saving Money Shopping at Outlet Malls
What Are Outlet Malls?
Outlet stores essentially cut out the middleman, selling products directly from manufacturers, typically in a brick-and-mortar setting.
No matter where you live, you’ve likely noticed an outlet mall or a few outlet stores near you.
These stores can help you find deals, but there’s a lot more than meets the eye, more of which we’ll cover in the section below.
What Are the Advantages of Outlet Stores?
- Good Deals: Arguably the top benefit offered by outlet stores is that you’re getting a better deal on various items, regardless of whether you’re shopping for clothing or purses. This is what makes outlet malls so appealing to the modern consumer looking for discounts on items that they’re going to purchase anyway.
- There Are Now Online Options: Previously, outlet stores were only brick-and-mortar businesses. In the modern world, there are online outlet stores that you can turn to in order to find deals as well. These include options like Amazon Outlet, Best Buy Outlet, Nordstrom Rack, and Neiman Marcus Last Call, just to name a few of the more popular ones.
- You Might Land High-Quality, Brand-Name Products at Great Prices: Outlet malls always carry the potential to offer high-end products at steep discounts. For those who like to treat themselves every once in a while, who prefer to wear brand-name items, or for those who prefer the quality that brand-name items traditionally offer, this is a key advantage that comes with choosing outlet stores over other retail store options.
What Are the Disadvantages of Outlet Stores?
- Outlet Stores Can Be Tricky About Their Deals: As with many other business models, an outlet store is very much a business. This means that the way they market their deals may not always be entirely transparent. For example, sale prices on retail items may look like a great deal, but that product may not have been sold in a retail setting, which means the sale is theoretical and it’s being sold at whatever price the outlet mall decides to set it at. More than that, product quality may not always be what it’s perceived to be, especially when the markdown is due to a product being damaged. Put simply, there are a lot of strategies that make you feel as though you’re getting a good deal when you’re not truly getting the markdown you think you are.
- Discounted Items May Not Always Be Steals: When you’re shopping at an outlet store, it’s easy to get distracted by the glitz and glamour of brand names. The reality? There are many high-end brands that know they’re catering to buyers who are not seeking to spend the amount of money that other buyers will. As such, they’ll design products that are made for outlet stores. This may mean that the products are of lesser quality (but not always). It’s important to keep this in mind before you start going to all the outlet stores looking for a deal.
- It’s Very Easy to Impulse Buy at Physical Stores: If you’re someone who likes to shop at physical locations, you might fall into the trap of overspending and impulse buying. Unfortunately, it’s easy to go into a store, see all the various brands, and start picking up whatever you can. This happens to more people than you might think, so don’t immediately believe that you won’t fall victim to the same problem.
Things to Consider
Weighing the advantages and disadvantages of any shopping experience will allow you to more easily navigate shopping with ease.
The first thing to consider is whether or not outlet stores are the best option for the items that you’re looking to buy.
Whether you’re shopping for discounted and high-quality clothing or electronics, there are always other alternatives.
These include thrift stores and off-price retailers (which are slightly different than outlet malls).
Outlet stores are really the best for those who want brand-name goods that may have been overstocked or that were designed for the store.
The second consideration is whether you know enough about shopping in an outlet store.
Much like shopping anywhere else, being savvy enough to identify deals and turn away products that are being priced way too high is key to getting a deal is crucial to really stretching your dollar.
If you’ve taken the time to learn more about outlet stores, what they have to offer, and the various pitfalls and feel confident in your ability to shop there, you should be fine!
Things to Know Before You Shop: Tips for Shopping Outlet Stores Effectively
Have Your Phone on You to Check Prices While Shopping
Prior to the internet and mobile devices, finding a deal was rather straightforward; you would look at the price tag, see how much things were marked down, and think about whether or not you would want to buy it.
The problem? Now that we’re well aware of the various pricing strategies that are employed by outlet stores, we’re aware that we’re not always getting a deal, even if they say that we are.
This is why it’s important to have your phone on you while you’re shopping.
If you do manage to find something that you really want, you can whip your phone out and see how much it really costs or if you might be able to get it elsewhere for cheaper if it’s not the deal it’s advertised to be.
Price-checking is one of the most valuable tools we have as shoppers when we’re trying to shop for discounted items.
Know How to Assess the Quality of Various Products
As we stated above, some high-end brands will make products specifically for outlet stores, which is why some brands appear to be cheaper in outlet stores than they are in their traditional retail environments.
That said, discounts may also be due to an issue with the product’s quality that’s not associated with the manufacturing process.
For example, clothing that is starting to unravel, electronics that have minor issues, or even bags that have deep nicks may all be discounted so that they can get sold.
If you overlook these issues, you can end up buying something that doesn’t last you very long.
Learning how to spot the tell-tale signs of issues with various outlet mall products will give you the power you need to make decisions about the discounted products you’re buying.
If you spot something that has been compromised, you can walk away and find a similar product that’s in much better shape.
That said, it also gives you the ability to find products that you may be able to fix up so that you can return them to their previous state.
If you can fix items, you might be able to save more money in the long run.
Create a Shopping List and a Budget
Nothing’s worse than going bargain hunting, only to wind up with too much in your cart and more debt.
If you’re going to shop at outlet stores, always create a list of things that you are looking for and establish a budget for yourself.
This way, you won’t end up putting too much in your cart or end up buying things you can’t afford.
Unless you’re shopping as a birthday treat or for another special occasion, splurging rarely leaves you walking away from an outlet store feeling satisfied!
My Experience Shopping at Outlet Stores
I’ve been a shopper at outlet malls for close to 20 years and have seen a lot and learned a lot too.
Here are the things that stand out to me the most with outlet malls.
Understand Sales
Sales at outlet stores are unlike sales at traditional stores.
At outlet malls, sales stay live for a much longer time.
In fact, getting 30% to 50% off is almost a given at any time during the year.
If any sales are under 50%, I typically don’t buy, as it’s not really a sale. It’s more like still paying full price.
Also, be open to opening rewards accounts for the stores you shop frequently. Not only do you earn points that you can redeem for discounts, but you get coupons all the time.
For example, I joined the Sketchers rewards program.
Since we buy sneakers for our whole family, I am in need of sneakers on a regular basis. So, the rewards program is a no-brainer for me.
This is a smart move if you always shop at certain stores, but not so much if you never plan on shopping at the store again (unless they give you a discount on your purchase today for signing up).
Finally, check out the website of the company that runs the outlet mall.
In some cases, you can sign up for their rewards and get coupons and discounts at participating stores.
Understand Prices
Don’t go into an outlet mall thinking you are guaranteed to get a deal.
In some cases, the prices are more than at other stores.
For example, there are times when I skip buying sneakers at the Sketchers outlet because I can get them for less at DSW.
This is where having your phone comes in handy, as you can check prices in real time to know if you are getting a deal or not.
Pay Attention to Quality
I mentioned this before, but you have to pay attention to quality.
I’m not saying that the clothes at outlet malls are junk.
What I am saying is they might source the materials from a different location, or they might manufacture it somewhere else.
This means that it’s not the same as the non-outlet store.
In most cases, you won’t notice. For example, the jeans might have one or two fewer stitches along the seam.
A good rule of thumb from an insider that works in outlet stores is that higher end stores tend to offer the same quality as their traditional stores.
It’s the lower end stores that tend to skimp on quality.
For example, most times, clothes from Columbia or Eddie Bauer outlets are the same as other stores, whereas Old Navy might be lower quality.
Again, this isn’t true 100% of the time, but tends to be true.
Check Labels
One easy way to tell if clothes are different than in a traditional store is to look at the tags.
Some stores will put a symbol on the tag, like a star, circle or diamond.
This is so workers know when an item came from an outlet store.
In some instances, the tag colors will be different.
My insider said that most Polo tags from the outlets are navy with yellow writing, while the traditional stores were navy with white writing.
Know the Return Policy
Finally, it is critical you know the return policy. For some stores, you cannot return factory store items to the traditional store.
This is true for Gap and their family of brands. If you buy a shirt from Gap Factory outlet store, you need to return it to another Gap outlet store.
However, with Eddie Bauer, you can return the outlet store items to the regular store.
This could be a great test to see if the quality is the same.
Before you buy, ask about the return policy.
Final Thoughts
You can save a lot of money shopping at outlet malls.
But you need to know what is a deal and what isn’t.
Too often, people think that buying from these stores guarantees saving money. But it doesn’t.
Just like how buying everything in bulk isn’t always cheaper.
By using the tips I outline above, you can save money and get high quality items.
I have over 15 years experience in the financial services industry and 20 years investing in the stock market. I have both my undergrad and graduate degrees in Finance, and am FINRA Series 65 licensed and have a Certificate in Financial Planning.
Visit my About Me page to learn more about me and why I am your trusted personal finance expert.
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