1) not everything that comes back is perfect - the perfect stuff gets restocked
2) jerseys being sold in the sample sale at £40 still still make profit
high street clothing stores are still in cost/sale profit when then sell for 75% off and the bulk of profit for the big name designer brands make their money from so called outlet stores. Rapha operate from a cheap part of London in a warehouse with a handfull of staff. They are one of Uks top 50 fastest growing businesses
So why does stuff come back if it's not perfect? If you send a product out that's perfect and someone returns it with a fault then it's either an issue with the quality control (which the company needs to address) or it's not been used for the purpose that it was intended for. If there's a high percentage of quality issues then the actual manufacturer has to cover the cost.
Next - if you're selling more products at discounted prices than you are at full-price then you will fail. Also, selling your product at a discounted price educates your client base to not shop at full-price and to wait for the sample sales and end of season sales.
You dilute your brand and get a reputation for being a bulk discounter.
Not the way to build a strong, healthy business or brand.
So why does stuff come back if it's not perfect? If you send a product out that's perfect and someone returns it with a fault then it's either an issue with the quality control (which the company needs to address) or it's not been used for the purpose that it was intended for. If there's a high percentage of quality issues then the actual manufacturer has to cover the cost.
Next - if you're selling more products at discounted prices than you are at full-price then you will fail. Also, selling your product at a discounted price educates your client base to not shop at full-price and to wait for the sample sales and end of season sales.
You dilute your brand and get a reputation for being a bulk discounter.
Not the way to build a strong, healthy business or brand.