Tuesday 31 March 2009

The Sales and the margin

Twice in the year the shopkeepers up here decide to be benevolent to us shoppers. They open up their 'preserved' inventories to the public; at discount. People, moved by their altruism, flock the shops and 'hoard' for the lean period. One is educated that this is not to be confused with the low market clearance sale. It is, but, the sale season.

People strategies prior to these seasons; what, from where, how much to stock. The not so subtle reasoning is as follows: what is available now, might not be, next season. So, grab, as much as humanly possible. And so do people grab. They forget the grub. They ignore the drabs. They just grab; bagsful, handfuls, walletful purchases. Ladies leading the pack. Men following their footsteps, trying their level best attempt of the makeshift porter. It's actually a sight. So much for the shoppers.

But they are, but, the effect. The cause for the phenomenon is the shopkeepers. They give us onlookers - strictly onlookers - the opportunity to be privy to this modern equivalent of carnivals. The process starts with advertisements. The beginning of the season beckons from the advertisements showering from all avenues; the print, the radio, the TV and these days, even the internet. It's such a amazing feeling to see the newspapers full of advertisement! So much is available! And virtually free! At least, it is advertised so. A few samples: 'महा-loot', 'Life Time Offer', 'Knock down prices', et al. The radio gives the audio versions of the same, perhaps, to aid the visually impaired people who can't be reached with the print. The TV, however, reaches to everyone. I guess, even to the Slumdogs, and slumcats and slumrats. The impact is maximum. Indoctrinated with the luring advertisements, the audience reaches the doorsteps of the carnival.

Then the phenomenon unravels. The entire market is full of banners, posters, pamphlets and ilk, giving the final push. One can witness the mad rush. The rush for the discounts, the rush to get the best in the least, the rush to 'shoplift' before others can. The HVACs fail, the parking lots spill, the water coolers dry, but the stock in the shop remains. Amazing it may seem, but the stock gets replenished with ferocious speed than it is depleted. That's why, perhaps, it's different from the clearance sale. It's not the clearance that occurs; it's the benevolence of the shopkeeper that is showered! So the crowd flocks, shops, empties their wallet and then drops.

The carnival continues for weeks. Humungous is the appetite of the shoppers during this time. It's the miracle of marketing, perhaps, for one wonders how the shopkeeper earns his morsel during the lean period, when not even a fly gives him a darn, thanks to the squeaky clean malls. But then if he stocks all through the year and later sells at knock down prices during the carnival, how come he recovers the cost. His margins must be negative. Benevolence! The trader turns benefactor! True, this is kaliyug. Amen.