What is a clearance bin discount?
A clearance bin discount is a type of markdown that discounts items to a specific price. Oftentimes this type of discount is used when items have reached the end of their consignment period or failed to sell through the normal stages of a discount schedule. Rather than returning or donating unsold items immediately, some stores move them to a designated clearance section — often a bin or rack — where everything is priced at a flat rate, such as $1, $2, or $5.
Why should I use a clearance bin discount?
A clearance bin discount gives stores a practical way to recover value from items that haven’t sold at regular or discounted prices. Rather than returning or donating those items immediately, moving them to a flat-rate bin means the store still earns something on merchandise that would otherwise generate no revenue. It also clears floor and rack space efficiently, freeing room for new intake without requiring a time-consuming return process.
For shoppers, a clearance bin creates a reason to visit regularly, since the selection turns over constantly and deals can be found. Stores that use clearance bins often find they attract a segment of bargain-focused customers who might not otherwise engage with the store’s regular inventory.
Consignor considerations
If items in the clearance bin still earn the consignor a split, that should be spelled out in the consignor agreement. Some stores apply the standard split to clearance sales; others designate the clearance stage as store-benefit-only given the deep discount. Either approach is legitimate — what matters is that consignors know the policy upfront.