Why are prices for an item so much lower at outlets than retail stores?

Question

Is the product defective in some way? Is that why it gets sent to outlets?

Answer 1

At the outlet stores, the merchandise might be seconds.  Some slight imperfection that doesn't justify the full price in a retail store, but the manufacturer wants to get something for it.

Answer 2

I managed a clothing store and they have over 200 percent mark up on some things. They are robbing you, the outlets are making a minimal but sell more so it all works out in the end.

Answer 3

Outlet stores receive the clothing and goods that are either damaged or would not sell at a regular store.

You might find that perfect sweater that you wonder what is wrong with it, or why it is at an outlet store.  It could be one of a million reasons.

It may be a return, it may have a flaw, it might not have sold at a regular store, or it may just be that they made to many of them and it never got a chance to sell at the regular retail store.

Ever find that GREAT deal at the dollar store?  It is a one time buy.. they usually don't carry it in stock?  They use this same method in getting items from other sources.

By the way... great question!