Owning a boutique is incredibly rewarding, but it doesn’t come without its challenges. Selecting inventory that grabs shoppers’ attention and converts into sales isn’t always as easy as it seems. Sometimes, even the pieces we’re sure will sell out miss the mark. It’s all part of the business.
Many boutique owners go wrong by undervaluing their clearance items. With the right marketing and presentation, clearance clothes under $5 can become traffic drivers for your boutique. It’s all about how you position them.
Clearance Items as a Loss Leader
You’ve likely heard the term loss leader before- an item that is priced low or even at cost to get customers through the door. Think milk. It’s commonly used as a loss leader for supermarkets because it gets people to the store, but when was the last time you went to a grocery store and only bought milk?! (If you have, congratulations on self-control!)
Use your clearance items the same way. Send promotional emails or post stories advertising your clearance items. Then make sure your new inventory is featured on your home page when customers click links to visit your website. Try using language like Check out our site for these clearance styles and more!
Create False Urgency
We’ve all fallen victim to a website warning us that an item in our cart is selling out or is low in stock, only to come back a week later to find it’s still not sold out or is shockingly back in stock already!
You can use this strategy to your advantage without being quite so duplicitous. Market your clearance clothes under $5 as time-sensitive sales. Try promotions like 24-hour sale or This Weekend Only! Customers will jump at the chance to shop a sale and then may look around to see what else you have to offer.
Reframe the Term Clearance
Sometimes customers turn their noses up at the word clearance, associating it with undesirable or picked-over items. By reframing clearance as something more chic and curated, you can get customers’ attention without the negative connotation.
Instead of using clearance, try Last Chance Favorites or Styles for Less. Even a label as simple as ‘Sale,’ as Dear-Lover Wholesale does on its site, does the trick. It sends a message that these items are still in style, just for a better price.

Pair Clearance with Full-Priced Items
It’s common now to see options on clothing websites for shopping the model’s entire look. Use this idea for your boutique. Don’t just promote single items. Promote a mix of both clearance clothes under $5 and full-priced ones. If your pictures and outfits look good, shoppers will be tempted to buy the entire ensemble and not just one or the other.
If you have a graphic tee in the clearance section, try photographing it on a model with full-priced jeans and a jacket. Customers may click because of the deal, but if they like what they see, they may end up buying all three!
So, stop undervaluing your clearance items and start using them strategically to drive shoppers to your boutique.