Explanation: If a seller wants to sell different types of products as soon as possible due to various possible reason then he keeps all these products in a single box rather than at their designated shelves. The merchandise in the box is sold at a heavy discount rate to attract customers.
Reasons: There may be several reasons for placing a bargain bin:
i. The demand of the merchandise may be declining continuously and the seller wants to sell it as soon as possible
ii. The manufacturer has stopped producing the product or they have launched a better product instead and now the seller is concerned about clearing the stock of old product.
iii. The seller wants to free up the shelves for new products which has better profit margin so the old products are kept at bargain bin.
i. Bargain Basement: In some departmental stores, these unsorted items are literally placed in the basement of store at one place irrespective of the shelve they come from. Hence, they are called bargain basement.
ii. Knock-off: It refers to the merchandise in bargain bin and it is generally considered as low quality, old fashioned and unimpressive product.