Factory vs. Outlet: A Frugal Gal's Guide

Have you ever wondered what the difference is between factory and outlet stores?  Did you not even know there was a difference?  If so, you NEED to keep reading; your wallet and wardrobe will thank you.

Image Credit: Wormwald Homes (L); All Island Signs (R)

Let's start with outlet.  An outlet is just what you think it is - a store that sells items made for the original store that maybe didn't sell well or are just overstock.  This one is pretty simple; it's the factory stores that get a bit hairy.

A factory store is not an outlet.  In fact, items sold in factory stores have never seen the inside of the brand's original retail store.  The merchandise is specifically made for and is only sold in a factory store.  That cute bag you bought at Coach Factory?  Although under the same umbrella as Coach, that bag was made by Coach Factory for Coach Factory.  Meaning: different designers, different materials, and different quality.

Some stores are better at making their products similar to and less expensive than the original without sacrificing quality (think J. Crew), others are preying on customers who aren't able to afford the original or those who are not in close proximity to the higher-priced store.

Have you ever shopped at an Ann Taylor then a day or two later walk into an Ann Taylor Factory?  Did you notice a difference in the fabric, stitching, or hems?  Heck, did you even notice a difference in the actual store's structure and interior design?  Factory stores tend to be the ugly, annoying cousin of retail.  While it is tempting to buy a similar item at a better price, remember there is a reason it's cheaper!

What gets me is when tags on factory merchandise will show the difference between the price of the original that the item is knocking off and then show how much you're saving by buying the actual knock-off.  Let me get this straight - I can save money by buying a fake that looks like the original, but it's made with polyester instead of silk?!  Genius!

I don't mean to rain on anyone's factory parade, I just want you all to be aware that what you're buying may not be exactly what you think it is.  In my opinion, it's better to wait for a good sale when the prices are similar to or even cheaper than factory items instead of sacrificing quality.  Your wardrobe will last a lot longer, plus why would you rather have a knock-off, anyway?


In case you were wondering, "factory" was used 16 times in the making of this post.