#markdownpricing

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Markdown Pricing Explained with Examples

Markdown pricing involves deliberately reducing prices to clear excess inventory in retail. Explore this pricing strategy here.

Markdowns are supposed to clear inventory. What they often do instead is train customers to wait for the sale. Once shoppers learn that your product goes on discount every six weeks, they stop buying at full price. 

Here is how markdown pricing works, when to use it, and how to avoid the cycle that destroys your margins long term.