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Markdown Pricing
Definition
A pricing strategy in which products are sold at a reduced price below their original or regular retail price, typically to clear excess inventory, manage seasonality, or discontinue items. Markdown pricing is usually not tied to trade funding or planned promotions.
How It's Calculated
Original retail price − Markdown price
(or expressed as a percentage reduction from original price)
Example
A retailer marks down seasonal candy from $5.99 to $2.99 after a holiday to clear remaining inventory, using markdown pricing to reduce excess stock.
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