A pricing strategy where retailers lower the prices of products to boost sales and manage inventory effectively, particularly for items nearing the end of their seasonal relevance or those not performing well in sales.
It aims to attract customers through discounts, helping to clear out stock, prevent waste, and maintain profitability on seasonal goods. Retailers can increase revenue and reduce surplus inventory by implementing methods like clearance sales, temporary price cuts, and promotional discounts. Markdown pricing is applicable to a variety of products, including fashion, electronics, and home goods.