|
Price Markdown
A price markdown is a deliberate Discounts and allowances, reduction in the selling price of retail merchandise. It is used to increase the ''velocity'' (rate of sale) of an article, typically for Closeout (sale), clearance at the end of a season, or to sell off obsolete merchandise at the product lifecycle, end of its life. The timing and level of markdowns in a selling season is critical to maximising return on sales. This is often measured as ''revenue realization'': the proportion of the potential original selling price achieved. For example, a revenue realization of 50% means that only half the potential full-price sales value was achieved by the end of the season. It is also important in minimizing ''terminal inventory'', i.e. the amount of merchandise left when the season is finished. A recent trend has been to use demand optimization software to establish the most desirable timing and level of markdown. Optimization techniques can be used to determine where the best combin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Discounts And Allowances
Discounts and allowances are reductions to a basic price of goods or services. They can occur anywhere in the distribution channel, modifying either the manufacturer's list price (determined by the manufacturer and often printed on the package), the retail price (set by the retailer and often attached to the product with a sticker), or the list price (which is quoted to a potential buyer, usually in written form). There are many purposes for discounting, including to increase short-term sales, to move out-of-date stock, to reward valuable customers, to encourage distribution channel members to perform a function, or to otherwise reward behaviors that benefit the discount issuer. Some discounts and allowances are forms of sales promotion. Many are price discrimination methods that allow the seller to capture some of the consumer surplus. Types The most common types of discounts and allowances are listed below. Dealing with payment Prompt payment discount ''Trade discounts ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
