Markdown definition
/What is a Markdown?
A markdown is a reduction in the stated price of a product or service. There are several possible reasons for using markdowns, including the following:
Increase sales. If customers are highly price sensitive, a modest markdown might trigger a substantial increase in sales.
Grab market share. Using a markdown for an extended period of time may lure customers away from competitors, resulting in an increase in market share.
Eliminate excess inventory. Markdowns are especially common for seasonal goods, so that a retailer can eliminate these items from stock by the end of the traditional selling season; otherwise, these goods may be completely unsellable.
A temporary markdown can be used to achieve short-term sales goals or to heighten the level of competition with key competitors.