Every consignment owner faces a balancing act: holding out for full price or moving inventory quickly through markdowns. While deeper discounts lower your profit per item, they significantly increase the velocity of sales, freeing up capital and floor space for fresh inventory. This simulator allows you to test how aggressive vs. conservative markdown schedules affect your total estimated revenue across a batch of 100 items.
The goal of markdown management is to maximize the "yield" of your sales floor—the total amount of cash generated per square foot over time. An aggressive strategy might result in a lower average sale price, but if it allows you to cycle inventory 6 times a year instead of 4, your annual gross profit will be significantly higher. Use these simulation results to decide if your current policy is leaving money on the table or if you are discounting too early and losing potential margin.
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