Markdown Planning

In the resale industry, stagnant inventory is the primary killer of cash flow. A well-timed markdown schedule creates a sense of urgency for shoppers while ensuring that you clear space for fresh, full-priced arrivals. Understanding how your net profit shrinks with each discount cycle is vital for setting initial prices that can withstand the eventual decay of the item's market value. Strategic markdowns are not losses; they are the price paid for liquidity and floor space.

The most successful shops use a tiered markdown approach: 20% at 30 days, 50% at 60 days, and a final "last chance" or donation trigger at 90 days. This cycle ensures that no item occupies expensive shelf space longer than its profitability justifies. By tracking these metrics, you can identify which brands or categories consistently reach the 50% markdown tier and adjust your intake offers or initial pricing accordingly to protect your margins.