How to Obtain Better Results, Setting End-Of-Lifecycle Price Markdowns

Discover why setting effective price markdowns is so challenging and learn three actions you can take to obtain better results!

Setting end-of-lifecycle or end-of-season price markdowns has traditionally been cumbersome, with inadequate tooling, a lot of pressure on decision-makers, and, therefore, a lot of gutfeel decision-making as one tries to find the optimal balance between turnover, margin, and inventory.

Our research shows that a lot of cash is lost, setting price markdowns either too high or low and/or at the wrong point in time. We found that with the help of big data & AI techniques, patterns can be unveiled that enable us to predict the appropriate price markdown for an end-of-lifecycle item. Price markdowns that will allow each retailer to achieve turnover targets while maximizing margins and selling out inventory just in time.

With the help of big data & AI techniques, patterns can be unveiled that enable us to predict the appropriate price markdown for an end-of-lifecycle item.

The task of setting end-of-season or end-of-life price mardowns is quite complex. The team needs to bring together data on inventory levels across all locations (including online channels), on past sales and future seasonalities. On top of that there are organization-specific business rules, multiple KPI's and optimization objectives.

We have come to believe that there are three main shortcomings when trying to set effective end-of-lifecycle price markdowns:

1. Not knowing how the sale of an item responds to an change in price markdown;

2. Having an unclear or incorrect discount objective;

3. Lacking a user-friendly tool that enables a seamless process.


Eager to learn why?

Download the whitepaper and find out more.

Download the whitepaper!

Want to learn more about what actions to take in order to improve end-of-lifecycle markdown pricing? Download the full whitepaper here.

Looking for help to improve your markdown pricing results? Like to learn more about how advanced analytics & AI can help you out? Get in touch with our team!

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