BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Markdown – Reduction from the original retail price of an item to meet the lower price of another retailer, adapt to inventory overstocking, clear out shopworn merchandise, reduce assortments of odds and ends, and increase customer traffic.

Detailed explanation-2: -A price markdown is a deliberate reduction in the selling price of retail merchandise. It is used to increase the velocity (rate of sale) of an article, typically for clearance at the end of a season, or to sell off obsolete merchandise at the end of its life.

Detailed explanation-3: -A markdown is a reduction from the regular selling price of a product resulting in a lower price. This lower price is called the sale price to distinguish it from the selling price. Many people perceive markdowns as a sign of bad business management decisions.

Detailed explanation-4: -A markdown is a permanent price decrease for a product at the end of its lifecycle (or “seasonality”). Markdowns are used to temporarily increase demand for low-demand products, ideally long enough to sell through all stock. Markdowns are caused by excess inventory at the end of a selling season.

Detailed explanation-5: -A markdown is an amount by which you decrease the selling price. The amount that you decrease the price by can be expressed as a percent of the selling price, known as the markdown rate. The selling price would be determined using the equation: Percent: 1-markdown rate. Whole: original price.