Finance Dictionary : Mark Down


Learn about Mark Downs, the pricing strategy involving discounts during promotions or sales to attract customers and manage surplus or discontinued items.



Mark Down – Promotional Discounts for Sales and Inventory Management


A Mark Down refers to a reduction in the price of a product or item, commonly applied during promotional events, sales, or as a strategy to stimulate consumer demand. This pricing tactic is employed to attract customers, boost sales, and expedite the clearance of surplus or discontinued merchandise.


Understanding the concept of Mark Down is essential for businesses and consumers alike. It allows businesses to manage inventory effectively, especially for items with diminishing demand, and provides shoppers with cost-saving opportunities.


Mark Downs can take various forms, such as percentage discounts, fixed-price reductions, or bundled offers, all designed to make products more appealing to customers and optimize inventory turnover.


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