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Retail & Allocation lesson

Markdown %

Markdowns are the money taken off prices to clear stock.

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About 5–10 minutes · no sign-up needed

The idea

Markdowns are the money taken off prices to clear stock:

Formulas

Markdowns ÷ Sales × 100

Key points

Markdown %Price cuts, as a share of sales.
Work it outDivide markdowns by sales, then multiply by 100.
Read itHigh markdowns mean too much stock, or the wrong stock. Every cut comes straight off margin.

Markdowns are the cost of buying too much. Planners track them to buy better next season.

Practice

Try each one in your head first, then open the answer.

1. What is the markdown % for Chargers?
$1,500 ÷ $15,000 × 100 = 10%
2. In D6, work out the markdown % for Power banks, as a decimal (no × 100).
=C6/B6
3. Tap a category with the highest markdown %.
Screen guards and power banks both gave away 20% of sales.
4. Power banks needed 20% markdowns to clear. What's the best next step?
Buy less next season, and clear the extra stock now

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed