Retail Margin Management: Markdowns & maintaining dollar margins



In the real world, the margin we place on product is eroded by many factors. Problem lines, promotions and damage incurred in the store are all markdowns, which reduce the first margin that is being achieved on a range of items. The margin that is achieved after markdowns is usually referred to as Final Margin (but may also be known as maintained margin, achieved margin, gross margin or net margin

•Setting First Margin
•Sell through rate and markdown percentage
•Calculating markdown using sell through rates
•Maintaining dollar margin
•Ready Reckoner – combinations of markdown and margins

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