Planning for Permanent Price Reductions (Markdowns)


Click here to read a case study on the use of a permanent price reduction (markdown) strategy.

  1. Research different strategies for determining markdowns in various industries in the U.S.

  2. Based on course resources, research, & spreadsheet, answer the following questions: (Be sure to show your calculations for questions a. through d. to support your answers)

    1. What are the total projected sales for the upcoming promotional event?

    2. What are the total projected price reduction (markdown) dollars for the event?

    3. What is the price reduction (markdown) percentage for the event?

    4. What is the overall margin percentage for all of the items being sold during the event?

    5. Identify another price reduction (markdown) strategy Jimmy could have used, and explain how its use could influence the results in the case study

  3. Choose a retail product or product category that you believe has particular appeal to retail customer groups. Identify and justify one price reduction (markdown) strategy that would appeal to those customers and drive the product’s or product category’s performance.

  4. Compose your answers using a minimum of 6 paragraphs. Use at least one outside source of research to support your work. Cite your source(s) according to APA guidelines.

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