Maintaining a good level of inventory has been a significant struggle for retailers. If the supply is lower than the demand, it might lead to loss in sales. But when the stock levels are high compared to the demand, it reduces shelf space and decreases the cash flow. This situation presents an opportunity for markdown pricing!

Markdown pricing is a pricing strategy used by retailers to reduce the price of a product to increase sales and clear out inventory. It is especially important in keeping seasonal products profitable and avoiding unnecessary waste and loss. 

This Ebook is designed to provide you with a basic, yet comprehensive understanding of the mechanics of markdown pricing and how it can benefit your business. 

You will learn about the basics of markdown pricing, including creating a strategy, setting KPI’s, and how to implement them effectively. We will also discuss ways for determining markdown prices, as well as ways to measure the success of your markdown pricing efforts. 

Whether you’re a small business owner or a seasoned retail professional, this Ebook will give you the tools and the knowledge you need to make informed decisions about markdown pricing and boost your bottom line.

EU has been preparing a directive (Directive 98/6/EC), more commonly known as the Price Indication Directive (‘PID’) or Omnibus Directive. This directive will set common rules on pricing to protect consumers in EU area for misleading pricing actions. This consumer protection initiative is going to set in force on the 28th of May 2022. The directive is large and handles other areas of consumer protection as well. This ebook examines mainly the implications for campaign pricing for retailers and online merchants.

The basic idea behind the Omnibus Directive Price Indication Directive (‘PID’) is to guarantee a high level of consumer protection in pricing, and make sure the information on prices are precise, transparent as well as unambiguous. For retailers and online merchants this directive will set new requirements and guidelines on how to show prices during campaigns. Our legal research paper goes into detail on how to prepare your pricing to be compliant with the Omnibus Directive. To see how to be compliant with your pricing ecosystem you can also visit our Pricing Campaign Tool, that is Omnibus Compliant.