Analytics as a Service

Markdown Optimization

Markdowns are one of the best tools to avoid losses and maximize profit in the retail business when products are near the end of their life cycle. By utilizing markdown strategies, retailers can clear unwanted stock and still make a profit from products with otherwise lower demand.

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Markdown Optimization


Markdown optimization is the strategic pricing of products to boost sales and profits by carefully timing and calculating discounts.

Problems Solved

  • Failure to meet seasonal revenue and margin targets.
  • Low level of sell through (high level of leftover stock at the end of season)
  • Time consuming when planning markdowns (having to pull data from various sources, spend time creating desired formulas/layout etc.)
  • Lack of visibility on impacts of markdown decisions
  • Restricted budgets
  • Risk of being in a lengthy contract
  • Attracting and retaining the right talent (data scientists)

Relevant Roles

Pricing Analysts, Planners, Merchandisers

Detailed Description

When it comes to markdowns, one of the hardest decisions is the question when to mark down, and by what percentage? Our Markdown Profit Maximizer Solution can support businesses to make informed decisions based on highly accurate demand predictions in relation to price changes.

By utilizing a new, radical approach to calculating markdowns, which was conceived and developed by our team from the ground up, we can predict the optimal markdown dates and percentages that yield the best possible results in sales and profitability, with very high accuracy. Our solution uses future demand, that was forecast using historical data and pricing plans, generating results on an item/location level. Even more, if you do not already have a forecasting solution, you can utilize our very own, as they integrate seamlessly.

By using our unique approach and calculation methods, our solution is fast and cost effective, therefore, besides the obvious benefits, it can be utilized to generate predictions frequently, reacting to the fluctuations of the market with lightning speed. Choosing our solution enables maximized profitability and optimized inventory level, while increasing retailers’ agility to face the constantly evolving consumer demands and eco-system. Make the most out of your merchandise and get ahead of the competition today!

Success Stories