Though it is ideal to sell all inventory in a timely manner, things don’t always work out the way we want them to. Sometimes we will find ourselves having to mark down items to get them to sell. Sometimes this opens questions. How much do I mark items down? For how long?
There are several options. You could start by offering a percentage off certain items with the purchase of a regularly price item. This will help move new and old inventory. If you decide it’s time to start slashing prices, this isn’t a bad place to start.
When you’re wondering how much to mark items down, take into consideration how much profit margin you have to work with. Start by cutting into the profit without completely eliminating it. If product still isn’t moving, you can go down from there.
Your last-ditch effort should be cutting prices to the point of losing money. This is not ideal in any case but may be necessary to move products. This will get old inventory out and help get money for new inventory. Be sure to advertise your sales to increase awareness and try to prevent this loss of money.