How to Turn Markdowns into Marketing

In Features, Merchandising, Opinions by Steve PruittLeave a Comment

AsktheExpertsQ: Mr. Pruitt, I have read your column in MR and have a question for you. You have discussed the idea of turning a markdown into a marketing dollar. Could you elaborate on this idea and also explain the timing of this action?

A: Sure, this is a good question, and I’m not surprised you asked because the concept is a little odd. First, a markdown is a markdown no matter when you take it. The difference is the effect. If a markdown actually creates demand (lifts the sales trend) I consider this to be a marketing effect. If the markdown just reduces prices, and sales don’t lift as a result, then this is not an effective marketing strategy.

As for the timing, the conversion from markdown to marketing dollar usually happens in the face of demand (pre-peak of season). Markdowns are not effective as marketing tools after the peak of the season.

SHARE
Share on FacebookTweet about this on TwitterPin on PinterestShare on LinkedInEmail this to someonePrint this page

Leave a Comment