Markdown Planning Software

What is Markdown Planning Software?

Markdown Planning Software is a tool which enables retailers to identify and appropriately discount slower-selling products in order to remove them from their inventory and create space for better selling or higher margin merchandise.

The software can be used to drive store traffic, reduce excess inventory and effectively phase products out of stock across multiple locations or channels. It can also help assess the financial implications of the markdown strategy to help ensure that the loss of profit from the marked down products does not exceed the profit that will be generated from the better selling or higher margin merchandise that takes its place. This also allows for adjustments to be made, if necessary, during the markdown period to ensure business goals are met.

Why Do You Need a Markdown Planning Solution?

markdown planning software

Due to increasing competition from e-commerce and the influence of social media marketing in today’s retail marketplace, keeping merchandise fresh is just as important as maximizing sales and profit; and it is important that retailers have markdown planning solutions in place to advise them of when sales of a specific product start to diminish, so that a markdown plan can be quickly and easily developed and executed.

Markdown planning tools allow retailers to efficiently manage product inventory while maximizing margins - without having to resort to over-aggressive price cuts or introduce a markdown strategy when it is too late to be effective. Markdown planning software enables retailers to strike the fine balance between reducing excess inventory - or phasing out one product to introduce a new one - and maximizing sales and margin.

Selecting the Best Markdown Planning Tool

What some retailers might consider the best markdown planning tool may differ from others because of the nature of their business; but most businesspeople would agree that successful markdown planning solutions should be able to provide an early warning of a slow-selling product and that it should have the flexibility to develop markdown strategies in selective stores and/or channels as opposed to across-the-board.

The best markdown planning tools should also have the ability to monitor the execution of a markdown strategy and suggest alternative courses of action and their implications.

Finally, most retailers would like to have prior warning of potential cannibalization - for example, if the price of one product is discounted to such a degree that it affects the sales and profit margin of an alternative product in the same store or channel.

JustEnough’s Markdown Planning Solution

JustEnough’s Markdown Planning solution is an intuitive and interactive planning and analysis tool that helps planners develop multiple markdown strategies with complete visibility into inventory, revenue and margin impacts.

JustEnough’s Markdown Planning software enables retailers to:

  • Plan markdowns by cluster, channel or store depending on the data that is entered into the calculations, and then establish markdown strategies across a group of products by week, month, quarter or season - or, in the event of a phase-out, until the running out of the inventory.
  • Establish multiple markdown strategies and phase-out dates at the product level so that planners can continually compare the impact of each markdown on item volumes, product margins and revenues until the strategy expires or phase-out is completed.
  • Plan markdown strategies at the product level and simultaneously review their impact at the aggregate level to avoid cannibalization.
  • Compare target markdown revenue with calculated markdown revenue based on the set price and markdown strategy.

Additional Benefits of JustEnough’s Markdown Planning Software

JustEnough’s Markdown Planning solution is available OnSite and OnCloud, and the features mentioned above can help your business to:

  • Introduce and manage seasonal product lifecycles
  • Get maximum returns from your slow-selling inventory
  • Reduce excess inventory or phase out existing products
  • Introduce new products with higher margins more quickly
  • Streamline the planning and execution of markdowns across offline and online channels

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