Markdown Recovery Calculator
At what markdown depth does a product stop being worth selling vs liquidating? Map recovery scenarios across discount levels, find the margin floor, and identify the optimal price reduction strategy.
How much you actually claw back
At what markdown depth does a product stop being worth selling vs liquidating? Map recovery scenarios across discount levels, find the margin floor, and identify the optimal price reduction strategy.
How each scenario is modelled
- Price = original price x (1 - markdown %).
- Monthly sales = baseline monthly sales x (1 + markdown % x elasticity / 100).
- Months to sell = units / monthly sales; holding cost accrues for that long.
- Net recovery = units x price - units x COGS - holding cost. Liquidation sells everything at the offer price immediately, with no holding cost.
Keep going
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