Full price by SalesChefWhat is a markdown in retail?
A permanent price cut to clear stock that isn’t selling, often at the end of a season.
Full price by SalesChef
Reduce markdowns: give every product something better to say than “Sale.”
A markdown is a permanent price cut to clear stock. A promotion is a temporary one to lift sales. Both come out of gross profit, and across leading grocery brands, sales after a promotion averaged just 1% above sales before it. The lasting fix is giving shoppers reasons to buy at full price: the right facts, the right moment and the words that persuade. SalesChef knows why every product sells, then makes the pages, shelf tickets and campaigns that sell it.
Examples by SalesChef
- 1%
Sales after a price promotion averaged 1% above sales before it, across leading grocery brands in four countries.
Ehrenberg, Hammond & Goodhardt, Journal of Advertising Research, 1994 (opens in a new tab) - 11.1%
more operating profit from a 1% better price, on the average economics of 2,463 companies, if volume holds.
Marn & Rosiello, Harvard Business Review, 1992 (opens in a new tab) - 19%+
uplift in sales that SalesChef is driving, measured in units sold, like for like: the same products over three months, against the same three months the year before.
SalesChef clients (opens in a new tab)
What is the difference between a markdown and a promotion?
Both cut the price. They do different jobs, and both come out of gross profit.
Markdown
A permanent cut to clear stock that isn’t selling: end of season, old models, overstock.
Promotion
A temporary cut to lift sales for a set time: a weekly special, a sale event, a bundle.
Promotional pricing
Pricing built on a deal: percent off, buy one get one, multi-buys and loss leaders.
Clearance
The last markdown, to free up space and cash.
How to reduce markdowns
Find why each product sells
Shoppers buy for reasons: the job it does, the moment, the worry it removes. Lead with them, not the price.
Sell into the moment
A heatwave, a launch, a holiday. The page and the shelf ticket that speak to the moment sell before the markdown date.
Fix the page before the price
A product that isn’t selling often has a thin or wrong page. Fix that first, then decide on the price.
Watch sell-through weekly
Slow sellers show up early in sell-through. Act on the page and the placement while there’s still time.
Aim promotions at new buyers
Promotions mostly reach people who already buy. Use them where they win new ones.
Measure in gross profit
Rate every promotion by the gross profit it added, not the units it moved.
How SalesChef helps you sell at full price
Knows why each product sells
SalesChef researches the shoppers who buy each product: what they want, what they worry about, what tips them over.
Makes everything that persuades
Pages, listings, shelf tickets and campaigns that lead with reasons to buy, ready for your yes.
Moves with the moment
A heatwave hits. The fan page leads with “quiet enough to sleep next to.”
Flags slow sellers early
Live reporting by gross profit shows what’s slowing, with the next move ready for your yes.
Works with your sales and stock data
SalesChef reads your sales, cost and stock exports and ranks the next moves by the gross profit they add.
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Questions about markdowns
What is promotional pricing?
Pricing built on a temporary deal, such as percent off, buy one get one or a multi-buy, to lift sales for a set time.
Do price promotions grow sales?
Rarely for long. Across leading grocery brands in four countries, sales after a promotion averaged 1% above sales before it, and 93% of promotion buyers had bought the brand in the previous two and a half years.
How do I reduce markdowns?
Find why each product sells and lead with it, fix thin pages before cutting the price, sell into the moment, and watch sell-through every week.
How much is a better price worth?
On the average economics of 2,463 companies, a 1% better price lifted operating profit by 11.1%, if volume held.
Does SalesChef set our prices?
No. Your prices stay yours. SalesChef gives shoppers reasons to buy at the price you set.
A wall of products already finished. Each one turns from basic product specs into a finished product, ready for online, in store, sales and campaigns.
Your whole catalog.
In minutes, not months.
In minutes, not months.