% Markdown Goods

What is % Markdown Goods?

% Markdown Goods measures the share of your total sales that come from products with permanently reduced prices. Tracking this percentage helps you understand how markdowns affect revenue mix and sales behaviour over time.

A markdown good is a product whose listed price has been permanently lowered. Unlike a temporary promotion, a markdown signals a lasting price change. The trade-off is straightforward: profit per unit falls, but sales volume for that product typically rises. Knowing what share of your total sales comes from markdown goods tells you how much of your revenue depends on discounted pricing.

How to calculate % Markdown Goods

% Markdown Goods = (Total markdown goods sales / Total sales) × 100

Example: If your team generates $80,000 in total sales during a month and $12,800 of that comes from markdown products:

% Markdown Goods = ($12,800 / $80,000) × 100 = 16%

A result of 16% means roughly one in six dollars of revenue came from permanently discounted products.

Why % Markdown Goods matters

This metric gives pricing leaders and executives a clear view of how discounting shapes the revenue mix. A rising % Markdown Goods figure can point to several things worth investigating:

• Margin pressure: More markdown sales mean lower average margins, even if total revenue holds steady.
• Inventory decisions: High markdown activity on specific products can signal overstock, weak demand, or poor initial pricing.
• Sales behaviour: If the percentage climbs each period, your team may be relying on discounts to close deals rather than selling on value.

Tracking this KPI monthly gives you a consistent basis for comparing periods and catching trends before they compound.

% Markdown Goods at a glance

Detail	Value
Reporting frequency	Monthly
Example target	16%
Primary audience	CEO, Pricing Head
Related metric	Margin loss from write-downs

How to track % Markdown Goods

Calculating this metric manually each month is straightforward, but the real value comes from watching it over time alongside other sales KPIs. A dashboard that connects to your sales data and refreshes automatically makes it easy to spot when the markdown share is creeping up, and to compare it against margin and volume metrics in the same view.

Klips connects to 130+ data sources and lets you build dashboards that surface metrics like % Markdown Goods alongside the broader sales picture, so your pricing and executive teams always have a current, consistent view without waiting for a manual report.