A markdown good refers to a listed price has been lowered permanently. While the amount of profit per individual sale decreases, the volume of sales for the particular markdown product increases. Measuring the total amount of markdown sales cover you company’s total sales helps your team analyze the period’s sales behaviour.
(Number of markdown products sold/Total number of products sold)x100
Example of KPI target
16% markdown goods
CEO, Pricing Head
Margin loss from write-downs