Aging stock turns into a forced deeper markdown
Slow-moving SKUs quietly tie up working capital. By the time the season ends, the only option left is a steep clearance markdown that destroys margin.
- Overstock spotted too late, when only deep discounts clear it
- Working capital locked up in slow movers nobody is watching
- Markdowns set by gut feel — too shallow to clear, or too deep and margin-destroying
- No safe floor — manual markdowns sometimes drop below cost or MAP
- End-of-season write-offs hide the upstream pricing problem
How the Markdown Optimizer works
A scheduled AI agent that combines stock-on-hand, sell-through pace, elasticity, and your cost / MAP floors to recommend the shallowest markdown that should actually clear an at-risk SKU.
Days-of-cover detection
Flags SKUs whose stock won't clear by your target window at the current sales pace.
Elasticity-aware depth
Uses per-SKU elasticity when available; falls back to a conservative ladder otherwise.
Cost / MAP floor enforced
Recommended markdown is never below cost or your enforced minimum advertised price.
Cash recovery estimate
Quantifies working capital tied up in overstock and the cash recoverable from clearing it.
Key Benefits
Frequently Asked Questions
Will it ever recommend a price below cost?
No. The recommended price is floored at the higher of unit cost and your enforced MAP. If the floor leaves no meaningful markdown, the SKU is not surfaced.
Does it change prices automatically?
No. It surfaces recommended markdowns as insights; pricing changes still go through your normal approval flow.
What if I don't track unit cost?
The agent still runs, but it can't guarantee margin safety on that SKU and will surface the recommendation with lower confidence.