Retail Markdown Profitability & Recovery methodology

markdownUnitPrice = regular unit price × (1 − markdown rate)

unitsAvailableForMarkdown = starting stock − prior full-price units

markdownUnitsSold = available units × markdown sell-through

baselineContribution = baseline sold contribution + baseline unsold recovery contribution

proposedContribution = markdown sold contribution + proposed unsold recovery contribution

contributionChange = proposed contribution − baseline contribution

proposedRemainingUnits = units available − proposed units sold

recoveredCash = full-price cash + markdown cash + salvage − holding cost

breakEvenMarkdownUnits = (baseline contribution − all-unsold contribution) / (markdown price − recovery per unsold unit)

breakEvenMarkdownSellThrough = break-even markdown units / units available

Money inputs and outputs use the currency selected in the scenario without changing the canonical methodology. Rates, margins, utilisation and buffers are entered as percentages and converted to decimal values for calculation.

• All values must be finite and inside the visible validation boundaries.
• Rates are entered as percentages and calculations retain decimal precision.
• Money and operational records use one consistent period and basis.

Regular unit price minimum

regularUnitPrice ≥ 0 currency units/planning period, ex tax — A lower value is rejected before calculation.

Regular unit price maximum

regularUnitPrice ≤ 10,000,000 currency units/planning period, ex tax — A higher value is rejected before calculation.

Unit inventory cost minimum

unitInventoryCost ≥ 0 currency units/planning period, ex tax — A lower value is rejected before calculation.

Unit inventory cost maximum

unitInventoryCost ≤ 10,000,000 currency units/planning period, ex tax — A higher value is rejected before calculation.

Starting stock units minimum

startingUnits ≥ 0 whole product units — A lower value is rejected before calculation.

Starting stock units maximum

startingUnits ≤ 100,000,000 whole product units — A higher value is rejected before calculation.

Units already sold at full price minimum

unitsSoldAtFullPrice ≥ 0 currency units/planning period, ex tax — A lower value is rejected before calculation.

Units already sold at full price maximum

unitsSoldAtFullPrice ≤ 100,000,000 currency units/planning period, ex tax — A higher value is rejected before calculation.

Markdown rate minimum

markdownRate ≥ 0 proportion of regular unit price discounted — A lower value is rejected before calculation.

Markdown rate maximum

markdownRate ≤ 1 proportion of regular unit price discounted — A higher value is rejected before calculation.

Expected markdown sell-through minimum

expectedMarkdownSellThroughRate ≥ 0 proportion of the relevant inventory or price basis — A lower value is rejected before calculation.

Expected markdown sell-through maximum

expectedMarkdownSellThroughRate ≤ 1 proportion of the relevant inventory or price basis — A higher value is rejected before calculation.

Baseline full-price sell-through minimum

baselineSellThroughWithoutMarkdownRate ≥ 0 proportion of the relevant inventory or price basis — A lower value is rejected before calculation.

Baseline full-price sell-through maximum

baselineSellThroughWithoutMarkdownRate ≤ 1 proportion of the relevant inventory or price basis — A higher value is rejected before calculation.

Holding cost per leftover unit minimum

holdingCostPerLeftoverUnit ≥ 0 currency units/planning period, ex tax — A lower value is rejected before calculation.

Holding cost per leftover unit maximum

holdingCostPerLeftoverUnit ≤ 10,000,000 currency units/planning period, ex tax — A higher value is rejected before calculation.

Salvage value per leftover unit minimum

salvageValuePerLeftoverUnit ≥ 0 currency units/planning period, ex tax — A lower value is rejected before calculation.

Salvage value per leftover unit maximum

salvageValuePerLeftoverUnit ≤ 10,000,000 currency units/planning period, ex tax — A higher value is rejected before calculation.

• Demand, lead times, costs, tax and targets are supplied by the user.
• No jurisdiction, supplier service level, industry benchmark or forecast is embedded.
• The engine retains full precision and display formatting never feeds back into calculation.

This planner has no current policy-data dependency. Its commercial assumptions are user supplied. Registered family-level regression suites exercise the shared business-logic engine and worked-result reconciliation.

• Results depend on the quality and timing alignment of entered records.
• The model does not replace inventory, accounting, tax, legal or financial advice.

This is educational decision support, not tax, accounting, legal or financial advice. Check the treatment of your actual transactions under the rules that apply to your business and seek qualified advice where appropriate.

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. There is no official threshold or benchmark to refresh for this planner. Commercial inputs remain user-supplied because they vary by business and contract.

1. 2026-07-31: Initial public release of the planner and methodology after pre-launch calculation, content, source and interaction review.