subject: The Key To Crafting Effective Markdown Systems [print this page] Crafting effective markdown systems is one of the biggest challenges for retailers. Those merchandisers successful in accomplishing this task find clearance items exiting their stores quickly, eliminating the need to make multiple markdowns. Immediate consumer response to markdown merchandise results in lower store inventory, allowing products with a higher selling margin to enter stores at a faster rate. Below are some tips for designing effective markdown systems.
Signs & Brightly Colored Labels
Making markdowns easily identifiable to customers are vital in getting merchandise off the floor. Signs and brightly colored labels have been shown to be key components of successful markdown systems. Applying labels over the product's original price tag or on hang tags are good attention grabbers. To avoid increasing shrinkage rates, make sure markdown labels have security slits and contain permanent adhesive to prevent their removal and placement on other items.
As for what to put on the label, the previous price of the product should be included on the new tag in addition to the savings percentage amount.
Presentation
Avoid putting small labels and handwritten prices on markdown items. Handwritten prices with multiple markdowns or illegible penmanship can cause confusion and other problems for consumers.
Instead, design your markdown system with an in store printing system. Your markdown presentation will look professional and you"ll cut long term labor costs in the process.
Markdown Price Optimization
For most retailers, markdowns consume more labor hours than almost any other function. Many of the process steps like matching SKUs, counting items, verifying product and changing the price are performed manually.
Studies show that the most effective in-store merchandising program happens at the place where your customer makes their buying decision: "The Moment of Truth". The price and markdown label is perhaps the most critical part of the merchandising package. It can catch the consumer"s eye at the "Moment of Truth" when a buying decision is made, and alerts them to the special value of the merchandise price.
Price Optimization markdown systems have helped retailers increase productivity, save money and promote customer satisfaction. We can help optimize your pricing process. Here"s how:
"Streamline Process: Store staff spends many hours each week performing markdowns. The cost in labor annually could be significant. Using an in-store printing price optimization markdown system streamlines processes by allowing you to price mark quickly, on demand and at the point of markdown, significantly reducing markdown time.
"Reduce Pricing Errors: Due to inevitable human error, handwritten markdown prices can be illegible and incorrectly identified at the checkout. Crisp, printed markdown labels will help reduce pricing errors. In addition, using in-store printing system will utilize your internal pricing files to print the correct markdown for the correct
"Reduce Shrinkage: "Customers" may bring in their own "markdown pen" to change pricing. Using a price optimization solution markdown system will eliminate this avenue for shrinkage.
"Increase Customer Service: Store personnel, busy with their required markdowns are unable to greet and assist customers in a timely manner. Streamlining this process with in-store printing solutions makes them more available to the customer.
"Eliminate Damaged Merchandise: Ink from the markers used during the markdown process can get on the item, possibly ruining the merchandise and the revenue it would generate. With a price optimization markdown system, you get a clean, smudge-resistance label.
Using these markdown strategies will help increase your inventory visibility and promote faster inventory turns.
