In FMCG BUYING, what is a buyer's mark down and what are the effects and impacts of mark downs ?

The reality, is that inventory must be cleared in order to make room for new items. Retailers therefore must carefully assess the true margin impact of markdowns and partake in the ultimate balancing act in price setting. Tailoring markdown plans by store/location, factoring in the price sensitivity of the customer base and understanding opportunity costs are essential.Knowing how a40 percent markdown today will prevent a70 percent markdown in two weeks is critical to the decision-making process. Having a comprehensive view of demand with the rightpricing optimization solution can make this possible.

Temporary or permanent reduction in the selling price of an item to stimulate its demand or to drive a competitor out of the market. Permanent markdowns are created to remove a slow-selling item from the inventory.

Mark downs have effects on GP