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Would an earlier markdown recover more than waiting?
Compare sell-through probabilities and final liquidation proceeds under two price paths.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Seasonal units on hand
- 5,000
- Markdown net price now
- $45
- Units sold under early markdown
- 80 %
- Price if waiting
- $60
- Units sold if waiting
- 50 %
- End-season liquidation / remaining unit
- $10
- Extra holding cost / unit if waiting
- $2
Cash-recovery advantage of earlier markdown
Example result only, not a forecast or promise.
- Early-markdown recovery
- $190,000
- Wait-and-liquidate recovery
- $165,000
- Units liquidated after early markdown
- 1,000
What to do with this result
Estimate sell-through from comparable seasons and category data; inventory cost is sunk in this cash-recovery comparison.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Early expected recovery = units × [early sell-through × early price + remainder × liquidation]. Waiting recovery = units × [later sell-through × later price + remainder × liquidation − extra holding cost].
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Use net collected sales and avoid double-counting returns, commissions or pass-through charges. Demand and customer behavior require validation.