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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$25,000

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.

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