How to Price Tag Sale Items

Marking down items for a sale.

Obtaining the correct price point for your merchandise is a learning curve. There are many different philosophies on how and why to price merchandise at certain points. Marking down your items is an important step in moving merchandise.

Instructions

1. Moving merchandise is an important part of business in order to have room for fresh merchandise. It is rare that pieces of merchandise will go at the highest price, because many people like to wait until there is a value of savings before they purchase a particular item.

2. Mark downs should occur after the item has been on the shelf for enough time for your customers to have seen the items, but not so long that they get tired of seeing the same items at the same price.

3. Begin mark downs when new merchandise is coming in. Be sure that your original markup margin gives you enough profit to leave room for clearance pricing. If you paid $6.00 for a t-shirt at wholesale, and the suggested retail is $18.00, then you can safely mark that t-shirt down to $9.00 and still make a profit.

4. In order to actually tag the merchandise, there are different methods. You can either put the markdown on the tag at the sale price. This will show the customer that they are saving a certain number of dollars with some simple math. You can also mark down a whole section of your merchandise with the same percentage point. Mark the tags with a color indication for the customer, and they can figure the difference.

References

• Sbaer: Small Business Advancement National Center