Finance · Fashion · Specialty

Markdown Stop-Loss

Markdowns past the point of recovery. Proposes the floor.

Target KPI Margin
Executes in ≤ 12 hours
System of record Pricing engine · POS
Trigger condition

Cumulative markdown on a line passes the point where further discounting destroys more margin than the holding cost of the remaining units.

Write-back

Price floor written to the pricing engine for the line; further automatic markdown steps suppressed at POS.

Every write is gated on an approver role you name. Nothing runs unattended.

Procedure
  1. Compute the recovery curve: what each further markdown step returns against what it gives away.
  2. Compare against the alternatives nobody models: jobbing, packing away to next season, donation, and write-off.
  3. Set the floor where marginal recovery turns negative, per line rather than per category.
  4. Open a case to the finance and merchandising leads with the floor and the alternative, gated on approval.
  5. Close when the line clears at or above the floor, or exits by the agreed route.
Outcome metric

Margin retained against the modelled outcome of the uninterrupted markdown ladder.

The case closes on this number, not on the action being taken. A playbook without a close condition is a dashboard.

Run Markdown Stop-Loss on your data.

Pick three playbooks from the catalog. We wire them against your system of record for the pilot.

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