Markdowns as a percentage of retail sales

This measure calculates markdowns as a percentage of retail sales. Markdown is the difference between the original retail price and the actual selling price. This Supplemental Information measure is intended to help companies evaluate additional variables related to the process "Develop and manage pricing".

Benchmark Data

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Measure Category:
Supplemental Information
Measure ID:
106121
Total Sample Size:
73 All Companies
Performers:
25th
-
Median
-
75th
-
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are percent.

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Markdowns as a percentage of retail sales

Key Terms

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Supplemental Information

Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.

Measure Scope

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Cross Industry (7.0.4)

  • 3.3.3.1 - Understand resource requirements for each product/service and delivery channel/method (20009) - Determining the production and distribution costs for each product or service, and each channel or method as factors in determining overall pricing.
  • 3.3.3.2 - Determine corporate incentives (18948) - Introducing financial inducements, such as discounts, to distributors, resellers or vendors as a motivation to prioritize selling company's products or services over those of its competitors.
  • 3.3.3.3 - Determine pricing based on volume/unit forecast (10163) - Establishing a dynamic pricing mechanism for the organization's offerings that is supported by the number of units in production. Outline a system for determining the optimum price point for each product/service. Based this model on an estimation of the volume of anticipated sales for each offering and variable costs.
  • 3.3.3.4 - Execute pricing plan (10164) - Implementing the pricing mechanism to determine prices for all individual offerings in the organizational portfolio. Calculate the prices of all offerings based on the established methodology and/or formulaic structure.
  • 3.3.3.5 - Evaluate pricing performance (10165) - Examining the efficiency of pricing with the objective of identifying any divergence from the equilibrium prices and avoiding any deadweight loss. Gauge the performance of the pricing plan by tracking growth in the revenue and/or customer uptake, secured as a result of new prices. Measure the performance of pricing by periodically checking the profits generated from the sale of each of the organization's offerings against the backdrop of any events that may have influenced the uptake of a certain good/service by the customer base.
  • 3.3.3.6 - Refine pricing as needed (10166) - Refining the pricing mechanism to create equitable prices for all products/services with the objective of maximizing the profits and/or customer uptake of these offerings. Reconcile the pricing mechanism in order to achieve equilibrium pricing. Adjust the prices for all of the organization's offerings, using the insights gleaned from examining how much profit or customer uptake is generated by the present pricing strategy.
  • 3.3.3.7 - Implement promotional pricing programs (11495) - Managing schemes that offer lower pricing for a limited time as a promotional and sales incentive when launching a new product or a service.
  • 3.3.3.8 - Implement other retail pricing programs (11496) - Determining the optimum consumer pricing for each product or service at the point of sale, based on production and distribution costs and estimated sales volume.
  • 3.3.3.9 - Communicate and implement price changes (11497) - Assigning new prices or pricing adjustments to products or services to replace the original base prices. Update the prices in product catalogs and databases, and disseminate the information through all involved distribution and marketing channels.
  • 3.3.3.10 - Achieve regulatory approval for pricing (17684) - Obtaining internal price approvals and governmental approvals that are required for licensed products and for products that can be reimbursed by the government.