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Promotional banners for a shop sale. A price markdown is a deliberate reduction in the selling price of retail merchandise. It is used to increase the velocity (rate of sale) of an article, typically for clearance at the end of a season, or to sell off obsolete merchandise at the end of its life.
A closeout or clearance sale (also called a closing down sale in the United Kingdom [1]) is a discount sale of inventory either by retail or wholesale. It may be that a product is not selling well, or that the retailer is closing because of relocation, a fire (a fire sale ), over-ordering, or especially because of bankruptcy . [ 2 ]
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The following examples include fictional numbers, lack complexity concerning the cost drivers and are merely used to display the method of cost breakdown analyses. Transportation and corrugated boxes are very illustrative examples as they allow a simple break down of the total cost into the single cost drivers.
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Supply is fixed for a one-time sale of goods, so the market-clearing price is simply the maximum price at which all items can be sold. In a market where goods are produced and sold on an ongoing basis, the theory predicts that the market will move toward a price where the quantity supplied in a broad period of time will equal the quantity demanded.
We've seen eloquently written real estate listings for luxurious and quirky homes—long, drawn out adjectives and picture-perfect descriptions aplenty. But we've never read anything quite like ...