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Optimize markdowns. Maximize profitability.
 

Markdowns by invent.ai

Drive higher margins and sell-through rates with agentic AI-powered markdown strategies that balance demand, inventory and profit dollars.

Boost your markdown strategy with agentic AI
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3-8%

gross margin improvement​

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2-10%

higher sell-through

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2-10%

lower markdown

Markdown management has evolved in the last 20 years. Today, markdown optimization science shows that retailers can make money by pricing to maximize revenues and reduce losses.

Invent.ai’s markdown solution leverages AI to optimize pricing by predicting demand, analyzing elasticity and accounting for regional and store-level differences. ​It enables you to strategically time markdowns, minimize revenue loss, and ensure the right products sell at the right price—boosting sell-through rates and enhancing end-of-season visibility.

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Post-promotion success insights

Using a variety of KPIs, the AI analysis reports offer insights and provide guidance to fine-tune future promotional strategies based on historical performance.

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Visibility across price levels​

Analyze markdown effects across all price tiers while accounting for regional, climatic and store-level differences to enhance decision-making.​
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Real-time scenario simulations​

Run simulations and compare "what-if" scenarios in real time to identify the most profitable markdown strategies.​
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Seasonal profit optimization

Maximize profits throughout the season by aligning markdown strategies with demand patterns and inventory goals.​

​Why invent.ai’s markdown optimization solution?​

Invent.ai Markdowns solution simplifies markdown management with AI-driven forecasts, real-time simulations and optimally timed strategies tailored to regions and stores. Maximize profits, reduce losses and unlock your inventory’s full potential.​
 
Based on advanced demand forecasting, the model incorporates statistically calibrated price elasticity, seasonality and special days to determine the optimal depth, timing and frequency for maximizing profit.
  • Depth: What should be the percentage of ​each markdown?​
  • Timing: When should we take the discount?​
  • Cadence: How many times should each SKU ​be discounted?​
The model supports different end-of-life problems​, including chain end-of-life​ and expiring product pricing​.
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The science behind it

Markdown solution automatically provides recommended markdowns for end-of-life products (clearance/seasonal) based on:​

  • Estimated product price elasticity​
  • Sales projections with different price steps​
  • Maximized clearance margin (considering salvage value – not COGS)​

Invent.ai analyzes multiple forecast models to ensure the best model is used for markdowns.​

It then uses constraints and demand forecasting to predict the effect of different markdown levels and timing on demand.​

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The dynamic markdown estimates combine price and timing, as well as take competitor price elasticity into account through an insight-driven dashboard.

You can review the markdown run results at a high level…

And drill down to see more detailed information...

The Markdown solution also offers future visibility of alternative scenarios as it has the capability to compare results of different scenarios that the user can approve based on rules, constraints and desired outcome. ​

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Streamline your markdown pricing​ process the invent.ai way

  • Review/approve markdowns​
  • Analyze performance – markdown loss/sell-through​
  • Review reports in UI​

This allows users time to:​

  • Review/measure success of markdowns​
  • Review future visibility (inventory, sales)​
  • Review current strategies and competitor info​
  • Improve the system with our Hub Model

AI-driven markdown strategy to move product and grow revenue

Maximize revenue and optimize markdown strategies with AI-driven insights that refine your pricing and sales approach. Here’s how AI can help you make data-informed decisions and boost margins across your product range.

AI-powered margin optimization

Leverage AI-driven insights to optimize markdown depth and timing, maximizing margins while minimizing markdown loss and increasing sell-through.​

Enhanced visibility and planning

Gain real-time visibility into seasonal and end-of-season sales and inventory levels, enabling better forecasting and strategic planning.​

Product-specific insights

Estimate price elasticity and cannibalization effects for each product using detailed product attributes to ensure effective markdown decisions.​

​Integrated strategic planning

Coordinate markdown strategies with promotional efforts and evaluate "what-if" scenarios to optimize pricing and sales outcomes.​

“Invent.ai found price increases we would have never seen, kept us from stale promotions and improved our store traffic and margins without a doubt.”

Larry Voight, CFO, Famous Footwear

“Invent.ai's Markdown Optimization solution optimized our markdown path through the season and directly improved our margin and end-of-season sell-through. Invent.ai's Markdown Optimization showed significant impact on our financial KPIs starting from the first day of the implementation.”

Hakan Ugur, Chief Merchandising Officer, Flo

Read the case study

“For us, one of the most appealing parts of working with invent.ai is their gradual approach to inventory management. In addition, invent.ai’s continuous support approach makes a huge difference in our business.”

Batur Can, General Manager, Fiba Retail Group

Read the case study

Connect with an expert in invent.ai Markdowns
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