TL;DR Summary:
Hammoq's AI watches price performance over time and suggests markdowns only where necessary—favoring margin maximization and maintaining inventory turning.
Markdowns in retail are sometimes driven by whim or need:
"This product isn't selling yet—mark it down."
"We have to make room for new products—cut the price."
"Nothing's selling in this group—cut everything $5."
But there's a vast difference between reactive markdowns and data-driven markdowns.
The former gives up unnecessary margin.
The first holds prices firm and maintains margin.
The second keeps profitability intact and still gets merchandise moving.
Meet Hammoq's Markdown Logic.
Instead of relying on fallible human estimates, Hammoq leverages machine learning to track how long an item has remained on the floor, compare it against sell-through timeframes in your history, and recommend exactly when—and by how much—an article should be discounted.
Real-World Example: Markdown Complete Intelligent
Assume that your store prices a Columbia jacket at $14.99. Traditionally, Columbia jackets in similar condition sell out in 10 days at this level.
But now 18 days have passed—and this jacket remains stationary.
That's where Hammoq comes in:
- The algorithm detects the lag in expected turnover.
- It compares past sell-through curves for that SKU or category.
It recommends one of two smart markdown alternatives:
→ Lower to $12.99 for a gentle nudge
→ Or $9.99 if equally jackets used to require deeper reductions beyond 14+ days
Rather than applying a broad, indiscriminate discount, Hammoq gives your employees clear guidance based on what worked before—you don't discount too soon or too late.
✅ Takeaways:
Make data-driven discounts instead of panicking with markdowns: Know when it's actually time to reduce prices—and by how much.
Max out ASP prior to reducing price: Let every product hit its full margin potential prior to reacting to sluggish sales.
Provide floor space without sacrificing profitability: Move merchandise economically while upholding bottom-line performance.
Markdown Tactics of Yesteryear Won't Cut It
Time-honored markdown strategies fail because they're:
- Guesstimated
- Started too soon or too late
- Applied as a blanket rule instead of by the item
- Dependent on urgency—instead of performance
As a result, high-value inventory is discounted when it shouldn't be, and low-value inventory stays longer than required.
Hammoq remedies this by bringing predictive intelligence to your markdown process. It doesn't simply say, "this hasn't sold"—it says, "this should have sold by now, and this is what worked before."
Markdown Strategy = Margin Strategy
Markdows are inevitable. But when and how you apply them makes or breaks profitability.
Hammoq makes markdowns:
- Timed to perfection
- Driven by sales curves, not guesses
- Adjusted to meet your store's performance—not industry-wide broad trends
- This technique makes markdowns a strategic move, not an afterthought.
What's Next (How To):
Find all stock on the floor within 14 days.
Look up those products in Hammoq and see how comparable SKUs moved over time.
Utilize markdowns by sell-through rate and ASP trends—not pressure and guesses.
Track post-markdown performance to adjust future markdown plans.
Hammoq's platform will get to know your store's price curve over time and take markdowns even more tailored—leaving you with a smart, more lucrative pricing cycle for each SKU.
