TL;DR Summary:
Clearance does not have to be a margin killer. Hammoq helps you build a multi-level markdown plan from your store's actual performance data—so you sell smarter, not cheaper.
Let's get real: Clearance racks are where good inventory goes to die.
Retailers—especially resale and thrift retailers—apply blanket discounts as a Band-Aid to slow-moving products. But while flat discounts make room, they can also decimate potential profit.
At scale, the model breaks down. Because when all markdowns are equal, you end up either:
Discounting too soon
Discounting too much
Discounting high-potential products unnecessarily
What if you had a system that understood precisely when to mark something down, by how much, and only if it was profitable to do so?
That's where Hammoq's Smart Markdown Engine enters the picture.
The Smart Markdown Solution
Hammoq not only automates listing and pricing—it also actively tracks post-listing performance and recommends markdowns based on actual data, including:
How long the item's been on the sales floor
Its price history and adjustment tolerance
Interest levels (i.e., how often it's been looked at versus purchased)
Your store's own category-level sell-through trends
This allows Hammoq to power markdowns based on a 3-tier logic model:
Tier 1: Gentle Nudge (Day 21–30)
Hammoq identifies products that have no movement or slow turnover, but which are traditionally slow movers in your region.
Recommended Action:
Soft markdown of 10–15%, just enough to reignite shopper interest
These products have a tendency to convert once they grab attention with a price reduction
Tier 2: Conversion Push (Day 30–45)
Products that have grabbed attention (i.e., they're trending categories or high-traffic listings), but haven't converted.
Recommended Action:
Strategic discount of 15–25%, aimed at creating urgency
Ideal for seasonal items close to expiry or price-sensitive buyers
Tier 3: Liquidation (Day 45+)
45+ day stagnant inventory, low views, no interaction.
Perfect Suggested Action:
Take an additional 30–40% markdown, with the goal of clearing shelf space for new, more profitable SKUs
Typically includes items that were improperly priced at intake or are no longer in demand
Real-World Example: Men's Winter Coats
Week 1–2: $24.99 coats move off the rack quickly—good margin, quick turnover.
Week 3: Final 5 coats unsold. Hammoq highlights them.
Week 4: Coats auto-reduced to $21.99 (Tier 1 logic). 2 are sold.
Week 5: AI reduces 2 remaining ones to $18.99 (Tier 2). 1 further sell.
Week 7: Final coat priced to $15.99 (Tier 3) to end the season.
Result:
Most products sold at healthy margins
Aging inventory reduced
No price panic or flat markdowns necessary
Key Takeaways:
Break from one-size-fits-all promotions
Tiered markdowns by SKU-level performance mean every markdown has a strategic reason.
Defend your margin prior to slashing price
Let each product prove whether it needs a markdown—don't assume.
Design a clearance plan, not a clearance table
Clearance should be strategic and calculated—not a dumping ground.
Why This Matters for Resale & Thrift Stores
Resellers, thrift shops, and liquidators have low margins. And because their inventory is revolving continuously, markdown speculation occurs with great speed:
You lose margin on products that would've sold at full price
You waste shelf space on products that should've been cleared out sooner
You confuse consumers with indiscriminate discounting
Hammoq's AI solves this by building markdown logic right into your inventory cycle—so no matter who's managing the pricing, the system dictates the right action at the right time.
Long-Term Benefits
Retailers using Hammoq's markdown method see:
- 25–35% less unnecessary markdowns
⏱️ 40% faster average sell-through on slow-moving inventory
- 15–20% more margin retained from clearance sections
- Better floor control and less backroom congestion
What's Next (How To):
Define markdown levels of yours (i.e., 21, 30, and 45+ days on floor)
- Use Hammoq AI to track item-level performance
- Apply dynamic markdown logic by store-specific sell-through
- Examine margin performance by markdown level on a rolling 30-day basis
Once it's live, your team will spend less time reacting to inventory problems—and more time on what sells.
