Question

when a new product is not being sold at the rate originally forecasted, the retailer may reduce the price in order to reduce the inventory of the product. this reduction is known as a

Answer 1

When a new product is not being sold at the rate originally forecasted, the retailer may reduce the price in order to reduce the inventory of the product. this reduction is known as a Markdown.

What does pricing markdown mean?

A markdown lowers the price of a product to reflect the actual amount customers are ready to pay; as a result, it devalues the item. The price of a product may need to be reduced more until it sells at a profitable rate if sales don't pick up after the initial markdown.

How do markdown and markup differ from one another?

A price can be changed by markup and discount (or cost of an item). Increasing an item's cost price before selling it is referred to as a markup. Reducing an item's selling price is referred to as a markdown (this is often called a discount in retail shops)

To know more about markdown visit:

brainly.com/question/28017140

#SPJ4