markdown

MARK-down /ˈmɑːrk.daʊn/
nounB2GMAT
Business

A reduction in price, usually to encourage sales.

A technical retail term for the difference between the original selling price and the reduced price.

The story behind the word. This is a literal compound word from the late 19th century. It describes the physical act of a shopkeeper taking a pen and 'marking' a lower price 'down' on the tag.

Word relationships

  • reduction: Reduction is a general term; markdown is specific to retail pricing.
  • markup: A markup is the amount added to the cost price of goods to cover overheads and profit.

Commonly confused with

  • discount: A discount is often a percentage off at checkout; a markdown is a change to the price on the tag.

Word family

  • mark down (verb): To reduce the price of something.

Collocations

  • permanent markdown
  • price markdown
  • markdown strategy

Example sentences

  • "Aggressive markdowns were necessary to clear the surplus inventory before the end of the quarter." A business analysis of retail strategy.
  • "Look for the red stickers that indicate a permanent markdown rather than a temporary sale." A consumer advice article.

Memory hook

You take a pen and 'mark' the price 'down' on the sticker. Lowering the tag.

When not to use

Not used for negotiations; it refers to a set price change by the seller.

Fun facts

  • In software, 'Markdown' is also the name of a popular plain-text formatting language, though the meanings are unrelated.

Related words

clearance, wholesale

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