markdown
MARK-down
/ˈmɑːrk.daʊn/
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.
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