Have you noticed lately that sales promotions go deep with discounts? 10% to 20% doesn't even hit the sales radar. It's either price points or 40% - 50% - 70% or more! UCSD Bookstore's Sidewalk Clearance Sale started at 50% with some discounts as high as 90%. Retailer New York & Company offered Clearance at up to 70% off. Aeropostale created a clever play on words with "half to have it 50% off" promotion.
When asked about discounts especially for clearance merchandise, I've always said your first markdown should be your best markdown. Go for it, get rid of it!
Your pricing strategy should take into consideration healthy gross margins on landed product that will support these types of clearance discounts.
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