Avoiding deadstock is one of the key business strategies to run a profitable business. At the same time clearing the products by offering large discounts is not a good idea as it brings down your profit margins. Lifecycle markdown is a proven method to address both the issues at the same time.
What is Lifecycle Markdown?
Lifecycle Markdown is marking down your product prices in different phases as they age. Meaning, offer increasing value of discounts as the life of the product nears its end.
How to run Lifecycle Markdown?
Running lifecycle markdown requires little bit of planning ahead of time. Which means, you need to schedule the markdown sequences in advance. The Konigle app helps you to set up an automated lifecycle markdown sequence and measure the impact of such activity. Here is how you can do it:
1. Install the Konigle app in your Shopify store.
2. Navigate to Automatic Strategies.
3. Click on Prevent Deadstock Tool.
4. First step in setting up the markdown sequence is filtering the products to put on markdown sequence. From the Product Filters section, add one or more rules for filtering the products. You can specify whether to include the product if all conditions are met or if any conditions are met.
5. Next step is to add one or more markdown discount rules
- For each rule you have to specify the percentage discount that you want to offer compared to the current selling price, for how many weeks you want this discount to be on.
- You can also specify the minimum stock to be present in order to offer the discount. Discount will be offered only if the product has the specified min. stock at the time of offering the discount. This is really useful if you don’t want to offer higher discounts if the sale really takes off after offering the first phase of discounts.
6. Specify whether to round the discounted prices to .99
7. When offering the discounted prices, you can specify whether to add additional tags on the products on discount. By adding additional tags, you can create specialised automated collections in Shopify and include the collections in special pages such as home page, on offer page etc.
8. Press Submit to review the sequence and press Confirm and schedule the markdown sequence.
9. Once the sequence is scheduled, you can go to the History tab and check all the markdown phases scheduled.