Seasonal Pricing Calculator

When to start marking down — the cost of waiting vs discounting now

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$
units
%/week
$
Current Inventory
Inventory Value (retail)$9,000.00
Inventory Cost$3,750.00
Scenario A: Wait & Full Price
Units sold0
Revenue$0
Leftover unsold0
Total storage cost$0
Net Profit$0
Scenario B: Discount 20% Now
Units sold0
Revenue$0
Leftover unsold0
Total storage cost$0
Net Profit$0
Hidden Cost of Waiting
Storage cost over period$0
Unsold inventory write-off$0
Total hidden cost$0
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The Best Time to Mark Down Was 2 Weeks Ago

"The best time to mark down seasonal inventory was 2 weeks ago. The second best time is now." Every retailer who has sat on end-of-season stock knows the sinking feeling of watching demand evaporate while storage costs pile up.

The math is brutally simple: every week you wait, demand drops AND holding costs increase. It's a double penalty that accelerates as the season ends.

Seasonal Markdown Timing by Product Type

Product TypePeak SeasonStart MarkdownsFinal Clearance
SwimwearJun–JulLate JulyAugust
Winter CoatsNov–JanFebruaryMarch
Holiday DecorNov–Dec 25December 26January
Outdoor/GardenApr–JulAugustSeptember
Back-to-SchoolJul–AugSeptemberOctober
Valentine's GiftsJan–Feb 14February 15March

The Holding Cost Illusion

Many retailers think "I'll just hold it until next season." But the real cost of holding includes:

Storage & warehouse fees — physical space costs money every week. Opportunity cost — that shelf space could display next season's inventory. Depreciation — fashion and trends move on; last year's styles sell for less. Capital tied up — cash locked in unsold inventory can't be reinvested.

Hidden Cost = Storage Cost × Weeks + (Unsold Units × Cost per Unit)

The 30% Rule of Thumb

If you'll have more than 30% of inventory left at season end, start discounting NOW. A 20% discount that moves product is almost always better than holding at full price and writing off 40-60% of your stock at the end. The calculator above models exactly this trade-off.

Calculate any price with our 10% Off Calculator →

Frequently Asked Questions

Start when weekly sell-through drops below 5-8% of remaining inventory. For fashion, this is typically 4-6 weeks before season end. For holiday items, the day after the holiday.
Start with 20-30% off. This captures price-sensitive shoppers without devaluing your brand. If sell-through doesn't improve within 1-2 weeks, go deeper.
If remaining inventory cost is below $500, donation (with tax write-off) may beat the markdown option. The calculator helps you compare. Items below cost should almost always be cleared or donated.
Track this year's sell-through curve. Use the "weeks of supply" metric: if you have more than 8 weeks of supply at peak season, you've over-ordered. Reduce next year's buy by 10-20%.
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