Mark downs and discounts

Markdowns and sales discounts are similar concepts, but there is one important difference: a markdown is a reflection of value whereas a sales discount is not.

Both markdowns and sales discounts involve the reduction of price – but for different reasons. A markdown is adjustment of price to reflect a lower market value, whereas sales discount doesn’t change the valuation of a good or service. Instead, discounts are reduced rates offered for specific reasons – such as seasonality, customer loyalty, or demographics (such as discounts for students or pensioners).

Both markdowns and discounts can be temporary or permanent. If a product sells much better than expected after a markdown, the price might be adjusted again. This could be because the markdown was too much, or because of external factors such ________ ________ _________ _____ ___ _______ ______ __________ _________ ______ _____.
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