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It is beneficial to exhaust your resources first, so you don’t end up with the excess products in one store that you eventually have to markdown. Offering discounts and promotions are effective methods for moving stagnant inventory through the purchase cycle.
Price elasticity of demand, meaning the effect that a set price will have on demand, is an important consideration when setting prices, running promotions, or markdowns. When Inventory is proactively allocated among locations to meet demand, customers are not repeatedly met with empty shelves pushing them to other retailers.
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