What is the definition of permanent markdown?

The definition of permanent markdown refers to reductions in a product's list price that are made permanent, usually indicated on merchandise tags. This means that the item’s price is lowered for the long term instead of just temporarily. When a permanent markdown is applied, the new lower price is now what customers can expect to pay whenever they purchase the item, reflecting a change in the item’s value proposition or inventory strategy.

This is distinct from temporary discounts or sales which might only apply during specific times, such as holidays or seasons, and do not represent a lasting change to the item's pricing structure. By providing a clear and consistent pricing strategy, permanent markdowns can help to clear out inventory that is not moving at its original price and also communicate to customers that the new price reflects a new standard for that item.