How should markdowns be handled to protect profitability and customer trust?

• A. Post price changes when time allows
• B. Run markdowns on weekends only
• C. Follow policy for clearance timing, document reasons, and ensure pricing updates are reflected in system and on shelf signage
• D. Announce markdowns verbally at registers

Answer: (C)

Maintaining price integrity through policy-driven markdowns, with documentation and synchronized updates across the system and shelf signage, protects both profitability and customer trust. When markdown timing follows established policies, the reason for the price reduction is clearly recorded, and the new price is updated in the pricing system and on all in-store signs, prices stay consistent from back-office to the floor. This prevents mispriced items, avoids confusing customers, and creates a reliable audit trail for accountability.

Posting price changes only when time allows introduces inconsistency and can lead to outdated tags or discrepancies between shelves and the system, which hurts trust and margins. Restricting markdowns to weekends or announcing them only at the register misses broader visibility and fails to inform the entire store or online channels, increasing the chance of miscommunication and lost revenue. The best practice ensures clear, timely, and verifiable price changes that uphold profitability while maintaining transparent pricing for customers.