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clearance

Clear Inventory Without Teaching Every Customer to Wait

Clearance works better when the floor is explicit.

Move aging inventory with controlled customer offers that protect margin floors and avoid broad discounts across healthy products.

Markdown

Storewide clearance

Cuts price everywhere and trains customers to wait.

Floor-based offer

Make A Deal

Controlled clearance

Lets shoppers negotiate only where inventory needs velocity.

Business goal

inventory velocity

Primary metric

gross margin

Tool type

calculator

Clearance playbook

Stop leaving money on the table

Move discontinued inventory to a clearance category, leave the selling price intact, and let customers make an offer while you control the floor.

The problem with storewide clearance sales

Broad markdowns discount items that could have sold at full price, teach repeat customers to wait, and signal that your listed prices were never real.

Approach
Selling price
Customer discount
Gross profit
40% markdown
$45.00
40%
$7.00
Customer generated offer
$52.50
30%
$24.50

The offer threshold system

Set the rules once and let Vector route each offer into one of three decision zones.

Auto accept

0-30% off

Offer stays inside the safe margin floor.

Counter zone

30-50% off

Offer is not dead, but it needs a margin-safe counter.

Decline

50%+ off

Offer is below your true economics and should not move forward.

How Price Builder shields profit markup

Price Builder makes COGS, shipping, fees, profit markup, and market-adjust buffers explicit so an accepted discount does not accidentally consume core margin.

Counter offer mechanics

Clearance counters should move the shopper from a single-unit, deep-discount mindset toward higher transaction value.

Quantity incentive

Trade a better unit price for more units cleared.

Bundle logic

Recommend companion items that raise AOV while improving inventory velocity.

Markdown vs. CGO revenue comparison

At a $90 ASP and $38 cost basis, a 24.7% average accepted CGO discount nearly doubles gross profit compared with a 40% blanket markdown across 500 units.

Metric
Blanket markdown
Customer generated offer
Units cleared
500
500
Average selling price
$54.00
$67.77
Gross profit per unit
$16.00
$29.77
Total gross profit
$8,000
$14,885

Before you launch

Create a clearance collection that excludes healthy products.

Set product-level cost stacks in Price Builder.

Define auto-accept, counter, and decline bands before traffic starts.

Write counter copy that explains quantity or bundle logic.

Review velocity and floor performance at least weekly.

What breaks and how to avoid it

Failure mode

Clearance applied too broadly

Limit programs to inventory that actually needs movement.

Failure mode

Floor ignores fulfillment

Include shipping, fees, and handling before accepting offers.

Failure mode

No bundle path

Single-unit counters miss the chance to increase AOV while clearing stock.

What to measure

Primary metric

Gross margin

Inventory health

Sell-through velocity

Cash recovery

Recovered margin dollars

Data model

What this playbook collects

Each playbook has a consistent structure: business goal, primary metric, tool type, collected inputs, workflow, and measurable outputs.

Inventory pressure

Aging stock, seasonal urgency, and sell-through targets.

Product economics

COGS, fulfillment costs, fees, and minimum acceptable margin.

Offer thresholds

Acceptance ranges by SKU, collection, or clearance program.

Workflow

How the playbook runs

1

Segment inventory by urgency

Separate products that need movement from products that should hold price.

2

Set floor-based offer rules

Use product economics to define what can be accepted automatically.

3

Tighten after velocity improves

Reduce aggressiveness as inventory risk falls or margin pressure rises.

Outputs

Gross margin

Inventory velocity

Recovered cash