A boutique markdown plan should explain why a particular item needs a lower price, which stock is included and how the decision will be reviewed. It should not begin with an automatic discount across every colour of a wholesale clothing style.
This guide helps UK boutique buyers prepare that decision before changing a ticket, website price or promotion. It is a stock-specific working method, not a recommended discount percentage or a promise that a sale will release cash. For the calculation itself, use our wholesale markup and margin guide; the focus here is choosing, controlling and reviewing a markdown.
Decide what problem the markdown should solve
Write a concrete objective: reduce a named group of remaining seasonal pieces before a planned range change, test whether price is preventing purchases, or clear a discontinued option that will not be replenished. These are different decisions and need different evidence.
“The rail looks full” is not enough on its own. Check whether the item has been available to buy, easy to find and accurately described. An incorrect size option, missing measurements or an unclear photograph needs an information fix rather than a cheaper ticket. If the physical count is uncertain, use the boutique stocktake checklist before selecting sale quantities.
Keep stock with unresolved condition or identity concerns outside a routine markdown decision. A discount is not a substitute for investigating a concern or describing an item accurately.
Choose the exact clothing options, not just the style name
List your product reference, colour, size and selling unit. A complete set, a single garment and a supplier pack are not interchangeable quantities. Record available saleable stock separately from reservations, goods awaiting checks and confirmed incoming deliveries. Do not subtract reservations again if your system already excludes them.
Look at sales and returns for the selected option over a stated period, alongside the time it was actually in stock. A style-level total can hide a slow colour or make a small remaining size look like a problem when the other sizes have already sold. Record the price customers actually paid, not only the current advertised price.
A decision not to buy more does not automatically justify a sale. Keep replenishment separate using the wholesale clothing stock-review checklist. You may reasonably hold a repeat order while allowing the remaining pieces more time at their current price.
Compare the markdown with a realistic alternative
Set out at least one alternative to reducing the price: correct the listing, change the display, explain an overlooked garment detail, or hold the option until a specified review date. Name the action and its cost rather than treating “do more marketing” as a free solution.
Then compare the proposed selling price with the actual unit cost, VAT treatment and relevant selling costs. Include charges that still apply to discounted orders, such as payment fees, packaging or delivery you fund. The amount left after those listed costs is not automatically net profit. Use consistent figures and retain the calculation behind the decision.
Separate the historical cost of stock already purchased from cash that would be received or spent now. Recovering some cash on old stock is not the same as making a profit on it. If you are considering a sale below cost or a stock write-down, record that explicitly and obtain accounting advice where needed rather than disguising it as a positive margin.
Write a controlled markdown brief before release
Give the person making the price change a short, unambiguous brief. Specify the included options, customer-facing price, channels, start point, review or end point and whether other promotions may apply. A percentage alone is incomplete if nobody has identified the price it applies to.
Keep the previous price record and the evidence for any comparison or savings claim. Do not invent a “was” price, imply that excluded colours are reduced, or advertise an end date that does not match the actual offer. For consumer-facing price displays, the Competition and Markets Authority price-transparency guidance explains clear pricing information, mandatory charges and drip pricing. It is not a substitute for checking every aspect of a promotion.
Check the actual customer journey after an authorised price change: the collection card, selected product option, basket and checkout should agree on the applicable offer. Check a non-included option too. For shop stock, compare the rail sign, individual ticket and till. Record any channel that is deliberately excluded so staff do not make a broader promise.
Use a small example without turning it into a rule
Illustration only: a boutique has one colour of a jacket left after a seasonal display change. The other colour still sells at its ordinary price. Before reducing both, the owner checks the remaining option and discovers that its online page lacks a back view and a useful measurement.
The first decision is to correct those gaps and record a review date. If the option still needs a markdown after that review, the owner prepares an option-specific price and cost check rather than discounting the whole style. This does not predict the outcome; it makes the reason for each change visible.
Copy this boutique markdown decision record
- Identity: product reference, exact colour and size, selling unit and channels.
- Stock: counted saleable quantity, reservations, held goods and incoming stock shown separately.
- Reason: the problem to solve, evidence period, actual selling prices and relevant returns.
- Alternatives: listing or display corrections already checked, and the option of holding the price.
- Economics: proposed customer price, consistent VAT basis, unit cost, selling costs and the remaining contribution or loss.
- Controls: included and excluded options, promotion combinations, start and review points, and the person authorising the change.
- Release check: saved price, customer journey or till check, and confirmation that non-included options are unchanged.
- Review: units sold, returns, price achieved, cash received, remaining stock and the next decision.
Review the result without rewriting the original reason
Keep the original brief beside the outcome. Compare what happened with the objective, including remaining stock and selling costs, not just the number of discounted orders. If you changed photography, placement and price together, do not attribute every subsequent sale to the markdown alone.
Choose a clear next step: finish the offer, retain it within the agreed scope, investigate a problem or prepare a fresh decision. Avoid an indefinite series of reductions without a new cost and stock check. The useful result is a traceable buying and pricing lesson for your boutique, not a universal rule that every slow style needs the same discount.