fbpx As we are all anxiously awaiting warm, spring weather, you have probably started to think about how you are going to turn over your winter inventory to make room for all of your spring stuff that is coming in! If it hasn’t really crossed your mind yet, don’t fret! Winter is obviously still here, therefore people are still interested in buying cold weather-related inventory, or at least waiting for it to go on sale. Obviously, markdowns are a dreaded, yet essential part of being a smart retailer. Knowing how and when to discount your inventory is key. While every store is different and shelf-life varies between products, when a season draws to an end, you need to get your old inventory out as soon as possible. It’s not too early to start transitioning your worst sellers to the clearance section. If they aren’t performing well amongst your other inventory, you should put it in the clearance section so you don’t risk being stuck with it at the end of the season. As spring gets closer, continue to mark down winter clothes. According to markdown best practices, you should mark down your merchandise starting at 20%. Don’t miss out on the opportunity to make a sale. Customers are more willing to make the investment when they feel like they are getting a good deal. Consider making bigger jumps to the markdown percentage that can move the item quicker and still make you money. Whatever you do, don’t hold onto old inventory. It’s not only not making you money, but it’s losing you money because it is taking up space where new inventory could be placed and sold! Markdowns help increase cash flow, so it’s a perfect way to get out with the old and in with the new. To learn about other ways to increase your cash flow, check out our free guide.