Price Discount Calculator
Price Discount FormulaThe Price Discount formula is:
D = S / (1 + PNY)where,
D is the discount price of the product
S is the current selling price of the item that is "stale" or not moving
P is the profit margin or mark-up of the item (as a percentage). For example, you paid $1.00 for the item with a markup of 30% (.3), so you sell it at $1.30. In this situation your profit margin is .3.
N is the number of inventory turns for the item
Y is the average number of years it will take for you to completely sell the item. To find this, take the number of years you currently have, at its current price and divide by 2