A practical toolkit for Canadian retailers

Better retail decisions start with clearer numbers.

Understand a markdown before it goes live. Compare margin and markup, review inventory movement, and give your next promotion a defined purpose.

Explore the pricing tools →

Know what the discount changes

Margin and markdown calculator.

Use one currency consistently. Exclude sales tax from both cost and selling price for this illustration. Starting figures are examples, not recommended prices.

Product cost per unit

Original selling price per unit

Proposed discount (%)

Original planned unit sales

Per-unit comparison in your entered currency
Metric	Original price	Discounted price
Selling price
Product cost
Gross profit per unit
Gross margin
Markup on product cost

Maintaining the original gross profit target

Gross profit is not net profit. This model subtracts only the entered product cost. Staffing, rent, marketing, payment fees, returns, delivery, and other expenses are excluded unless you deliberately include relevant amounts in the input. More unit sales may require additional spending.

Formulas: gross profit = selling price − product cost. Margin = gross profit ÷ selling price. Markup = gross profit ÷ product cost. Required discounted units = original total gross profit ÷ discounted gross profit per unit, rounded up. Undefined or unsuitable comparisons are explained rather than forced into a result.

Measure movement over a defined period

Sell-through calculator.

For this simplified model, units available means opening sellable units plus receipts during the selected period. Exclude transfers, adjustments, and returns from this example, or reconcile them before using the inputs.

Formula: units sold ÷ (opening units + receipts) × 100. This is not inventory turnover or weeks of supply. Use consistent products, units, and dates; compare results only when the definitions match.

Three useful distinctions

Look beyond a single metric.

Margin vs. markup

An item costing 30 and selling for 50 has 20 gross profit. Its margin is 40% of selling price, while its markup is approximately 66.67% of product cost.

Movement vs. value

Fast-selling stock is not automatically the most profitable. Review unit economics, inventory investment, seasonality, and operating demands together.

Markdown vs. solution

Before reducing a price, check product visibility, descriptions, availability, and audience fit. A discount does not resolve every reason stock remains unsold.

Before launching the promotion

Give the offer a clear job.

Decide what you want to learn or accomplish. Record the baseline and define how you will review the outcome.

Define the goal, products, dates, and intended audience.
Review product costs and the effect on gross profit.
Confirm stock availability and fulfillment capacity.
Make eligibility, exclusions, and offer conditions clear.
Check displayed prices and applicable advertising requirements.
Measure results using consistent definitions and periods.
Assign an owner for leftover stock and follow-up decisions.

Keep the definitions visible

Retail planning terms.

Gross profit: Sales revenue less the product cost included in the calculation. Other business expenses still need to be considered.
Markdown: A reduction from a selling price. Its commercial effect depends on the new price, unit costs, volume, and other expenses.
Sell-through: A ratio of units sold to a stated inventory denominator during a defined period. Different systems may use different definitions.
Slow-moving stock: Inventory moving more slowly than your business expects. Assess its age, relevance, condition, and available options before acting.

Common retail planning questions.

Does a higher sales volume guarantee more profit?

No. A lower gross profit per unit may require substantially more volume, and those additional sales can create other costs. These tools do not forecast demand or net profit.

Why can’t the calculator provide a required unit count?

The comparison needs positive gross profit at both prices. Zero or negative unit gross profit cannot support a meaningful positive-volume recovery calculation under this model.

What should we do with excess stock?

Explore appropriate options such as improved merchandising, supplier discussions, markdowns, bundles, or relevant liquidation channels. Consider restrictions, condition, handling costs, and the type of inventory involved.

Is RetailShop.ca an online store?

No. This page is an educational planning resource. It does not list products for purchase, connect to your inventory, process payments, or provide accounting or tax advice.

Are entries stored?

The supplied tools run in temporary page memory. No accounts, analytics, cookies, saved history, or submissions are included. Reloading clears your entries. Hosting providers may keep access logs; linked sites follow their own privacy practices.