What is a discount schedule in consignment?
A discount schedule is a manual or automated markdown plan that lowers an item’s price based on how long it has been on the sales floor.
Why do stores use discount schedules?
Any business owner knows that the longer an item sits, the less likely it is to sell. To mitigate this risk, cut losses, and make room for new inventory, many consignment stores will apply increasing discounts to an item as it nears the end of its shelf life. Standardizing this plan—creating a “Discount Schedule”—keeps inventory moving and avoids the possibility of either an overlooked dead weight or poor business decisions driven by emotion (surely this will sell if we keep it around long enough!). It also signals to consignors that you’ve made every effort to sell their goods.
What are discount schedule best practices?
Consignment periods typically run between 60 and 90 days depending on store type — thrift-style stores tend to move faster, while mid-range and luxury stores allow more time. Having a streamlined and efficient inventory management system is critical to knowing when an item actually hits the shelf.
How to Set Up a Consignment Discount Schedule
Decide your consignment period — how many days will items stay on the floor before being returned? This is your outer boundary and everything else flows from it.
Choose your discount intervals — how many markdown stages do you want? Two or three is typical. Too many stages gets complicated to manage and confusing for shoppers.
Set your discount amounts — make sure final-stage pricing still covers your minimum acceptable return. A 60% discount on a $10 item leaves little room for anyone.
Put it in your consignor agreement — the schedule isn't real until it's in writing and consignors have agreed to it at intake.
Automate it and print it on labels — many stores print upcoming discount dates directly on price tags, so shoppers can see when an item will drop in price. This creates urgency and reduces the need to manually re-tag items.
Pro tip: Use an inventory management software built for consignment to automate markdowns based on intake date and to print discount schedules directly on labels.
Discount Schedule Examples
60-day (Fast Turnaround)
Best for: high-volume and value-focused stores
Days on Shelf | Discount Amount | Price |
|---|---|---|
Days 1–30 | Full Price | $40 |
Days 31–45 | 25% Off | $30 |
Days 46–60 | 50% Off | $20 |
Day 61 | Returned or Donated | — |
90-day (Standard)
Best for: mid-range and general consignment stores
Days on Shelf | Discount Amount | Price |
|---|---|---|
Days 1–30 | Full Price | $100 |
Days 31–60 | 20% Off | $80 |
Days 61–75 | 40% Off | $60 |
Days 76–90 | 60% Off | $40 |
Day 91 | Returned or Donated | — |
A good discount schedule walks the line between leaving money on the table (rushing to discount an item too soon), and waiting till it’s too late. Whatever your schedule, it’s important to be consistent, make adjustments when you have good data, and let your consignors know your policy.
Common discount schedule mistakes
Discounting too early — rushing markdowns signals to shoppers that everything will go on sale eventually, which discourages full-price purchases
Inconsistent application — manually managing markdowns leads to overlooked items and consignor disputes
Not telling consignors — your discount schedule should be in your consignor agreement, not a surprise when they check their account
Ignoring what the data tells you — if a large percentage of your inventory is regularly hitting the final discount tier, that's a signal to tighten your intake standards, not extend your schedule