Liquidation End Profit

If you provide us with a Liquidation End Date, we can predict profit at this liquidation end date including write-offs on any stock left at this time.

Sales until Liquidation End

To predict the Sales until Liquidation end we take the predicted sales from the optimization and divide it by the Benchmark Sell-Through Rate. This rate compares sales performance from the same period last year (covering both the short-term forecast and the period leading up to the liquidation end date). The benchmark sell-through rate is calculated for products grouped into Benchmark Groups. For example, if you have a seasonal product category, your Data Scientist can define this category as a Benchmark Group.

Example
Products in Benchmark Group 'summer-tshirt' Liquidation end date = '2025-09-30'

• Last year's Sales (optimization period): 100
• Last year's sales (until '2024-09-30'): 850

Benchmark Sell-Through Rate would be 100/850 = 11.76%

Assuming Product A in 'summer-tshirt' group

• Predicted Sales in Optimization: 6
• Sales until Liquidation End Date: 6 / 11.76% = 51

Liquidation End Profit

Definitions
You can find all the referring KPIs in the Inventory section of the Optimization.

• Sell Through Rate Target: Set your target for the percentage of stock you want to sell by the liquidation end date. Example: Sell Through rate Target is 80%, for a Stock of 100 products, 80 products will be aimed to be sold at the end of the season

• Liquidation End Value: Is the set write-off price for your products at the end of the liquidation period.

• Liquidation End: Is a date at which you would like to sell-off a product which could be the end of the season or the best before date

• Liquidation End Profit: Sum of profit from sales until Liquidation End and write-offs from stock left-over at the Liquidation End date.

  Liquidation End Profit = Profit in season + Profit at Liquidation End Date

• Max Liquidation End Profit: The highest Liquidation End Profit available in the prediction among all price/marketing options

Liquidation End Profit Calculation

1. Profit in Season (at the price of 91.49€): Profit per product x Sales until Liquidation End.

Example 26.35€ x 1791.78 = 47,211.6€

2. Profit at Liquidation End (at the price of 91.49€): Remaining stock x (Liquidation End Price - Purchase Price).

Example 1904 x (8.92€ - 29.75€) = −39,660.32€

3. Total Liquidation End Profit (at the price of 91.49€):

Example 47,213.41€ - 39,660.32€ = 7,551.28€

Rule: Reach Max Liquidation End Profit x Value

You can use this rule to avoid moving too far away from prices that maximize your long-term profitability.

Example
Liquidation End Profit Max = 11,481.37 EUR (at the price of 83.49 EUR)
Value = 60%
Resulting rule: Liquidation End Profit > 6,888.82 EUR
This will force the optimizer to only allow prices and marketing options where the predicted Liquidation End Profit is bigger