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Other merchants, however, say they have made lower initial markups, in order to present more valid reductions.
TO BE sure, department stores still must run sales on goods, like the jeans, that have lower initial markups.
But we have a relatively high markup on our inventory - our initial markup - and that will have to come down now."
The company has become a little more fashion-conscious, Mr. Roth added, saying that as a result "they're selling more of their goods at the initial markup."
But some of the reductions at the register are being made only after abnormally high initial markups were taken, so that the reductions afterwards are not as attractive as they sound.
These days the entire markdown process, in which clothes sometimes seem to go on sale shortly after arriving in the stores, may be based on false initial markups, Mr. Warshaw said.
Birth control pills which are taken every day and may take in a thousand dollars over ten years may generate more profits than an IUD, which despite a huge initial markup only generates a few hundred dollars over the same period.
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