Improve profits in clothing Markdown Pricing

Improve profits in clothing markdown pricing

Manage your seasonal clothing and fashion inventory with AI-driven markdown pricing to maintain high margins and avoid waste.

FAM Brands logo

FAM Brands needed an automated tool for end-of-season apparel markdown. So the team chose Sniffie Markdown and Profit Optimization AI for their markdown automation. 


10% increase in profit and 40% higher sales volumes.

FAM Brands use case

FAM Brands, a large US-based omnichannel manufacturer with a direct-to-consumer approach, partnered with Sniffie, an expert in AI-driven retail and e-commerce pricing solutions, to enhance their fashion and apparel markdown efficiency. With Sniffie’s expertise and AI Pricing Tool, FAM Brands is optimizing markdown pricing, forecasting, and profit for all D2C brand shops.

Dedicated markdown solution for the clothing Ecommerce industry

FAM Brands faced a significant challenge in managing its fashion and apparel markdown pricing. They needed a totally AI-driven approach to avoid loss, clothing waste, and to optimize gross margin and operating margin. Furthermore, managing more than 3000 products with a small team meant the system needed to work entirely without supervision.  

After thoroughly evaluating different solutions, FAM Brands chose Sniffie as their partner. Sniffie’s expertise in the fashion and apparel industry, specifically in markdown pricing and profit optimization, gave FAM Brands the confidence they needed in their decision.

With Sniffie’s AI-driven markdown module, FAM Brands can automate their apparel and fashion markdown process, optimizing product seasonality and demand for the best outcome. The AI technology supports product grouping in the optimization process, making it easy to run markdown processes without cannibalizing sales. In addition, due to its sophisticated approach to product grouping, the AI can utilize low volumes in the markdown process.

The results of using Sniffie have been outstanding. FAM Brands has seen a significant increase in sales volumes, gross margin, and net profit, and a significant reduction in work hours and waste. In addition, they can now sell items before the end-of-life date with optimal margins, thanks to Sniffie’s AI-driven approach.

Try out Sniffie Markdown Tool!

Take a free 7-day trial with our Markdown Pricing Tool. 

Dynamic Markdown Pricing

Results for the clothing markdown pricing with Sniffie

Increase in Gross and Net Profit

Implementing Sniffie’s AI-driven markdown module resulted in a 10% increase in gross and net profit for FAM Brands. The result is a significant improvement in the bottom line, which can be attributed to the automation and optimization of the markdown process.

Higher sales volumes

FAM Brands saw around 40% increase in sales volumes after implementing Sniffie’s solution. This can be attributed to the optimized markdown pricing and forecasting that Sniffie provides, which allows FAM Brands to manage their inventory better and sell items at the right time and the right price.

Saved work time

Using Sniffie’s AI-driven markdown module saved FAM Brand’s tens of hours of work time in the pricing process. The saving means a significant reduction in labor costs and will stay consecutively due to the automation of the markdown process, eliminating the need for manual calculations and forecasting.

Improved sellout efficiency

FAM Brands saw a significant improvement in their sellout efficiency after implementing Sniffie’s solution. Optimized markdown pricing and end-result forecasting help compnies to plan their markdown processes better. The planning allows FAM Brands to manage their inventory better and sell items at the right time and price.

Less waste 

As in any fashion or clothing business, the end-of-season often means moving products to outlets, clothing waste, and cost. However, FAM Brands saw a reduction in clothing waste and loss after implementing Sniffie’s solution. In addition, the optimized markdown pricing and forecasting that Sniffie provides allows FAM Brands to manage their inventory better and sell items before they reach the end-of-life date.

Are you selling clothes online and manually doing sellout processes? 

Making sure all your products sell during the season is easier than you think. Sniffie’s AI-driven markdown pricing module offers Ecommerce and Retail companies full control over the sellout process for products with Best Before dates or heavily seasonal products. 

Justin Zarabi Director New Business Development at FAM LLC

“Amazing for clothing business. Initial set up was easy. System gets stronger over time, and I like that our net profits have increased by close to 10%. Amazing for the bottom line.”

Justin Zarabi
Director New Business Development, FAM Brands LLC