What do we call a downward adjustment made to the retail price of a product?

The term used for a downward adjustment made to the retail price of a product is "markdown." A markdown is typically employed to increase sales, clear inventory, or respond to changes in consumer demand. By lowering the price, retailers aim to make the product more appealing to consumers, which can lead to increased sales volume.

Discounts, on the other hand, usually refer to temporary reductions applied at the point of sale or for specific promotional offers rather than a change in the retail price of the product itself. Reduction can be a more general term and may not specifically refer to the pricing strategy used in retail. Clearance refers to a process of selling off remaining inventory, often at significantly reduced prices, but it does not encompass all instances of price adjustments like markdowns do. Thus, markdown accurately describes the permanent reduction of a product's price for strategic reasons in the retail environment.