Pricing of sporting goods: a margin that will be decided at the end of the season
Pricing for sporting goods involves setting, for each SKU, size, and store, the price that will clear out a seasonal collection before the next one arrives. The year’s profit margin is determined in the final weeks of each season, when a decision must be made between maintaining the margin and clearing out inventory.
Marking down an entire product line offers discounts on sizes that are still selling; the bike market is driven by model year, and the brand stands out from the major brands. The secondhand market and the end of the destruction of unsold inventory make this the right time to mark down prices.
At the end of every season, a sporting goods retailer faces the same dilemma: there are items left over, only a few weeks remaining, and a new collection on the way.
This article is intended for sales, pricing, and category management teams in the sports and leisure industry, both in-store and online.
It explains why price is treated here as a trajectory, and how bottle sizes, vintages, major brands, and the secondary market affect it only marginally.
Pricing of sporting goods: What are we talking about?
Pricing for sporting goods involves setting, for each SKU, size, and retail location, the price that will clear out a seasonal collection before the next one arrives while maintaining as much profit margin as possible.
Textiles, footwear, equipment, bicycles: these product categories may differ, but they share one common constraint. The product has a shelf life—the date when the new collection or the new season’s line hits the shelves.
Our professional belief:in sports, we don't set a single price; we establish a price trajectory for the season, by model and by size.
The initial collection price is just the first point on this trajectory. The year's profit margin is determined at its final point, when there are still items left and only a few weeks remaining to sell them.
We identified what sets the sports industry apart from other sectors in our retail sector pricingguide: here, time is the dominant constraint, far ahead of price comparisons.
Why a team's standing is determined at the end of the season
A sporting goods retailer buys its inventory months in advance, based on sales forecasts. The weather, a trendy sport, or a snowless winter then determine what’s left over.
The full price holds as long as there is demand. Everything comes down to the final weeks, when you have to choose between maintaining your profit margin and clearing out inventory.
A late price reduction is almost always a significant one
The most expensive strategy remains the most common: companies wait for the sales to stand out, then go all out to capitalize on demand that has already faded.
A 50% end-of-season discount costs more than a series of modest price reductions implemented earlier, because it comes at a time when customers have already made purchases elsewhere or are waiting until next year.
We have outlined the general method for moving inventory without selling it off too early. In the sports industry, this method faces three realities specific to the sector: sizes, model years, and used merchandise.
Sales and 30-Day Reference Prices: The Timing Matters
Sales events remain the highlight of the markdown season, with a legal advantage: this is the period when selling at a loss is permitted. But they take place on fixed dates, regardless of the actual season for each sport.
Any advertisement for a discount must also display a strikethrough price equal to the lowest price from the previous 30 days. A promotional campaign launched just before the sales therefore reduces the discount that can be advertised afterward.
The right time to stand out is determined by inventory levels, not by the legal calendar. However, you still need to plan for residual inventory early enough so that the first price reduction is a decision rather than a reaction.
Size-based markdown: The remaining size determines the markdown
A pair of running shoes comes in 12 sizes, a jacket in 6 sizes and 4 colors. End-of-season inventory is never distributed evenly across this range.
The most popular sizes sell out quickly at full price. There are still some size 36s and 47s left, along with a few less popular colors, and a few stores where this style hasn't found a customer base.
Highlighting the product code means offering the discount to those who would have paid
When the entire line goes on sale at 30% off, the discount primarily benefits the sizes that were still selling. The margin is eaten up by items that didn't need it, and the extreme sizes still don't sell.
This is the most common unit-of-measure error in the industry. The problem isn't the depth of the mark; it's the unit to which it applies.
65% of shoe shoppers have decided not to make a purchase because their size was out of stock, a reason that has increased by 91% in one year, according to a survey of 1,006 U.S. consumers.
(AlixPartners and FDRA, Spring 2026 Footwear Consumer Survey, April 2026)
The opposite is just as costly. A missing size means losing a sale at full price—often to a competitor who has the right size in stock.
The sports department is therefore losing margin at both ends of the size range: too many items in extreme sizes, not enough in the middle sizes. Price is just one of the levers, along with restocking and transfers.
Transfer Before Storing
The same model might be out of stock in Annecy and on backorder in Bordeaux. Before putting it in storage, the question is whether transferring it between stores or to the distribution center would be more profitable than lowering the price.
The answer depends on the item's value and the shipping costs. For a performance shoe, transfer printing is often the better option. For an entry-level T-shirt, it rarely is.
The best indicator is still the sales rate recorded at the checkout: product line, size, color, store. This is where the pricing strategy is determined—not at the product family level.
Prices of Bicycles and E-Bikes: Thinking in Terms of Model Years
The bicycle section operates on a different schedule: the model year. A bike doesn't go out of style because of the season; it goes out of style when the next year's model from the same manufacturer arrives.
E-bikes will account for 54% of the value of new bicycles sold in France in 2025, with an average price of around €2,000, according to figures presented at the Vélo in Paris trade show in April 2026.
On a ticket like this, each discount point is worth about 20 euros per bike. And a model that remains in stock past its model year doesn't just lose a few points—it ends up competing with its own successor.
Our position:The release date of the next model year should serve as the benchmark for every pricing decision throughout the cycle. An early, moderateprice reduction costs less than a steep discount imposed once the new model is already on the shelves.
The basket also changes the equation. A bike sold leads to equipment purchases and shop visits for years to come: the department’s profit margin isn’t determined solely by the frame.
Major Brands and Private Label Brands: Two Pricing Strategies on the Same Shelf
In the sports retail sector, major brands—which are ubiquitous—are sold alongside private-label brands developed by retailers. The two are not managed according to the same rules.
Top Brands, Compared Across the Board
When shopping for a brand-name shoe, customers compare prices across retail chains, specialty websites, and the manufacturer’s website in a matter of seconds. The price difference is felt immediately, in the form of lost sales or reduced profit margins.
The suggested retail price serves as a guideline for customers, not an obligation for retailers. Our article on the suggested retail price and retailers' pricing freedom explains what this guideline allows.
The real catch comes at the end of the season. When a major brand is on sale everywhere at the same time, the neighboring private-label brand loses its reason for being at full price.
Private-label brands, positioned relative to major brands
A private label that’s too close in price to the major brand won’t sell. If it’s too far off, it leaves profit on the table. Its price is therefore set based on the price difference compared to a comparable brand-name product.
Finding a comparable product isn't easy: use, material, skill level, weight. That's what product matching is for—it matches items even when their descriptions differ.
The pricing strategies for both categories are detailed in our article on private labels and national brands. In the sports sector, things get a little more complicated: the target price gap must shift when a major brand goes on sale.
Secondhand and Rentals: When Bargains Drive Down Prices
Secondhand items are no longer a niche market in sports. Bicycles, skis, hiking gear, and fitness equipment can be resold, traded in at stores, and rented on a seasonal basis.
Sales of used bicycles rose by 12.6% in France in 2025, while sales of new bicycles fell by 6% in volume.
(Union Sport & Cycle, 2025 Bicycle Observatory, April 2026)
When it comes to pricing new items, the impact is direct. A used item in good condition sets a psychological ceiling on the price a customer is willing to pay for a new item on sale.
By the end of the season, last year's new model finds itself competing with its own used version—sometimes in the same store. Waiting for the sales to make it stand out means letting it slip below that threshold.
Ending the destruction of unsold inventory changes the net realizable value
The AGEC Act already prohibits the destruction of unsold, new non-food items in France.
Since July 19, 2026, the European Ecodesign Regulation has also prohibited large companies from destroying their unsold clothing, accessories, and shoes.
Unsold inventory must therefore be donated, sold to a liquidator, or recycled. Its book value decreases, making each remaining item more expensive.
Our take:The more the exit value declines, the sooner the first price adjustment must occur. The optimal balance between margin and turnover—described in our article on balancing margin and turnover—shifts.
Pricing Strategy for a Sports Store: Charting a Course
Sizes, vintages, major brands, secondhand items: each category in the sports section follows its own rhythm. The table below summarizes the factors that determine price trends and where margin risk lies.
| Family | What keeps the clock running | Primary Margin Risk |
|---|---|---|
| Textiles and Footwear | End of Season and Size Chart | Discount offered on medium sizes |
| Seasonal Equipment | Weather and Event Schedule | Late price adjustment upon request—no longer available |
| Bicycles and E-Bikes | Arrival of the Next Vintage | The previous model next to its successor |
| Major Brands | Competitors' and Manufacturer's Prices | Visible discrepancy paid immediately |
| Private Label Brands | Difference compared to the brand-name product | Positioning Undermined by a Competitor's Price Cut |
A single markdown schedule for the entire department cannot account for all four of these factors at once. It sells off the clothing that was selling well, lets the bicycles sit on the shelf, and ignores the secondhand market.
What's needed is a trajectory for each cell: an entry price, thresholds triggered by actual sales, and a known exit date. This approach also helps identify the end of a collection and dormant inventory in a timely manner.
This is the logic behind our markdown and markdownofferings: projecting the remaining sales for each item through the end of the season, then simulating each markdown level before applying it, size by size and store by store.
Before making a purchase, ask to see this simulation based on your specific sizes and vintages. This is the first factor to consider when choosing a markdown tool for sports apparel.
The clients we work with, across all industries, see their margins increase by 0.5 to 3 percentage points within a few months. Industry-specific challenges and our dedicated solutions are outlined on our Sports and Leisure Pricing page.
Would you like to manage your end-of-season sports inventory by size?
Our experts work with you to analyze your most recent end-of-season results—including markdowns and unsold inventory—and simulate your pricing tiers item by item before any decisions are made.
Let's talk about the end of your seasonFAQ: Pricing of Sporting Goods
By managing pricing strategies based on product category, size, and store, rather than offering a one-time discount during sales.
The right time to stand out is determined by remaining inventory and sales momentum, not by the legal calendar. A moderate initial price reduction, implemented when sales begin to slow, almost always costs less than a steep discount applied too late when demand has already dried up.
Each price tier must be simulated before being applied, in terms of sales, margin, and remaining inventory.
Not necessarily. Sales allow for resale at a loss, but they take place on a fixed date, regardless of the actual season for each sport.
A piece of ski gear may need to be upgraded as early as February if there isn't enough snow, while a bicycle may need to be upgraded well before the new models arrive.
Also keep an eye on the reference price: any discount is based on the lowest price from the previous 30 days. A promotion launched right before the sales will reduce the discount you can offer afterward.
No. Unchecking the entire product line applies the discount to the standard sizes that were still being sold at full price.
The inventory that remains unsold at the end of the season is often limited to extreme sizes, a few colors, and a few stores. This is where the markdown should be applied.
Before putting items into storage, you should also consider whether transferring them to another store or to the warehouse would be more profitable, especially for high-value technical items.
Using the arrival date of the next vintage as the cutoff date, rather than the end of the calendar year.
On an electric bike that costs about 2,000 euros, each discount point is worth about 20 euros. A model that remains on the shelf when its successor arrives must be heavily discounted so as not to compete with it.
An early, moderate price cap—set with an understanding of the cost of carrying inventory—better protects the margin than a discount imposed at the end of the vintage.
By setting a price differential compared to a truly comparable brand-name product.
If a private label is too similar to the major brand, it won't sell. If it's too different, it leaves profit on the table. The best-selling product is chosen based on its intended use, materials, and skill level—not just the product category.
The target spread should also shift at the end of the season, when the top team is favored everywhere at the same time.
Above all, it sets a cap on the price the customer is willing to pay for the marked-down new item.
Whether it's a bike, skis, or hiking gear, a used item in good condition becomes a direct point of comparison. Last year's new model finds itself side by side with its own used version—sometimes in the same store.
Impact on pricing: The more the used car market grows within a family, the sooner the first price reduction from the new car price must occur.
Software capable of determining the size and location of each step with precision, and simulating each step before implementing it.
He must manage seasonal collections and thousands of variations, forecast remaining sales through the end of the season, monitor the prices of major brands online, and position the company's own brands at a competitive price point.
He must also calculate the 30-day reference price on his own. Booper's clients see margin increases ranging from +0.5 to +3 points within a few months, across all sectors.
In the toy industry, Black Friday kicks off the Christmas shopping season, which accounts for more than a third of annual sales. With the 30-day rule, its price becomes the benchmark for nearly all December promotions.
The discount applies only to the toys being compared, not to licensed products or this year's new releases. Baby care—a thoughtful purchase driven by the timing of births—calls for moderate discounts.
In the high-tech sector, Black Friday accounts for a major portion of annual sales and takes place two months after the back-to-school product launches. It is intended to clear out the previous generation of products rather than to sell off the new ones at a discount.
Refurbished products set a ceiling on the price of new items, and some prices are rising due to the cost of components. The advertised discount is always calculated based on the lowest price over the past 30 days.
When it comes to home appliances, Black Friday success depends more on the selection of models than on the size of the discounts. An 8% price reduction may require a 50% increase in sales to maintain the same profit margin.
It's best to act quickly on the models that are actually being compared, maintain the prices of exclusive models, focus on delivery, installation, and trade-ins, and prepare the 30-day policy starting in October.