Markdown refers to the reduction in the prices of the articles from the MRP or cost when the same are being sold to the Distributors and the dealers.
Eg. A chips packet’s MRP is ` 10 then a mark down of 20% will result in the dealer getting the same for `8 . Hence it would be`8 at 20 % mark down.
Please note that in this case a 20% mark down is equal to a 25% mark up.