Navigating Store Closing Sales: Deciding on Personal Discounts
As I prepare to close my music equipment store, an interesting question arises: Is there a cap on the discount I can grant myself? With a handful of items I’d prefer to keep rather than sell at a steep discount, I’m navigating the fine line between personal preference and business practicality. The idea is to avoid incurring a use tax—often higher than a sales tax—by determining how much of a Markdown I’m legally permitted to apply to my own purchases.
Over the years, I’ve witnessed customers using their phones to aggressively price-check my inventory, often pressuring me to lower prices below cost. This constant barrage has prompted a sense of vindictiveness, making me reluctant to offer bargain prices to a public that’s been anticipating my closure since the COVID-19 pandemic began.
Thus, the question remains: To what extent can I reduce the prices for myself while adhering to tax regulations and maintaining a semblance of fairness to all parties involved? This decision requires careful consideration and a dash of strategic thinking.
