Discount impact calculator
Do you calculate the discount impact before running a promotion? Discounts don’t just shave off revenue, they eat directly into your margin. A 10% price cut on a product with 40% margin doesn’t cost you 10% of your profit. It costs you 25%. To make up for it, you’d need to sell 33% more units.
…and that’s not a typo.
To see how much you need to sell more in your next campaign, use the calculator below to plug in your own numbers and see the real cost of discounting. Because the best promotion is one where you’ve done the math first.
€
Your typical product price
€
What each unit costs you
units
Units sold per month
Volume Increase Needed
+33.3%
to maintain the same profit
New Margin
30.0%
down from 40.0%
Extra Units Needed
+333
per month to break even
Profit at Same Volume
-€10,000
monthly profit impact
VOLUME: NOW VS. WHAT YOU'D NEED
VOLUME INCREASE BY DISCOUNT LEVEL
FULL BREAKDOWN
| Before Discount | After Discount | Change | |
|---|---|---|---|
| Selling Price | €100.00 | €90.00 | -€10.00 |
| Cost per Unit | €60.00 | €60.00 | €0.00 |
| Margin per Unit | €40.00 | €30.00 | -€10.00 |
| Margin % | 40.0% | 30.0% | -10.0pp |
| Monthly Profit | €40,000 | €30,000 | -€10,000 |
| Volume for Same Profit | 1,000 | 1,333 | +333 units |
THE TAKEAWAY
STOP GUESSING, START OPTIMIZING
Pricen helps retailers find the right price — so you don't leave margin on the table with blanket discounts.
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