Why can a small discount require many extra sales?

The discount comes straight out of profit. With a 30% margin, a 10% price discount removes one third of profit per unit, so you need substantially more sales to earn the same total.

Does that mean I should never discount?

No. Discounts can help clear stock or attract first-time customers. The point is to understand their cost, rather than copying a competitor.

Discount Impact Calculator · Digitalize Plus

Your current margin30%

Not sure about your margin? Calculate first with our margin calculator.

Planned discount10%

Additional sales required

+50%

to maintain the same amount of profit after discount.

Discount 10% deducted directly from margin 30%, leaving 20% per unit.
Example: if you now sell 100 units, after the discount you need to sell 150 units for the same profit.
If you are confident that the promotion can reach that number, continue. If not, it's not a promotion, it's a salary deduction.

Common questions

The sales record system shows which promotions are really profitable.

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