Free tool · Discount math
What does that discount really cost?
A 20% promotion does not cost you 20%. It costs a much bigger share of your gross profit, and you need a lot more volume just to stand still. Put in your own numbers and see.
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What to do instead of a sitewide discount
Ending sitewide discounting is one of the two ways I have recovered more than 400 basis points of margin in past roles. It rarely means never promoting. It means promoting in ways that ask the customer to do something you want in return.
- Threshold offers. Free shipping or a gift above a set order value. The customer earns it by buying more.
- Bundles. A saving on three or four items together spreads your picking and shipping cost across a bigger order.
- Targeted offers. A deeper discount for lapsed customers only, instead of handing it to people who were going to buy anyway.
- Subscriptions. A modest standing discount on products people reorder, in exchange for predictable demand.
Running promotions on gut feel?
Pricing and promotional architecture is core fractional work. Tell me how you promote today and I will tell you what I would test first.