Discount Impact

Before you cut prices, see what it really costs

Discount impact
See how much extra volume a discount really needs to pay for itself.
Selling price / unit1000
Cost / unit620
Discount10%
Current units / month1000
Margin before
38.0%
₹380/unit
Margin after discount
31.1%
₹280/unit
New price
₹900
was ₹1.0K
Break-even volume
+36%
1,358 units
A 10% discount cuts your margin from 38% to 31%. To make the same total profit you'd need to sell 36% more unitsachievable if the promotion genuinely drives demand.

The discount trap

Why 10% off is bigger than it looks

A discount comes straight off your margin, not your price. If you keep 38% margin and give 10% off, you've given away more than a quarter of your profit per unit — so you need a lot more volume just to stand still.

Before running a promotion, check the break-even volume here. If it's more than the promotion can realistically drive, offer added value (a free add-on, faster delivery) instead — it protects margin and feels just as generous.

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