A discount is a decision about volume, not about generosity. Ten percent off a forty percent margin needs a third more sales just to stand still. This is the number to have in mind before saying yes.
Discount break-even calculator
See how much extra volume a discount needs before it stops costing you money.
Extra volume needed
33.3%
Margin after discount
30%
Still profitable (1 = yes)
1
Calculated instantly in your browser · no data sent
How it works
- 1Enter the margin you make today on the item.
- 2Enter the discount the client is asking for.
- 3Read how much more you must sell to end up where you were.
Who it's for
- •Answering a request for a discount
- •Designing a promotion
- •Setting a floor for your sales team
Pro tips
- If the discount is larger than the margin, no volume can fix it.
- A discount without something removed from the scope says the first price was invented.
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