All guidesPricing · 5 min
Discounts that still make profit
How to judge a sale price before a promotion creates revenue without useful profit.
Discounts come out of profit first
Costs usually do not shrink just because the sale price does. Product cost, postage, packaging and many fees still remain.
That means a discount often reduces profit faster than sellers expect.
Use discounts for a reason
A discount can be useful for clearing stock, launching a product or increasing order volume. It should not be a reflex.
Before discounting, decide what the promotion is meant to prove and what margin you are willing to trade.
Protect the floor
Set a minimum acceptable profit before the promotion goes live.
If the discounted result is below that floor, change the offer, bundle the product or avoid the campaign.