Measure how a physical product discount changes sale price, profit, margin, and required sales lift. Use it before Black Friday, clearance, coupons, or seasonal promotions.
Discount margin shows whether a promotion still leaves enough profit after product, fulfillment, fees, and ad costs.
Benchmarks vary by product category, channel, fulfillment model, and customer segment. Use the result as a decision estimate, not accounting advice.
A $100 product discounted 20% sells for $80. After $52 cost plus 12% fees, profit is about $18.40 and margin is 23%.
The most profitable discount is the lowest discount that increases conversion enough to offset lost margin.
Divide original profit per unit by discounted profit per unit to estimate the sales multiplier needed to preserve profit.
A bundle can be more profitable when it raises AOV and preserves perceived value better than a simple price cut.
Discounts lower selling price while many costs stay fixed, so margin often falls faster than revenue.
Black Friday discounts commonly range from 15–40%, but the right rate depends on margin, inventory goals, and required sales lift.
| Metric | Meaning |
|---|---|
| Main Result | Primary number used for decision-making. |
| Health Score | 0–100 score based on profitability, operating efficiency, or risk. |
| Status | Excellent, Good, Average, or Needs Improvement. |
| Recommendation | Automatic next action based on the result. |