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The Promo Profit Check
A discount moves conversion the moment it goes live. Whether it moves gross profit is a second calculation. This check gives you the break-even lift formula, a margin-by-discount table, and six incentives compared against a straight discount.
Your promo lifted orders. It may still have cost you money.
A 20% discount at a 62% margin needs a 47.6% order lift just to hold gross profit flat. One real week delivered 42.1% more orders, 13.7% more revenue, and gross profit down 3.7%. The conversion rate moved. The profit didn’t.
Inside:
The break-even lift formula, d ÷ (m − d), plus a full table showing the order lift every discount has to buy at margins from 30% to 70%
Two things that will flatter your answer: a margin that doesn’t carry freight, duties, warehousing and shrinkage, and a promo week compared to a normal one
The incentive chooser: six alternatives to a straight discount, each scored on perceived value vs net delivered cost, and why a discount is the only one that costs exactly what it’s worth
A four-step method, including the holdback that shows you what the incentive actually caused
You pay for the incentive on every order. You only earn it back on the ones that wouldn’t have happened.
