Discount Margin Calculator
What a discount costs in margin, and the volume it would take to absorb it.
Gross margin rate before
0
Gross margin rate after
0
Extra volume required
0
reading
The stack
Starting price
0
Final price
0
Equivalent discount
0
Arithmetic sum
0
Stack gap
0
| Step | Discount | Price before | Amount taken off | Price after |
|---|
The tipping point
Discount wiping out the margin
0
Distance from the stack
0
Tipping point from list price
0
Tipping point from promotional price
0
Sensitivity scale
| Discount | Price | Unit margin ex-VAT | Gross margin rate | Volume required | Marker |
|---|
What this calculation does not say
1. The offsetting volume is an arithmetic threshold: neither whether it is reachable on this item, nor how long it would take, is part of the calculation.
2. The cost price is held constant: a supplier tier or a different logistics scheme would improve the result without being captured.
3. Nothing is said about neighbouring items: a discount that moves volume within the same shelf improves the line and damages the category.
4. No memory effect is modelled: repeated, a discount shifts the customer's reference price and makes the return to list price more costly.