The Discount Erosion

Revenue is vanity. Margin is sanity.

How it works

Enter your Cost of Goods and Standard Price.

Set a proposed Discount %.

See the Profit Cliff (how much margin you lose).

Discover the Volume Trap (how many more units you must sell).


Why it matters

Sales teams love discounts because they close deals. Founders hate them because they kill profit.

Before you approve that "small" 20% off, see exactly how much harder your team has to work to make up for it.


The Math

New Margin = (Price × (1 - Discount)) - Cost
Volume Multiplier = Old Margin / New Margin

A 20% discount kills 33% of your profit.

To make the same money, you must sell 50% MORE units.

$60
Old Margin
$40
New Margin

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