The discount attracts attention. Orders rise. The report looks encouraging. One question remains for the business: what did those orders contribute after costs?
If discounts have brought more orders, the next question may be how sustainable the result is. Calculating the economics of the included products helps you choose which promotion is worth repeating and under what conditions.
Higher volume can help clear stock, attract new customers or accelerate revenue. The effect has to be judged against that purpose and all the relevant costs.
What a discount changes
The selling price falls immediately while the product’s cost may stay the same. In that case, the contribution left per unit falls by a larger percentage than the price.
Take a hypothetical example, excluding VAT, with a variable cost of RON 60 per unit. For simplicity, we keep it constant and do not yet include advertising or fixed costs.
A price reduction changes the contribution per unit.
Hypothetical example, excluding VAT. Advertising and fixed costs are not included.
Usual price
- Price: RON 100
- Variable cost: RON 60
- Contribution: RON 40
Promotional price
- Price: RON 80
- Variable cost: RON 60
- Contribution: RON 20
For the same contribution of RON 4,000:
100 units at the usual price / 200 at the reduced price
| Element | Usual price | Promotional price |
|---|---|---|
| Unit price | RON 100 | RON 80 |
| Variable cost per unit | RON 60 | RON 60 |
| Contribution before advertising | RON 40 | RON 20 |
| Units for a contribution of RON 4,000 | 100 | 200 |
Under these conditions, the 20% reduction in the price halves the contribution per unit. Twice as many units are needed for the same total contribution before other costs change.
The calculation shows the economics of the example. It does not predict demand or show that the promotion will produce that volume.
What else can change the result?
Advertising can cost more or less for each order. Shipping, packaging, processing and support costs may change at a different volume. Cancellations or returns may occur.
A package offer can change the value of the basket and the product mix. A reduction on a product can also bring complementary sales. These effects should be tracked rather than assumed.
We also check delivery capacity. If volume exceeds what the team can handle, delays can eat into the promotion’s benefit and affect the customer experience.
The promotion’s objective changes the evaluation
When clearing stock, recovering cash and space may matter differently from the usual margin. When acquiring customers, future purchases may matter too, if there is evidence to support that assumption.
For low-margin products, a store-wide discount can have a different effect from a selected offer. Assess the included products, available quantities and how the offer is presented.
The conditions must be clear: which products are included, how the benefit applies and which limitations are relevant. An attractive campaign needs an experience that respects the promise.
What to monitor afterward
Compare total contribution, advertising cost, cancellations and returns once enough time has passed for the data to settle. Look beyond the promotion too: some purchases may simply have happened earlier, while others may reflect new demand.
For new customers, check whether and when they buy again. Revenue that has not yet happened belongs in a clearly labeled estimate, not in the promotion’s realized results.
How we prepare the recommendation
At NOT MORE., we discuss the commercial purpose before building the promotional message. We establish what we can calculate, what assumptions we use and what information should be followed after the campaign.
More orders describes an outcome. Whether the promotion succeeded depends on its stated objective and its economics.
Questions before the next discount
- What do we want to achieve, and what cost are we willing to accept?
- What additional volume would support that objective?
- Can we deliver and measure the result under the promised conditions?
What does your next promotion need to achieve?
Tell us the objective, products, stock and costs you know. We’ll discuss which scenarios are worth calculating before preparing materials and distribution.
A commercial decision, followed by coordinated implementation
We can explore offer, messaging and promotion scenarios together. Your team validates costs, availability and conditions it can sustain. NOT MORE. turns the agreed direction into materials, pages and campaigns and implements the measurement included in the project.
After launch, we track the agreed measures and explain what the orders mean for the chosen objective. If volume grows alongside cancellations or pressure on capacity, that information needs to inform both the commercial decision and the next adjustment to promotion.