Business
Discount Calculator
Work out a discounted price and what the discount really costs you in margin.
Result
Discounts come out of profit, not revenue. On a 30% margin job, a 10% discount removes a third of the profit, which is why blanket discounting is so damaging.
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About this calculator
How much extra volume does a discount need?
More than most people expect. At a 30% margin, a 10% discount needs a 50% increase in volume just to make the same total profit.
What should I offer instead of a discount?
Something with a cost lower than its perceived value: an extended warranty, a free maintenance visit, or priority scheduling. All preserve your price and your margin.
The formula
final price = price × (1 − discount)
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