Pricing & Promotion · 4 items
When does a price change or promotion actually pay?
Discounts, increases and campaigns, judged by contribution rather than revenue.
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A small experiment
A 10% discount lifts sales by 20%. Revenue goes up. Does the business come out ahead?
No. Contribution falls from $1,800 to $1,710. To keep $1,800, sales would need to rise 26.3% — at least 190 whole units instead of 150.
Featured tool · Will your price change pay off?
Enter one product's price, cost and sales. See how many units each discount or increase needs to keep today's contribution. Works on its own — the walkthrough is optional.
| Units | Contribution at 10% off | vs today |
|---|---|---|
| 150 | $1,425 | −$375 |
| 160 | $1,520 | −$280 |
| 170 | $1,615 | −$185 |
| 180 | $1,710 | −$90 |
| 190 | $1,805 | +$5 |
| 200 | $1,900 | +$100 |
Pricing & Promotion · 4 items
Discounts, increases and campaigns, judged by contribution rather than revenue.
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