Pricing Your Sales Correctly
During events like Black Friday, Cyber Monday, or even a typical weekend flash sale, store owners routinely throw random percentages onto their products. But an ill-thought-out 30% discount can instantly obliterate your entire profit margin.
Understanding Discount Margin Decay
If your gross margin on an item is 50%, a 20% discount does not mean you are keeping 30% profit. It means your original $100 price (with $50 cost) drops to $80. Your profit margins dramatically shift downward. Use this tool alongside our Profit Margin Calculator to ensure you aren't paying customers to take your inventory.