## PRICING DISCOUNT IMPACT CALCULATOR

When giving out discounts, many entrepreneurs underestimate the impact on their financials. They don’t realise that a   10% discount on price , easily results in a   50% loss in profit . Meaning you will have to sell twice as much to continue to make the same profit.

With this Pricing Discount Impact Calculator we hope you will get a better insight in how providing discounts to your customers will affect the bottom line for your your company (and what you need to do to compensate).

## EXAMPLE

REGULAR PRICE

You sell 100 units at \$100; with a cost per unit of \$80.

Your profit = \$10,000 – \$8,000 = \$2,000

DISCOUNTED PRICE

What if you give away a 10% discount? Then you sell 100 units at \$90; with a cost per unit of \$80.

Your profit = \$9,000 – \$8,000 = \$1,000

PROFIT  RECUPERATION

You have to sell 200 units at the discounted price of \$90 to continue to make the same profit of \$2,000.

Your profit = \$18,000 – \$16,000 = \$2,000

## !!! NOTE THAT A 20% DISCOUNT OR HIGHER WOULD HAVE RESULTED IN YOU MAKING A LOSS FULL STOP...

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