Seller Pricing & Profit

A Discount Reduces Profit by More Than Its Share of the Original Margin

Updated

A PKR 200 coupon on a PKR 1,000 item changes revenue by 20%. It can change the remaining profit by a much larger percentage because the product and fulfillment costs do not disappear with the discount.

The Whatson Discount Price & Profit Calculator compares the before and after positions using an entered included cost and fee on discounted revenue.

Choose percent off or a fixed PKR amount

Enter original selling price and select the discount format. Only the field relevant to that format is used in the submitted worksheet. The discount cannot exceed the original price.

The included cost field should contain the expenses you intend to evaluate. The percentage fee is separate and recalculates on the discounted price.

The fixed coupon example

Use an illustrative original price of PKR 1,000, fixed discount of PKR 200, included cost of PKR 600 and fee of 10%.

Position Revenue Fee Profit
Before coupon PKR 1,000 PKR 100 PKR 300
After coupon PKR 800 PKR 80 PKR 120

The checked profit change is negative PKR 180. The fee falls by PKR 20, but the included PKR 600 cost stays in the calculation.

Do not use a purchase discount as a customer coupon

A supplier discount changes acquisition cost. A customer coupon changes the selling receipt. Entering one in place of the other reverses what the worksheet is trying to measure.

Bulk Purchase Discount Calculator calculates a supplier purchase discount with batch charges. Maximum Coupon Calculator solves how much selling discount can remain while retaining a chosen profit.

A 100% offer does not create a meaningful margin

A full discount produces zero selling revenue. Profit can still be negative because included costs remain. Margin has no valid revenue denominator in that case, so the tool reports the limitation instead of a misleading percentage.

Likewise, a loss at another price stays negative. The calculator does not turn an unprofitable promotion into a zero profit result.

Recalculate before exporting the campaign worksheet

Changing the cost or coupon marks the existing result stale. Recalculate before saving CSV so the file describes the current offer rather than an earlier version.

The example fees and amounts are not live marketplace data. Keep the original price, coupon, cost scope and fee basis with your promotion record; none of those inputs proves the offer will increase demand enough to cover its profit reduction.

Discount Price & Profit Calculator

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