The Real Cost of Deep Discounts
Discounting can increase conversions but also compress profit quickly, especially when ad costs are rising.
Plan Discounts with Guardrails
Set thresholds and test discount levels by campaign type instead of applying one blanket percentage everywhere.
- Set minimum margin floor per product category
- Use lower discounts on low-margin products
- Model discount impact before campaign launch
- Track contribution margin after each promo
Use Scenario Pricing
Compare multiple discount outcomes and choose the one that balances conversion gain and profit retention.