How much discount can I offer?
Calculate costs and minimum margin first. They determine the lowest viable net selling price under your inputs.
SEOSTUDIO™ · FREE TOOL
How much can you discount without losing money?
Calculate sale price, selling fees, margin and maximum discount for your minimum margin.
Calculate nowWhat problem does this tool solve?
A lower price changes percentage fees while fixed costs remain. Reverse calculation shows a mathematical price floor.
What do you get?
Sale price, discount amount, contribution, margin and maximum calculated discount.
Worked example
Example: €100 regular net price, 20% discount, €50 fixed variable costs and 10% selling fee give an €80 sale price, €8 fee and €22 contribution.
Practical questions on this topic
Why do discounts erode margin?
Revenue falls while sourcing cost and fixed fees generally stay unchanged.
How do I plan Black Friday promotions?
Calculate contribution at the sale price, and assess demand and applicable price display rules separately.
How do I find the minimum price?
Solve for price using fixed costs, percentage fees and target contribution margin, then verify cent rounding.
Can a lower-margin sale still be useful?
Possibly, if evidenced extra demand or stock clearance offsets lower unit contribution. This tool does not forecast that.
How do discount and margin differ?
Discount is the reduction from regular price; margin is the remaining contribution relative to the sale price.
Frequently asked questions
Can I test more than 50% discount?
Yes, as long as the discount is below 100%.
Are platform and payment fees included?
Yes, with separately entered fixed and percentage components.
Can I find the maximum discount?
Yes, from costs, fees and minimum margin, rounded down to two percentage decimals.
Does it work for Amazon and eBay?
Yes, when you enter fees applicable to your product.
Does it flag negative margins?
Yes, the result clearly flags losses.
Continue from here
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