Discount economics

Extra sales needed to cover a discount

Input

Required sales lift

profit/unit: 240 → 120 ₴

+100%

New price
680 ₴
Profit/unit change
-50%

A 10% discount at 30% margin eats a third of profit — you need +50% sales to break even. Formula: new profit/unit = margin×price − discount×price; required lift = old profit/new − 1. Discounts up to 5–10% work; >20% is almost always loss-making without volume growth.