Pricing workflow
Profit margin and discount pricing workflow
Check margin, markup, discounts, and break-even before changing prices or running promotions.
Know the margin before the discount
Discounts feel simple, but they can remove most of the profit from low-margin offers. Start with cost, selling price, and margin before deciding how much to discount.
- Calculate margin.
- Calculate final discounted price.
- Check break-even after the discount.
- Review whether the promotion still supports the goal.
Quick workflow
Use margin and markup first, then discount, then break-even. If ads are involved, check ROAS after the discounted price.
Do
- Use total cost, not just product cost.
- Check discounts before publishing them.
- Keep the original and discounted price clear.
Don't
- Do not discount below a sustainable margin.
- Do not forget delivery or labor costs.
- Do not compare margin and markup as the same number.
Profit Margin CalculatorCalculate profit, margin, and markup.Discount CalculatorCheck final price and savings.Invoice Total CalculatorAdd subtotal, tax, discount, shipping, and total.Break-Even Sales CalculatorEstimate units and revenue needed to cover costs.Break-Even ROAS CalculatorCheck ad-driven break-even after discounts.Pricing guideUse a broader pricing workflow.
FAQs
Why check margin before a discount?
Because a small discount can remove a large share of profit when margins are already tight.
Is markup the same as margin?
No. Markup compares profit to cost, while margin compares profit to selling price.