Free Tool · Pricing, Profitability & Portfolio

Discount Damage Simulator

A 10% discount on 30% contribution needs 50% more units. See your number.

A discount is a price cut with a marketing costume. Enter your price, variable cost and the proposed discount; see what it does to contribution per unit and exactly how many extra units you must sell to stand still.

For: Sales / Commercial Head·Free — no sign-up for results·Related service: Pricing & Revenue Management
Proposed discount10%
Discounts come straight out of contribution. The curve shows how much extra volume each discount point demands.
Contribution per unit
Before discount (at ₹1,000)₹300 (30%)
After 10% discount (at ₹900)₹200 (22.2%)
Volume needed to preserve total contribution1.5× (50% more units)

The discount curve

DiscountContribution / unitVolume needed
0%₹3001×
5%₹2501.2×
10%₹2001.5×
15%₹1502×
20%₹1003×
25%₹506×
30%₹0Impossible
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How it works

Contribution per unit = net selling price − variable cost. A discount of d% reduces price to price × (1 − d); the new contribution is that minus unchanged variable cost.

Volume preservation: to keep total contribution constant, units must rise by old contribution ÷ new contribution. With ₹1,000 price, ₹700 cost and 10% off: contribution falls ₹300 → ₹200, so volume must rise 1.5× — 50% more units for the same money.

If the post-discount contribution is zero or negative, the tool says so plainly: no finite volume rescues the deal. The 0–30% curve shows how steeply the requirement climbs.

Worked example

A snacks brand with ₹40 pack price and ₹28 variable cost offers 15% off for a festival. Contribution falls ₹12 → ₹6; the scheme must nearly double volume (2.0×) just to break even on contribution — before counting scheme communication or extra freight.

Illustrative figures, not a client outcome.

Questions, answered

Are discounts ever worth it?

Yes — when they buy something measurable: trial from new customers, a listing, or volume that clears perishable stock. The simulator makes the price of that purchase explicit so it can be a decision rather than a habit.

What counts as variable cost?

Everything that scales per unit: product, packaging, delivery, marketplace fees, payment fees. Fixed overheads stay out — discounts are priced against contribution, not EBITDA.

Does this apply to services?

Yes. Use day-rate or project price as price and direct delivery cost as variable cost. The arithmetic of discounting is identical.

Version 1.0 · Reviewed 2026-10 · Methodology is fixed and version-controlled; results depend on your inputs.

Discounts are decisions. Want a pricing system that governs them?

BLEZZINGS runs this analysis inside a focused engagement — with your data, your market and a plan to act on it.