Discount impact on profit

Compare unit profit before and after a price cut — and how many more units you must sell (at the discounted margin) to earn the same gross profit as before.

Budget period

Selling price (before discount)

Variable cost per unit

Discount off list price

Results

Gross profit per unit (no discount)

€ 51

Margin % at list price

57.3%

Effective price after discount

€ 76

Gross profit per unit (with discount)

€ 38

Margin % after discount

49.8%

Units needed vs before (same total gross profit)

1.35×