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Guide · Profit
Offer Maths: Discounts vs Gifts
A discount feels generous to the customer and expensive to you. A gift with purchase often feels just as generous and costs a fraction. Here's the maths.
The example
A $75 bundle with $11 of product cost and $14 of postage, packing and fees makes $50 profit before ads.
| Offer | Cost to you | Profit per order | Extra orders needed to match no-offer profit |
|---|---|---|---|
| No offer | $0 | $50.00 | n/a |
| 25% off | $18.75 | $31.25 | +60% |
| Free gift ($6 cost) | $6.00 | $44.00 | +14% |
When to use which
- Gift with purchase: protecting price and margin, introducing a second product, peak season
- Bundle pricing: lifting order value permanently
- Discount: clearing stock, or a one-off moment when volume matters more than margin
- Free shipping threshold: nudging single-item orders into two-item orders
Run your own numbers with the offer calculator.
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