A useful answer starts
with the right comparison.
Worked examples, explicit assumptions, and practical workflows for promotion economics. All example data is synthetic.
Review the promotion, not just its sales chart.
A practical campaign review that reconciles sales lift, discounted margin, campaign spending and supplier support against a supplied baseline.
Explore Decision guideThe baseline can change the whole promotion decision.
Choose and document a no-promotion comparison, align its time window, and distinguish arithmetic normalization from causal identification.
Explore Decision guideA discount's headline break-even target can be too low.
Extend the discount sales target to include refunded revenue, campaign spending and supplied post-promotion displacement.
Explore Decision guideCount every delivered unit in a BOGO offer.
Compare paid units, delivered units and contribution for BOGO offers without confusing bundle counts with product volume.
Explore Decision guideAllocate the campaign once, then reconcile every row.
Allocate fixed promotion costs and supplier support across products, reconcile totals, and avoid counting the same funding twice.
Explore Decision guideGross units and refunded units belong in separate columns.
Reconcile gross sold units and full refunds without subtracting returns twice, and understand MarginTrial's conservative unrecovered-cost assumption.
Explore Decision guideA promotion can borrow sales from somewhere else.
Measure the commercial boundary around a promotion, value displaced contribution and avoid double-counting peer and later-period effects.
Explore Decision guideAn elasticity assumption is not an estimated price effect.
Use a signed constant-elasticity scenario correctly, distinguish it from an estimated demand response, and check price-test evidence.
Explore Decision guideUse the right denominator before choosing a discount.
Avoid denominator and tax-basis errors when translating cost into a selling price or evaluating a discount.
Explore Decision guideA higher ticket price can recover less inventory value.
Compare markdown and waiting strategies over one horizon using expected sales, terminal inventory value and holding costs.
Explore Decision guideA clear row definition prevents a misleading promotion review.
Prepare one row per product and campaign with consistent units, paired date windows, allocated costs and a single currency.
Explore Decision guideFind the assumption that changes the decision.
Identify the assumptions that reverse a campaign decision, use two-way sensitivity tables and distinguish scenarios from statistical uncertainty.
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