Practical promotion economics

From markup to a discounted margin

Start with €60 variable cost, €100 regular price and a €80 promotion to keep the denominator distinction visible.

Entirely synthetic case. The expected baseline and commercial inputs are deliberately supplied assumptions.

The decision

Was the target stated as margin or markup?

Product–campaign rows1
Contribution change-€1,000
Gross unit lift50.0%

Source inputs

Campaign / productExpected baseline unitsPromotion unitsRegular / promotion priceVariable unit cost
Example premium set
Synthetic price-basis review
100150€100 / €80€60

What to inspect

Open a row’s full contribution bridge, check the day-window alignment and cost allocation, then vary the expected baseline and response in Scenario studio. The portfolio result includes the recorded refunds, supplier support and displacement; unrecorded effects remain excluded.

Read the accompanying decision guide

Interpretation limits

The figures are generated from the same deterministic engine used by the workbench. They are not evidence from a merchant or a randomized test. A supplied baseline can make an offer look attractive or unattractive, so the baseline deserves the same scrutiny as the campaign’s realized sales.

How to read this case

The regular unit margin is 40% and markup is 66.67%. The €80 offer leaves €20 per unit; at 150 units it loses €1,000 against 100 full-price units.

Case-specific assumptions

  • All prices and costs share one net analysis basis in this example.
  • The currency label does not convert an inconsistent tax or cost definition.

Download the portable project JSON ↓