A pricing strategy calculator for holiday discounts

A pricing strategy calculator for holiday discounts

With the holidays quickly approaching, every brand owner is wondering, “How much should I discount my products?”

The holiday season is the biggest income generator of the year for many organizations, whether they are established industry giants or nimble startups. With merchants lowering prices everywhere, it can be tempting to follow suit in order to remain competitive or, at the very least, improve sales.

Fortunately, we’re here to relieve some of the pressure. Use this tool to create a discounting strategy while maintaining your profit margins. Then, once you’ve determined exactly what bargains to offer, begin a cross-channel holiday campaign that promotes your promotion widely.

Psst: Don’t forget to segment your campaign for distinct first-time and repeat client profiles to ensure they find the right gifts!

Want more pointers on how to nail your offer? Check out these cheap psychology tips.

Use the Discount Calculator to calculate your profits.

Enter the item’s cost and markup, then try out different discount percentages to see how they affect your sale price, profit, and gross margin!

Terms are defined as follows:

Cost of Item: The cost of manufacturing the product.

Markup: The amount of overhead and profit added to the production cost is referred to as the markup.

Holiday Discount: How much will you be discounting the goods during the holiday season? (as a percentage).

Sale Price: the amount paid by the customer.

Profit: the difference between your income and the cost of the item.

Gross Margin: The bigger the percentage, the more profitable your company will be.

Aside from these computations, keep the following tips in mind:

• If you can’t afford to discount your products, consider offering free shipping, extra loyalty points, or little freebies with every order.
• Avoid significant discounts on popular items if you want to ensure you have enough inventory to last the full Christmas season.
• Keep your discounting technique as straightforward as possible Because no one loves having to mentally compute pricing!

Create Your Holiday Marketing Campaigns

Use the offer in your marketing efforts now that you’ve settled on a discount or sale! Discounts are an excellent approach to attracting new clients. Consider making the sale more exclusive to a select group of customers, such as returning shoppers, to promote brand loyalty and increase purchases.

Did you know that AdRoll can help you develop, optimize, and report on your advertising campaigns? More information can be found by clicking here.

Want to learn more about crafting a great holiday campaign? Check out the guides listed below!