A promotion can attract more inquiries and orders without delivering better results for the business. The problem arises when the discount is decided based only on the selling price, while the costs of delivering, collecting payment, and handling each transaction are left out of the discussion.
Before publishing an offer, it is worth reviewing what you want to achieve and what conditions it must meet to make sense. This general assessment does not replace the business’s accounting analysis, but it helps you make a better-informed business decision.
Define the objective before choosing the discount percentage
A campaign to move inventory has different needs from one designed to introduce a new service. The criteria also change when your goal is to win back customers or secure a first purchase. Write down one primary objective and an observable signal that will allow you to evaluate it.
Avoid combining every goal in one offer. If you do not know what result you are looking for, it will be difficult to tell a useful campaign from one that merely generated activity. The discount should support the objective, not replace it.
Distinguish contribution margin from available cash
As a basic reference, the contribution per transaction is the amount charged minus the associated variable costs. A discount reduces that amount, even if the sale still seems attractive based on its total value. In addition, a positive contribution does not mean that all the business’s expenses are covered.
Review the applicable items with your accounting lead: product, commissions, packaging, delivery, and other directly related costs. Use actual data and distinguish amounts before and after taxes so you are not comparing different bases.
Consider the additional work the offer will generate
More orders can also mean more conversations, preparation, changes, and follow-up requests. If the team is already near capacity, a broad promotion may undermine the customer experience or require unplanned expenses.
Note which part of the process could become overloaded and who will handle exceptions. Set limits on availability, duration, and scope before communicating the offer. Clear terms are more useful than trying to resolve every question once the campaign is already underway.
Compare alternatives to across-the-board discounts
Not every campaign needs to lower prices across the entire catalog. You can consider bundles, benefits tied to a specific purchase, or terms for a clearly defined segment, while always reviewing their cost and communicating them transparently.
Compare each alternative using the same criteria: objective, estimated contribution, operational effort, and customer experience. Do not present something as free if its cost is ultimately passed on in a confusing way. Nor should you assume that a more complicated promotion will be more compelling.
Record the full results
When the campaign ends, review sales, inquiries, cancellations, and the work required. Separate observed results from assumptions: not every purchase made during the campaign period was necessarily caused by the promotion.
In your sales organization, you can use Onix Board to keep contacts, tasks, and follow-up notes organized. Keep the cost analysis where it belongs, and link operational conclusions to the campaign being evaluated.
A good promotion is not the one with the biggest discount, but the one that meets an objective without losing sight of its cost and operational demands. Before launching it, put the terms and the criteria you will use to decide whether to repeat it in writing.