Promo Profitability Calculator
Know before you say yes. Run the numbers on any retailer promo ask in under a minute.
Untitled scenario
01
Pricing Inputs
Per unit$$15.99
$$1.80
$$3.20
$$4.20
02
Promo Mechanics
$$0.50
Funded by brand
$$4.99
What shopper pays on promo
30.0%
Typical natural/specialty floor: 25 to 35%
03
Volume & Promotion
400
2
40%
Incremental volume vs. everyday
Recommendation
NO GO — lift insufficient
-$112.00
Incremental profit vs. everyday baseline
You need at least 55.6% lift to break even. You are modeling 40.0%.
Everyday margin waterfall
Brand margin$1.40 · 43.8%
Distributor margin$1.00 · 23.8%
Retailer margin$11.79 · 73.7%
Promo margin waterfall
Promo wholesale price$2.70
Promo distributor price$3.70
Promo brand margin$0.90 · 33.3%
Promo retailer margin$1.29 · 25.9%
Below retailer threshold — at risk
Volume & profitability
Expected weekly promo volume560 units
Total promo volume, all weeks1,120 units
Total trade investment$560.00
Total brand profit during promo$1,008.00
Everyday baseline profit$1,120.00
Incremental profit vs. baseline-$112.00
Breakeven volume needed1,244 units
Breakeven lift needed55.6%
Off-invoice discount is assumed to flow through the distributor dollar-for-dollar (distributor's dollar margin held constant). Built by Honey Bee Brands — Your Outsourced Retail Growth Team™.