Discount Impact Calculator
A ten percent discount does not cost you ten percent. It comes entirely out of profit, which is a much smaller number. This shows the real damage.
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Profit after discount
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Share of profit given away
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Profit before discount
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Extra revenue needed to replace it
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Pricing jobs one at a time gets old fast.
PaintPricing stores your rates, burden and margin once, then applies them to every quote you send.
Try it freeFrequently Asked Questions
How much does a 10 percent discount really cost?
At a 45 percent margin it removes about 22 percent of your profit on that job. The discount comes out of the margin, not out of the whole price.
Is it better to discount or to add value?
Adding something that costs you less than the discount is almost always better. A free extra coat may cost a fraction of what ten percent off costs.
What if the customer will walk without it?
Then price the discount in from the start, or accept the job knowingly at lower margin. The mistake is discounting without knowing what it costs.