Back to opportunitiesHIGH IMPACT
Discount Leakage
Discount Leakage
What is happening
40 orders in the last 30 days applied the WELCOME15 code to SKUs already running below-target contribution margins, discounting straight out of contribution profit rather than incremental revenue.
Why it matters
Because these SKUs have thin margins to begin with, the 15% discount is effectively coming out of contribution profit dollar-for-dollar rather than encouraging incremental volume.
What ProfitDetect recommends
Exclude low-margin SKUs from the WELCOME15 promotion.
Adjust assumptions (simulation)
Discounted orders / monthAssumption
Potential recovered contribution profit
+$420/month
Estimated financial impact
+$420/month
Confidence: HIGH
Data supporting this recommendation: Based on 40 discounted orders during the last 30 days with complete cost data.