See what a discount really costs. A price cut comes straight off profit — this shows your new margin and how many MORE units you'd have to sell just to make the same money.
Cost per unit at 50% margin: ₹1,000
New price
₹1,600
New margin
37.5%
Profit/unit before
₹1,000
Profit/unit after
₹600
You need +67% unit volume just to break even on profit
A 20% price cut takes 40% off your per-unit profit. Sales need to jump 67% for the promo to be worth it — otherwise you're just discounting existing demand.
Uses gross margin (excludes fixed costs). The volume lift needed is why blanket discounts often lose money — a targeted offer to non-buyers usually beats a sitewide sale.