Freeze the baseline before naming an offer
Discounts change price, bundles change units or mix, and added value changes delivery cost. To compare them, first freeze the standalone 100 CU price, 60 CU variable cost, one-unit order and 40 CU contribution. Every offer must then be restated on both a per-order and per-baseline-unit basis.
Define each offer symmetrically
Prerequisites, sequence and checkpoints
- Freeze the baseline customer price, units, variable cost and tax basis. (not complete)
- Describe the discount as a price change, the bundle as quantity/mix and added value as incremental cost. (not complete)
- Use the same response assumption or show each assumption separately. (not complete)
- Calculate contribution surrendered or added cost before shared overhead. (not complete)
- Stress response and delivery cost, then record operational and customer constraints. (not complete)
Keep price, quantity and cost changes separate
| Offer | What changes | Primary guardrail |
|---|---|---|
| Discount | Customer price falls | Contribution surrendered per unit |
| Bundle | Included quantity or product mix changes | Complete incremental unit cost |
| Added value | Price may stay constant; delivery cost rises | True incremental service or fulfilment cost |
Restate all three offers on a common basis
| Offer | Contribution per order | Baseline units delivered | Contribution per baseline unit | Orders to match 400 CU baseline contribution |
|---|---|---|---|---|
| Baseline | 40 CU | 1 | 40 CU | 10.00 |
| 10 CU discount | 30 CU | 1 | 30 CU | 13.34 |
| Two-unit bundle | 68 CU | 2 | 34 CU | 5.89 bundle orders |
| 6 CU added value | 34 CU | 1 | 34 CU | 11.77 |
Compare three CU scenarios
Reproducible user scenario
Fictional tax-excluded baseline: 100 CU price and 60 CU variable cost; demand response is not predicted.
| Step | Input or arithmetic | Decision meaning |
|---|---|---|
| Discount | Price 90 CU - cost 60 CU = 30 CU contribution | 10 CU surrendered versus baseline |
| Bundle | Price 180 CU - entered two-unit cost 112 CU = 68 CU contribution | Compare per transaction and per unit |
| Added value | Price 100 CU - (60 + 6 CU added cost) = 34 CU contribution | 6 CU incremental cost before response |
Apply the same response sensitivity
| Offer | Required offer orders | Response versus 10 baseline orders | What must still be tested |
|---|---|---|---|
| Discount | 13.34 | +33.4% | Whether the response occurs without capacity harm |
| Bundle | 5.89 | Not comparable as units; 11.78 units delivered | Mix, cannibalisation and fulfilment cost |
| Added value | 11.77 | +17.7% | Actual added-cost and delivery-capacity response |
If the user tests a 10% order-response increase, the discount case produces 11 × 30 = 330 CU and the added-value case produces 11 × 34 = 374 CU, both below the 400 CU baseline total. The bundle needs a separate basket and unit-demand assumption. These are sensitivities, not predictions or a universal ranking.
Limitations, evidence and next action
Use the calculation owner for the next step
- Discount Profit Impact Planner
Find whether added volume can recover profit after a discount
- Product Bundle Pricing & Profit Planner
Choose bundle pricing after fulfilment, payment fees and attach-rate effects
Questions and boundaries
- Which offer is best?
- There is no universal winner; compare contribution, response assumptions and operating constraints on the same basis.
- Does added value preserve margin?
- Not automatically. Its complete incremental cost must be included.
Sources and scope
- Grow your business — U.S. Small Business Administration: General growth-planning context only; examples are not demand or viability forecasts.