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Methodology

Product Bundle Pricing & Profit Planner methodology

Compare bundle pricing with separate sales after product cost, fulfilment, payment fees and incremental attach orders.
Duc Nguyen X.By Duc Nguyen X.· Founder, Margin101Last reviewed: View update historyMethodology

Educational only: Business decision support, not accounting, tax or legal advice.

Privacy: Calculations run locally; Margin101 does not receive your commercial inputs.

Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

1. Formulas and units

Contribution Delta Ex Tax
contributionDeltaExTax = bundle contribution + incremental attach contribution − standalone baseline contribution

Where

contributionDeltaExTax
Contribution Delta Ex Tax (currency units, ex tax)Source: Calculated output
bundleContributionExTax
Bundle Contribution Ex Tax (currency units, ex tax)Source: Calculated output
baselineContributionExTax
Baseline Contribution Ex Tax (currency units, ex tax)Source: Calculated output
Bundle Contribution Per Order Ex Tax
bundleContributionPerOrderExTax = bundle price × (1 − payment fee rate) − combined product cost − bundle fulfilment cost

Where

productCostAExTax
Product A cost (currency units/product A unit, ex tax)Source: Business record
productCostBExTax
Product B cost (currency units/product B unit, ex tax)Source: Business record
bundlePriceExTax
Bundle price (currency units/bundle, ex tax)Source: User decision
bundleFulfilmentCostExTax
Bundle fulfilment (currency units/bundle order, ex tax)Source: Business record
paymentFeeRate
Payment fee rate (proportion of revenue charged as payment fee)Source: Business record
bundleContributionPerOrderExTax
Bundle Contribution Per Order Ex Tax (currency units, ex tax)Source: Calculated output
bundleContributionExTax
Bundle Contribution Ex Tax (currency units, ex tax)Source: Calculated output
Standalone Contribution Per Order Ex Tax
standaloneContributionPerOrderExTax = combined standalone price × (1 − payment fee rate) − combined product cost − separate fulfilment cost

Where

standalonePriceAExTax
Product A standalone price (currency units/product A unit, ex tax)Source: Business record
standalonePriceBExTax
Product B standalone price (currency units/product B unit, ex tax)Source: Business record
productCostAExTax
Product A cost (currency units/product A unit, ex tax)Source: Business record
productCostBExTax
Product B cost (currency units/product B unit, ex tax)Source: Business record
separateFulfilmentCostExTax
Separate fulfilment (currency units/separate order, ex tax)Source: Business record
paymentFeeRate
Payment fee rate (proportion of revenue charged as payment fee)Source: Business record
standaloneContributionPerOrderExTax
Standalone Contribution Per Order Ex Tax (currency units, ex tax)Source: Calculated output
Incremental Bundle Orders
incrementalBundleOrders = expected base orders × incremental attach rate

Where

expectedBaseOrders
Base bundle orders (whole bundle orders/comparison period)Source: User assumption
incrementalAttachRate
Incremental attach rate (proportion of incremental bundle orders)Source: User assumption
incrementalBundleOrders
Incremental Bundle Orders (operational units)Source: Calculated output
Bundle Contribution Ex Tax
bundleContributionExTax = (bundle price − combined costs) × expected bundles

Where

bundlePriceExTax
Bundle price (currency units/bundle, ex tax)Source: User decision
bundleContributionExTax
Bundle Contribution Ex Tax (currency units, ex tax)Source: Calculated output
Baseline Contribution Ex Tax
baselineContributionExTax = (combined standalone prices − combined costs) × expected bundles

Where

baselineContributionExTax
Baseline Contribution Ex Tax (currency units, ex tax)Source: Calculated output
Discount Rate
discountRate = 1 − bundle price ÷ combined standalone prices

Where

bundlePriceExTax
Bundle price (currency units/bundle, ex tax)Source: User decision
discountRate
Discount Rate (decimal rate)Source: Calculated output

Money inputs and outputs use the currency selected in the scenario without changing the canonical methodology. Rates, margins, utilisation and buffers are entered as percentages and converted to decimal values for calculation.

2. Worked example

Input assumptions

The worked rows below come directly from the registered engine and visible default fixture.

Calculation and outputs

Example

The worked rows below come directly from the registered engine and visible default fixture.

Contribution Delta Ex Tax
-1,292 currency units
Bundle Contribution Per Order Ex Tax
49.7 currency units
Standalone Contribution Per Order Ex Tax
66.1 currency units
Incremental Bundle Orders
40
Bundle Contribution Ex Tax
9,940 currency units
Baseline Contribution Ex Tax
13,220 currency units
Discount Rate
15.4%

The exact engine-derived outputs are shown in the labelled rows below.

Interpretation

The contribution difference shows whether bundle discount and incremental volume outperform separate sales.

3. Validation and boundary checks

  • All inputs must be finite and within the visible validation boundaries.
  • Rates use decimal values below 100%; whole-unit thresholds round upward only where the engine names that rule.
  • All compared monetary inputs use one consistent ex-tax basis and planning period.

4. Assumptions and source classification

  • Every cost, price, fee and volume is supplied by the user; no market benchmark is inferred.
  • Indirect tax is excluded from retained commercial economics unless a dedicated input explicitly models it.
  • The engine retains full precision and display formatting never feeds back into calculation.

This planner has no current policy-data dependency. Its commercial assumptions are user supplied. Registered family-level regression suites exercise the shared business-logic engine and worked-result reconciliation.

5. Limitations

  • The model does not forecast demand, competitor response, supplier negotiation outcomes or capacity.
  • It does not replace accounting, tax, legal or financial advice.

This is educational decision support, not tax, accounting, legal or financial advice. Check the treatment of your actual transactions under the rules that apply to your business and seek qualified advice where appropriate.

6. Update and evidence policy

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. There is no official threshold or benchmark to refresh for this planner. Commercial inputs remain user-supplied because they vary by business and contract.

Change history

  1. : Initial public release of the planner and methodology after pre-launch calculation, content, source and interaction review.

Related reading

Guides to interpret the decision and its assumptions.

  • Discount, Bundle or Added Value?

    Compare three offer structures on one contribution and incremental-cost boundary without promising demand or a universal winner.

    Read guide

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