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Should I give 10% or 15% off for National Day, and what does the difference cost on 200 orders?

On an average order of 150, 10% off costs you 15 per order, so 3,000 across 200 orders. 15% off costs 22.5 per order, so 4,500. The gap is 1,500, and the real question is whether the higher rate brings enough extra orders to pay for it.

Published · 2 min read

Work out what you give away per order

  1. Open the Discount calculator and type your store's average order value, 150 in this example.
  2. Type 10 and read the saving: 15 per order, with a price of 135.
  3. Change the rate to 15: a saving of 22.5 per order, with a price of 127.5.
  4. Multiply the saving by the orders you expect to get the full cost of the promotion.
Worked example

10% off: 15 × 200 = 3,000.

15% off: 22.5 × 200 = 4,500.

How many extra orders does the higher rate need?

Cost alone does not settle it, because the higher rate may bring more orders. Say the goods in an average order cost you 90. Enter that cost with each price in the Profit margin calculator:

Worked example

At 10% off: price 135, profit 45 per order. 200 orders × 45 = 9,000.

At 15% off: price 127.5, profit 37.5 per order.

To earn 9,000 at 15% off you need 9,000 ÷ 37.5 = 240 orders.

So 15% off must bring at least 40 extra orders, 20% more, just to match the profit of 10% off. If you expect the extra five points to make that difference, the higher rate makes sense. If you are not sure, the lower one is safer.

Things that change the sums

  • The campaign's own costs, such as ads and design, are fixed. To see how many orders cover them, use the Break-even calculator.
  • Customers who would have bought anyway take the discount too. Their discount is a cost with no extra order.
  • If your average order rises in season, use last season's average, not your everyday one.
  • These figures are estimates for comparing the two options, not a forecast of how the campaign will go.

A rate in between

You do not have to pick only 10 or 15. 12% on an average of 150, for instance, costs 18 per order. Try rates in the calculator until you find a cost you accept. You could also keep 15% for orders above a set amount, which lifts the average order instead of cutting its profit.

Common questions

Why use the average order and not one product's price?

Because the discount usually applies to the whole basket, and the real cost of the offer is measured on what a typical customer spends per order.

Does the calculator work out the order counts?

No, it works out the discount on one order. Multiplying by orders and comparing profit are steps you do with the figures the tools give you.