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Most Merchants Lose Money on Discounts

Stop Guessing on
Discount Margins

One wrong discount choice can cost you thousands per month. Compare profit margins across all discount types in seconds — not hours of spreadsheet work.

Free tool · No sign-up · Results in 5 seconds

Built by DealCraft — Shopify discount specialists

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Your current margin before discount: 60% ($30.00 per unit)

Choosing the wrong discount costs you $1500/month

The gap between your best option (Percentage Off, 50% margin) and worst option (BOGO, 20% margin) is $15.00 per order. Across 100 orders, that's $1500 left on the table every month.

Profit per Order

See which discount type keeps the most money in your pocket

%Percentage OffBEST
$20.0050% margin
$Fixed Amount
$20.0050% margin
1+1BOGO
$5.0020% margin
BXGBuy X Get Y
$17.5047% margin

Detailed Breakdown

Maximize Profit
%

Percentage Off

e.g., 20% off everything

Customer Pays$40.00
Your Profit$20.00
Per 100 orders/mo$2000
$

Fixed Amount

e.g., $10 off any order

Customer Pays$40.00
Your Profit$20.00
Per 100 orders/mo$2000
Equivalent to20.0% off
1+1

BOGO

Buy 1 Get 1 free

Customer Pays$25.00
Your Profit$5.00
Per 100 orders/mo$500
Equivalent to50.0% off
BXG

Buy X Get Y

Buy 3, get 1 free

Customer Pays$37.50
Your Profit$17.50
Per 100 orders/mo$1750
Equivalent to25.0% off

Share Your Discount Comparison

Your optimal discount: Percentage Off

Based on your $50 price and $20 cost, Percentage Off delivers $20.00 profit per order (50% margin) — $1500/month more than BOGO.

DealCraft can automate this exact discount with Shopify Functions — set it once, and it runs on autopilot for every order.

Projections are estimates based on your inputs. Actual results vary by product, traffic, and market conditions.

NormalRoast Mode
All 4 discount types included

Capture the $1500/month You're Losing

DealCraft creates any discount type in your Shopify store in under 2 minutes.

Automate the right discounts to the right customers — no code, no limits.

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How to Choose the Right Discount Type

Each discount type has different profit implications. Use this guide to pick the best strategy for your goals.

Percentage Off

Best for store-wide sales and seasonal promotions. Easy for customers to understand. Works well on high-margin products (50%+ margin) where you can afford 15-25% off.

Fixed Amount Off

Best for high-ticket items where a percentage would be too large. "$10 off" feels more concrete than "5% off" on a $200 product. Use for minimum order thresholds.

BOGO (Buy One Get One)

Equivalent to 50% off per unit. Best for clearing inventory or increasing average order value. Works best on low-cost items where you still profit at half price.

Buy X Get Y (Volume)

Encourages bulk purchases. "Buy 3 Get 1 Free" = 25% effective discount but moves 4 units instead of 1. Best for consumables and repeat-purchase products.

Frequently Asked Questions

Which discount type is most profitable for my store?

It depends on your product margins and goals. Percentage off works best for high-margin products. BOGO is great for clearing inventory. Volume discounts (Buy X Get Y) maximize units sold. Use the calculator above to compare exact profit margins for your specific product price and cost.

How do I calculate the true cost of a BOGO discount?

BOGO (Buy One Get One) is equivalent to 50% off per unit. If you sell a product for $50 with a $20 cost, BOGO gives you $25 revenue per unit (customer pays $50 for 2 units). Your profit is $5 per unit, or 20% margin. Enter your numbers in the calculator above to see your exact BOGO profitability.

What's the difference between "Buy 3 Get 1 Free" and "25% off"?

Both give the customer a 25% effective discount, but they behave differently. "25% off" applies to every unit. "Buy 3 Get 1 Free" requires the customer to purchase 4 units to get the discount. This increases your average order value and moves more inventory. For a $50 product with $20 cost, both give you $37.50 effective price per unit, but "Buy 3 Get 1" sells 4 units per transaction instead of 1.

How do I set up these discounts in Shopify?

Shopify's native discount system supports basic percentage and fixed amount discounts. For advanced discount types like BOGO, Buy X Get Y, volume discounts, and automatic discounts, you need a discount app. DealCraft supports all discount types with cart-level calculation powered by Shopify Functions. Install DealCraft free to create any discount type in minutes.

Is this calculator really free?

Yes, this calculator is 100% free with no sign-up required. It's a tool we built to help Shopify merchants make better discount decisions. If you find it useful and want to implement the discounts in your store, you can install DealCraft (also free to start).

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