RedHub AI
Quick Kit · The Math
How the math works
The promo that lost money
A discount that moves units can still destroy margin if most of those buyers would have paid full price anyway. Here's the exact arithmetic the kit runs on every promo you'd consider.
The inputs (one sitewide 20% off event)
Units sold
1,000
on the promo
Discount
20%
off a $50 price
Full margin
$20
$50 price − $30 cost
Incremental
20%
truly new demand
(1,000 units × 20% incremental) × $20 margin − 1,000 units × $10 discount
= $4,000 earned from the 200 truly-new customers − $10,000 in discount handed to all 1,000 buyers
Net margin vs running no promo
-$6,000vs none
The discount cost more than the demand it bought
It looked like a 1,000-unit win. Only 200 of them were new.
A sitewide 20% promo moved 1,000 units and still lost $6,000 — because only 200 buyers were genuinely new. The kit separates incremental from cannibalized demand on every promo and totals the discount you handed to customers who'd have paid full price.
The incremental % is your estimate and drives the result. Gross margin only — it ignores brand, acquisition, and lifetime effects. A margin-leak guide, not attribution or accounting.