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Discount Sensitivity

Show items with increased sales at specific discounts.
Show items with increased sales at specific discounts.

Increase Revenues

Increase Revenues

INDUSTRY

Apparel & Fashion

Consumer Electronics

Consumer Goods

Cosmetics

Food & Beverage

Retail

BUSINESS FUNCTION

Merchandising

Problem

Unexplored discount strategies may be resulting in missed opportunities for increased sales and revenue.

Insight

Analysis reveals that discounting specific items by XX% leads not only to a significant increase in sales volume but also to an overall revenue boost, despite the reduced unit price.

SKU Current Unit Price Discount Rate Sales Volume Pre-Discount Sales Volume Post-Discount Revenue Impact
1234 $50 10% 1,000 units 1,300 units $5,850
5678 $30 15% 600 units 840 units $3,780

Impact

Strategically discounting certain products can lead to a net increase in revenue, as the surge in sales volume compensates for the lower unit price, thereby enhancing overall profitability.