Use this worksheet to make discount depth an output of price, cost, traffic, and expected tier-mix assumptions—not a starting guess. Reject any tier that fails the selected contribution floor in the base case or an agreed downside case.
The companion visual is an original blank worksheet layout. Enter only store-owned assumptions; empty cells are intentional.
Create one row for the current baseline and one row for each proposed tier. Then create a base and downside column for the inputs most likely to change.
As a supporting cross-check for per-sale inputs, use the ShopSideK profit margin calculator. This worksheet remains responsible for the bundle tier, traffic denominator, expected mix, and decision rule.
Do not treat an unentered cost as zero. Mark the model incomplete until the merchant supplies it or explicitly documents why it does not apply.
| Input | Baseline | Base case | Downside case | Evidence source |
|---|---|---|---|---|
| Units per order | Store order data | |||
| Selling price per order | Approved offer configuration | |||
| Product cost per order | Finance or inventory record | |||
| Payment fees | Current payment terms | |||
| Shipping and fulfillment | Fulfillment evidence | |||
| Acquisition cost | Approved attribution rule | |||
| Returns allowance | Store returns evidence | |||
| Other variable cost | Named source | |||
| Eligible visitors | Consistent traffic definition | |||
| Expected conversion rate | Labeled assumption or measured baseline | |||
| Expected tier mix | Labeled assumption or measured result |
Use these formulas for every scenario:
Contribution per order = selling price − product cost − payment fees − shipping and fulfillment − acquisition cost − returns allowance − other variable costs
Expected orders = eligible visitors × expected conversion rate
Expected total contribution = contribution per order × expected orders
Contribution per eligible visitor = expected total contribution ÷ eligible visitors
When multiple tiers are modeled, calculate each tier separately, multiply by its expected share of orders, and sum the contributions. The tier-mix assumption must total 100%.
Assume one item sells for $30 and product cost is $9. Before other costs, gross profit is $21. A hypothetical three-pack at $72 with $27 in product cost has $45 gross profit before shipping, payment fees, acquisition cost, returns, taxes, and overhead.
| Scenario | Price | Product cost | Other entered variable costs | Contribution per order | Contribution per eligible visitor | Decision |
|---|---|---|---|---|---|---|
| Baseline | $30.00 | $9.00 | Merchant input required | Incomplete | Incomplete | Hold |
| Three-pack base | $72.00 | $27.00 | Merchant input required | Incomplete | Incomplete | Hold |
| Three-pack downside | $72.00 | $27.00 | Higher acquisition, shipping, or returns assumptions required | Incomplete | Incomplete | Hold |
The example deliberately stops before a profit decision. Gross profit before other costs is not contribution profit.