Overview

When sourcing products, supplier discounts or negotiated deals can significantly impact your profitability. Productchimp’s Profit Calculator includes a Discounts section that allows you to apply preset percentage discounts to your Cost Price in one click.

Instead of editing each product manually, you can simulate bulk savings and immediately see updated financial metrics.

Where to Find the Discounts Section

In the Profit Calculator panel, scroll to the bottom to locate the Discounts section. It appears as a grid of selectable percentage buttons (e.g., 5%, 10%, 15%, up to 50%).

How to Use Discounts

1. Enter Your Base Product Details

Start by filling in:

• Cost Price
• Sale Price
• Fulfillment Type (FBA/FBM)
• Storage duration (if applicable)

2. Apply a Discount

In the Discounts section, simply click on a percentage value (e.g., 10%).

3. Automatic Cost Adjustment

Once selected:

• The system reduces your Cost Price by the chosen percentage
• All metrics update instantly, including:
  • Profit
  • ROI
  • Total Fees
  • Profit Margin
  • Estimated Payout

4. Compare Scenarios

You can click different discount percentages to compare outcomes and determine the most profitable sourcing strategy.

Example Use Case

Suppose your supplier offers a 10% discount on bulk orders:

• Original Cost Price: $6.00
• After 10% Discount: $5.40

Productchimp will automatically:

• Recalculate your profit
• Update ROI and margin
• Reflect new fee impacts

This helps you decide whether increasing order volume is worth the improved margins.

Tips for Best Results

• Test multiple discount levels to find your optimal pricing strategy
• Combine discounts with different sale prices to simulate promotions
• Use discounts when negotiating with suppliers to forecast potential gains
• Regularly review ROI after applying discounts to avoid overestimating profitability

FAQs

Does applying a discount permanently change my cost price?

No. Discounts are applied dynamically for simulation purposes. Your original cost remains unchanged unless you manually edit it.

Can I apply multiple discounts at once?

No. Only one discount percentage can be applied at a time to keep calculations clear and accurate.

What happens to fees when I apply a discount?

Most fees remain the same, but your overall profitability, ROI, and margins will adjust based on the reduced cost.

Can I customize the discount percentages?

Currently, Productchimp provides preset discount options. Custom percentages may be added in future updates.

Does this work for both FBA and FBM?

Yes. Discounts can be applied regardless of fulfillment type, and all calculations update accordingly.

Why should I use the Discounts feature?

It saves time, reduces manual errors, and helps you quickly evaluate how supplier deals impact your bottom line.