Metrics book

Discount rate

discount_rate

Description

How much of Gross sales the shop gives away in discounts. It counts discount codes and automatic discounts. VAT is left out.

When to use

Use it to see how much sales lean on discounts. To see what the discounts cost in profit, use Gross margin or Expected contribution margin.

Formula

Discounts divided by Gross sales. Both are without VAT.

Category
Sales

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