UDOOH RESOURCES
Article · Owners planning offers
Before your next 2027 offer, check what each sale leaves
An offer can increase activity while leaving less money to cover the outlet's fixed costs. Work through the numbers before printing the price.
Separate price from contribution
For this planning method, contribution means the amount left from a sale after the variable costs entered in the calculation. It is not net profit. Rent and other fixed operating costs still need to be covered.
Use the same basis for every input. Do not mix a tax-inclusive selling price with costs on a different basis without adjusting your working figures. Where the treatment is unclear, ask the person who maintains your accounts to prepare comparable numbers.
Write down the costs that change with a sale
List product or ingredient cost and any per-order packaging. Include other costs that genuinely rise with each redemption. Keep one-off campaign costs, such as printing, separate from per-sale costs.
Avoid allocating an arbitrary slice of every overhead to the promotion calculator and calling the result exact. The tool answers a narrower question: how many sales at the entered contribution would cover the entered campaign spend? It cannot judge demand.
Try an illustrative calculation
Suppose a product sells for Rs 500 and its entered variable cost is Rs 300. A 10% discount reduces the selling price to Rs 450, leaving Rs 150 of contribution. These are made-up planning figures, not Udooh pricing or results.
At Rs 200 before the discount, ten sales leave Rs 2,000. At Rs 150 after the discount, fourteen sales leave Rs 2,100 before any extra campaign spend. That comparison assumes the same variable cost and no capacity change.
Account for customers who would buy anyway
A campaign's redemptions are not automatically additional sales. Existing customers might use a discount on purchases they already intended to make. The calculator cannot separate that behaviour from genuinely new demand.
Review the offer against your available capacity and a comparable baseline. If your busiest window already sells out, a discount in that window needs a reason beyond hoping for more volume. Consider whether clearer information would solve the problem without a price cut.
Set a decision before launch
Agree the maximum spend, available quantity and end date. Decide who will stop the offer if contribution is zero or negative, stock becomes scarce or service quality suffers.
Use the promotion planner for arithmetic, then use your records and judgement for the decision. Keep the assumptions beside the result. If the campaign only works under an optimistic sales estimate, treat that as a reason to test on a smaller scale.