Budgeting and profit control
Posted: Thu Feb 20, 2025 3:50 am
An attractive promotion program but no cost control can lead to losses. Businesses need to calculate carefully to ensure profits.
Determine the right discount: Balance the discount and profit on each product.
Marketing cost estimate: Includes advertising costs, content production, banner design, promotional videos.
Set a minimum revenue threshold: Ensure total post-program revenue is uk mobile database sufficient to cover discount and promotion costs.
For example, if the product profit margin is 30%, do not reduce the price by more than 25% without a plan to increase revenue to compensate.
5. Determine optimal timing and implementation
The timing of your promotion has a big impact on the effectiveness of your campaign. Here are some tips for the right timing:
Seasonal: Christmas, New Year, March 8, Black Friday, November 11, December 12.
By special event: Brand anniversary, new product launch.
By customer behavior: Customer birthday, special offers for loyal members.
Additionally, limit the duration of the promotion to create a sense of scarcity, encouraging customers to buy faster. For example: "48 hours only – 30% off all products."
>>>>> Omnichannel and Multichannel: How to choose and approach building for development
Determine the right discount: Balance the discount and profit on each product.
Marketing cost estimate: Includes advertising costs, content production, banner design, promotional videos.
Set a minimum revenue threshold: Ensure total post-program revenue is uk mobile database sufficient to cover discount and promotion costs.
For example, if the product profit margin is 30%, do not reduce the price by more than 25% without a plan to increase revenue to compensate.
5. Determine optimal timing and implementation
The timing of your promotion has a big impact on the effectiveness of your campaign. Here are some tips for the right timing:
Seasonal: Christmas, New Year, March 8, Black Friday, November 11, December 12.
By special event: Brand anniversary, new product launch.
By customer behavior: Customer birthday, special offers for loyal members.
Additionally, limit the duration of the promotion to create a sense of scarcity, encouraging customers to buy faster. For example: "48 hours only – 30% off all products."
>>>>> Omnichannel and Multichannel: How to choose and approach building for development