Lift or Not

In development

Does your bundle app pay for itself?

Reported revenue and added profit can be far apart.

  • 1,000 visitors
  • $40 product, $15 cost
  • 2 for 15% off

These numbers are made up.

The worked example

$336 on the dashboard, $31 in profit

  1. Dashboard credit$336
  2. Credited sales the offer didn't add−$200
  3. Real revenue change+$136
  4. Extra product cost−$105
  5. Profit before the fee+$31
See the arithmetic
MeasureNo offerWith offerChange
Singles2419−5
Two-packs612+6
Revenue$1,440$1,576+$136
Product cost$540$645+$105
Profit$900$931+$31
Each two-pack is credited $28 ($68 − $40).
BuyersCreditedAddedGap
6 already buying two$168−$72$240
5 who'd buy one$140$140$0
1 new order$28$68−$40
All 12$336$136$200

The 12 two-packs

Half would have sold anyway

The app's fee

At 1,000 visitors, the fee takes half

5,000 visitors/mo: +$155 profit

A $29.99 plan leaves about $125.

1,000 visitors/mo: +$31 profit

A $14.99 plan leaves about $16.

Outside research

Larger tests found volume discounts add little

14M

King offered 9-70% off bigger purchases to 14M players. Revenue barely moved.

Levitt et al., PNAS 2016

2×

Conversion roughly doubled when a flat $39.99 price replaced 10-20% volume tiers.

Intelligems case study

Neither proves your app doesn't work. Only a test on your store can tell.

What we measure

Order value can rise while profit falls

Revenue − discounts − product costdivided by every visitor, buyer or not

Free audit

See your app's profit per visitor