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
- Dashboard credit$336
- Credited sales the offer didn't add−$200
- Real revenue change+$136
- Extra product cost−$105
- Profit before the fee+$31
See the arithmetic
| Measure | No offer | With offer | Change |
|---|---|---|---|
| Singles | 24 | 19 | −5 |
| Two-packs | 6 | 12 | +6 |
| Revenue | $1,440 | $1,576 | +$136 |
| Product cost | $540 | $645 | +$105 |
| Profit | $900 | $931 | +$31 |
| Buyers | Credited | Added | Gap |
|---|---|---|---|
| 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
- 6 would have bought two at full price
- 5 would have bought one
- 1 new order
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.
2×
Conversion roughly doubled when a flat $39.99 price replaced 10-20% volume tiers.
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