<p><font face="Poppins, sans-serif"><span style="font-size: 15px;">Businesses often make several common mistakes when calculating the impact of promotional&nbsp;</span></font><span style="font-size: 15px;">discounts on unit economics:</span></p><p><font face="Poppins, sans-serif"><span style="font-size: 15px;">1. Overlooking cannibalization: Failing to account for sales that would have occurred anyway&nbsp;</span></font><span style="font-size: 15px;">without the discount.</span></p><p><font face="Poppins, sans-serif"><span style="font-size: 15px;">2. Ignoring pull-forward effects: Not considering sales that simply happened sooner due to the&nbsp;</span></font><span style="font-size: 15px;">promotion rather than representing new customers.</span></p><p><font face="Poppins, sans-serif"><span style="font-size: 15px;">3. Neglecting competitor actions and seasonal trends: Failing to factor in external market forces&nbsp;</span></font><span style="font-size: 15px;">that may influence sales during the promotional period.</span></p><p><font face="Poppins, sans-serif"><span style="font-size: 15px;">4. Using inaccurate baseline sales: Incorrectly estimating what sales would have been without&nbsp;</span></font><span style="font-size: 15px;">the promotion, leading to skewed results.</span></p><p><font face="Poppins, sans-serif"><span style="font-size: 15px;">5. Taking too narrow a perspective: Only looking at promotional item sales during the discount&nbsp;</span></font><span style="font-size: 15px;">period, rather than considering impacts on other products or channels.</span></p><p><span style="font-size: 15px;">6. Overlooking total investments: Not accounting for all direct and indirect costs associated&nbsp;</span><span style="font-size: 15px;">with the promotion, such as marketing expenses and field force time.</span></p><p><font face="Poppins, sans-serif"><span style="font-size: 15px;">7. Misaligning KPIs with objectives: Using metrics that don't accurately reflect the promotion's&nbsp;</span></font><span style="font-size: 15px;">goals.</span></p><p><font face="Poppins, sans-serif"><span style="font-size: 15px;">8. Ignoring post-promotion effects: Failing to analyze how demand changes after the&nbsp;</span></font><span style="font-size: 15px;">promotional period ends.</span></p><p><font face="Poppins, sans-serif"><span style="font-size: 15px;">9. Miscalculating discount percentages: Using the wrong formula or denominator when&nbsp;</span></font><span style="font-size: 15px;">determining the discount rate.</span></p><p><font face="Poppins, sans-serif"><span style="font-size: 15px;">10. Neglecting to track and measure relevant metrics: Failing to analyze the outcome of the&nbsp;</span></font><span style="font-size: 15px;">discount strategy thoroughly.</span></p><p><span style="font-size: 15px;"><br></span></p><p><font face="Poppins, sans-serif"><span style="font-size: 15px;">By avoiding these mistakes, businesses can more accurately assess the true impact of&nbsp;</span></font><span style="font-size: 15px;">promotional discounts on their unit economics and make better-informed decisions about&nbsp;</span><span style="font-size: 15px;">future promotions.</span></p>