When you apply a discount code, it comes off the total transaction. That total includes the medication cost, shipping, exam and prescribing fees, and payment processing fees. Healthaide's portion of those costs is fixed and cannot be discounted, so the entire discount amount comes out of your profit. Worked example. A medication is listed at 100 dollars. Your cost of goods sold from Healthaide is 50 dollars, so your expected profit is 50 dollars. You offer 30 percent off. The discount is 30 dollars, which is 30 percent of the 100 dollar retail price. Your actual earnings are 50 minus 30, which is 20 dollars. You can see the full line item breakdown of any transaction in the Earnings section. Before publishing a discount code, factor in that the discount pulls directly from your profit at the full retail rate.
Why does my actual profit not match what I expected after I applied a discount?
discountprofitexample
