What an offer earns you, and when it starts to pay off.
Your figures, one offer, one assumption. The result updates as you adjust each setting.
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Your store
The values shown are examples: replace them with your own figures.
Your average number of orders over a month.
Your revenue divided by your number of orders.
What you keep from each sale once the cost of the products is paid.
Free shipping: your settings
Shipping becomes free above a cart amount.
The cart amount from which shipping is free.
What the customer used to pay for shipping, and what you now cover.
These customers get free shipping without changing anything. Check last month’s orders.
Free gift: your settings
A gift product added to the cart above a set amount.
The cart amount from which the gift is included.
What it costs you, not its selling price.
These customers get the gift without changing anything.
Fixed bundles: your settings
A bundle: the product the customer is viewing, plus a second one, with a discount on the whole.
The second product, at its usual price.
An amount, taken off the whole bundle.
These customers would have bought both anyway: they get the discount without adding anything.
Build-your-own bundle: your settings
Build-your-own bundle (Mix & Match): the customer picks items from a collection, with a discount from a set number of items.
The discount applies from this number of items from the collection.
At its usual price.
Applied to every item in the set.
These customers get the discount without adding anything.
Volume discount: your settings
A lower price from the second identical item. The discount applies to both.
The usual price of one item.
Applied to both items in the cart.
These customers get the discount without adding anything.
Buy one, get one (BOGO): your settings
For each item bought, the same one is free. A 100% discount on the free item.
The price the customer pays for the item bought.
What it costs you to buy or make, not its selling price.
These customers also get a free item, without changing anything.
Buy X, get Y: your settings
For X units of the same item bought, Y more units at a discount. At 100%, they are free.
The usual price of one unit.
What it costs you to buy or make, not its selling price.
The number of units to buy at the usual price.
The number of units received at the discount.
At 100%, they are free.
These customers get the discounted units without changing anything.
Upsell: your settings
On a product page, a better version offered instead.
The product the offer shows on.
The version offered instead, at its usual price.
Enter 0 if you offer it without a discount.
Cross-sell: your settings
On a product page, a complementary product offered on top.
At its usual price.
Enter 0 if you offer it without a discount.
Your assumption
We have no figures from your store, and we don’t make any up. You choose this share. Try a few: the break-even point tells you where the offer starts to pay.
Out of 100 orders, how many change their purchase because of the offer.
Taking the offer, here: adding items to reach the threshold.
At most 90%: the 10% of orders that already get the offer don’t count here.
Result
Your offer pays off once
17.5%
of customers take it.
Your assumption (20%) is above the break-even point: the offer adds $50 in margin per month.
- Added revenue+$2,000100 orders per month, list prices, before discount+$24,000 per year
- Offer cost−$1,050Free shipping: $700 for customers who take the offer, $350 for those who get it without changing anything.−$12,600 per year
- Added net margin+$50Margin on the added revenue ($1,100), minus the offer cost. Per month.+$600 per year
Indicative calculation, based on your figures.
Free shipping: your settings
Shipping becomes free above a cart amount.
The cart amount from which shipping is free.
What the customer used to pay for shipping, and what you now cover.
These customers get free shipping without changing anything. Check last month’s orders.
Free gift: your settings
A gift product added to the cart above a set amount.
The cart amount from which the gift is included.
What it costs you, not its selling price.
These customers get the gift without changing anything.
Fixed bundles: your settings
A bundle: the product the customer is viewing, plus a second one, with a discount on the whole.
The second product, at its usual price.
An amount, taken off the whole bundle.
These customers would have bought both anyway: they get the discount without adding anything.
Build-your-own bundle: your settings
Build-your-own bundle (Mix & Match): the customer picks items from a collection, with a discount from a set number of items.
The discount applies from this number of items from the collection.
At its usual price.
Applied to every item in the set.
These customers get the discount without adding anything.
Volume discount: your settings
A lower price from the second identical item. The discount applies to both.
The usual price of one item.
Applied to both items in the cart.
These customers get the discount without adding anything.
Buy one, get one (BOGO): your settings
For each item bought, the same one is free. A 100% discount on the free item.
The price the customer pays for the item bought.
What it costs you to buy or make, not its selling price.
These customers also get a free item, without changing anything.
Buy X, get Y: your settings
For X units of the same item bought, Y more units at a discount. At 100%, they are free.
The usual price of one unit.
What it costs you to buy or make, not its selling price.
The number of units to buy at the usual price.
The number of units received at the discount.
At 100%, they are free.
These customers get the discounted units without changing anything.
Upsell: your settings
On a product page, a better version offered instead.
The product the offer shows on.
The version offered instead, at its usual price.
Enter 0 if you offer it without a discount.
Cross-sell: your settings
On a product page, a complementary product offered on top.
At its usual price.
Enter 0 if you offer it without a discount.
Your assumption
We have no figures from your store, and we don’t make any up. You choose this share. Try a few: the break-even point tells you where the offer starts to pay.
Out of 100 orders, how many change their purchase because of the offer.
Taking the offer, here: choosing the bundle instead of the product alone.
At most 97%: the 3% of orders that already get the offer don’t count here.
Result
Your offer pays off once
3.6%
of customers take it.
Your assumption (20%) is above the break-even point: the offer adds $410 in margin per month.
- Added revenue+$2,000100 orders per month, list prices, before discount+$24,000 per year
- Offer cost−$690Discounts: $600 for customers who take the offer, $90 for those who get it without changing anything.−$8,280 per year
- Added net margin+$410Margin on the added revenue ($1,100), minus the offer cost. Per month.+$4,920 per year
Indicative calculation, based on your figures.
Side by side
How we calculate, and what the calculation doesn’t tell you.
No hidden figure: everything comes from what you enter. One line per result.
How we calculate
- Orders that take the offerorders per month × your assumption.
- Added revenueorders that take the offer × the amount each one adds, at list prices, before discount.
- Margin on that revenueadded revenue × your gross margin.
- Offer cost(orders that take the offer + orders that get it without changing anything) × what the offer costs on one order: discount, shipping, gift or free item (counted at its cost, not its price).
- Added net marginmargin on the added revenue − offer cost.
- Break-even pointthe share of customers at which net margin is zero: cost for those who get the offer without changing anything ÷ the net gain from one order that takes the offer.
- Per yearper month × 12.
A discount doesn’t only go to the customers the offer convinces. It also goes to those who would have bought anyway, and that cost often sets the break-even point. So each offer asks for the share of orders that already qualify, and we count it separately.
The details, offer by offer
- Free shipping
- Amount added: threshold − average order value (the customer starts from your average order and adds just enough). Cost: one shipping, for them as for orders already above the threshold.
- Free gift
- Amount added: threshold − average order value. Cost: the gift, at its cost, for them as for orders already above the threshold.
- Fixed bundles
- Amount added: the price of the added product. Cost: the bundle discount, for them as for orders that already contained both products.
- Build-your-own bundle
- Amount added: the items the customer adds to complete the set (the set minus one item). Cost: the discount on every item in the set, for them as for orders that already had that many items.
- Volume discount
- Amount added: a second item. Cost: the discount on both items, for them as for orders that already had two (counted at two items).
- Buy one, get one (BOGO)
- Margin: item price − its cost. Cost: one free item, at its cost, for them as for orders that already contained the item.
- Buy X, get Y
- Same item. Amount added: the X units bought, plus what the customer pays for the Y received. Cost: what the Y units cost you beyond what the customer pays for them, for them as for orders that already contained X units. With X = 1, Y = 1 and a 100% discount, you get buy one, get one.
- Upsell
- Amount added: price of the better product − price of the product viewed. Cost: the discount on the better product. Nothing is counted for other customers: the offer only shows on the product viewed.
- Cross-sell
- Amount added: the price of the complementary product. Cost: the discount on that product. Nothing is counted for other customers: the offer only shows next to the product viewed.
What this calculation doesn’t tell you
- It isn’t a prediction. The result follows from your assumption, and you set it.
- The real effect depends on your store: your products, your customers, the season, how the offer is presented.
- The number of orders doesn’t change. The calculation doesn’t assume an offer brings in new customers.
- Some costs aren’t included: returns, payment fees, packaging, time spent.
- Hokku promises no result. To know what an offer really earned, you need to measure it in your store. Here is our calculation method, and what these numbers don’t prove.
Measure the real result with Hokku
Once the offer is live, Hokku counts the orders it touches and what they brought in. Your assumption becomes a number.
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