BOGO Profitability Calculator
Compare different 'Buy X Get Y' offer structures. Calculate the effective discount and net margin impact of BOGO promotions.
Unit Data
Single Unit
Buy 1 Get 2nd 50% Off
Buy 2 Get 1 Free
Buy 1 Get 1 Free
Offer Comparison
Margin vs Volume
Highest Margin
Single Unit sales always have the highest % margin. Promotions trade margin for volume.
Cash Maximizer
Look at the 'Total Profit' column. Often B2G1 generates the most raw profit dollars per transaction.
Risk
BOGO Free often results in very low profit if your costs are high. Ensure profit is > $0.
Execution Steps
Enter Unit Cost and Unit Price.
The tool automatically calculates the unit economics for 4 common offer types.
Compare 'Total Profit' vs 'Margin %' to choose the best offer.
Pro Strategy
- Use BOGO Free only for high-margin items (>70% gross margin) or to clear dead stock.
- BOGO 50% is a safer bet for mid-margin products. It protects profitability while still driving volume.
- Buy 2 Get 1 Free is great for consumables (supplements, food) where stocking up is natural.
Core Concepts
Effective Discount
The actual percentage off the total transaction. BOGO Free is effectively 50% off two items. BOGO 50% is 25% off two items.
Basket Building
BOGO offers force customers to take more inventory (2 units instead of 1). This increases immediate cash flow and consumption.
Perceived Value
BOGO Free sounds better than '50% Off' even though the math is identical, because 'Free' is an emotional trigger.
What is BOGO Profitability Calculator?
This calculator computes the 'blended margin' of a multi-unit transaction. It reveals the trade-off between Margin % (which drops) and Total Profit $ (which may rise due to volume).
Best For
- • Planning holiday sales.
- • Clearing slow movers.
- • Testing new offer structures.
Limitations
- • Assumes customer wants multiple units.
- • Does not calculate shipping savings.
Alternative Methods
Discount Ladder
Analyzing straight % discounts.
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
Shoe Store
Slow summer sales.
BOGO 50% Off.