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Use case · Margin

Stop discounting away your margin.

A promotion can lift revenue and still leave you worse off. Blufire shows the true contribution-margin impact of every discount and return, so you cap the offers that quietly eat profit and keep the ones that earn their place.

Where the headline discount really landsDemonstrative data
Full-price orderA$100Less 20% discountA$80Less landed COGS and feesA$31Contribution keptA$31vs full price (A$51)-A$20
The job

A 20% discount rarely costs you 20%.

A headline discount comes off the top line, but it comes off contribution last, where there is far less to give. On a 30% margin product, a 20% price cut can erase two-thirds of the contribution on every unit sold. Returns do the same damage from the other side: the revenue reverses, but the picking, shipping and restocking costs do not. Most tools show discounts and returns as a line on the revenue report. Blufire shows what they actually take off the bottom line, promotion by promotion and category by category, so you can see which offers pay for themselves and which are subsidising sales you would have made anyway.

The National Retail Federation projects an online return rate of about 19.3% of orders in 2025, against an all-channel rate of 15.8%, on US$849.9B of total returns.
NRF, 2025 Retail Returns Landscape, US data. Apparel runs higher still at 20 to 40%. Returns and deep discounts can cut a category's net contribution materially, yet rarely show up where margin is decided.
What you can do

See the true net impact of every promotion.

01

Cost every promotion in contribution margin

Each campaign, code and sitewide sale resolved to the contribution margin it kept, not the revenue it moved. The promotions that funded themselves sit in green; the ones that bought revenue at a loss sit in red, ranked by what they cost you.

Net contribution by promotionDemonstrative data
Members early access+A$31kFree shipping over A$120+A$22kBundle and save 10%+A$10kWelcome code WELCOME15-A$12kSitewide 25% off-A$21kFlash 40% clearance-A$30k
02

Compare full-price and discounted margin side by side

For every product, the contribution it keeps at full price next to the contribution it keeps on promotion. The gap is the true cost of the discount per unit, and it makes obvious where a small price cut wipes out most of the margin.

CM kept, full price vs discountedDemonstrative data
Full priceOn promotionHero SKU52% → 41%Bestseller38% → 22%Mid-range line29% → 8%Entry product20% → -8%
03

Test discount depth against real incrementality

How much extra demand each level of discount actually buys, set against the margin it gives up. Past a point, deeper discounts mostly subsidise orders you would have won anyway, and Blufire shows where that line is so you can cap the depth.

Incremental units vs margin given up, by depthDemonstrative data
cap here10%15%30%40%incremental unitsmargin given up
04

Quantify returns drag by category

Returns reverse the revenue but keep the cost, so a high-return category can run on far thinner net margin than its gross numbers suggest. Blufire nets the return rate and its handling cost back against contribution, by category, so the real drag is visible.

Net margin lost to returns, by categoryDemonstrative data
Apparel & fit-11.4 ptsFootwear-7.9 ptsHomewares-3.8 ptsAccessories-2.2 ptsConsumables-0.8 pts
05

Net contribution after promo and returns

The full reconciliation on a promoted, returned-adjusted order: gross revenue, the discount, the costs the return leaves behind, and the contribution you are actually left with. Reconciled to source, so the net number is auditable down to a single order.

Promo order net-out, per A$100 of gross revenueDemonstrative data
Gross revenue at listA$100.00
Promotional discount (20%)-A$20.00
Landed COGS-A$41.00
Fulfilment and shipping-A$7.00
Payment and transaction fees-A$5.00
Returns handling and restocking-A$4.50
Net contribution keptA$22.50
What you get

The surfaces that do the job.

Promotion margin ledger
Every code, campaign and sitewide sale ranked by the net contribution it kept or lost.
Full-price vs discounted CM
Per-product contribution at list against contribution on promotion, with the gap costed per unit.
Discount depth and incrementality
Incremental demand at each discount level set against the margin given up, with a sensible cap.
Returns drag by category
Return rate and handling cost netted back against contribution, category by category.
Promo order net-out
Discount, returns and variable costs reconciled to the contribution actually kept on the order.
Margin-safe discount guardrails
The maximum depth a product can carry before the next unit stops paying its way.
What changes

The decisions you can finally make.

Cap

Set the depth that still pays

Hold discount depth at the level where it still earns incremental contribution, instead of defaulting to the headline number that looks good in the email.

Retire

Drop the offers that lose money

Stop re-running the promotions that bought revenue at a loss, and keep the ones that funded themselves on contribution.

Price

Fix returns drag at the source

Tackle the categories where returns quietly net out the margin, through sizing, merchandising and policy, before discounting away the rest.

Who it is for

Built for margin-led ecommerce operators.

Ecommerce

Brands that run regular promotions and carry real return rates, and want to know what each one truly costs. Go deeper in the Contribution Margin Playbook.

Discounting & Promo

The dedicated surface for the net cost of every discount and return sits in Discounting & Promo, with the CM1 cost of every code.

See what your last sale really cost.A 30-minute walkthrough on your own promotions and returns, not a generic demo.