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Price Reductions Value & Rate
Price Reductions Value & Rate

How the Discount Rate and Value is defined and calculated

Valentine Strunz-Happe avatar
Written by Valentine Strunz-Happe
Updated over a week ago

The total value of price reductions (not discounts or vouchers) of all product sold.


Price Reductions Value = SUMIF( Compare At Price IS BLANK, 0, Price - Compare At Price)

Price Reductions Rate = Price Reductions Value / Gross Merchandise Value


Gross Merchandise Value is the sum of the RRP (Recommended Retail Price) of all items sold in a given period. Thus, it is before any deductions such as discounts, returns and taxes are made.

Due to that, it is not really a great measure of success as it can be easily inflated. It is still useful as a starting point in your P&L from which everything gets deducted.


We differentiate between Price Reductions & Discount Codes.

The Price Reductions Value shows if the price for an individual product was lowered - so if a Compare At Price was set. The Price Reduction does not include any additional reductions due to discount/voucher codes. These can be found in Discount Codes.

So, if a product used to cost €50 and you are now selling it for €40, then the Price Reduction Value ist €10.

The reason we differentiate between the two is that they usually have different purposes.

A discount a used to increase the sell-through of items that are not moving as quickly as anticipated whereas vouchers are mostly used by marketing to incentivize customers to buy.

Used in the following reports

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