Promotion vs Profit: The Discount Trap: Why Promotions Break Your Unit Economics
Revenue spikes from heavy discounting often mask deep erosion in unit economics. This is the “Promotion vs. Profit” trap. We analyze the mechanics of discount strategies to ensure top-line growth doesn’t destroy bottom-line integrity. The High Cost of “Cheap” Revenue Aggressive discounting attracts low-LTV cohorts—customers who destroy margin and never return. Agencies celebrate the revenue […]