Line Discounted Value

Line Discounted Value

What is Line Discounted Value?

The Line Discounted Value measure represents the total line price after all discounts have been applied. It provides the adjusted value of a line item in both shop currency and presentment currency, reflecting the actual amount charged to the customer post-discount.


Practical Example of Line Discounted Value

Scenario:

  1. Line Item 1:
    • Original price: $100
    • Discounts applied: $20
    • Line Discounted Value: $100 – $20 = $80
  2. Line Item 2:
    • Original price: $200
    • Discounts applied: $50
    • Line Discounted Value: $200 – $50 = $150

Line Discounted Value for the order = $80 (Line Item 1) + $150 (Line Item 2) = $230


Why This Matters to Your Business

  1. Real Revenue Representation:
    • Reflects the actual revenue generated from each line item after discounts.
  2. Profitability Analysis:
    • Helps in evaluating the impact of discounts on net revenue and profit margins.
  3. Customer Behavior Insights:
    • Tracks customer purchase amounts after discounts to assess purchasing power and preferences.
  4. Financial Accuracy:
    • Ensures accurate reporting of revenues post-discount, aligning with accounting standards.

How Does Line Discounted Value Help Merchants?

  1. Net Revenue Evaluation:
    • Allows merchants to focus on actual revenue rather than gross amounts.
  2. Promotion Effectiveness:
    • Highlights the discounted sales performance, helping merchants decide on future promotions.
  3. Price Elasticity Analysis:
    • Indicates how customers respond to discounts and adjusted pricing strategies.

Why is Line Discounted Value Even More Insightful When Combined with Other Measures?

  • With Line Discount:
    Compare the discounted value to the total discount amount to see the relative impact of discounts on pricing.
  • With Line Value:
    Analyze the difference between the original price and the discounted price to understand the depth of discounts.

Analyzing Line Discounted Value with Different Dimensions

Merchants can analyze discounted values by:

  • Product Categories: See which categories yield the highest revenue after discounts.
  • Seasons/Promotions: Evaluate the success of seasonal campaigns or promotional events.
  • Regions/Channels: Determine where discounts drive the most effective results geographically or across online and offline channels.

Why Include Line Discounted Value in Dashboards?

  • Revenue Transparency: Shows the actual earnings after discounts, giving a clear picture of profitability.
  • Strategic Pricing: Helps merchants refine discounting strategies by understanding their effect on net revenue.
  • Customer Insights: Provides a view of how customers interact with discounted prices, aiding in targeted pricing strategies.

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