Discount Margin Guardrail
Weekly guardrail that flags Shopify promos and products whose discounting drops gross margin below a safe threshold, with corrective actions.
Each week, review active discounts, automatic discounts, and discounted products in Shopify against product cost and price data to flag any promo or SKU whose effective margin has eroded below a safe threshold. For each flagged item, show the original price, discounted price, unit cost (or cost-of-goods where available), the resulting gross margin percentage and per-unit profit, and how far it sits below the safe margin line. Call out discounts that push products to break-even or a loss, stacked discounts that compound, and high-volume SKUs where thin margins do the most damage. Recommend a corrective action: cap the discount, exclude the SKU, add a minimum-spend threshold, or end the promo. Output a ranked list (deepest margin erosion first) with the numbers and the recommended guardrail.
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