How does the increasing discount on the “build-your-bundle” work?
Short version:
The build-your-bundle myChow Kit starts at a 15% discount. Each time the subscription renews, an additional discount is added and eventually it adds to roughly 20% off the original price of the bundle. So long as the bundle subscription is not canceled, it will remain at the roughly 20% discount. I would recommend you stop reading there =)
OK, now for the long version, you have been warned:
When the bundle is created, a 15% discount is applied to the original amount. OK, that’s easy.
The first renewal, a 2% discount is added, but that discount amount is applied to the NEW subtotal, not the original amount. So it’s 15% off the original and 2% off the new subtotal. That makes 16.7% off the original amount. Because MATH.
The same 2% is added 2 more times but the new subtotal is smaller so the 2% represents a smaller discount (on the original amount). It’s still 2% off each time but compounding discounts are as fun as compounding interest, it adds up in weird ways.
So the discount goes from 15% > 16.7% > 18.366% > 19.9987% which is not exactly 20% off, but it’s the closest we can get. It should only be off by +/- $0.01. To make the math below easier to follow, I’ve started with a $100 bundle, be aware that the minimum for the bundle is actually $110
| Sequence | Total Orders | Discount Added | Cumulative discounts | Subtotal | New Discount | New subtotal | Discount off Original |
|---|---|---|---|---|---|---|---|
| Original Order | 1 | 15% | 15 | $100.00 | $15.00 | $85.00 | 15.00% |
| Renewal 1 | 2 | 2% | 15 + 2 | $85.00 | $1.70 | $83.30 | 16.70% |
| Renewal 2 | 3 | 2% | 15 + 2 + 2 | $83.30 | $1.666 | $81.634 | 18.366% |
| Renewal 3 | 4 | 2% | 15 + 2 + 2 + 2 | $81.634 | $1.6327 | $80.0013 | 19.9987% |
| Renewal 4 | 5 | 0% | 15 + 2 + 2 + 2 | $80.0013 | $0.00 | $80.0013 | 19.9987% |
| Renewal 5 | 6 | 0% | 15 + 2 + 2 + 2 | $80.0013 | $0.00 | $80.0013 | 19.9987% |
| Renewal 6 | 7 | 0% | 15 + 2 + 2 + 2 | $80.0013 | $0.00 | $80.0013 | 19.9987% |
| etc… | 8, 9, 10, etc… | 0% | 15 + 2 + 2 + 2 | $80.0013 | $0.00 | $80.0013 | 19.9987% |
So why have this weird discount on discount on discount? it’s a limitation of the subscription engine and how it applies discounts. Ideally Discount A would be replaced by Discount B would be replaced by Discount C, etc… but the software does not allow that, it only allows stacking one on top of the other. Yes, it is confusing, but we warned you it would be =)
