Hi Ryan (@feldozz), an interesting question indeed.
So here is how I’d approach this problem. Let’s say you have a particular region A where you offer multiple gift cards (SKU from hereon) of different values such as $100, $200 or so. As per your question, my understanding is that you need to find out that whether a current discount on this SKU is optimum or not, if not what should be the optimum discount percentage? (Hope I’ve understood it correctly).
If I were you I’d have tried to create a data sheet that would’ve included the current Region-SKU combination matched with past discounts and sales volume of SKU that had been offered on this particular combination. For example, let’s say “A” region currently has $100 SKU with 30% off, and it’s sales volume in last month was 100. Now, I’d have tried to place this data against the discount percentage (from past data ofcourse) that had fetched me highest sales volume. Let’s say in last March when I offered the same $100 SKU at about 20%, this had fetched me about 120 in sales volume.
Doing so, will give you a data sheet with all your SKU-Current %offer-Sales volume, placed against past best discount %age and sales volume. From this exercise, you can decide whether your current SKU offer is doing right or not.
If you can do it for different regions, you’d also realize that there are few regions that are insensitive to the discounts, and increasing discounts from past (in hope of increasing sales) had actually no effect on your sales.
Please note that you need to match the current SKU with all the past discount percentage that had been offered and sales volume corresponding to that discount.
Let me know if this will helps. Feel free to ask any question that arises.
BTW you can also predict the sales volume once you have this data ready