How do coupons and discount affect royalties?

[Teesed]

That's it. That's the question. 🙂 

If a product is $20 and I have a 20% markup it's $24 so I make $4.

If there's a 15% discount, does that affect my $4 or does that come out of Zazzle's pocket? 

[Sara_H]

@Teesed  it comes out of your pocket as the royalty is calculated at the price the customer finally paid after the discount. With a shirt at $24 with a 15% sale = $20.40 - then due to the Marketing Royalty Fee you'd earn less as they take 35% for Clothing & Shoes

You'd have to raise your royalty to a lot more that 20% to earn $4 nowadays

edited as I put the wrong rrp in (need more coffee)