Determine your planned sales volume of the product(s) you're featuring during the promotional period. Enter the profitability factor for each product and multiply that by your planned sales volume. This will determine your estimated profit from your promotion. Subtract the amount of profit from your normal everyday sales activity on these products (without promotion) to arrive at your anticipated incremental profit from running this promotion.

Identify your anticipated marketing costs and total these. Next, divide your total planned incremental profit (C) by your anticipated marketing (D) costs. This ROMI will give you an indication of how much profit dollars you will generate for each dollar of marketing expense.

*Ask your CEO or CFO to assist you in determining the profitability for your featured product or service. To correctly analyze your promotion success you will need to know how much profit is generated for each dollar of sales volume.