Revenue and sales
Margin is what survives of a revenue once the costs that revenue drags with it have been taken out.
When the job is to measure the payback of an investment, the form that counts is contribution margin, that is revenue minus the variable costs, the ones that grow with volume sold. Enrico Giubertoni turns it into a rule of calculation: payback is computed on margin rather than on revenue, because a project worth a hundred thousand euro of revenue at a thirty per cent margin returns thirty thousand a year, and on payback time the difference is a factor of three. In the published articles the term appears as marginality, where the loss of marginality is the price of waiting.
An example
A sales team closes a hundred thousand euro order by granting a discount that eats the contribution margin. The number lands in the turnover everyone reads in the management meeting, and the cash available to hire one more salesperson is exactly what it was last month.
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