How much extra volume does a discount need?
Calculate the additional sales a discount must generate to protect contribution, then test capacity, cash flow and customer-price consequences before launching it.
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IQ insight
At this margin, 21 sales cover £1,000 of fixed costs.
START WITH THE PROBLEM
You do not need to know the accounting term. Choose the situation that sounds closest.
Work from cost and target margin, then test sales-volume risk.
Start with target pricing →02Forecast the bank balance and expose collection or payment pressure.
Build a cash forecast →03Check VAT exposure and keep VAT or Corporation Tax out of operating cash.
Plan the reserve →04See whether cash, monthly trading and a protected buffer can support the role.
Test affordability →05Measure collection time and estimate UK statutory charges where applicable.
Review the overdue invoice →06Include returns, fees, advertising and fulfilment—not revenue alone.
Check retained revenue →START HERE
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Calculate the additional sales a discount must generate to protect contribution, then test capacity, cash flow and customer-price consequences before launching it.