THE CONTRIBUTION PLAYBOOK
Make the basket pay its way.
Hypothetical USD examples for a sales-weighted treats-and-toys mix. These are not quotations, verified margins or demand forecasts.
$6.00Net sale
$2.90Landed cost
$0.24Payment / 4%
$0.16Loss / support
$2.70Unit contribution
$650Monthly fixed costs
CAUTIOUS
200
retained sales / month
Net revenue$1,200
Variable contribution$540
After fixed costs-$110
Simple cash recoveryNo finite recovery
Read this case
This level does not cover fixed costs. Reassess the location before committing more cash.
WORKING EXAMPLE
450
retained sales / month
Net revenue$2,700
Variable contribution$1,215
After fixed costs$565
Simple cash recovery12.4 months
Read this case
Validate retained demand, service effort and the complete launch budget.
STRONGER DEMAND
800
retained sales / month
Net revenue$4,800
Variable contribution$2,160
After fixed costs$1,510
Simple cash recovery4.6 months
Read this case
Higher sales require actual demand, suitable stock capacity and a workable route.
Initial funding in this example is $6,500 installed equipment plus $500 opening stock, totalling $7,000. Operating break-even is 241 retained sales per month. A 24-month simple recovery target requires at least 349 monthly sales under constant assumptions.
Unit contribution = net price minus landed cost, payment fees, loss/support and other variable costs. Monthly contribution = sales multiplied by unit contribution minus fixed costs. Simple recovery = initial funding divided by positive monthly contribution.
Include rent, commission, refill labour, travel, power, software, connectivity, maintenance and insurance. Do not subtract the same refund twice. Financing, tax, depreciation, ramp-up, working-capital changes, residual value and discounting are excluded. This is not accounting ROI.
Discuss actual project costs →