THE CONTRIBUTION STUDIO
Evaluate the retail return with complete costs.
Hypothetical USD assumptions for a weighted approved-product mix. These are not equipment quotations, verified product margins, demand forecasts or guaranteed returns.
$9.00Net realised sale
$4.90Landed cost
$0.36Payment fee / 4%
$0.24Loss / support allowance
$3.50Unit contribution
$850Monthly fixed costs
LOWER DEMAND
200
retained sales / month
Net revenue$1,800
Variable contribution$700
After fixed costs-$150
Simple cash recoveryNo finite recovery
Read this scenario
This case does not cover fixed costs. Review actual demand, contribution and venue terms before committing more cash.
WORKING EXAMPLE
500
retained sales / month
Net revenue$4,500
Variable contribution$1,750
After fixed costs$900
Simple cash recovery10.0 months
Read this scenario
Validate retained demand, service effort and the complete launch funding before using the case for procurement.
HIGHER DEMAND
900
retained sales / month
Net revenue$8,100
Variable contribution$3,150
After fixed costs$2,300
Simple cash recovery3.9 months
Read this scenario
Higher demand needs a suitable loading plan, actual purchases and a workable route. This is a sensitivity case, not a forecast.
Illustrative initial funding is $8,000 installed equipment plus $1,000 opening inventory and other initial cash, totalling $9,000. Operating break-even requires 243 retained sales per month. A 24-month simple recovery target needs at least 350 monthly sales under constant assumptions.
Unit contribution = net realised price minus landed cost, payment fees, losses/support and other variable costs. Monthly operating contribution = retained sales multiplied by unit contribution minus fixed costs. Simple recovery = initial funding divided by positive monthly operating contribution.
Include rent or commission, refill labour, travel, energy, software, connectivity, insurance and maintenance. Assign costs once and avoid subtracting the same refund twice. Financing, income tax, depreciation, ramp-up, changing working capital, residual value and discounting are excluded. Simple recovery is not accounting ROI.
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