Business

Contribution margin

What is left of a revenue once the variable costs have been taken off.

It answers the question turnover does not: does this wine, this parcel, this route to market carry itself?

In winegrowing it is worth looking at per parcel and per article. A steep site with a high share of hand work can have a completely different contribution margin from a mechanisable one at the same bottle price — and you only see that once the working time is recorded where it arises.

Related terms

Slow mover The article with the fewest sales — the list hardly any shop system shows you. Notional hourly rate What an hour is worth in the business — not what it costs in wages. Price level A price differing from the list price that applies to a particular customer or customer group.

These terms in daily use, not in a glossary. The tour shows where each of them turns up in VINORUM — in sixteen units at your own pace.

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