Sales and margin
We sell more. Why aren’t we earning more?
We find out why more revenue does not leave more after costs: what changed in the sales mix, discounts and channel costs.
30 minutes, free.
Prefer to write? Send a message
Illustrative example on fictional data: revenue grows from PLN 4.0m to 4.8m, or 20%, while the amount left after cost of goods, discounts and channel costs grows from PLN 1.00m to 1.02m, or 2%. The difference split: higher sales add PLN 0.20m, a bigger share of the cheaper product takes away PLN 0.08m, bigger discounts PLN 0.06m, and commissions and ads in a new channel PLN 0.04m.
The amount after cost of goods, discounts and channel costs, before fixed costs; the same definition in both years. As a share of revenue it is 25% in 2025 and 21% in 2026. The split shows where the difference arose but does not prove a cause: why product B’s share grew is checked next.
In this example
- Which data we compare
- Sales and invoices, the discounts actually given, cost of goods and channel costs: commissions, advertising and returns.
- What can be established
- Which products, customers or channels account for the difference, and since when. If data is missing or there are several causes, we say so plainly.
- What you get
- The result split by product, customer or channel, and a basis for checking prices, discounts and the cost of winning customers.
Questions that keep coming up
- Is what remains after costs growing, or only revenue?
- We split the change into volume, sales mix, discounts and channel costs, calculated with the same definition in both periods.
- Which product earns after discounts, not just on the price list?
- We calculate the result after the discounts actually given and the costs for each product, and it can be checked against invoices.
- Will you always find one cause?
- Not always. Sometimes the data points to several causes or shows what is missing. We state hypotheses and gaps plainly.
Want to research margin yourself and see whether your changes work? See TORIS
Let’s check it on your numbers
On the initial call we will agree which data to compare and where to start.
Tomasz Pijanowskifounder of ToruAI
30 minutes, free.
Prefer to write? Send a message