Incremental Revenue

Incremental Revenue

Represents the additional profit generated by a business as a result of increased sales volume.

It quantifies the extra income gained from specific products, investments, or direct sales resulting from marketing campaigns that drive sales growth. When compared against the incremental cost of products, incremental revenue ensures profitability by surpassing associated costs. As it focuses solely on revenue gains without considering overhead expenses, businesses utilize incremental revenue to evaluate overall profit margins and assess the effectiveness of sales and marketing initiatives in driving financial growth.

Related Terms

Everyday Low Price (EDLP)

A retail pricing strategy offering customers consistently low prices on products without requiring coupons, waiting for

Base Price

Also referred to as non-promoted price, it is the average price of an item across all

Lifestage

Refers to one of the distinct phases within a retail business’s lifecycle, encompassing its birth, growth,