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

Average Price

Weighted average of actual price and promoted price for an item. It does not take into

Yield Management

A pricing strategy used to maximize revenue by varying prices based on demand and inventory levels.