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Is crossing a rebate tier worth the extra sales?
Test an all-units rebate against incremental contribution and rebate paid on the existing base.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Existing annual units
- 9,000
- Additional units to win
- 1,200
- Unit price
- $100
- Variable cost / unit
- $65
- All-units rebate at threshold
- 5 %
- Rebate threshold units
- 10,000
Contribution change vs no extra deal
Example result only, not a forecast or promise.
- Total rebate cost
- $51,000
- Additional pre-rebate contribution
- $42,000
- Units above / below threshold
- 200
What to do with this result
Compare all-units and incremental-only rebates before negotiating; avoid a cliff that rewards unprofitable volume.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Incremental profit = extra units × unit contribution − rebate rate × price × all units if threshold is reached.
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Contribution excludes fixed overhead, tax and financing; validate demand response before changing prices.