Margin structure · The contribution analysis · Element
The distribution
How contribution is spread — the concentration at the top and the shape of the tail.
The part
What it is
The distribution is the finding. A business where twenty per cent of customers produce eighty per cent of contribution is managed differently from an even one.
The tail should be sized, not just noticed. How much is it actually costing, and what would genuinely be released by ending it?
The smallest level
The attributes it carries
Each attribute is one of the framework’s shared types. What a date is, and how it is written, is defined once for the whole model — the note here says what it means in this particular place.
Top decile share
How concentrated contribution is, which determines how much attention concentration deserves.
Percentage shared typeTail cost
What the loss-making tail costs in total, before deciding anything about it.
Money shared type