Define the decision before calculating
Record these inputs and boundaries
- Name the decision and the alternative scenarios being compared. (not complete)
- Choose one currency, unit, period and indirect-tax basis. (not complete)
- Define which direct, variable and allocated costs belong in the model. (not complete)
- Label price, volume, capacity and demand entries as records or assumptions. (not complete)
- Write the evidence owner, review trigger and stop condition. (not complete)
Compare a labelled base and downside scenario
| Decision input | Base case | Downside or boundary case | Decision checkpoint |
|---|---|---|---|
| Decision | Test price for one defined service package | Find a profitable price | Rewrite the vague objective as a bounded comparison |
| Cost boundary | Delivery labour plus named direct costs | Costs from mixed periods and scopes | Reconcile scope and period before entry |
| Stop condition | Required volume exceeds available capacity | No condition recorded | Add a measurable pause or rejection point |
- Write the decision question and candidate actions.
- List each input with unit, period, source and tax treatment.
- Mark assumptions separately from reconciled records.
- Prepare a base and downside case that change one input at a time.
- Enter values only after the stop and review conditions are visible.
Interpret the result and choose the next step
A calculator scenario is reproducible only when another person can identify each input, its source, its basis and the condition that would make it invalid.
Run the exact calculation in the registered planner
- Target Margin & Pricing Planner
Set a price for a target gross margin
Decision questions
- What if an input is unknown?
- Pause if it is load-bearing. If a scenario range is still useful, label both boundaries and avoid presenting either as a fact.
- Should I use the calculator default?
- Only when it matches your recorded decision and source basis. A convenient default is not evidence about your business.
Method and source scope
- Target Margin & Pricing methodology — Margin101: Product-owned calculation, units, assumptions and limitation contract used by this guide.