5 Margin Myths That Could Be Costing Your Business

Revenue is loud. Margin is quiet. Too often, leaders chase the former and overlook the latter—only to find growth without profit. At Impact27, we see the same mistakes repeat across businesses, all rooted in misunderstanding margin.

Let’s set the record straight.

Myth 1: High sales = high profit

More sales don’t guarantee more profit. Costs scale, discounts creep in, and operations strain under growth. Revenue may climb, but margin erodes.

Truth: Growth only counts if it’s profitable.

Myth 2: All SKUs are profitable

Not every product pulls its weight. Some quietly drain resources with thin margins or low demand, while others drive the business.

Truth: SKU-level visibility shows which products deserve focus—and which don’t.

Myth 3: Ad spend always drives growth

More spend doesn’t always mean more profit. Driving traffic to low-margin products or paying too much to acquire customers can shrink, not grow, your margin.

Truth: Smart ad spend is margin-aware, not just click-focused.

Myth 4: Discounts = margin killers

Discounting isn’t the enemy. Done right, it clears stock, increases volume, and improves cash flow. The danger lies in discounting without control or strategy.

Truth: Planned promotions can strengthen margin, not weaken it.

Myth 5: Margin is just a finance metric

Margin isn’t just a number on a P&L. It’s a commercial signal—shaping product, marketing, operations, and strategy. Ignore it, and you miss opportunities everywhere.

Truth: Margin belongs at the centre of decision-making.

The Bottom Line

Margins tell the real story of business health. Bust the myths, and you unlock smarter choices, stronger growth, and sustainable profit.

👉 Want to know how much margin you’re leaving on the table? Let’s find out.