Why "Making It Up On Volume" is a Lie

Michael Barbarita • January 23, 2026

Every struggling business owner says it. "We'll make it up on volume." The math proves it's almost always a lie.


Your profit margins don't improve with volume. Your revenue growth without margin protection destroys wealth.



Here's why the lie persists:


It sounds logical. More customers should mean more profit, right? It feels like progress. Busy feels productive. It avoids hard choices.


Easier to say yes to low prices than develop real differentiation.


But the math doesn't work.


At 30% gross margin with a 10% price cut, you need 50% more volume. At 25% margin with a 10% price cut, you need 67% more volume. At 20% margin with a 10% price cut, you need to DOUBLE your business.


Your business efficiency collapses under that volume requirement. Your financial performance deteriorates from quality issues, operational chaos, and team burnout.


The hidden costs multiply: More mistakes. More complexity. More stress. More everything except profit.


One retail business tried "making it up on volume" for three years. Revenue grew 40%. Net profit dropped 15%. Owner worked 70-hour weeks and made less than before.


Your profitability strategies must reject the volume lie. Your earnings improvement requires facing mathematical reality.


The truth: You almost never make it up on volume. What you make up is excuses for why your business isn't profitable despite being busy.


Your bottom line growth comes from protecting margins, not chasing volume. Your cash flow management improves from profitable transactions, not just more transactions.


Most business owners believe this lie until they're exhausted and broke. Then they either fix their margins or close their business.


You're rejecting the lie now. Protecting your margins. Building wealth instead of exhaustion.


Business Owners hire Next Step CFO to double and triple their profit using business and financial strategies that their competition isn't doing.