- Objective today:
- Unit economics - like individual Lego building blocks that make up the overall profitability picture
- Revenue per unit
- Any cost during making and selling
- Connected to gross margin.
-
- Every % is a penny of each $ available to cover overhead
- Concept:
- What makes it improve?
- Increase price
- Decrease variable expense
- Cost of product
- produce in bulk
- cut costs where customers don’t mind (value engineering)
- shipping
- negotiate better rates
- Offer free shipping above threshold
- advertising & commission
- Sell to existing audience
- Partner with other brands to sell to their customer
- Trade-offs
- Sometimes spending more advertising dollars or offering referral or sales commission can accelerate revenues to help cover overhead but decrease our gross margin %
- Key Question + Action
- **What is a unit for you?**
- **What costs do you incur with each creation and sale of every unit?**

-----------------

Want customized help building out a growth plan for your business?

Schedule a free strategy call at Amplify.Business

Download free pdf guide at ForecastOnPurpose.com

Connect on LinkedIn

Watch episodes on YouTube