Money, pricing & unit economics
Unit economics & contribution margin
Do you make money on order number one?
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What is contribution margin for a D2C brand, and what do CM1, CM2 and CM3 mean?
Contribution margin is what's left from an order after the costs that move when you sell one more unit; in Indian D2C the convention is to stack it...
How do I factor RTO, returns, COD, shipping and discounts into my true margin?
These are the silent margin killers that live inside CM2, and in India they're brutal: COD orders can cost 50-100% more to serve, RTO on COD often ...
How do I model my D2C unit economics in a spreadsheet, and how many orders do I need to break even?
Build one row per order: net price after discount, minus COGS, shipping, packaging, payment fee, an RTO/returns allowance and allocated CAC - that ...
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