Calculation of unit economics of goods
Posted: Wed Jan 29, 2025 10:14 am
Technical requirements
Calculation of unit economics must be precise, and for this it is necessary to calculate everything down to the smallest detail. Therefore, it is impossible to do without services intended for this.
What data will be required to calculate unit economics? For example, it is very important to take into account the conversion of customers or service buyers who did not come from the Internet. Here, a good option would be to use a CRM system and call tracking — a technology for monitoring phone calls. The indicators will help to systematize data about customers, where they came from and what they purchased.
Technical requirements
Source: shutterstock.com
End-to-end analytics services will help physicians email list identify the customer's route and differentiate users. For example, Mr. P visited the official website, studied the assortment and left. A month later he appeared again, but made an order through the call center.
How to determine that these are not different persons, but the same client? Like CRM, end-to-end analytics is launched by software manufacturers or their contractors.
If any other subject of the transaction is calculated using a unit, then the marginal profit for each unit can also be determined. Let's look at some formulas for calculating unit economics.
Contribution margin = revenue - variable costs
Revenue is the total profit that a company receives from the sale of a specific unit.
Variable costs are expenses whose size is directly proportional to the volume of production. Let's give an example: the company "SuperDoski" is engaged in the production of boards. The wider the production, the higher the costs for raw materials - this is called variable costs.
What can be considered fixed costs: rent of the production site, equipment used, vehicle fleet, etc.
After calculations, it will become clear whether the implementation of the unit will bring profit, taking into account the current costs. Do not forget that the marginal profit must exceed the value of 0!
In a similar way, you can calculate profitability to understand which unit will bring more profit:
Calculation of unit economics must be precise, and for this it is necessary to calculate everything down to the smallest detail. Therefore, it is impossible to do without services intended for this.
What data will be required to calculate unit economics? For example, it is very important to take into account the conversion of customers or service buyers who did not come from the Internet. Here, a good option would be to use a CRM system and call tracking — a technology for monitoring phone calls. The indicators will help to systematize data about customers, where they came from and what they purchased.
Technical requirements
Source: shutterstock.com
End-to-end analytics services will help physicians email list identify the customer's route and differentiate users. For example, Mr. P visited the official website, studied the assortment and left. A month later he appeared again, but made an order through the call center.
How to determine that these are not different persons, but the same client? Like CRM, end-to-end analytics is launched by software manufacturers or their contractors.
If any other subject of the transaction is calculated using a unit, then the marginal profit for each unit can also be determined. Let's look at some formulas for calculating unit economics.
Contribution margin = revenue - variable costs
Revenue is the total profit that a company receives from the sale of a specific unit.
Variable costs are expenses whose size is directly proportional to the volume of production. Let's give an example: the company "SuperDoski" is engaged in the production of boards. The wider the production, the higher the costs for raw materials - this is called variable costs.
What can be considered fixed costs: rent of the production site, equipment used, vehicle fleet, etc.
After calculations, it will become clear whether the implementation of the unit will bring profit, taking into account the current costs. Do not forget that the marginal profit must exceed the value of 0!
In a similar way, you can calculate profitability to understand which unit will bring more profit: