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First Order Profit Calculator
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Instructions: Complete the cells shaded light green. Please make a copy of this sheet. Do not request access.
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ASSUMPTIONS
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Gross Retail Price$36.00
The full price of offer before giving away discounts and returns
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Discount per order (%)10.00%
(Total discounts / Gross Revenue) x 100%
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Return Rate (%)1.00%
(Total returns / Gross Revenue) x 100%
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COGs (%)20.00%
The percentage of revenue actually collected that goes into producing the product
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Payment Processor Fees (%)2.00%
Percentage amount deducted by credit card processor per order
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Fulfillment cost per unit ($)$1.50
The cost to fulfill each unit charged by fulfillment agency. If you self-fulfill, enter 0
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Units/Order1
The number of units in your offer
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Shipping revenue per order ($)$5.00
The amount of revenue collected from customers for shipping
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Shipping expense per order ($)$4.95
The cost to ship an order to a customer
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Target ROAS4.0
The target return on ad spend (recommend you aim for 3-4x)
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UNIT ECONOMICS
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REVENUE
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Gross Revenue$36.00
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Discounts ($)$3.60
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Returns ($)$0.36
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Net Revenue$32.04
Gross revenue — Discounts — Returns
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Shipping Revenue$5.00
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Total Revenue Collected ($)$37.04
Net Revenue + Shipping Revenue
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VARIABLE EXPENSES
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COGs ($)$7.41
Total Revenue Collected x COGs (%)
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Payment Processor Fees per order ($)$0.74
Total Revenue Collected x Payment Processor Fees (%)
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Shipping Expense per order ($)$4.95
Shipping revenue - shipping expense
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Fulfillment cost per order ($)$1.50
Fee charged per order by your fullfillment agency
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Total Variable Costs ($)$14.60
COGS + Fees + Shipping + Fulfillment
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Total Variable Costs Margin (%)39.41%
Total Variable Costs / Total Revenue Collected
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GROSS PROFIT
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Gross Profit ($)$22.44
Total Revenue Collected – Total Variable Costs. This is the amount which needs to absorb customer acquisition costs.
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Gross Margin (%)60.59%
100% — Total Variable Cost / Offer Purchase Price
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AD SPEND
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Customer Acquisition Cost$9.26
Total Revenue Collected / Target ROAS
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CONTRIBUTION MARGIN
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Contribution Margin ($)$13.18
Gross Profit ($) — CAC
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Contribution Margin (%)35.59%
Contribution Margin ($) / Total Revenue Collected
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Target # Orders1000
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Revenue$37,040.00
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Gross Profit$22,441.20
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Ad Spend$9,260.00
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CM$13,181.20
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OPEX$10,000.00
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Net Profit$3,181.208.59%
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