MCV Math
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ABCDEFGHIJKLMNOPQRSTUVWXYZ
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AVG Ticket\$15
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Cost of Goods/Service30%<--------
Your rent, insurance, bank loan, and in many cases even payroll are NOT relevant here!
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New Customer Value\$11
You will have these same expenses whether you generate this new customer or not.
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AVG visit per month3
What matters is the tangible, marginal cost of providing your product or service.
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Value/customer/month
\$32
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New customers/month
10
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Profit value/month\$315
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Month 123456789101112
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\$315\$315\$315\$315\$315\$315\$315\$315\$315\$315\$315\$315
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\$315\$315\$315\$315\$315\$315\$315\$315\$315\$315\$315
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\$315\$315\$315\$315\$315\$315\$315\$315\$315\$315
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\$315\$315\$315\$315\$315\$315\$315\$315\$315
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\$315\$315\$315\$315\$315\$315\$315\$315
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\$315\$315\$315\$315\$315\$315\$315
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\$315\$315\$315\$315\$315\$315
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\$315\$315\$315\$315\$315
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\$315\$315\$315\$315
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\$315\$315\$315
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\$315\$315
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\$315
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\$315\$630\$945\$1,260\$1,575\$1,890\$2,205\$2,520\$2,835\$3,150\$3,465\$3,780
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Annual Gross Profit
\$24,570
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78
\$8,600
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\$717
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Annual Net Profit
\$15,971
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