A lot has been written about the USIT -> PROFIT UNIT economy itself. In this article we will tell about our experience in its application in the PRODUCT -> PROFIT format. We will look for the answer to the question: “How much do we need to add goods to our online store to earn X” + link to the calculator. The approach works not only for online stores, but also for industries that are considering expanding their product lines.
The idea is that there is a relationship between the ability of marketing budgets to generate sales and the number of product options offered.
Let's try to quickly calculate how much we need to expand the catalog of the online store in order to fulfill the profit target. Please note that added products can generate more or less traffic and conversion.
Consider the classic unit
— unit- . - 18000 :
: https://start.demo.totum.online/An/30
unit-- User Acquisition (UAc) — ( ).
- Conversion (Conv) — ! (%).
- Buyers (Buyers) — (, ). = UA Conv / 100
- Average Price (AvP) — .
- Cost Of Goods Sold (COGS) — ( ).
- Average Per Customer (APC) — - .
- Average Revenue Per Paying User (ARPPU) — Buyers ( ). — ( ) . = (AvP — COGS) * APC — 1sCOGS
- Average Revenue Per User (ARPU) — UAc (). = ARPPU * Conv / 100
- Cost Per Acquisition (CPA) — UAc ().
- Acquisition Cost (ACost) — . = UA * CPA
- Revenue (Revenue) — . = Buyers AvP APC
- Contribution Margin (CMarg) — . = UAc * ARPU — ACost
- Fixed Cost (FCost) — .
- Profit (Profit) — ( , Fixed Cos COGS ). = CMarg — FCost
unit
UNIT — «», «». , . — buyer.
«» — , , , .
- 6000 ( ).
18000 / 6000 = 3 => CPA 3.
, :
— :
. — , - . . , , .
, . , :
// ,
= : #cel_po_pribyli + #fcost / $calc2
calc: $arppu * #conv / 100 - #cpa
arppu: #avp - #cogs * #apc
// unit-
.
, , . :
// ,
= : $D - #uac - $C
D: $p1 * 100 - $p3 + $p4 / $p6
p1: $H + $K
p2: $L - $M
p3: $p31 + $p32 - $p33 - $p34 * $O * $p2
p31: $F * $B
p32: $F * $C
p33: $G * $B
p34: $G * $C
p4: $p41 + $p42 - $p43 - $p44 * 100
p41: $A * $B
p42: $A * $C
p43: $E * $B
p44: $E * $C
p5: $E * 100
p6: $p2 * $O * $G - $p5
A: " CPA "
B: #uac
C: " "
E: #cpa * " "
F: " CONV "
G: #conv * " "
H: #cel_po_pribyli
K: #fcost
L: #avp
M: #cogs
O: #apc
— .
, : 1 - 9211 . 3211 .
, . :
:
, , :
In the real application of the described case, it became more clear in what goods it is worth investing and what time frames will be needed to reach the target profit.
PS: By itself, increasing the number of product options does not lead to wealth. Everything should be in the complex!
If after reading you have new ideas - this is super. All sales!
Link to the calculator: https://start.demo.totum.online/An/30