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How Do I Calculate Variable Costs?
Manage episode 359565423 series 3432707
Konten disediakan oleh Ben Cooper (ForecastOnPurpose.com). Semua konten podcast termasuk episode, grafik, dan deskripsi podcast diunggah dan disediakan langsung oleh Ben Cooper (ForecastOnPurpose.com) atau mitra platform podcast mereka. Jika Anda yakin seseorang menggunakan karya berhak cipta Anda tanpa izin, Anda dapat mengikuti proses yang diuraikan di sini https://id.player.fm/legal.
- Objective today:
- Unit economics - like individual Lego building blocks that make up the overall profitability picture
- Revenue per unit
- Any cost during making and selling
- Connected to gross margin.
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- Every % is a penny of each $ available to cover overhead
- Concept:
- What makes it improve?
- Increase price
- Decrease variable expense
- Cost of product
- produce in bulk
- cut costs where customers don’t mind (value engineering)
- shipping
- negotiate better rates
- Offer free shipping above threshold
- advertising & commission
- Sell to existing audience
- Partner with other brands to sell to their customer
- Trade-offs
- Sometimes spending more advertising dollars or offering referral or sales commission can accelerate revenues to help cover overhead but decrease our gross margin %
- Key Question + Action
- **What is a unit for you?**
- **What costs do you incur with each creation and sale of every unit?**
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