Hardware Podcasts

#96 How to Understand the Unit Economics of a CPG Company with Graphite Financial

The Startup CPG Podcast · 27 Jun 2023 · 56m · Episode 73

What this episode covers

Paul Bianco, CEO and Founder of Graphite Financial, explains how CPG founders can accurately calculate unit economics, emphasizing the importance of gross margin over top-line revenue. He critiques the ambiguity of Lifetime Value (LTV) and Return on Ad Spend (ROAS), advocating instead for cohort analysis to determine customer break-even points based on cumulative gross profit. Bianco also discusses the strategic trade-offs between Direct-to-Consumer (Shopify) and Amazon channels, noting that while Amazon margins are lower, customer acquisition costs can be more favorable due to high search intent.

Most relevant to

companies scaling up

Topics

Mentioned

Companies
Graphite Financial, Plated, Brightland, Amazon, FF Venture Capital, Funky Mello, Yeti, Nopalera
Products
Solo Stove
Tools
Shopify, QuickBooks, Bill.com, Ramp
Also
Shark Tank

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