What is the cost to revenue ratio of an e-commerce infrastructure in the retail industry?

2018-06-06T11:55:08+00:00By |Categories: Finance|Tags: , , , |

This is a Quora question I was asked and my answer is as follows. For my P&L’s, I break cost up into 3-main buckets: COGS (cost of goods sold) Marketing Operations I compute COGS based on landed costs, which includes the complete costs to produce a product so that it is sitting in your warehouse [...]

Creating and using a production log for producing a consumer product

2018-12-08T14:21:50+00:00By |Categories: Downloads, Production & Logistics, Visuals|Tags: , , , , |

I want to use this post to run through how I encapsulate all key information for a product production run into a Google Sheet.  You can use Excel, but I prefer Sheets as it is easier to use when cross-linking, as I explain in this post. You can access the template used in this [...]

Marketing campaign goal metrics model: a simplified version of the most important financial model for any consumer product company

2018-12-08T14:21:41+00:00By |Categories: Downloads, Finance|Tags: , , , , , , , , , , , |

The ultimate goal in any company... ...is to acquire AND retain customers where costs to acquire and retain are less than expenses, which leads to profits. Boiled down to this single statement, then the most important variable in the finances is the marketing spend. Even if your other expenses are high or way out of [...]

One method for determining channel margins when you are not able to talk with industry insiders

2018-12-08T14:18:43+00:00By |Categories: Downloads, Finance|Tags: , , , , , , , , , |

This post answers this question I received on Quora: Does the manufacturer of robotic kits for kids have a potential to enter markets overseas by offering a 50% discount on MSRP to importers? Will the importer have enough space to markup the price before CE retailers markups his own purchasing price? The answer is unknown [...]

The Flow of Money in a Consumer Product Company (infographic)

2018-12-08T14:11:46+00:00By |Categories: Downloads, Finance, Visuals|Tags: , , , , , , , , , , , , , , , , , |

The best way to think about this is a profit and loss statement, starting with revenue at the top and net income at the bottom. A customer flows from the top, acquired through marketing spend, and everything in between to deliver that product to them, with profit left over, and all the key metrics [...]

What are Honest Co.’s gross margins (and some rules of thumb for figuring this out)

2017-06-11T19:44:42+00:00By |Categories: Finance|Tags: , , , , |

This is a Quora questions I was asked.  Here is my answer I did a quick search in my industry source and did not find anything that specific. Here are some quick metrics to make a guess: As of 2016, they are north of $300 mm in sales; Unprofitable; Raised $220 mm to date from [...]

What do I need to know if I want to be an egg distributor (especially) in South Jakarta?

2017-05-30T18:17:00+00:00By |Categories: Product Development|Tags: , , |

I have a counter in pasar pd labu and currently thinking to have an egg distribution business.what are the things i should know before hand? e.g : where can i get source of egg? (agent/breeder) what kind of egg do i need to get? (i’ve heard padang egg, blitar egg) how’s the price fluctuation work? [...]

The correct way and the specific equation to use to determine markups and margin for resellers and retailers

2018-07-19T16:18:42+00:00By |Categories: Resellers|Tags: , , , , , , , , , , , , |

I got this question emailed to me by Marty: I'm looking to find out the typical pricing markups (margins) for plastic storage containers, from manufacturing through retail. I came across your post on Quora (dated 3/16) which was helpful, but I had trouble understanding some of it. Wondering if you could clarify through an example, [...]

What is the average price of an item at the grocery store and the average gross margin?

2016-10-26T11:34:24+00:00By |Categories: Resellers|Tags: , , , , |

There is no real way that I know of to find an average, and I could be wrong about that.  Certainly you might find some analyst reports on public companies in a certain product category where it makes sense to assemble these averages, but for private companies, I do not know how you could assemble [...]

I am currently working on the development of an e-commerce that sells healthy dry food. What are the typical margins?

2016-11-04T09:55:48+00:00By |Categories: Finance|Tags: , , , , , , , |

Question:  I am currently working on the development of an e-commerce that sells healthy dry food. What are the typical margins? I'm launching a webshop with healthy products, nutritional supplements and natural cosmetics from different distributors. What is the typical gross margin for this kind of products? What percentage of my budget should I allocate to marketing? [...]