#96 How to Understand the Unit Economics of a CPG Company with Graphite Financial
Video from Startup CPG. Watch on YouTube.
What you'll get
Paul Bianco, who runs the CPG-focused finance firm that sponsors this episode, explains how to calculate gross margin without leaving out costs like shipping and discounts, why he prefers tracking groups of customers over time to a single lifetime-value number, and how to build projections from real data. Use it to build a unit-economics sheet for one product before you set a wholesale price, and treat his advice to bring in finance help early as coming from a firm that sells it.
Do this week
Build a one-product sheet listing ingredients, packaging, labor, freight and discounts per unit, and work out the true gross margin on your best seller.