Unit Economics
Replace every [?] with real supplier + courier numbers before deciding anything. FX: $1 ≈ Rs 280. Purpose: show the structure and which levers matter, and to pressure-test Million-Dollar-Math.
Per-order P&L (Starter Set of 5 — example)
| Line | Example (PKR) | Notes |
|---|---|---|
| Selling price (AOV) | Rs 7,000 | 5-pack (Pricing-Strategy) |
| Landed COGS (5 units) | (Rs 2,800) | [?] unit cost + freight + duty (Sourcing-and-Import) |
| Payment/COD fees | (Rs 150) | courier COD fee / gateway |
| Shipping (to customer) | (Rs 250) | [?] |
| Packaging (discreet) | (Rs 120) | [?] |
| Gross contribution (before RTO/CAC) | Rs 3,680 | 53% |
| RTO allowance | (Rs 500) | spread cost of refused orders across all orders |
| Contribution after RTO | Rs 3,180 | 45% |
| Marketing/CAC (blended) | (Rs 1,000) | [?] low at first via SEO |
| Contribution after CAC | Rs 2,180 | 31% |
- Contribution after RTO ≥ 45%
- RTO < 20%
- CAC < 35% of AOV
The RTO drag (why it's modeled separately)
If 25% of COD orders are refused at Rs 500 round-trip each, that's Rs 125 of loss per shipped order spread across all — but concentrated on COD. Push prepaid % up and RTO % down (see Payments-and-COD) and this line shrinks fast, directly lifting margin.
Sensitivity — what moves contribution most
| Lever | Move | Effect |
|---|---|---|
| AOV (pack size) | 5-pack → 7-pack | ⬆️⬆️ biggest lever |
| Landed COGS | local mfg vs import | ⬆️⬆️ |
| RTO % | 25% → 10% | ⬆️ |
| CAC | SEO-led vs paid-led | ⬆️ |
| Repeat rate | adds LTV w/o new CAC | ⬆️ |
LTV (directional)
LTV = AOV × gross margin × purchases over lifetime. If a customer buys a set, replaces in ~18mo, and refers occasionally, LTV is a multiple of first-order margin — this is what funds paid CAC at scale (Million-Dollar-Math Stage 3).
Break-even on first import
- First import cost (landed) = Rs
[?] - Units =
[?]; break-even units at Rs 3,180 contribution = import cost ÷ 3,180 - Target: sell through ≥60% in 90 days (Gate 2)
Fill-in checklist
- Real landed unit cost (Sourcing-and-Import)
- Real courier shipping + COD fee + RTO rate (Payments-and-COD)
- Packaging cost
- Pad-price benchmark for savings story (Pricing-Strategy)
- Rebuild this table with real numbers → confirm ≥45% contribution
Related
Pricing-Strategy · Million-Dollar-Math · Payments-and-COD · Sourcing-and-Import · Go-No-Go-Decision-Framework