Unit economics
Margin, markup and contribution: what survives a single order.
Unit economics10 Oct 20266 min read
The Gross Margin Formula, and the Basket Your Ads Sell
Gross margin is revenue minus cost of goods, divided by revenue. The calculation and why the margin your ads sell can run eight points below your P and L.
Read the guide →Unit economics26 Sep 20265 min read
The AOV Formula, and What the Average Hides
AOV is revenue over orders. Two orders in two hundred can carry $25.90 of it, and AOV times blended margin overstates what you can pay per order.
Read the guide →Unit economics5 Sep 20266 min read
Contribution Margin vs Gross Margin: Which Number Sets Your Bid
Gross margin says you can pay $51.60 to win an order. Contribution margin says $36.12. The 18-point gap is where ad budgets quietly go.
Read the guide →Unit economics23 Aug 20265 min read
Margin vs Markup: The Difference That Costs You Money
Margin and markup describe the same profit from different bases. The formulas, a conversion table, and the pricing error that quietly erodes profit.
Read the guide →Start with a calculator
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