Ep 381: The 6 Numbers That You Must Know With Jordan West
After auditing over 75 brands in the last year and onboarding more than 25 brands it was clear brands don't have a complete picture of their numbers as they invest into paid ads. Dashboards show great results, revenues are increasing, yet, you have less money in the bank. If this sounds familiar, you probably don’t know the numbers you need to know.
In this episode, Jordan West talks about the six numbers you must know as a marketing leader, founder or CEO of your company to scale profitably!
Listen and enjoy this episode!
KEY TAKEAWAYS FROM THIS EPISODE
The 6 Numbers that Matters
1. Burn Rate
What is the minimum fixed operating expenses each month, regardless of your monthly sales volume? Do you know how fast you are going through your money.
2. Cost of Goods Sold
What are the total variable costs for that product to be sales ready? Calculate this by sku!
3. Loaded Cost of Delivery
What are the costs associated with fulfilling and delivering that order to a customer?
4. Contribution Margin Before Marketing Spend
Do you know what your sales volume needs to be to hit break even?
5. Revenue Mix
What percentage of sales comes from new versus existing customers?
If it's too much on existing customers, then you probably need to focus more on acquisition.
6. Contribution Margin After Marketing Spend
What is the maximum that you can spend to acquire customers profitably?
You need to understand your customer's LTV to know what you can spend to acquire a customer.
Connect with Jordan here:
LinkedIn: https://www.linkedin.com/in/jordan-west-marketer/
This month’s sponsor is 8fig, an eCommerce funding, and planning platform that gives entrepreneurs the freedom to scale their store to new heights through continuous, equity-free capital and supply chain planning. Find out more about how 8fig is helping sellers grow through adaptable funding at 8fig.co.
Promo Code: mention upGrowth during sign-up for 5% off the cost of capital of an 8fig Growth Plan!
We love our podcast community and listeners so much that we have decided to offer a free eCommerce Growth Plan for your brand to help you find your 6 Must Know Numbers! To learn more and how we can help, click here:
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