|
|
Unit economics allows you to determine the earnings from one unit - a product or service that brings in profit. For example, how much does one vending machine bring in over a certain period of time or how much income is received from one student at a dance school. Unit economics is applicable to any company and industry. The universal methodology is a basic tool for all specialists of the enterprise, from the marketer to the owner. Let's understand unit economics right now!
What does unit economics give?
The calculation must be carried out before launching a new project to forecast sales and during the course of business to track the emergence of problems. Fundamental knowledge of economics and finance is not required to carry out the calculations. In simple terms, unit economics is the determination of the difference between expenses and revenue for a certain product or service. The resulting figure makes it possible to determine whether the business is in the red or in the black.
Earn with Perfluence
Register and get access to 200+ projects with promotions from the most famous brands
Register
Img
Varieties
There are two main models of unit economics: client and transaction. The client model is suitable for any business that is conducted online or in the real world. The transaction model is more suitable for goods and services that are sold in the physical world, such as a beauty salon or a souvenir shop.
The calculation method is very simple: we select one unit and then analyze the ratio of income and expenses.
If it turns out that revenue is less than expenses, it is necessary to review what the money was spent on. For example, after advertising a new line of shoes, there were many leads, but only a few decided to buy. In this case, the main reason will be an incorrect definition of the target audience. The shoes are designed for the middle generation, with a discreet style, but the advertising was conducted among young people.
The second possible reason is that managers or sellers failed to disclose all the advantages of buying a pair of shoes to the consumer. In this case, it is necessary to analyze both reasons, make adjustments and after a while, do a unit analysis again. However, to make the calculation, it will be necessary to calculate several indicators.
funds that were spent on advertising, for example, 300,000 rubles;
registered potential buyers – 300 people;
the sales amount for 6 months is 20 million rubles;
Number of clients in 6 months – 900 people;
Number of clients per month – 150 people.
Now the amount of funds spent on finding 1 client is calculated using the formula:
SAC = 300,000/300 = 1,000 rubles. Whether this is a lot or a little must be decided individually, depending on the cost of the goods.
The next indicator is the average bill per person. Calculation formula:
ARPU = 20,000,000/900 = 22,222 rubles.
ARPU taking into account funds spent on finding a buyer (advertising the product):
22,222 – 1,000 = 21,222 rubles – or the average bill taking into account advertising costs.
Marginal income is calculated using the following formula:
CM = 150 * 21,222 = 3,183,300 rubles per month.
For a business that is only planned to be launched, the calculation will wordpress web design agency be slightly different. The basis is a startup with a mobile application, with a paid subscription. Since the project is only planned, we will have to take average indicators (benchmarks):..
85% of customers continue to use it for free after installation;
10% switch to the paid version;
30% buy a subscription.
Conversion is calculated using the formula: C = 85 * 10 * 30 = 2.5%.
Now we need to determine the cost of finding one client. It is impossible to determine the exact figure yet, since the project has not been launched, so we will have to refer to these CPI benchmarks. Depending on the field of activity and region, the figures will vary greatly and we must be prepared for the fact that there will also be an error. For example, let's take 200 rubles.
The average cost of attracting a client is calculated using the following formula: CAC = 200/2.5% = 8,000 rubles. This is how much money you will have to spend to get one “paying” client.
The next important indicator is the average revenue that will be received from one "paid" client for the entire period of use. The data will again have to be taken from benchmarks. For example, we take 30% and get: 1/30% = 3 months - the life cycle of the project.
The total profit from the buyer is calculated as LTV = 2,000/30% = 6,666 rubles per month. A similar calculation can be made for 12 months: LTV = 2,000/90% = 26,666 rubles per year.
You can determine the subscription price based on competitors' data or use your own methods. The example is based on the amount of 2,000 rubles. And don't forget that you will also have to pay on the platform where the application will be placed. For example, the App Store takes 30%, then the total profit is calculated as follows: LTV = (30 * 6,666 + 30 * 26,666) * (1 - 30%) = 699,972 rubles.
In our example, the number of subscribers per month and per year is the same - 30 people. Now we can move on to the payback of expenses that are planned to be spent on promotion: ROMI = (699,972 - 8,000) / 8,000 * 100% = 86,496%, respectively, each ruble that will be invested will bring 86.5 rubles of profit, that is, we can talk about a high rate of profitability.
|
|
發表於 18:10:04