Recommendations for calculating unit economics

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When calculating unit economics, follow these guidelines:

Divide units into cohorts
A cohort is a number of customers who appeared in the same period and have the same characteristics. Unit economics calculation data is considered objective if it is calculated physicians email list by cohorts. The reason for this is that the economics may be the same for customers in July, but will no longer be relevant in September.

Let's say you sell Christmas lights in December and then in July. Of course, the sales results will be strikingly different. The same goes for customers with equal characteristics - new customers or old, solvent or very thrifty. Therefore, by combining customers by cohorts, you will come to more accurate calculations.

Consider only the product (service) sold
When calculating unit economics, consider expenses and profits only from goods already sold. If a seller bought 120 melons and sold 70, then expenses must be taken into account for the 70 melons sold. Otherwise, you will get incorrect figures.

Consider only the income and expenses associated with the unit.
Profits and expenses must be directly related to the unit and not go beyond it. When calculating the income received from the sale of apples, income from the sale of pears should not be taken into account.

Consider only the product (service) sold

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Similarly with expenses: product promotion, packaging and purchasing should have their own individual unit. Everything depends on the type of business activity. The main thing is to get the right result.

Take into account all money, including accounts receivable and accounts payable
When calculating the unit economics for September, it is necessary to take into account the profit that will come only in November. The situation with loans and deferred payments is considered similarly.


Common mistakes when calculating unit economics
The most common errors in calculations:

Accounting for expenses on all goods, not on those sold
With this calculation option, the price of one unit will probably be unprofitable.

Let's say an online platform purchased 100 pairs of boots and sold only 60. The unit economics calculation should be only for these 60 pairs: taking into account CAC, margin and other data. The other 40 should be included in the calculation after they are sold.