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TEA 198: The #1 Metric You Need To Know In Your Business (DANGER: Nerdy Episode)

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Manage episode 498219513 series 3017023
Content provided by Josh Coffy. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Josh Coffy or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Every DTC founder knows revenue isn’t profit—but do you really know how much each sale actually contributes to your bottom line?

In this episode, Josh breaks down Contribution Margin in simple, operator-level terms. You’ll learn how to calculate it, why it’s the most important number for cash flow clarity, and how to use it to drive smarter decisions around pricing, marketing, and growth.

Here’s what we cover:

  • The exact formula for Contribution Margin (with a real-world pet + apparel brand example)
  • How CM affects break-even, CAC, and scaling potential
  • The most common mistakes DTC founders make with margins
  • Healthy benchmarks for apparel, supplements, pet products, and more
  • Why a 30% CM is your real goal—not just ROAS or topline

If you’ve ever felt like “sales are growing but profit isn’t,” this episode will connect the dots and help you fix it fast.

📊 This one’s packed with frameworks, examples, and clarity—because more volume isn’t the answer if your margins are broken.

Get Our KPI Calculator To Calculate YOUR Breakeven ROAS

Training and Resources To Keep Track Of Your Numbers

-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
Visit Our Website For Training and Resources

► Leave Us An Honest Rating, Email An Image Of Your Rating To [email protected], We'll Send You A $10 Amazon Gift Card As An Appreciation Gift!
Learn About Our Mentorship Program For Ecom Brands Making Over $10k/month

Checkout Our Upcoming Software, Breezeway - Never Second-Guess Your Meta Ads Again

Follow Josh on social media:
YouTube | Instagram | Facebook | TikTok |

  continue reading

205 episodes

Artwork
iconShare
 
Manage episode 498219513 series 3017023
Content provided by Josh Coffy. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Josh Coffy or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Every DTC founder knows revenue isn’t profit—but do you really know how much each sale actually contributes to your bottom line?

In this episode, Josh breaks down Contribution Margin in simple, operator-level terms. You’ll learn how to calculate it, why it’s the most important number for cash flow clarity, and how to use it to drive smarter decisions around pricing, marketing, and growth.

Here’s what we cover:

  • The exact formula for Contribution Margin (with a real-world pet + apparel brand example)
  • How CM affects break-even, CAC, and scaling potential
  • The most common mistakes DTC founders make with margins
  • Healthy benchmarks for apparel, supplements, pet products, and more
  • Why a 30% CM is your real goal—not just ROAS or topline

If you’ve ever felt like “sales are growing but profit isn’t,” this episode will connect the dots and help you fix it fast.

📊 This one’s packed with frameworks, examples, and clarity—because more volume isn’t the answer if your margins are broken.

Get Our KPI Calculator To Calculate YOUR Breakeven ROAS

Training and Resources To Keep Track Of Your Numbers

-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
Visit Our Website For Training and Resources

► Leave Us An Honest Rating, Email An Image Of Your Rating To [email protected], We'll Send You A $10 Amazon Gift Card As An Appreciation Gift!
Learn About Our Mentorship Program For Ecom Brands Making Over $10k/month

Checkout Our Upcoming Software, Breezeway - Never Second-Guess Your Meta Ads Again

Follow Josh on social media:
YouTube | Instagram | Facebook | TikTok |

  continue reading

205 episodes

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