Products & pricing
Price, margin, profit: three things
The price is what the customer pays. The margin, what's left after the product's cost. The profit, what's left after ALL costs. You can sell at a high price and lose money — it's even common.Unit cost, by components
What does ONE unit sold cost? Material, packaging, labour, commission. List the components rather than a gut-feel number: it's the only way to know where the margin goes.With or without VAT?
The you collect isn't yours — you pass it on. A plan reasons excluding tax. The app accepts tax-inclusive input and converts, but the number that matters is the net one.The contribution margin
Each sale first pays back its own costs; what remains "contributes" to rent and salaries. If that contribution is small, you'll need an enormous number of sales — that's the whole story.Going deeper
Subscriptions and recurrence
A subscription is sold once and collects every month. The app models that recurrence — and the that erodes it. Recurring revenue builds slowly and is lost quickly.Churn, put simply
Out of 100 subscribers, a few leave every month: that's . 3% a month sounds small — it's a third of your customers in a year. Any subscription projection that ignores it is wrong.Put it into practice on your numbers
This guide continues in the app: the guided path has you build your real financial plan, chapter by chapter. 1-month free trial, no card.