Commerce Chronicles 012

Assessing Contribution Margin + Screengrabs

I’ve been traveling most of yesterday and today, so this will be a pretty lite send. I think a lot of you prefer that. Let’s get into it.

If you paid attention to last Sunday’s send, you’ll know that understanding brand helps tremendously when we run big promos (BFCM is creeping up). In this Wednesday edition of Commerce Chronicles, I want to spend some time highlighting another big thing we need to understand as brand owners and operators—Contribution Margin (CM).

If you don’t already know, CM is imperative to know just how much profit we make per sale. The folks over at CTC called it “Fuel Profit” or, put in normal words, how much money you can spend on more ads, cover salaries, and even give discounts/affiliate commissions.

I recommend reading the whole thread.

Let’s get into the screen grabs ⬇️ ⬇️ ⬇️.

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Touché, or should I say, douché 🤔 .