News & Events
The Pricing Question: Unit Margin & ROI
- October 19, 2019
- Posted by: admin
- Category: Blog
When the pricing question is brought up, the proper way to present cost is in terms of unit margin and unit ROI. For example, presenting the cost or pricing would look like the following:
Average customer spend: $100 (per transaction)
Unit cost: $2.00
Unit margin (ROI): $98
Before presenting pricing or cost it is important to get the average customer spend for the given company in terms of revenue.
This turns cost or price into an asset that can be brought up early on in the process rather than a liability.