E-commerce with Tight Margins

=== TARGET CPA & ROAS CALCULATOR ===

CUSTOMER ECONOMICS:
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Lifetime Value (LTV): $600.00

• Total revenue: $600.00

Cost Breakdown:

• COGS: $240.00
• Operating costs: $250.00
• Marketing/sales tools: $100.00
• Total costs: $590.00

Gross profit: $360.00

BREAK-EVEN ANALYSIS:
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
⚠️ CRITICAL THRESHOLD ⚠️

Break-Even CPA: $10.00

• At this CPA, profit = $0
• Any CPA above $10.00 loses money

Break-Even ROAS: 60.00x

• Below this ROAS, campaigns are unprofitable

RECOMMENDED TARGETS:
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
🎯 Target CPA at 25% Margin: $7.50

• Profit per customer: $2.50

🎯 Target ROAS at 25% Margin: 80.00x

Target CPA Ladder (Different Margins):
┌─────────────┬──────────────┬─────────────────────┐
│ Margin │ Target CPA │ Profit Per Customer │
├─────────────┼──────────────┼─────────────────────┤
│ 10% │ $9.00 │ $1.00 │
│ 20% │ $8.00 │ $2.00 │
│ 30% │ $7.00 │ $3.00 │
│ 40% │ $6.00 │ $4.00 │
└─────────────┴──────────────┴─────────────────────┘

SCALING STRATEGY:
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
📈 Phased Approach for Campaign Launch

Phase 1 (Months 1-2): Aggressive Volume Building

• Target CPA: $9.00 (10% margin)
• Goal: Build conversion volume

Phase 2 (Months 3-4): Efficiency Improvement

• Target CPA: $8.00 (20% margin)
• Goal: Improve efficiency gradually

Phase 3 (Month 5+): Target Profitability

• Target CPA: $7.50 (25% margin)
• Goal: Hit target profitability

KEY TAKEAWAYS:
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
✓ Set initial campaign CPA target at $7.50
✓ Set initial campaign ROAS target at 80.00x
✓ Never exceed $10.00 CPA (break-even threshold)
✓ Start with looser targets ($9.00) to build data
✓ Monitor unit economics monthly as costs change