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Unprofitable Business Model Detection
Detects when costs exceed lifetime value, making paid advertising impossible. Shows $310 loss per customer before any ad spend and provides required actions to fix unit economics before launching campaigns.
Input
What you provide to the skill
My fitness store has $300 AOV, 1.8 repeat purchases, $150 COGS, $400 operating, $180 tools. Can I profitably advertise?
Output
What the skill generates for you
=== TARGET CPA & ROAS CALCULATOR ===
CUSTOMER ECONOMICS:
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Lifetime Value (LTV): $540.00
- Total revenue: $540.00
Cost Breakdown:
- COGS: $270.00
- Operating costs: $400.00
- Marketing/sales tools: $180.00
- Total costs: $850.00
Gross profit: $270.00
BREAK-EVEN ANALYSIS:
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
⚠️ WARNING: NEGATIVE MARGINS DETECTED ⚠️
Break-Even CPA: -$310.00
🚨 CRITICAL ISSUE: Your business model is currently UNPROFITABLE.
Total costs ($850.00) exceed lifetime value ($540.00) by $310.00.
This means you lose $310.00 on every customer BEFORE spending anything
on advertising. You cannot profitably acquire customers through paid
advertising with this economic structure.
REQUIRED ACTIONS:
- Increase LTV by raising prices or increasing purchases per customer
- Reduce costs (COGS, operating, tools)
- Combination approach - find efficiencies while improving value
About This Skill
Calculate optimal target CPA and ROAS for paid advertising campaigns based on business economics. Computes break-even thresholds, profit-optimized targets at various margins, and scaling strategies.
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