I came across a small business: a product priced at 28 yuan, selling 7,000 units a month, with net profit estimated at 20 yuan per unit—that’s 140,000 yuan a month.
Numbers like these are easily mistaken for “huge profits,” when in fact they come from getting three things right at once: product selection, supply chain, and advertising. A price of 28 yuan means gross profit depends on volume, volume depends on advertising, and advertising needs to deliver ROI.
The real challenge isn’t finding a product that costs 28 yuan. It’s finding one that people are willing to buy a second time at that price.
Repeat purchase rate is the real story behind the profit and loss statement.
Numbers like these are easily mistaken for “huge profits,” when in fact they come from getting three things right at once: product selection, supply chain, and advertising. A price of 28 yuan means gross profit depends on volume, volume depends on advertising, and advertising needs to deliver ROI.
The real challenge isn’t finding a product that costs 28 yuan. It’s finding one that people are willing to buy a second time at that price.
Repeat purchase rate is the real story behind the profit and loss statement.