Client work · D2C apparel
The 10% definition
Ad spend worth about 10% of the year’s revenue was hiding inside a number that was calculated wrong.
- about 10%
- Of the year’s revenue, in ad spend that shouldn’t have happened
- about 70%
- Less manufacturing time on core SKUs
- 120%+
- Growth, year over year, while we worked together
The problem
The brand was growing fast and buying ads to keep growing. The customer acquisition cost it was steering by was calculated wrong.
What I did
I rebuilt the reporting at the SKU level and wrote down what each number meant: gross margin versus net, CAC, ROAS, average order value. Then we went after the supply side, and worked with the manufacturer on tooling for the core products.
What changed
The corrected math turned up ad spend that shouldn’t have happened, worth about 10% of the year’s revenue. Manufacturing time on the core SKUs dropped about 70%. While we worked together, the company grew more than 120% year over year and got close to debt-free.