TEA 198: The #1 Metric You Need To Know In Your Business (DANGER: Nerdy Episode)

Every DTC founder knows revenue isn’t profit—but do you really know how much each sale actually contributes to your bottom line?

In this episode, Josh breaks down Contribution Margin in simple, operator-level terms. You’ll learn how to calculate it, why it’s the most important number for cash flow clarity, and how to use it to drive smarter decisions around pricing, marketing, and growth.

Here’s what we cover:

• The exact formula for Contribution Margin (with a real-world pet + apparel brand example)
• How CM affects break-even, CAC, and scaling potential
• The most common mistakes DTC founders make with margins
• Healthy benchmarks for apparel, supplements, pet products, and more
• Why a 30% CM is your real goal—not just ROAS or topline

If you’ve ever felt like “sales are growing but profit isn’t,” this episode will connect the dots and help you fix it fast.

📊 This one’s packed with frameworks, examples, and clarity—because more volume isn’t the answer if your margins are broken.

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Training and Resources To Keep Track Of Your Numbers

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