E261: 🎓Mentoring Moments #47 w/Guest Mentor Jordan Salvit | METRICS THAT MATTER & HOW TO BECOME A DATA LED ECOMMERCE BUSINESS

The Art of Data-Driven Business: A Conversation with Jordan Salvit

In this blog post, we dive into a conversation with Jordan Salvit, an expert in data-driven business strategies, as he shares valuable insights on leveraging data to drive business growth. From understanding gross margins to calculating the breakeven rate, Jordan provides practical steps for businesses to take in their data journey.

Understanding Gross Margins

Jordan emphasizes the criticality of knowing the true gross margin as the first step in building a contribution margin net of marketing. By factoring in return costs, fulfillment costs, and other expenses, businesses gain a clearer understanding of their profit margins.

Calculating the Breakeven Rate

The next crucial step, according to Jordan, is to understand the breakeven rate - the revenue required to achieve profitability. By calculating the cost of acquisition divided by the gross margin, businesses can determine the revenue needed to break even.

Determining Breakeven Period

Once the breakeven rate is established, Jordan advises businesses to assess how long it takes to reach breakeven. Understanding the timeframe to profitability enables businesses to craft a solid scale plan and effectively manage their runway.

Conclusion

Jordan’s insights provide a strategic roadmap for businesses looking to harness the power of data in driving growth and profitability. By focusing on gross margins, breakeven rate, and breakeven period, businesses can make informed decisions and chart a path towards sustainable success. To connect with Jordan Salvit, visit his LinkedIn profile or website at salvit.com.

To learn more, check out the related THE ECOMMERCE EDGE Podcast episode below: