Revenue is $14 million from about 9,900 orders a month at an average of $118. Ads on Facebook and Instagram cost $190,000 a month and bring 2,970 new customers at $64 each, while a first order from those ads contributes $41 after product, shipping and payment costs. Of those orders, 71% use a discount code. Customers who arrive through ads reorder within 12 months 17% of the time, against 24% across the business. Six ads carry 80% of spend. Organic posts and creator links bring $35,000 a month. Pan returns run at 11%, and 900 messages a month wait a median of 26 hours for a reply.
Challenges- Every new customer from paid social costs $23 more than the first order contributes, and those customers are the least likely to buy again.
- Six discount-led ads carry 80% of spend. When one tires, acquisition cost jumps and there is nothing ready to replace it.
- Four in ten pan returns cite food sticking or rust, problems that a two-minute video prevents, and questions about them sit unanswered for a day.
We will focus on- First-order contribution margin, measured against acquisition cost, as the test for every paid campaign.
- A paid bench of creators and customers whose videos we have the right to run as ads.
- Care and technique content that reduces returns and gives owners a reason to buy the next piece.
We will not- Discount codes in ads to people who have never bought. They lift conversion by about a third and bring customers who reorder half as often.
- Selling through in-app shops on social platforms this year. Each order carries a commission and arrives without the customer's email address, which the repeat purchase plan depends on.
- A celebrity chef partnership. The $280,000 quoted buys one face; a similar sum funds 35 working cooks and creators for the year.