Unit Economics

Unit economics refers to the financial measurement of a single product or customer, helping businesses understand profitability at a granular level. It involves analyzing the revenue generated and the costs incurred for one unit—such as a product sold or a customer acquired—to determine if the business model is sustainable. By examining these metrics, companies can identify how much profit each unit contributes, optimize pricing, and make strategic decisions to grow efficiently. Essentially, it's about understanding the profitability of individual building blocks to ensure overall business health.