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Products & Solutions · 15 answers

Peak Unit Economics

What an order, a product and a channel really earn after all variable costs.

How-tos

7
  • How do I calculate my first product in Peak Unit Economics?How-to

    How do I calculate my first product in Peak Unit Economics?

    Eight inputs are enough: price, VAT, purchase price, shipping, pick & pack, payment fee, return rate and CAC. Peak calculates from the first number on and finally shows contribution margin, break-even CAC, headroom and break-even ROAS.

    1. Open Peak Unit Economics and click “Calculate first product”.
    2. Choose the type (product, SaaS, service …) and the channel.
    3. Take a product from Peak Products or create a new one. It's the same product in all apps.
    4. Enter price, costs, returns and CAC. If a number is missing, leave it empty or mark it as an estimate.
    5. Check the result and click “Save model”.
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  • How do I calculate the same product for another channel, e.g. Amazon?How-to

    How do I calculate the same product for another channel, e.g. Amazon?

    In the product's calculation under “Same product, different channel”. A channel inherits all inputs from the base and only overrides what's different. The product stays one product. The options are own store, Amazon, other marketplace, wholesale, retail, direct B2B and subscription.

    1. Open the product under “Products”.
    2. Under “Add channel”, choose a channel and click “Add”.
    3. Only change the values that differ in this channel, e.g. marketplace fee or shipping.

    Next step

    Open products
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  • How do I play through what a price or cost change does?How-to

    How do I play through what a price or cost change does?

    Under “Scenarios” in the Scenario Lab, with best case, worst case or a custom scenario. Every assumption stays visible and editable, and the result appears next to the base. Without a monthly volume, Peak compares per order.

    1. Open “Scenarios”.
    2. Choose best case, worst case or “Custom scenario”.
    3. Change assumptions, optionally enter a volume effect.
    4. Click “Save scenario”.
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  • What price do I need for a specific margin?How-to

    What price do I need for a specific margin?

    The break-even explorer under “Scenarios” calculates backward. Under “Solve for”, choose which value you're looking for, and as the target “Break-even” or “Custom target” in percent CM III. All other assumptions stay the same; volume effects aren't included. The price check next to it compares several price points.

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  • How do I define which margin is healthy for us?How-to

    How do I define which margin is healthy for us?

    Under “Insights” → “Targets & guardrails”: minimum CM I, CM II and CM III; maximum break-even ROAS, CAC utilization, return rate, payment fees and landed COGS. The defaults are Peak standard values, not industry benchmarks. They apply to the whole workspace, and the scorecard recalculates accordingly.

    1. Open “Insights” and scroll to “Targets & guardrails”.
    2. Adjust the values to your model.
    3. Click “Set as our guardrails” or “Save guardrails”.

    Next step

    Open insights
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  • How do I turn a lever into a task?How-to

    How do I turn a lever into a task?

    In the calculation under “Actions”, Peak shows up to four levers with their impact per order and per month. One click creates the task in Peak Work, with the current CM III as the baseline. Under “Ongoing initiatives”, you see what's open and what's done.

    Next step

    Open products
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  • How do I remove a product from Peak Unit Economics?How-to

    How do I remove a product from Peak Unit Economics?

    At the bottom of the calculation, choose “Remove from Unit Economics” and confirm. The product stays in Peak Products, all previous states stay saved in the history, and you can recalculate it at any time.

    Next step

    Open products
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Frequently asked

6
  • What do CM I, CM II, CM III, break-even CAC and break-even ROAS mean?Answer

    What do CM I, CM II, CM III, break-even CAC and break-even ROAS mean?

    CM I is net revenue after cost of goods (landed COGS). CM II subtracts all costs each order causes: payment, marketplace, fulfillment, shipping and returns. CM III also subtracts commissions and CAC. Break-even CAC is the contribution margin before acquisition: the most a new customer may cost. Break-even ROAS is the revenue per advertising euro at which the first order contributes exactly 0. Tap any number to see its formula and inputs.

    Next step

    View metrics
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  • Why does the purchase price also change in Peak Products?Answer

    Why does the purchase price also change in Peak Products?

    A product exists only once in Peak One. The purchase price is therefore the same value in Peak Products, Peak Cashflow and Peak Unit Economics. If you change it in one place, it applies everywhere. Unit Economics converts a purchase in a foreign currency with your exchange rate before it lands in the catalog.

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  • What do confidence and model coverage mean?Answer

    What do confidence and model coverage mean?

    Model coverage shows what share of the inputs has been entered; estimates count half. It isn't statistical certainty. Confidence is low as long as important values are missing, medium with manual or estimated values, and high when everything important is entered, nothing is older than 90 days and you've checked the figures against real data in the last 90 days.

    Next step

    Open insights
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  • Is a discount worth it? How do I calculate that?Answer

    Is a discount worth it? How do I calculate that?

    With the discount check under “Scenarios”. It shows the contribution margin per order before and after, the additional volume needed for the monthly contribution to stay the same, and the maximum discount up to break-even. If every order loses money with the discount, Peak says so: then no additional volume can make up for it.

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  • What do Healthy, Watch, Risk and Violated mean in the scorecard?Answer

    What do Healthy, Watch, Risk and Violated mean in the scorecard?

    The scorecard compares every product with your guardrails. Healthy means at least 10% headroom, Watch within 10%, Risk within 3%, Violated beyond the line. There's no overall score: every row is a real metric.

    Next step

    Open insights
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  • Can I see how a calculation has changed over time?Answer

    Can I see how a calculation has changed over time?

    Yes, under “History” in the product's calculation. Every saved state is kept, with who, when and which value. A state that was replaced within 15 minutes counts as typing, not as a version. Below that you see which input has shifted by how much per order, and since when.

    Next step

    Open products
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Errors & problems

1
  • What does “Saving didn't work. Your input is safe in this browser.” mean?Error message

    What does “Saving didn't work. Your input is safe in this browser.” mean?

    The connection to your account failed while saving. Meanwhile, your input stays in this browser and Peak keeps calculating. Leave the page open, and open the calculation again later in the same browser; Peak will then save it. Don't clear your browser data before that.

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Not available yet

1
  • Can Peak Unit Economics pull numbers from Shopify, Stripe or Meta Ads?Not available yet

    Can Peak Unit Economics pull numbers from Shopify, Stripe or Meta Ads?

    Not yet. Today you enter all values by hand; price and purchase price come from Peak Products if the product already exists there (including from Shopify). Live data from Shopify, Stripe, Google and Meta Ads, 3PL and accounting, as well as a CSV import, come later.

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