What Are Unit Economics and Why Are They Important?

What Are Unit Economics and Why Are They Important?

“Simply put, unit economics are a measure of the profitability of selling/producing/offering one unit of your product or service. If you’re a widget company selling widgets, the unit economics will be a relationship between the revenue you receive from selling a widget and all the costs associated with making that sale. For companies offering a service, for example Uber, the unit economics will be the relationship between the revenue from their service (e.g., one taxi ride) vs. the costs associated with offering and servicing the customer.”

Don’t Scale an Unprofitable Business: Why Unit Economics (Still) Matter

Unit economics are the direct revenues and costs associated with a particular business model expressed on a per unit basis.

Unit economics, in general, is a profit/loss calculation per customer.

Unit Economics are simply a measure of how profitable your business is for each unit you sell.

Telling the Right Story with Numbers: Nailing Unit Economics