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Cold open1 / 6
Business Models & Unit Economics~20 min

Margins: Where Businesses Quietly Die

Two friends each run a $50k/month business. The candle-brand founder sells $50k of candles: wax, jars, shipping, and packaging cost $35k. The software founder sells $50k of subscriptions: servers and support cost $6k.

Both pay themselves nothing yet. Both want to hire a $6k/month marketer.

The software founder sells $50k with $6k of cost. What's the gross margin, in percent?

%
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