What it’s worth
Where the margin quietly leaks
Where the margin quietly leaks
Where the margin quietly leaks
Four operational areas account for most of the recoverable profit in a $5M–$30M consumer brand. No business has all four equally — which is what the diagnostic is for.
Four operational areas account for most of the recoverable profit in a $5M–$30M consumer brand. No business has all four equally — which is what the diagnostic is for.
Four operational areas account for most of the recoverable profit in a $5M–$30M consumer brand. No business has all four equally — which is what the diagnostic is for.
Four operational areas account for most of the recoverable profit in a $5M–$30M consumer brand. No business has all four equally — which is what the diagnostic is for.
Revenue
Your Operations
Retention
Support
Inventory
Suppliers
Each leak is small enough to ignore. Together they are the margin.
Profit
01
01
01
Retention and repeat-purchase economics
Retention and repeat-purchase economics
Retention and repeat-purchase economics
Retention and repeat-purchase economics
Repeat buyers are a minority of customers and the majority of profit. Post-purchase flow, support resolution speed and replenishment operations are where operational quality converts directly into margin.
Repeat buyers are a minority of customers and the majority of profit. Post-purchase flow, support resolution speed and replenishment operations are where operational quality converts directly into margin.
Repeat buyers are a minority of customers and the majority of profit. Post-purchase flow, support resolution speed and replenishment operations are where operational quality converts directly into margin.
Share of customers
Share of customers
Share of customers
Share of revenue
Share of revenue
Share of revenue
21%
21%
21%
44%
44%
44%
0%
0%
0%
100%
100%
100%
Share of customers
21%
0%
100%
Share of revenue
44%
INDUSTRY BENCHMARK
INDUSTRY BENCHMARK
INDUSTRY BENCHMARK
A 5% improvement in retention lifts profit by 25–95% (Bain / Harvard Business Review). Repeat customers spend around 67% more than first-time buyers.
A 5% improvement in retention lifts profit by 25–95% (Bain / Harvard Business Review). Repeat customers spend around 67% more than first-time buyers.
A 5% improvement in retention lifts profit by 25–95% (Bain / Harvard Business Review). Repeat customers spend around 67% more than first-time buyers.
02
02
02
Support cost and automation
Support cost and automation
Support cost and automation
Support cost and automation
Most support volume is predictable — order status, returns, shipping. Automation absorbs it; people keep disputes, VIPs and anything sensitive. The cost curve flattens against revenue instead of tracking it.
Most support volume is predictable — order status, returns, shipping. Automation absorbs it; people keep disputes, VIPs and anything sensitive. The cost curve flattens against revenue instead of tracking it.
Most support volume is predictable — order status, returns, shipping. Automation absorbs it; people keep disputes, VIPs and anything sensitive. The cost curve flattens against revenue instead of tracking it.
Automated ticket
Automated ticket
Automated ticket
Human-handled
Human-handled
Human-handled
1×
1×
1×
6–13×
6–13×
6–13×
0×
0×
14×
14×
1×
Automated ticket
0×
14×
Human-handled
6–13×
INDUSTRY BENCHMARK
INDUSTRY BENCHMARK
INDUSTRY BENCHMARK
70–80% of DTC support tickets are predictable, with order-status queries alone at 30–40% of volume. Realistic first-year cost reduction is 20–35%.
70–80% of DTC support tickets are predictable, with order-status queries alone at 30–40% of volume. Realistic first-year cost reduction is 20–35%.
70–80% of DTC support tickets are predictable, with order-status queries alone at 30–40% of volume. Realistic first-year cost reduction is 20–35%.
03
03
03
Inventory, stockouts and carrying cost
Inventory, stockouts and carrying cost
Inventory, stockouts and carrying cost
Inventory, stockouts and carrying cost
Overstock and stockouts are the same failure — demand and supply out of sync. Forecasting, adaptive reorder points and unified stock pools free working capital without dropping service levels.
Overstock and stockouts are the same failure — demand and supply out of sync. Forecasting, adaptive reorder points and unified stock pools free working capital without dropping service levels.
Overstock and stockouts are the same failure — demand and supply out of sync. Forecasting, adaptive reorder points and unified stock pools free working capital without dropping service levels.
Annual carrying cost
Annual carrying cost
Annual carrying cost
Overstock reduction
Overstock reduction
Overstock reduction
20–30%
20–30%
20–30%
15–25%
15–25%
15–25%
0%
0%
35%
35%
Annual carrying cost
20–30%
Overstock reduction
15–25%
0%
35%
INDUSTRY BENCHMARK
INDUSTRY BENCHMARK
INDUSTRY BENCHMARK
Inventory optimization can lift margins by 2–5% while holding 95–98% service levels. Forecast error above 40% is actively destroying margin.
Inventory optimization can lift margins by 2–5% while holding 95–98% service levels. Forecast error above 40% is actively destroying margin.
Inventory optimization can lift margins by 2–5% while holding 95–98% service levels. Forecast error above 40% is actively destroying margin.
04
04
04
Supplier terms and COGS
Supplier terms and COGS
Supplier terms and COGS
Supplier terms and COGS
Fragmented sourcing spreads orders thinly and weakens terms. Consolidation, renegotiated payment windows and landed-cost-aware sourcing flow straight to gross margin.
Fragmented sourcing spreads orders thinly and weakens terms. Consolidation, renegotiated payment windows and landed-cost-aware sourcing flow straight to gross margin.
Fragmented sourcing spreads orders thinly and weakens terms. Consolidation, renegotiated payment windows and landed-cost-aware sourcing flow straight to gross margin.
6–8 thin relationships
6–8 thin relationships
6–8 thin relationships
Fewer, deeper, better terms
Fewer, deeper, better terms
Fewer, deeper, better terms
6–8 thin relationships
Fewer, deeper, better terms
INDUSTRY BENCHMARK
INDUSTRY BENCHMARK
INDUSTRY BENCHMARK
Consolidation and vendor-managed inventory improve terms and cut stockouts. COGS improvement flows straight to gross margin — and, for a portfolio, to EBITDA and the exit multiple.
Consolidation and vendor-managed inventory improve terms and cut stockouts. COGS improvement flows straight to gross margin — and, for a portfolio, to EBITDA and the exit multiple.
Consolidation and vendor-managed inventory improve terms and cut stockouts. COGS improvement flows straight to gross margin — and, for a portfolio, to EBITDA and the exit multiple.
Left alone, these compound.
Left alone, these compound.
Left alone, these compound.
Working capital tightens as revenue grows, and the operation absorbs the gains before they reach the bottom line.
Working capital tightens as revenue grows, and the operation absorbs the gains before they reach the bottom line.
Working capital tightens as revenue grows, and the operation absorbs the gains before they reach the bottom line.
Benchmark, not promise
Benchmark, not promise
Benchmark, not promise
Every figure above is published industry data — what the research says a problem typically costs and what fixing it typically yields. They are not Opevion outcomes. Your numbers come from the diagnostic, measured against your actual operation. If a number on this site is an industry figure, it says so.
Every figure above is published industry data — what the research says a problem typically costs and what fixing it typically yields. They are not Opevion outcomes. Your numbers come from the diagnostic, measured against your actual operation. If a number on this site is an industry figure, it says so.
Every figure above is published industry data — what the research says a problem typically costs and what fixing it typically yields. They are not Opevion outcomes. Your numbers come from the diagnostic, measured against your actual operation. If a number on this site is an industry figure, it says so.
Ready to see what this looks like for your operation?
Book a 15-minute intro call. Fifteen minutes won't fix your operation, but it will tell you whether we're the people to.
Ready to see what this looks like for your operation?
Book a 15-minute intro call. Fifteen minutes won't fix your operation, but it will tell you whether we're the people to.
Ready to see what this looks like for your operation?
Book a 15-minute intro call. Fifteen minutes won't fix your operation, but it will tell you whether we're the people to.
Ready to see what this looks like for your operation?
Book a 15-minute intro call. Fifteen minutes won't fix your operation, but it will tell you whether we're the people to.
Ready to see what this looks like for your operation?
Book a 15-minute intro call. Fifteen minutes won't fix your operation, but it will tell you whether we're the people to.