Profit GPS Case Study - Discover "Hidden" Profit From Within michaelnguyen.me

1. Profit GPS
Discover “Hidden” Profit From Within

2. Data of a service business
● 1323 customers
● Total Sales: $2,369,759
● Avg order size: $1,791
● Multiple products at different price points

4. For $997-point:
426 customers for a
total revenue of
$424,700
(+/- 25% Margin of error)
$363,905 Revenue
opportunity!!
Only 61!!

5. Revenue Opportunity
● $100,000 - 2 Customers - $200,000
● $50,000 - 4 Customers - $200,000
● $10,997 - 26 Customers - $285,900
● $1,997 - 190 Customers - $379,400
● $997 - 426 Customers - $363,905
● $1,791 - Avg Order size
(+/- 25% Margin of error)

6. $1,429,205
“Hidden” Revenue Opportunity
(+/- 25% Margin of error)

7. 60.31%
“Opportunity Factor”

8. Crossing
Profitable Chasm

9. Profitable Chasm
● The optimum amount which your customers need to
spend with you are leaving a “hidden” $1,429,205
revenue opportunity on the table
● Profitable “chasm”: $2,500
● Your profit pocket is the $50,000-$100,000

10. $2,500
“Profitable chasm”

12. $2,500
“Profitable chasm”

13. What happens
when all of your customers
reach the $2500 chasm?

14. New
“Profitable chasm”?

15. Recap
● A “hidden” $1,429,205 revenue opportunity on the table
● A Profitable “chasm” $2,500
● The “hidden” profit pockets are the $50,000-$100,000

16. Recommendation
● Improve the CLV of 1,213 existing customers whose is
below the Profitable “chasm” of $2,500
● Architect new offers in the $50,000-$100,000 range