Completed example Fixed figures, in USD

These are teaching assumptions, not supplier quotes and not promised performance. Use them to see how the maths works. Nothing you type in your own tabs ever changes this page.

The Supplement Profitability Blueprint

One product, worked out start to finish

Every launch cost sits in one of three buckets. Follow them in order, then see what the numbers add up to.

Setup
Production
Selling
Results

Setup

One-off costs to get the business ready. Paid before launch.

Company formation

$200

Registered office/agent setup

$100

Accounting setup

$200

Branding and website setup

$500

Packaging artwork

$300

Compliance review

$300

Upfront insurance

$300

Setup subtotal

$1,900

Production

Developing, making and delivering the product. Usually deposits and balances before stock arrives.

The assumptions

500 finished retail products
Manufacturing, filling and sealing: $10 each
Packaging bought separately
1,000 pouches bought at $1 each
Formulation/development fee: $0
Samples: $100
Separately charged testing: $200
Inbound freight: $250

The calculations

Manufacturing commitment

500 products × $10

$5,000

Packaging purchase

1,000 pouches × $1

$1,000

Manufacturing plus packaging commitment

$6,000

Packaging used in this first run

One pouch per finished product: 500 × $1

$500

Unused packaging

500 pouches left over for the next run

$500

Manufacturing plus packaging, per finished product

$10 + $1

$11

Landed product cost, including freight

$11 + ($250 freight ÷ 500 products = $0.50)

$11.50

Stock and packaging cash, including freight

$5,000 + $1,000 + $250

$6,250

Production upfront

$6,250 + $0 development + $100 samples + $200 testing

$6,550

Development fees and the 500 unused pouches are not part of the $11.50 landed cost. They're one-off cash you need upfront, not a cost of each product you sell.

Selling

Costs that come with every order, plus a one-off receiving charge and monthly running costs.

One order, one product

$40 selling price. No discount, sales tax or shipping charged to the customer.

Customer pays

$40

Landed product cost

− $11.50

Pick and pack

− $2.20

Parcel materials

− $0.30

Postage

− $3.50

Payment processing

3% of $40 + $0.30

− $1.50

Contribution before acquisition

$21

Paid acquisition per new customer

What you spend to acquire one new paying customer

− $10

Contribution after acquisition

$11

One-off at launch

Initial warehouse receiving charge

$50

Monthly running costs

Shopify

$39

Apps/software

$20

Accounting/bookkeeping

$100

Content/creators

$150

Other fixed costs

$50

Warehouse storage

$20

Monthly running costs

$379 / month

What it all adds up to

Setup upfront

$1,900

Production upfront

$6,550

Initial warehouse receiving

$50

Total cash committed before launch

$8,500

Cash committed before launch

$8,500

Setup + production + initial warehouse receiving.

Landed cost per finished product

$11.50

That's 28.75% of the $40 price. Under the 30% ceiling, above the 20% target.

Contribution per order, before acquisition

$21

Money left from one order before fixed overhead and income tax.

Contribution after $10 acquisition

$11

For a first order from a newly acquired customer.

Monthly running costs, shown separately

$379 / month

What the $8,500 doesn't include

It leaves out ongoing selling costs, future acquisition spending and the cash to fund your next production run. Contribution isn't net profit either: monthly running costs and tax still come out of it.

All figures are illustrative teaching assumptions in USD, not supplier quotations or promised performance.

Your turn

Work through the same three buckets with your own numbers.