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Articles

First sale COGS

  • unit economics,
  • metrics,
  • cards

In some cases, you may have additional costs to your existing COGS that you incur solely on the first sale with a customer. For example, you connect a customer to the internet and provide them with a wifi router right away. The customer doesn't pay for it, usually installments are used, but at the moment of connection, you have already paid for this router, and these expenses are 1sCOGS.

Similarly, 1sCOGS includes expenses related to paying the manager a bonus for bringing the client, a discount to the client for the first purchase, the cost of integration, etc. 

It is important to remember that the value of 1sCOGS can be quite significant for your business model and you should control it and understand under what conditions, usually repeat purchases by a client, you start to earn money. 

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