Metric

Variable Margin (Without Ad Spend)

The percent of variable costs except ads.

Formula Variable Margin (Without Ad Spend) = Variable Expenses Without Ad Spend / Total Revenue x 100%

Why it matters

This shows the amount of sales related expenses per dollar earned, without ads. High value means your products are priced low (this could be discount or sale related). Driving more profit by testing prices up and removing, or reducing, discounts is critical for both growth and survival.