Waterfall — Unit Economics From Shelf Price to Contribution
Where £249.00 of ex-VAT shelf price goes for a consumer electronics product sold through retail: the retailer keeps £74.70 (30%), the bill of materials is £88.40, and after assembly, freight, duty and warranty the brand contributes £58.50 per unit (23.5%) towards fixed costs. Illustrative values.
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title "Unit economics per device — shelf price to contribution (£, illustrative)"
bar "Retail price (ex VAT)" 249
delta "Retailer margin" -74.7
delta "Bill of materials" -88.4
delta "Assembly and test" -12.6
delta "Freight and duty" -9.8
delta "Warranty provision" -5
total "Contribution per unit"