Generally our cost calculator included a budgeting of units for promotional giveaways. This means that typically in the first month, you take a loss due to inventory cost associated with running product giveaways to achieve ranking. The initial profit is the profit that you will see on your first order of inventory and the gross profit is the profit that you will see after the first few orders.
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All of these variables can be manipulated if you want to calculate a more or less aggressive giveaway strategy, a longer or shorter set of inventory reorders, or a larger or smaller quantity per order.
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The initial cost calculator assessment is based on market averages. Actual costs and profit margins will vary from these estimates.
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