- Revenue
- Total money customers paid you, before any costs. Also called sales or top line.
- COGS
- Cost of Goods Sold — what it directly costs to make/deliver one unit (materials, manufacturing, direct labor).
- Landed cost
- The FULL cost to get one unit from the factory into your warehouse or onto a store shelf — manufacturing + freight + customs/duties + receiving. Sharks always check landed cost, not just the factory price.
- Gross margin
- (Revenue − COGS) ÷ Revenue, as a %. 60% margin means you keep $0.60 of every sales dollar before overhead.
- Retail vs wholesale price
- Retail is the shelf price a consumer pays; wholesale is what a store pays you — usually about half of retail. Sharks ask for both, so know your numbers at each.
- Net profit
- What's left after ALL expenses — COGS, rent, salaries, marketing, taxes. The bottom line.
- Monthly burn
- How much more cash goes out than comes in each month. Negative cash flow.
- CAC
- Customer Acquisition Cost — total marketing + sales spend ÷ number of new customers gained.
- AOV
- Average Order Value — typical dollar amount of one customer order.
- LTV
- Customer Lifetime Value — total profit one customer generates over the whole relationship.
- LTV:CAC ratio
- Lifetime value ÷ acquisition cost. Above 3:1 is healthy; below 1:1 means you lose money on every customer.
- TTM / Trailing 12 months
- The last 12 months of results added up — investors use it to smooth out seasonality.
- MRR / ARR
- Monthly / Annual Recurring Revenue — predictable subscription income. ARR = MRR × 12.
- Repeat purchase rate
- The % of customers who come back and buy again.