The Importance of Margin in a Capital Efficient Business

In the modern definition of a capital efficient business, I think you have to eliminate the cost of goods and obviously refunds. And then I get very annoyed with CM one, CM two, CM two point five, CM three. Contribution margin is basically the contribution at a unit economics level per unit sold less all variable costs. It's very simple. Whatever product or service you're providing, that's what it is.

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