This eCommerce company sells a digital access product direct-to-consumer and has built an incredibly strong brand, business and community. As a result, they’ve grown the business from startup to a profitable $20M revenue company in just a few short years and were looking for ways to increase net profitability.

LIFE BEFORE PENTANE

This founder is not new to entrepreneurship; he has been starting and operating a variety of businesses for his entire adult life. His experience explains how and why he was able to create such a company alongside highly capable partners and employees.

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However, the collective team didn’t fully understand the expenses inside the business and, when combined with the outsourced marketing agency executing their paid media and acquisition channels, didn’t know how both contributed to the revenue and net profit.

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The result is that they didn’t know how, or where, to modify revenue, expenses, or advertising in order to maximize profitability.

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The good news is that there was a treasure trove of data within both their expenses and revenue data that, when fully understood and loaded into Pentane, would dramatically improve profitability.

LIFE AFTER PENTANE

The implementation of Pentane’s Profitability System took the founder and team through a process that led to a much deeper understanding of how fixed, variable, and advertising expenses impact operations. These are displayed in an eCommerce focused KPI dashboard.

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This was done with the Pentane P&L Manager, which took recent P&Ls and categorized the various expense types within them, automatically translating the important data points into Pentane’s systems.

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The PentaneEFX efficiency tools showed that they needed to increase their marketing budgets, which would result in selling through the remaining digital tickets, while only adding minimal variable expenses. Translation: they were shown exactly how, and to what level, they could increase their ad spend with corresponding ROAS minimums in order to maximize the revenue and net profit.

THE RESULTS

The implementation of PentaneOS and guidance from PentaneEFX allowed the company to drive an additional $3.4 million in revenue while increasing net profit by over $800K.

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Want another case study? This company increased revenue 234% and became profitable in just 3 months…

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