Pricing Clarity Drives Profitability for D2C Wellness Brand
A detailed unit economics review enabled smarter pricing decisions, helping a fast-growing consumer brand boost margins, cut wasteful spend, and improve EBITDA within 90 days.
By identifying true COGS and fulfillment overheads, QuantFi uncovered underpriced SKUs. Strategic repricing allowed the brand to maintain conversion while significantly improving margin on top sellers.
Using CAC-to-LTV analysis, the team identified customer cohorts acquired through paid social that were consistently unprofitable. This led to a reallocation of ad spend toward higher-margin segments.
With clearer economic visibility and smarter pricing, the business improved its operational leverage and bottom-line performance within one quarter, despite only modest top-line growth.
The problem
A fast-growing D2C consumer wellness brand was experiencing flat margins despite increasing sales volume. Leadership lacked clarity on true unit economics across SKUs and channels. Pricing decisions were reactive, driven more by competitor behavior than by profitability insights. As a result, the company struggled to scale profitably and had limited visibility into the financial impact of discounting, fulfillment costs, and customer acquisition strategies.
What we did
QuantFi conducted a comprehensive review of the brand’s unit economics at both the product and channel level. This included:
- Building a fully burdened contribution margin model incorporating COGS, fulfillment, marketing, platform fees, returns, and CAC.
- Segmenting customers by acquisition source, LTV, and repeat behavior to identify profitable cohorts.
- Running sensitivity analyses to simulate margin outcomes under different pricing and discounting strategies.
- Partnering with the internal team to realign pricing around contribution targets and deploy a test-and-learn structure for future price changes.
The results
QuantFi’s analysis enabled the company to clearly understand the profitability drivers of its business. Leadership implemented a revised pricing structure that maximized margins on hero SKUs and eliminated unprofitable SKUs from the catalog. The company also introduced contribution margin thresholds for all future product and promotional decisions.