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๐„๐œ๐จ๐ง๐จ๐ฆ๐ข๐ž๐ฌ ๐จ๐Ÿ ๐ฌ๐œ๐š๐ฅ๐ž. One of my favorite outcomes of a ๐“๐ž๐œ๐ก๐ง๐จ-๐„๐œ๐จ๐ง๐จ๐ฆ๐ข๐œ ๐€๐ง๐š๐ฅ๐ฒ๐ฌ๐ข๐ฌ!

  • Writer: Gustavo Valente
    Gustavo Valente
  • Mar 26
  • 1 min read
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Why? Because it turns a "๐๐ซ๐ž๐š๐ฆ" ๐ข๐ง๐ญ๐จ ๐š ๐ซ๐ž๐š๐ฅ ๐›๐ฎ๐ฌ๐ข๐ง๐ž๐ฌ๐ฌ.ย 


In every TEA I run, I model how unit cost drops as production volume increases.


ย This simple curve tells founders and investors so much:


โœ… ๐€๐ญ ๐ฐ๐ก๐š๐ญ ๐ฌ๐œ๐š๐ฅ๐ž ๐ฒ๐จ๐ฎ๐ซ ๐ฉ๐ซ๐จ๐๐ฎ๐œ๐ญ ๐›๐ž๐œ๐จ๐ฆ๐ž๐ฌ ๐ฉ๐ซ๐ข๐œ๐ž ๐œ๐จ๐ฆ๐ฉ๐ž๐ญ๐ข๐ญ๐ข๐ฏ๐ž


โœ… ๐‡๐จ๐ฐ ๐ฆ๐ฎ๐œ๐ก ๐Ÿ๐ฎ๐ง๐๐ข๐ง๐  ๐ข๐ฌ ๐ง๐ž๐ž๐๐ž๐ ๐ญ๐จ ๐ซ๐ž๐š๐œ๐ก ๐š ๐ฏ๐ข๐š๐›๐ฅ๐ž ๐ฌ๐œ๐š๐ฅ๐ž


โœ… ๐–๐ก๐ž๐ญ๐ก๐ž๐ซ ๐ฒ๐จ๐ฎ ๐œ๐š๐ง ๐ฐ๐ข๐ง ๐ข๐ง ๐ฒ๐จ๐ฎ๐ซ ๐ฆ๐š๐ซ๐ค๐ž๐ญ, ๐จ๐ซ ๐ง๐จ๐ญ



๐Ÿ‘‰ But here's the catch:


ย ๐„๐œ๐จ๐ง๐จ๐ฆ๐ข๐ž๐ฌ ๐จ๐Ÿ ๐ฌ๐œ๐š๐ฅ๐ž ๐š๐ซ๐ž๐งโ€™๐ญ ๐ข๐ง๐Ÿ๐ข๐ง๐ข๐ญ๐žย and most founders dont know that.


ย ๐“๐„๐€ ๐š๐ฅ๐ฌ๐จ ๐ซ๐ž๐ฏ๐ž๐š๐ฅ๐ฌ ๐ญ๐ก๐ž ๐ฉ๐จ๐ข๐ง๐ญ ๐ฐ๐ก๐ž๐ซ๐ž ๐›๐ข๐ ๐ ๐ž๐ซ ๐ข๐ฌ๐งโ€™๐ญ ๐›๐ž๐ญ๐ญ๐ž๐ซ.



After a certain capacity, the cost per unit stops decreasing, and sometimes even goes up. Why?ย 


๐ˆ๐ง๐œ๐ซ๐ž๐š๐ฌ๐ž๐ ๐œ๐จ๐ฆ๐ฉ๐ฅ๐ž๐ฑ๐ข๐ญ๐ฒ, ๐ก๐ข๐ ๐ก๐ž๐ซ ๐‚๐š๐ฉ๐„๐ฑ, ๐ฆ๐จ๐ซ๐ž ๐œ๐ก๐š๐ฅ๐ฅ๐ž๐ง๐ ๐ข๐ง๐  ๐จ๐ฉ๐ž๐ซ๐š๐ญ๐ข๐จ๐ง๐ฌ.


๐’๐จ ๐ฐ๐ก๐ข๐ฅ๐ž ๐ฌ๐œ๐š๐ฅ๐ข๐ง๐  ๐ข๐ฌ ๐ฉ๐จ๐ฐ๐ž๐ซ๐Ÿ๐ฎ๐ฅ, ๐ค๐ง๐จ๐ฐ๐ข๐ง๐  ๐ฐ๐ก๐ž๐ง ๐ญ๐จ ๐ฌ๐ญ๐จ๐ฉ ๐ฌ๐œ๐š๐ฅ๐ข๐ง๐  ๐ข๐ฌ ๐ฃ๐ฎ๐ฌ๐ญ ๐š๐ฌ ๐ข๐ฆ๐ฉ๐จ๐ซ๐ญ๐š๐ง๐ญ.



Itโ€™s a powerful moment when a team sees:


ย "๐˜๐˜ง ๐˜ธ๐˜ฆ ๐˜ฎ๐˜ข๐˜ฌ๐˜ฆ 100 ๐˜ต๐˜ฐ๐˜ฏ๐˜ด, ๐˜ธ๐˜ฆโ€™๐˜ณ๐˜ฆ ๐˜ข๐˜ต $9/๐˜ฌ๐˜จ... ๐˜ฃ๐˜ถ๐˜ต ๐˜ข๐˜ต 3,000 ๐˜ต๐˜ฐ๐˜ฏ๐˜ด, ๐˜ธ๐˜ฆโ€™๐˜ณ๐˜ฆ ๐˜ข๐˜ต $2.30/๐˜ฌ๐˜จ...ย ย ๐˜ข๐˜ฏ๐˜ฅ ๐˜ข๐˜ต 10,000 ๐˜ต๐˜ฐ๐˜ฏ๐˜ด, ๐˜ธ๐˜ฆโ€™๐˜ณ๐˜ฆ ๐˜ฃ๐˜ข๐˜ค๐˜ฌ ๐˜ถ๐˜ฑ ๐˜ต๐˜ฐ $2.60/๐˜ฌ๐˜จ.. ๐Ÿ˜ "


Thatโ€™s when it clicks.



TEA can help mapping your path to profit, clarifying how much investment youโ€™ll need to be competitive, and guiding strategic decisions at every stage of growth.



๐‚๐ฎ๐ซ๐ข๐จ๐ฎ๐ฌ ๐ก๐จ๐ฐ ๐ญ๐ก๐ข๐ฌ ๐ฐ๐จ๐ฎ๐ฅ๐ ๐ฅ๐จ๐จ๐ค ๐Ÿ๐จ๐ซ ๐ฒ๐จ๐ฎ๐ซ ๐ฉ๐ซ๐จ๐๐ฎ๐œ๐ญ? ๐Ÿค”ย 


๐Ÿ“ž ๐‹๐ž๐ญโ€™๐ฌ ๐œ๐ก๐š๐ญ.

ย 
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