Business Analysis · Business Strategy

What is the unit economics of a business like or pravassa?


January 24th, 2020

Do they have sound unit economics and is it sustainable and profitable in the long run? CAC for travel business is high but LTV is also low or not high enough to match cost of CAC. Does anyone have insight into this?

Paul Garcia marketing exec & business advisor

January 29th, 2020

Other people may not know that CAC stands for customer acquisition cost or LTV stands for lifetime value. Your question is probably too specific for the broad audience on CFL. We don't know those businesses or their finances. What does "unit economics" mean to you? What are you actually trying to figure out?

CFL can discuss with you methods for evaluating revenue and expenses to determine whether your business is viable. But asking if a specific business is viable requires a lot more information than is available.