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THE MARGIN MULTIPLIER

Revenue is vanity. Margins are survival.

This tool shows you exactly what every pricing decision means for your bottom line. Whether it’s retail, distributor, or DTC—one click reveals your real margin per unit, per SKU, per channel. No fluff. Just the truth. Because in CPG, you don’t scale vibes. You scale profit.

MARGIN MULTIPLIER

WHAT YOUR NUMBER ACTUALLY MEANS

This isn’t a school test. You don’t get points for trying.

Here’s what your score means:

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1.0 to 1.49 — YOU’RE BLEEDING OUT

You’re making just enough to maybe pay your freight… if no one returns anything.
You’re not building a business — you’re financing a hobby.
Expect constant cash flow problems, stress, and begging for better terms.

Fix it fast or die slow.

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1.5 to 1.99 — YOU’RE SURVIVING, NOT SCALING

You’re above water, but barely.
Any slip in trade spend or spoilage and you're upside down.
You can grow here… but not without pain, dilution, or debt.

Caution: This zone burns founders out.

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2.0 to 2.99 — YOU’RE IN THE GAME

You’re profitable enough to scale — with discipline.
You can afford some broker fees, real freight lanes, and early hires.
Investors won’t laugh. Retailers will listen.
But margin creep is always lurking.

Hold this line. Or go leaner.

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3.0 to 3.99 — YOU’RE PLAYING OFFENSE

You’re funding growth from the business, not your bank account.
Room to reinvest. Room to mess up. Room to negotiate like a boss.
This is where smart ops teams live.
You’ve got leverage — use it.

This is where CPG brands become businesses.

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4.0 to 4.99 — YOU’RE DOMINATING YOUR CATEGORY

You’re running lean, optimized, and efficient.
You’re likely in the top 5% of margin operators in your category.
Private equity and buyers are already watching.

This is margin leadership. Most brands never get here.

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5.0+ — YOU’RE A DAMN UNICORN

You’re either:

  • Running a next-level lean machine,

  • Getting massive scale benefits,

  • Or charging a premium price and defending it like hell.

Congratulations. Everyone wants your playbook.

© 2025 Koruva, part of The Forge CPG. All rights reserved.

Koruva™ — Systems for Growth That Last.
Koruva provides productized compliance and operations packages. We are not a law firm or regulatory agency. All packages include audit-ready frameworks based on CFIA, FDA, and Prop 65 requirements.

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