Factory Seconds Economics Model

Biggies Factory Seconds · generated 2026-09-17

One-year model: $1,500 token-based website build plus $12,000 Google Ads budget ($1,000/month). The Factory Seconds inventory has zero marginal opportunity cost: it is already on hand and sitting idle.

Actual Biggies shipping cost: Veeqo purchased-label costs, not Genius freight charged. Of 305 GetBiggies orders shipped from 2025-09-18 through 2026-09-17, 303 have carrier-label costs totaling $3,229.44. The model uses the $10.66 average per shipped order (median $9.69). The two records without a label cost are excluded. This is the editable model default.

One-year assumptions

Model notes

This assumes one Factory Second per order. Inventory opportunity cost is $0 because the units are already on hand.

Formula: contribution per unit = selling price − shipping cost per order − $0.90 processing − (selling price × 2% card fee). “Gross margin” is contribution margin because historic manufacturing cost is unavailable.

Shipping source: Veeqo GetBiggies shipment outbound_label_charges.value, refreshed 2026-09-17. Genius invoice FREIGHT is customer freight charged and is not used.

Price scenarios

Price / unitShipping cost / orderCC feesProcessingContribution / unitContribution marginInventory contributionFixed costNet after fixed investmentUnits to break even

Google Ads acquisition model

New-site planning assumption: most early orders will be paid. Price/unit is an editable selling-price assumption; Google Ads cost/sale is derived from cost per click ÷ conversion rate. This diagnostic does not alter the $12,000 fixed Google Ads budget in the price scenarios above.

—Google Ads cost / sale
—Google Ads–attributed orders
—clicks required
—implied annual Google Ads spend

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