Hi L***a,
Happy to unpack the assumptions in more detail:
1. Conversion Rate (5%)
- Pilots vs. Benchmarks: It’s a blended figure. Recent C***V pilots in Georgia and our Armenia tests averaged ~4.8% site-to-order. We then referenced regional e-commerce benchmarks (4,6% for similar consumer electronics and lifestyle SKUs) and landed on a conservative 5% for planning.
- Channel Nuance: Digital pilots (paid search, social and programmatic) ran closer to 5.2%, while on-ground activations (pop-ups, sampling events) tracked around 4.6%. We averaged those channel-specific results to arrive at 5%.
2. CAC Breakdown
• Digital Channels (~70% of spend)
, Paid search & social ads: $7,$9 per acquisition
, Programmatic display & retargeting: $9,$11 per acquisition
• On-Ground & Field Activations (~30% of spend)
, Pop-up activations, local events, sampling: $13,$16 per acquisition
Weighted together, that yields an overall CAC of $10,$12. The higher on-ground cost reflects event logistics, staffing and materials, but these tend to drive stronger early engagement and word-of-mouth.
3. Government Fees ($30K,$42K)
• Customs Bonds & Import Permits (~40,45%): $12K,$18K
, Temporary import licenses and customs guarantees are the single largest line item and often require multiple agency clearances, which can add 4,6 weeks to the timeline.
• Business Registration & Licensing (~20,25%): $6K,$10K
, Company incorporation, VAT registration and local trade permits (generally straightforward, ~2,3 weeks).
• Product Certification & Compliance (~20,25%): $6K,$10K
, Technical standards approvals, lab testing and packaging translation (timing can vary by scope of SKUs).
• Local Agency & Notary Fees (~10,15%): $3K,$5K
, Official filings, translations, notary attestations.
Next Steps
If you’d like to see the full financial model or connect with our Finance and Legal leads for any line-item deep-dive, I’d be happy to set up a call next week. Let me know what works for you!
Best,
J***e