Terra & Tide
$9.2M revenue · 18 employees · E-commerce
Terra & Tide sells outdoor gear direct to consumers. Revenue grew 44% last year and the bank balance went down. Inventory is $2.6M, paid acquisition costs have risen 60% in eighteen months, and the founder cannot tell which products actually make money after returns and freight.
The question on the table
Why does a growing, popular brand keep running out of cash?
Company file
- Revenue
- $9.2M
- Growth
- 44% YoY
- Inventory
- $2.6M
- Blended CAC
- $61
- Return rate
- 14.8%
What the system found
$840k
Cash freed by cutting the four SKUs that lose money after returns
$61 → $44
Blended CAC after reallocating spend to the profitable cohort
2.9x → 4.6x
Inventory turns on the core assortment
True unit economics, the cash conversion cycle, competitor pricing, and the daily revenue motion.
Comprehensive Financial Analysis
Contribution margin after everything
| SKU | Revenue | Gross % | Returns | True CM |
|---|---|---|---|---|
| Basecamp 40L Pack | $2.10M | 62% | 8% | 31% |
| Tidewater Shell Jacket | $1.80M | 58% | 22% | 6% |
| Ridgeline Boot | $1.60M | 54% | 31% | −4% |
| Alpine Down Vest | $1.20M | 61% | 11% | 27% |
| Harbor Duffel | $0.90M | 49% | 9% | 14% |
| Trailhead Tent | $0.80M | 44% | 6% | −2% |
- HighThe Ridgeline Boot is your third-best seller and loses money on every order
A 31% return rate on a bulky item destroys the margin twice — once on the refund and once on the round-trip freight. Fix sizing guidance or discontinue it; either way, $840k of working capital comes back.
- MediumFreight is booked below the gross margin line
That is why the P&L looks healthy while the bank account does not. Reclassifying it changes the ranking of half the assortment.
Cash Flow Command
The cash conversion cycle is the business
Cash conversion cycle
118 days
Inventory days
126
Payable days
34
Cash tied up
$2.6M
Cut the two loss-making SKUs
Negotiate supplier terms to net 60
Reduce safety stock on slow movers
Q4 inventory build (required)
Competitive Position Radar
Pricing and promo watch
| Brand | Signal | So what |
|---|---|---|
| Northbound Supply | Free returns added sitewide | Your 14.8% return rate is about to look expensive to customers |
| Kestrel Outfitters | Sitewide 25% off, third time this quarter | Discount-trained audience; stop bidding against them |
| Wildmoor | Retail partnership with a national chain | Wholesale channel pressure on your core pack |
| Summit & Sea | Ad creative shifted entirely to UGC video | Your static creative is losing the auction |
Revenue OS
Retention beats acquisition at this CAC
Win-back flow for 1,840 customers 9–14 months lapsed
Modeled $186k at a fraction of paid CAC
This week
Cross-sell the vest to Basecamp pack buyers
42% attach rate in the test cohort
Pause spend on the Ridgeline Boot campaigns
Every incremental order loses $9
Launch the sizing guide on the jacket and boot pages
Return-rate reduction of 6–9 pts is the observed range
What would this look like for your business?
Terra & Tide is illustrative. The tools are not. Point them at your own numbers and you will have the first version of this file inside an afternoon.