Unit Economics

Overview

Unit Economics solution is designed to quantify the total cost associated with delivering products or services to customers.

Why this matters: a cost allocation tells you what a segment cost in total, but it doesn't answer "what does it cost us to serve one customer, one region, or one execution" — and that second question is what actually drives pricing and profitability decisions. Unit Economics takes an allocated cost, divides it by a volume metric you supply (calls, executions, whatever makes sense for the business), and produces a per-unit cost that can then be applied to any dimension you care about — customer, location, or both.

This shows up differently depending on your role:

• Finance/pricing teams use this to understand whether a customer or segment is actually profitable once their share of shared/indirect costs is factored in, not just their direct costs.

• FinOps managers use this to translate raw cost allocation numbers into a metric that's meaningful to the business side of the conversation.

• Engineering/product teams use the Unit Metric API to feed in the volume data (API calls, executions, requests) that the unit cost gets applied against.

Steps to create Unit Economics

1. Cost Gathering / Allocation

   • Create a cost allocation that includes direct and indirect/shared components (segments) of the costs to arrive to a Total Cost of the allocation

2. Cost Splitting

   • Identify the cost splitting i.e. identify the cost that you wanted to split segments in unit Cost ( per execution )

3. Unit Economics

   • Calculate the cost that can be served for the segment ( per dimension, e.g. Customer )

Below are examples of cost gathering, cost splitting, and calculating Unit Economics

Example 1 - No Dimension

• Identify the unit metrics that you want to apply, as shown below

• Cost Allocation - Total Cost of cost allocation in a Month, e.g. consisting: direct, shared, etc.

• Cost Splitting - Unit Cost of running on allocation per Execution:

• Unit Economics - N/A

Unit Metric API to post via Postman

curl --location 'https://api.mavvrik.ai/api/cost-to-serve/metric/<Unit Economicsr id>' \
--header 'Content-Type: application/json' \
--data '{
    "metrics": [
        { 
            "date": "2025-01-01", /* will be aggregated to month */
            "value": 400
        },
        { 
            "date": "2025-02-01",
            "value": 200
        }
    ]
}'

Example 2 - Single Dimension

• Units BY Customer, with the following Unit Metric input:

• Cost Allocation - Total Cost of cost allocation in a Month, e.g. consisting: direct, shared, etc.

• Cost Splitting - Unit Cost of running on allocation per Execution:

• Unit Economics - Serving Cost of running on allocation per Dimension:

Unit Metric API to post via Postman

curl --location 'https://api.mavvrik.ai/api/cost-to-serve/metric/<Unit Economicsr id>' \
--header 'Content-Type: application/json' \
--data '{
    "metrics": [
        { 
            "date": "2025-01-01", /* will be aggregated to month */
            "dimensions": [
              { "key": "customer", "value": "Customer A" }
            ],
            "value": 100
        },
        {
            "date": "2025-01-01",
            "dimensions": [
              { "key": "customer", "value": "Customer B" }
            ],
            "value": 300
        },
        { 
            "date": "2025-02-01",
            "dimensions": [
              { "key": "customer", "value": "Customer A" }
            ],
            "value": 100
        },
        {
            "date": "2025-02-01",
            "dimensions": [
              { "key": "customer", "value": "Customer B" }
            ],
            "value": 100
        }
    ]
}'

Example 3 - Multi Dimensions

• Units BY Customer and Location, with the following Unit Metric input:

• Cost Allocation - Total Cost of cost allocation in a Month, e.g. consisting: direct, shared, etc.

• Cost Splitting - Unit Cost of running on allocation per Execution:

• Unit Economics - Serving Cost of running on allocation per Dimension:

Unit Metric API to post via Postman

curl --location 'https://api.mavvrik.ai/api/cost-to-serve/metric/<Unit Economicsr id>' \
--header 'Content-Type: application/json' \
--data '{
    "metrics": [
        {
            "date": "2025-01-01", /* will be aggregated to month */
            "dimensions": [
              { "key": "customer", "value": "Customer A" },
              { "key": "location", "value": "US" }
            ],
            "value": 60
        },
        { 
            "date": "2025-01-01",
            "dimensions": [
              { "key": "customer", "value": "Customer A" },
              { "key": "location", "value": "EU" }
            ],
            "value": 40
        },
        {
            "date": "2025-01-01",
            "dimensions": [
              { "key": "customer", "value": "Customer B" },
              { "key": "location", "value": "US" }
            ],
            "value": 200
        },
        {
            "date": "2025-01-01",
            "dimensions": [
              { "key": "customer", "value": "Customer B" },
              { "key": "location", "value": "EU" }
            ],
            "value": 100
        },
        {
            "date": "2025-02-01",
            "dimensions": [
              { "key": "customer", "value": "Customer A" },
              { "key": "location", "value": "US" }
            ],
            "value": 30
        },
        { 
            "date": "2025-02-01",
            "dimensions": [
              { "key": "customer", "value": "Customer A" },
              { "key": "location", "value": "EU" }
            ],
            "value": 70
        },
        {
            "date": "2025-02-01",
            "dimensions": [
              { "key": "customer", "value": "Customer B" },
              { "key": "location", "value": "US" }
            ],
            "value": 25
        },
        {
            "date": "2025-02-01",
            "dimensions": [
              { "key": "customer", "value": "Customer B" },
              { "key": "location", "value": "EU" }
            ],
            "value": 75
        }
    ]
}'

Steps to create Unit Economics in Mavvrik portal

1. Log into Mavvrik

2. Click on the menu

3. Click on unit economics under operate

4. Click on +Unit Economics

5. Fill in the details and click on create

6. Unit Economics entry is created

7. Click on the created Unit Economics entry

8. Click on +segment

9. Select the Cost allocation to which you want to apply the unit economics and click on Next

10. Enter the dimensions you have calculated in the cost splitting step and click on Create

11. You will see below

12. Click the three dots on the segment and select View Metrics. This opens a dialog with two tabs: Metrics and cURL.

13. To enter metrics via the UI,

    1. click +Metric, select the Date, and enter the Value (the unit count for that dimension, e.g. calls or executions).

       

    2. Select a dimension Key and enter its Value

       

    3. Click +Dimension to add more than one dimension to the same entry

    4. click Save.

12. Update the Unit Economics metrics calculated and post the data using Postman

13. After the data is posted, you can see the data in the UI as below