The Product Market Fit Illusion
"Your customers love it. Your Instagram is popping. So why are you broke?"
Last week, Emma from Emma's Essentials told me she'd never been busier. 50K Instagram followers. Selling out every launch. Rave reviews flooding in daily.
So why was she considering closing shop?
"I can't figure it out," she said. "Everyone LOVES our products. We have product-market fit. But I have less cash than when I started."
Here's the truth bomb: Product-market fit without profit-market fit is just an expensive hobby.
The Metrics Trap
We've been taught to measure success by:
Social media followers
Email subscribers
Units sold
Five-star reviews
Sellout launches
Pause….Let’s have an honest moment….
So these may look a lot like “vanity metrics” but this is where I rail against the establishment. There’s no such thing as vanity metrics. These metrics are actually drivers that help you see forward in your business. So, in the right context, they are valuable. I know one thing for sure; two things for certain. You may not need them at this time OR they need to be combined with another metric to get the full insight. I stand by this every time!
Now here's what those metrics hide:
That "bestseller" costing you $3 per unit in losses
Those raving fans who only buy during 40% off sales
The viral product that takes 12 weeks to make
The five-star review customer who returns half their orders
Real Product-Market Fit Looks Like This
TRUE product-market fit in beauty means:
Customers buy at full price
They come back without heavy discounts
The product is profitable after ALL costs
You can fulfill demand without breaking operations
Growth improves margins, not destroys them
The Hidden Numbers That Matter
Emma's revelation came when we looked beyond the hype:
Her "hero" vitamin C serum: -$4.50 per bottle (after true costs)
Her "boring" body butter: +$18.20 profit per jar
Customer acquisition cost: $45
Average order value: $42
She was literally paying $7.50 for each new customer to take her products.
How to Find YOUR Real Product-Market Fit
This week, track these numbers:
True product cost = Materials + Labor + Packaging + Shipping materials + Payment processing + Returns rate
Customer acquisition cost = Total marketing spend ÷ New customers
First order profit = Order value - Product costs - CAC
Repeat purchase rate at full price (no promotions)
The Plot Twist
Emma didn't close. She:
Discontinued her "hero" serum
Doubled down on body butters
Raised prices 20%
Focused on customers who bought at full price
Result? 40% less revenue. 300% more profit.
Sometimes product-market fit means admitting your bestseller is your biggest problem.
Next week: The pricing paradox that kills most beauty brands (and the simple math that saves them).
What's your bestseller really costing you? Time to find out.
