This is why some startups report being "contribution margin positive". That is to say: the unit economics of selling a widget are profitable when you consider t

This is why some startups report being "contribution margin positive". That is to say: the unit economics of selling a widget are profitable when you consider the direct cost of sales (usually some combination of: marketing, components and materials, projected lifetime cost to serve if there's any subscription component), but excluding the significant central office costs.