Expected output
A 2-hour audit using this template typically surfaces 200–600 basis points of EBITDA hiding in the six categories above. That's an enormous range, but the structure is consistent: the leaks are present, they are small individually, and they compound to material numbers.
The most common pattern: 80–150 bps from COGS allocation errors, 40–80 bps from undiscovered returns/refunds drag, 30–60 bps from discount stacking, and 100–250 bps from a single slowly-drifting variable (usually shipping cost or one channel's CAC).
How to run the audit
- Pull the data. For each of the six checks, you need three months of granular data: COGS by SKU, returns by SKU, discounts applied per order, shipping cost per order, fees per transaction, CAC per channel.
- Compute the baseline. What does each metric look like on average?
- Identify the variance. Where is the metric drifting? Which subset is dragging the average?
- Quantify the dollars. Translate the variance into monthly contribution impact. This is the leak.
- Rank and ship fixes. Three largest leaks. Action this week, not this quarter.
What this template doesn't catch
This is a margin-leak audit, not a comprehensive operating diagnostic. It will not catch revenue leaks (pricing left on the table, churn under-tracked, expansion not pursued) or capital-efficiency issues (working capital drag, payment terms, inventory carry). Use it alongside the weekly business review and the operating intelligence framework for full coverage.
Get the working file
The audit ships as a Google Sheet with the six tabs pre-built and example calculations. If you're a Fairview customer, the audit is loaded automatically against your data — see find profit leaks.