The average revenue generated per unit sold over a period.

What it Measures ?

What we earn from each unit sold.

Relevant StakeHolders 

Finance Team, Product Managers

In-depth Use Case / Real-world Example

ARPU helps analyze pricing and profitability across product lines. For example, a manufacturer sells 1,000 hydraulic valves in a month and earns ₹1 crore in revenue. ARPU = ₹1,00,00,000 ÷ 1,000 = ₹1,00,000 per unit. This metric is useful for comparing product profitability, tracking customer behavior, and refining pricing strategies. If one unit consistently yields higher ARPU due to bundled services or customization, sales teams may prioritize it. In manufacturing, increasing ARPU could involve offering premium variants, extending warranties, or upselling services. Monitoring ARPU over time ensures that growth is not just volume-driven but value-driven as well.