Is there a min. $ amount below which it just wont break even?
we are trying to market a product over google adwords.
no matter what i do, i cant get the numbers to where the whole deal would break even.
Our profit per sale on that specific product is 10€.
If i break it all down:
• 3% conversion rate (goal) for landingpage (where the sale happens "buy now" button on landing page)
i end up with: 1/3% = 34 Clicks per Conversion/Sale
10€ / 34 = 29 Cents per Click (=break even)
so i have to buy my clicks for less than 29 euros in a market where the first page bid is at around 1,50€
in other words:
i can not be profitable in that market with a product unless my profit per product is:
1,50€ / 3% = 50€ profit minimum to break even?
is that about right? or am i missing something?
what are your strategies dealing with such products in said markets? any ideas?
Re: Is there a min. $ amount below which it just wont break even?
This is an interesting situation. One thing you might want to think about doing here is trying to find some new keywords that might have a lower CPC. The keyword tool (under the Tools and Analysis tab in your account) could help you out there.
You might also want to experiment with some different keyword matching options (like exact match or phrase) as this can sometimes have an effect on the CPC.
I'd also take a look at your location targeting to see if you're maybe targeting too broad an area. Sometimes switching to a more specific location for your business can help increase your covnersions as customers can sometimes prefer local businesses.
Anyone else from the Community have any tips here?