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low profit margin

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi,

  I have a very small profit margin &need/ would like to increase turnover how much would i have to spend a month to see a result?

Thanks in advance Woman Happy

1 Expert replyverified_user

Re: low profit margin

Collaborator ✭ ✭ ✭
# 2
Collaborator ✭ ✭ ✭

Hello Alex L ! Welcome to the Community !

 

Are you reffering to the usage and configuration of Adwords ?

What are you aiming at ? You are searching for a solution for what : Just traffic or phone orders, leads, online shopping ?

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Accepted by topic author Alex L
September 2015

Re: low profit margin

Top Contributor
# 3
Top Contributor

Hi Alex, that's a tough question.  Any kind of advertising needs very careful management when profit margins are low, I know.

 

In a low margin situation you have to be cautious with your spend, monitor very closely and very frequently and pick the right products.  You also have to make absolutely certain that everything else is as good as it can possibly be.  This means that your website has to be perfect, it has to offer the easiest checkout process known to man, the most streamlined search options and clearest product displays that work perfectly on any device.  You have to think carefully about your pricing.  It's difficult when the margins are already low but if you're more expensive than another easily found competitor, why should I buy from you?  Can you halve your profit but more than double your sales?

 

Do start small.  Maybe just one or two of your stone cold top selling products organically (or in store).  Tailor Ads specifically for each product and choose just two or three really tight Keywords.  Make sure your landing page(s) are all about that product, and that it's presented well.

 

Above all this though, make sure you have Conversion Tracking installed, preferably tracking the actual value of the product(s), and that it is working.  With low margin products every single sale is important when calculating the return from advertising - you can't afford to miss a single one.

 

Finally, don't be afraid to stop, but make sure you stop for good reasons.  AdWords doesn't work for all products, all companies, but making it work can be difficult.  The difference between success and failure may be only a handful of settings or simple changes to how the Account is run so it's important you stay in touch here and ask us questions as you go.

 

Jon

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Re: low profit margin

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# 4
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