Content text Gross profit margin - optimization (COGS / FF / Fees / AWD etc)
Gross profit margin Optimization Video ● Savings in the back-end is the BEST way to improve your brand’s bottom line. ● We’ve had dozens of clients save anywhere from 5% to 10% extra margin by combining all these elements. ○ When you win here, it’s rare to see products that don’t take off big time after the boost in gross margin. ● With those savings, you can either: ○ Make more profits from the same sales. ○ Push further on PPC, deals, promotions, etc., to grow your market share. ○ Reduce price to increase CVR and CTR, which also grows your market share. ● The options are endless, and the upside is HUGE. This is definitely an area worth exploring, digging into, and ensuring you maximize its potential. COGs Savings ● If COGs are 25% of the selling price and you achieve a 10% reduction, your total product margin improves by 2.5%. ● Selling $2.5M annually would translate to an additional $62,500 in profits each year without any additional risk. ● Anyone who hasn’t negotiated with their supplier in over 10 months MUST try again. There’s a good chance you’ll get another discount. ● This is a practical task, and anyone who commits to it will likely achieve some sort of win. ○ We’ve had dozens of clients secure over 25% discounts on their COGs while maintaining the same product quality. FBA Fees Savings