When I originally wrote my PL report, (on March 30) I had so many different things to say. It’s funny how in a matter of a day or so, your takeaways can change. Your “lessons learned” can change, and your success is measured so differently. All in a matter of hours. And you ask yourself, “Well, Valerie, what changed?” I say unto you dear reader, “My mindset.” What could be considered a problem, is now welcome.
Before I jump into the numbers, here’s my top 3 lessons of March.
Order more, worry less. It’s no secret I have the worst commitment to something that is seemingly proven itself. I spent the first two weeks of March suffering for it, okay more like 10 days, where my sales suffered. The Chinese New Year threw a wrench in, and I didn’t have enough stock to hold me over. I have since learned to just order more and more. When you think you have enough..you’re wrong. To the same statement, if you orde more, your costs go down. I’ve managed to bring down my cost at least $1 since starting a couple of months ago.
Competition. Damn them. This is really all a nod to having stock issues. If I didn’t have inventory woes, I wouldn’t have lost my first page position for my category. But I did, and I have. My competitor dropped the price from $25 to $12. I suffered for all of 2 days. Then, I played ball. I updated my listings to highlight the extras I offered. I dropped my price down to $17. I gained traction, upped my PPC bids, and now am priced at $20. I’ve actually increased in sales at this new price point and while my bottom line would expectedly drop, the quantity sold has increased. Yep, thank you competitor. Happy to have met you.
If all else fails, slow down. If you’ve kept up with me this far, you’ll know I expanded my brand quickly. I now have the original item along with 3 other items I am working on. I also have another on order that compliments all products as an additional add-on. And you’re asking, “wasn’t the bold saying to slow down?” Yes. It was. I say if all else fails, because I feel like I started hastily. I wanted to enter every space quickly, and had no time to perfect it. Had I launched properly, I wouldn’t be playing catch up. So learn from my mistakes, slow down. Launch properly, calculate sales properly, order double. Welcome the competition.
Finally I’m off my soap box and ready to talk numbers. I’ve broken down every number I anticipate being asked.
- Total Sales for the BRAND (Giveaways not included) $9676.76
- COGS $4.73-4.99
- Profits $4944.23
- Margin 51.36%
- Total units 423
- Average unit price $22.88
Giveaways were a total of 13 units. I’m doing a similar promotion this week for 10 units and will expand as the month goes by. I gave away a retail value of $324.87. The total cost to me with COGS and Amazon fees was $110.08. This yielded 12 reviews, which I think is a great percentage.
Pay-per-click was run for the full month both on automatic and manual targeting. I spent $136.45 on advertising and was rewarded with $1905.19 in sales attributed. That’s ACOS of .07 or 7%. It’s a bit high for my taste, but I can deal. I’ll hope to see this percentage go down in the future.
I’ve broken down the sales based on each item.
- Original item: 264 units, $5446.35
- Item 2: (aka addon1) 149, $4060.51
- is it fair to say item 2 is its own item and not an add on? While they are often purchases together it’s rivaling item 1 well.
- Item 3 (aka addon2) 9, $270.91 (took way longer to get items in stock, so these numbers are skewed.)
- Item 4, 14 units sold, $223.86 (testing item, will likely add in April). I purchased 16 and kept 2 for photo purpose.
- Item 5, in the works now is a compliment to all items. It will cost me under $2 and sell for $7-10 based on demand. Once I rank it, I expect to push for $10, and have the COGS for under $1. I’ve only purchased 50 units for now.
Thats all for this month! Sales were so close to $10l this month I can taste it for April! At this rate this brand will yield at least $100k in sales this year. With that, I hope you are following along as I create another brand on Forty Hour Rebel. The product launches this week and I’m excited to see it grow!
How about you? How is your FBA business going?