I have a store that I work in and we are facing problems with getting enough orders to be in profit. We are selling Free+Shipping with the product costing $9.95 and every added product $5 extra like $14.95 for 2 units, $19.95 for 3 units and so on. The store was doing really well in the months of November and December. The ad budget in those months was $300/day and we were regularly getting orders of $600-700. We even had a few $1000+ days in those months.
Things have changed dramatically now. January was a disaster as we even struggled to reach $400 on some days with $300 ad budget and on few days we went past $500 but never went past $600. In Feb the ad account was put under review by Facebook and after submitting some doc it was finally released after 2 weeks. We have reduced our ad budget to $100 and we are making about $147 but its still a loss and we need to a make a min of $160 to make any kind of profit. I would really appreciate all suggestions and help so that we can start making profit again.
Normally when I do a F+S offer it is using a product that costs less than $1 to buy and make up for that + whatever your cost per customer acquisition is ($2) so charge $4.99 for shipping e.g. credit card knife (e.g. SurvivalLife.com did it with the folding credit card knife) and charge only enough on shipping to cover your cost for acquiring ‘buyer’ customer emails. Once you have a break even funnel, just continue to build it up. The point isn’t to make money on it but to grow your subscriber list. When you have a subscriber list of 10k+ emails there is a lot that you can do from there.
Once you have the subscribers, you can then market higher end products. Market low ticket items as you would a high ticket item that costs $1000 with nice videos and so forth and your conversions will go through the roof (since they are impulse purchases).
$9.95 is high for a F+S offer. I think you’d have better results marketing a lower priced F+S offer even if you are losing some money on the front end. The real money is made on the back-end.
The bigger picture is attracting sales from people who are already spending money on larger purchases. Build a relationship with them through email, social media, video, and so on. Eventually they will trust you and also buy your higher ticket items. Get referrals, continue to tweak your offer/landers, test new traffic sources… Later you can use pipemonk/quickbooks online integrations as your business grows… Then congrats, you have a good business…