4.9 • 816 Ratings
🗓️ 7 June 2023
⏱️ 12 minutes
🧾️ Download transcript
To try to improve our profitability, we cut back on our aggressive marketing spend so we can have more cash for inventory and have cash on hand in the bank. In this episode, I talk about what happened when we lowered our PPC bids.
This episode is also related to Episode 251 - When is financing worth the risk?
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0:00.0 | We cut our PPC bids in half. |
0:04.0 | And this is something that we've done over the past couple weeks to try to improve our profitability, |
0:11.0 | to, you know, play some inventory orders and have some more cash on hand in the bank so that when it was time to go get that business loan or that line of credit, |
0:20.0 | we had a cash reserve |
0:21.7 | to start making those payments. And here's what happened. |
0:32.8 | What's up guys? You're listening to another episode of Selling on Amazon with Andy Isam. |
0:38.3 | We cut our PPC bids in half. And here's what happened. This is related to the second brand |
0:46.6 | that I am a co-owner of. And this is something that we've done over the past couple weeks to try to |
0:53.4 | improve our profitability. |
0:55.9 | Now, I talked about this in a recent podcast episode about when is it time to take on financing, |
1:04.9 | right? When is it time to borrow money? When is it time to go get that line of credit or take |
1:09.6 | on an investor to scale your brand to |
1:12.4 | the next level? So if you haven't listened to that episode, I'd recommend going back, |
1:16.6 | listening to that episode first because this episode is kind of playing off the decision that |
1:22.1 | we made based on that podcast episode. So just quick recap for you, the decision that we made, again, |
1:28.6 | this is with our second brand, was to cut back on our aggressive marketing spend to try to |
1:35.6 | improve profitability so we could have a little bit more cash to, you know, play some inventory |
1:40.7 | orders and have some more cash on hand in the bank so that when it was time to go |
1:46.0 | get that business loan or that line of credit, we had a cash reserve to start making those payments. |
1:51.6 | So let me paint a picture here for you. You launch your brand on Amazon. It's going to be slow in |
1:57.1 | the beginning. You're looking at, you know, $1,000, maybe $2,000 a month in sales. Nothing |
2:02.9 | crazy, right? You also have a low number of reviews. So your conversion rates are going to be a |
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