Ideal ACoS Calculator
I'm really excited to show you this because this is my calculator created. It's super simple, but it's going to help you so much. It's called the ideal a cost calculator. So what does it mean? Well, it's pretty simple, It just determines your ideal a cost. And with the output of this is gonna give you a maximum a cost that you can spend on your advertising. So remember a cost is advertising, cost of sales, so it's a percentage and you want to make sure you don't go above a certain because otherwise your product's not profitable. So what I mean by I'm not profitable. That essentially means that if you have a product that costs after all the different cost of goods sold the FBI fees and other miscellaneous costs it might be your spending $10 on a product. But when you advertise, you realize that you're actually spending $10 and you're losing and you're making that zero. But it's it's kind of weird because you can think, Oh I'm selling my product for $50 and um each product is costing me ...
about $25. But what you haven't realized is, what about your cost of sales, cost of goods, sold your FBI fees, your miscellaneous costs. This can all add up and eat into your sales and you might not even realize it. So with this idea lacoste calculator, it's gonna tell you exactly what you want to look for and your maximum cost that you should be willing to spend, let's go through an example. Let's give you this example product, one The sales price is $39. So you're thinking okay $39. I can probably spend a good amount of money. Well it's a little more difficult than that. We're gonna add in your cost of goods sold. So this basically means how much did you buy the product for? Per unit? This could include shipping is really whatever you want. But how much do you spend to acquire this product? FDA fields are pretty simple. How much is the amazon actually charging you for all these fees? This could just be the fees when you drop down your product selection and it shows the FDA fees per unit, miscellaneous costs. There's anything we're missing. This might be, let's say Each each you sell 100 prosecutor, you're charging for Amazon um seller pro and It's costing $40. You divide that out by 100 products and that's actually how many costs are going to. Another type of cost is could be shipping fees that you didn't include or customs fees or any various costs that we didn't add in there for this purpose. I decided $3.21 as an example. So here's where the magic happens. This is just a formula down here and your max spend per unit For your advertising, you can spend $11. maximum on each advertising product to sell it. That means You can't spend $25 to get one sale. The maximum you can get per sale of one product on advertising is $11.31. That means you're max a cost is 29%. Anything over 29% is a no go. Once you see a 50%, which would be half of your $39 selling price X. That keyword out. Now that you know the max a cost. That you can spend, you can cancel out all those key words from your search term report and be like, nope, I can't use that. It costs way too much and throw all the ones under a 29% a cost into a manual campaign. It's really that simple. So now that you know how to use the ideal cost calculator, make sure you're not spending more than you can afford otherwise, you're just throwing away money. Would you really trade $1 for 50 cents? No, you would trade $1 for $2. It makes so much more sense.