Adamos Adamou

SaaS | Ecom | Lifestyle | 🇨🇾 🏗️
Talking about numbers that cost you.
Real profit, ads, inventory, cohorts, refunds & more.
Co-Founder of @useaplon

[Adamos Adamou @adamosnet]

black friday is going to look like the best decision you ever made. it wont be, and most tools will never tell you 👇

[Adamos Adamou @adamosnet]

@WouterBra cogs went from 27% of revenue to 35.5% in one day. one store, so thats mix not cost. with two orders on the board its a single sale deciding your whole margin line

[Adamos Adamou @adamosnet]

@DaveDiederen fair lol i read the chart before i read you properly

[Adamos Adamou @adamosnet]

your blended roas is counting sales your ads had nothing to do with

reply with your blended roas and roughly what share of your revenue is repeat customers. ill work out what youre actually getting back on new ones

3x blended at 40% repeat is 1.8x on the money you spent to go and find someone new

[Adamos Adamou @adamosnet]

@Chris_Wichert the divisor is the part that gets you. volumetric weight is the box divided by a number thats written into the carrier contract, not physics. same box, renegotiated divisor, different bill, and nothing about your packaging changed

[Adamos Adamou @adamosnet]

sort your discount floor this month, while nobodys asking you for a bigger one.

what each discount costs you in extra units, just to hold the same gross profit:

40% margin
10% off = +33%
20% off = +100%
30% off = +300%

50% margin
10% off = +25%
20% off = +67%
30% off = +150%

60% margin
20% off = +50%
30% off = +100%
40% off = +200%

the formula is margin / (margin - discount).

and thats gross profit only. the extra units still need ad spend to find them.

[Adamos Adamou @adamosnet]

@ChelalaPierre1 the pixel learns whoever bought at 40. raise the price in month two and its still optimising toward the layer you just priced out

[Adamos Adamou @adamosnet]

@mannybarbas_ flat and store wide is right for the shopper. its not flat on your side though. 30% off a 70 point sku still leaves you 40. 30% off a 30 point sku is exactly break even before you count fees and shipping

[Adamos Adamou @adamosnet]

the cheaper your product the more you pay in card fees, and your rate never changed.

a 2.9% + 30c rate card at 60 aov comes out at 3.4%.

the same rate card at 22 aov comes out at 4.3%.

the flat 30c doesnt care what you sell it on. nearly a full point more of every order, forever.

drop your aov and your rate. ill tell you the real number.

[Adamos Adamou @adamosnet]

@KnckdEm the 95 backs out to about 64% left after costs, so break even roas is 1.55 and youre at 1.46. in cpa terms your ceiling is 27.54 and youre paying 29.37

[Adamos Adamou @adamosnet]

@danieldwalton yup

[Adamos Adamou @adamosnet]

black friday tells you nothing about whether you acquired anyone. february does.

everyone who came in at 30% off has been taught what your product is worth.

so tag them now. discount code, utm, one field, whatever you already use.

in february, compare their 90 day repeat rate against people who paid full price in october.

if its not close, you didnt acquire customers. you moved stock at a discount to people who were never coming back.

which is fine. as long as you decided that on purpose.

[Adamos Adamou @adamosnet]

@dizzyecom depends which way the aov goes up though. more units drags cogs up with it, so the break even barely moves. a higher price on the same unit is the one that shifts it, because the 160 mostly stays where it is

[Adamos Adamou @adamosnet]

@vytisbareika in the eu that only works on business cards. psd2 bans surcharging consumer cards outright, and the business card carve out caps you at your actual cost, so 3.99 flat only holds if 3.99 is what you really pay

[Adamos Adamou @adamosnet]

@raju_GoogleAds spot on

[Adamos Adamou @adamosnet]

you turned the ad off after 40 clicks and no sales. fair enough.

at a 2% conversion rate a perfectly good ad does exactly that 45% of the time.

thats closer to a coin flip than a verdict.

and theres no report anywhere for the good ads you switched off early

[Adamos Adamou @adamosnet]

@alexisecom_ the total sales line in that screenshot has taxes and shipping inside it. if your aov comes off that number, some of it is money you never get to spend against the 50

[Adamos Adamou @adamosnet]

@Chris_Wichert yeah, and chargeable weight isnt even the weight on the box. its the greater of actual and volumetric, so a light bulky sku bills like a heavy one

[Adamos Adamou @adamosnet]

your free shipping threshold is a discount you never decided the size of.

and you probably set it when your aov was lower and parcels were cheaper.

worth ten minutes before november. pull last months orders that landed just over your threshold, and look at what got added last to each one.

if its the cheapest thing on the site every time, that threshold isnt lifting aov. its buying you a heavier parcel for the same money, in the month youre shipping the most of them.

[Adamos Adamou @adamosnet]

@marcobatt those two angles wont pull the same skus though. on a plane leans small format, replaces eight leans the set. same roas on the report, different margin underneath