We know how much we are spending on Adwords per conversion, and we probably know how much income that conversion results in (retail price as on site / in database).
What we don't know is how much of that retail price is profit; and by that I mean true profit, not markup. The amount which is left after payment processing fees, apportioned overheads and salaries, postage, packaging costs, warehousing fees, taxes, cost of capital, etc.
Without knowing that crucial number I feel we are blundering around in the dark. Without knowing that figure for each sale we generate, we are going to always be at risk of running unsustainable advertising costs or of under-developing the campaign.
In my experience, clients don't seem to know this either (and to me that's pretty shocking as it's such crucial financial information for a retailer!).
Have you managed to get hold of this kind of information, and how have you obtained it? In a current case it seems the only way we could possibly get close would be to have an accountant review the books on their behalf - which the client isn't keen to pay for.
*Hope the client knows their figures.
*Offer to look through their books.
*Just offer them the best service you can, it's nice to know when you are making a profit for your client. But your job is really to lower cost and increase conversions regardless, even if you are making profit for your client, you should still be working hard on their account.
*Rethink your strategy or the way you approach clients so that you do not need know these figures.
