Advertising as a % of sales
Hi folks, I know there are many scenarios here, but I’d be interested in hearing peoples thoughts regarding advertising as a % of sales and how this assumption might shift during the life of a private label product.
I’m launching a few products and estimating my avg sales price to be $20. After all costs/fees but before advertising I’m looking at a 30% margin ($6). Given what I’ve read, a 10% conversion on ads is pretty strong and an estimate $1 CPC seems reasonable ($10 cost to acquire).
Clearly these assumptions don’t make money but this doesn’t take into consideration organic sales (which I can’t find good stats on).
Would love to get some insight on a realistic organic sales as a % of total sales as well as other thoughts regarding my assumptions.
I’ll be in the children’s toy category.
submitted by /u/Jareda2222
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