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Cabin product brand was grappling with a meager 7% gross profit margin. The top selling and main product, which constituted around 75% of the entire account, contributed to the low profitability.
Low profitability of the main product and the account
Over-reliance on one main product which was around 75% of the account’s revenue
Inadequate processes, systems, and reports to monitor P&L and the overall business
No process to track the PPC Agency performance and hold them accountable
- Client
GNO team performed a competitor and market analysis and found that the client’s main product’s price was lower than competitors. We helped her test price increases while also removing the coupons but using Deals instead.
GNO identified an opportunity to reduce COGs and supported her with the process of finding and switching to a new supplier that dramatically improved COGs at the same product quality.
We helped her find strategies to optimize the products and lower various costs and fees.
To mitigate the risk of her high dependency on a single product, we aided the client in relaunching several products and researching new products to launch.
We helped brainstorm, research, and launch new variations to scale and increase the brand.
After performing market and competitor research, we devised a plan to optimize the main product images with 3D rendering.
We gave the client the framework for performing keyword research and A/B testing SEO for titles, bullets, and back-end search terms.
We provided frameworks for decisions making from her P&L. She is now able to review her P&L, understand what’s priority and important, and make sound decisions on all parts of her business.
We trained the client on how to review and track weekly performance of her current PPC agency, and methods for communicating suggestions and optimizations while keeping them accountable.
Overall, GNO’s comprehensive program increased sales 40% Year-over-Year, adding high 6-figures in extra revenue within 12 months of joining GNO.
Gross profit margins more than doubled from 7-8% to currently at 14-17%, which added 6-figures of extra profit. Margins are on target to increase another 40 – 50% in just a few months once the new, lower COGS products are delivered.
Within the first three months, the client was eliminated over $100K in excess inventory through our sales strategies. That improved her cashflow.
With the relaunch of secondary listings, their rank increased from 25th to top 5 for the main KWs for the niche.
Regarding PPC, TACOS came down 6-8% from following GNO’s processes, tracking reports, and keeping the PPC agency accountable.
This client’s journey of struggling in margin to now doubling her profits in just a few months is a testament to the power of strategic changes, competitive analysis, and the importance of diversifying product listings. As consultants, we believe in transforming businesses along with providing solutions.
