March 07, 2013

Item Profit And Loss - By Advertising Channel

You probably already run profit and loss statements for each item in your merchandise assortment, based on the ad costs of each channel that generate sales for items ... right?

The first item was featured in catalogs, and as a result, generated more total volume that the second item.  However, the second item was popular enough to generate demand without the aid of advertising - hence, the strong online demand component of this item.

You run a profit and loss statement for each item, subtracting catalog ad cost, email ad cost (which is virtually zero), and paid search ad cost.  The second item, after subtracting ad cost, is far more profitable than the first item.

You run this table for each item in your assortment, on a quarterly basis, right?  If not, click here to contact me via email to get this table run for you.