Cost budget per item
Calculating the cost-to-turnover ratio seems to be a simple task that any junior marketer can do. Not so – budgeting costs correctly, according to specific needs and across all projects can be a tough nut to crack. But we crack such nuts for breakfast. On a regular basis (often daily), calculations are then made automatically and you don’t have to sit at Excel every morning.
The main purpose of item cost budgeting is to merge the data into one place from where the calculations can be performed. The cost per item can be different for each client – some sell packages, some sell product units, and some sell square meters.
Who is the item cost budget for?
We usually perform data collection, transformation, data analysis and visualization over larger projects.
- you have multiple projects but need your data in one place
- you use different systems (both CMS and marketing channels)
- you deal with marketing performance in more detail
An example is our cooperation with Parcelsport. Here we deal with the merging of data and calculations of the cost per order or the parcel itself at the level of individual countries and currencies. From this, we then calculate the resulting costs of turnover.
This project also deals with conversion rates into one currency (Google Ads are in CZK, Facebook in Euros and payments for package shipping or sales come in South African Rand – ZAR).
What data do we need to have for the calculations?
All of which we will include in the calculations for the most accurate result. Usually these are:
- cost sources (Ads, Sklik, Criteo, Adform, emailing tools, databases with transport costs)
- turnover and customer information (from cash register, internal system or other database)
- data from Google Analytics to connect to the traffic source
Do you have a business that could use a cost per item calculation based on monthly or daily reports, or even real-time data? Contact us – The Archetix.
TIP: Also try real-time margin calculations to better optimize your marketing campaigns.