Why More Sales Aren’t Always Better
Most businesses don’t fail because they don’t have enough sales.
They struggle because they are making more sales, and losing money on every single one.
Read that again.
I see it all the time, business owners throwing thousands into Facebook ads, Meta campaigns, influencers, email sequences, all trying to get more traffic, more leads, more customers.
But here is the truth:
If you are losing money on every sale, more sales just speed up the problem.
More noise, more spend, more stress, and no real profit.
This is not a marketing problem.
It is a unit economics problem.
What Unit Economics Really Means
Unit economics means knowing exactly what it costs you to deliver your product or service, from start to finish.
And I am not just talking about the wholesale price or your hourly rate.
I am talking about everything it takes to get that product or service into your customer’s hands.
If you run an e-commerce store, your costs are not just the $30 wholesale price.
It is $30, plus GST, plus import duties, plus 3PL fees, plus warehousing, plus shipping, plus merchant fees, plus Shopify charges, plus team costs, plus customer service, plus marketing and ad spend.
That 40 percent markup you added to cover your bases, is probably not enough.
And now you could be running at a loss without realising it.
How to Fix It and Scale Smarter
Service business owners, this applies to you too.
Maybe you offer consulting, design, massage therapy or bookkeeping.
Your hourly rate might look good on paper.
But did you factor in the cost to acquire that client?
Discovery calls, admin time, follow-ups, staff wages, software fees?
If not, you could be missing out on serious profit.
Here is the mindset shift:
Do not guess your margin, know it.
Before you spend another dollar on Meta ads, Google Ads or the latest marketing trend, get your numbers right.
Know your cost per acquisition.
Know your lifetime value.
Know what you are actually making on every sale after all the hidden costs.
Scaling with broken margins is like driving faster in the wrong direction.
It feels exciting.
It looks busy.
But it will not get you where you want to go.
Want to scale? Start with the math.
Fix your margins.
Then press the gas.
Are you profitable on every sale?
If you are not sure you are profitable on every sale, it is time to fix that.
Reach out to the New Wave team today.
Let us fix your margins and build a business that grows the right way.
