Second business not perfoming as good as the first | When to pivot?

[juresesko]

For a good year I have a profitable pressure washing copmany, which keeps the lights on. Comparing the last year to this one the revenue went down but nothing dramatic.

After sometime I managed to save enough to start my next venture. A skincare company for which I spent much more money (12000€) to pay for the formulas, design, website...

After around 6-7 months of preparations, I launched the website.

Around 3 months have passed and using facebook ads and google ads I am at a net loss.

Facebook ads: 380€ spent
Google ads: 290€ spent
UGC creators: 700€

TOTAL spent: 1370€

Total website revenue: 240€

The production price for small batches of product (100pcs) is around 10€ per piece

Selling price per product is 30€

With 3 for 2 discounts.

Found out selling skincare online is harder than it looks, do you have any recomendations on what to do next? Spending money on ads with no return doesn't seem like a good way to go forward.

I don't know if it is too soon to rule out this idea and move on to the next. The progress was good but the sales are just not here.

 

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[MJ DeMarco]

Interesting with the age old question...

Is this a product problem? (Product has no relative value)
Or a marketing problem? (Poor message, positioning)
Or an execution problem? (Crappy eCom website, poor presentation)
What makes your skin care different? Why do YOU think people aren't buying?

Which channel was most effective ROI?

Why didn't the UGC ads work well?

That said, congratulations on being in the theater of war -- getting shit done. On the surface, you might see this as failure, I see it as winning.

 

[Raydomps]

It's challenging when a new venture like your skincare line doesn't take off as expected. Before ruling it out, you might explore SaaS application development services like those offered by Digiteum https://www.digitеum.com/saas-development-services/. They provide tailored solutions that could streamline your e-commerce operations, optimize customer engagement, and enhance your digital marketing strategies. Combining their expertise with a review of your current approach may lead to better results.