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Why margin beats traffic every time

You can fix traffic. You usually cannot fix arithmetic.

The comparison

A store at 50% margin needs 2x to break even. At 20% it needs 5x. Same product category, same ads, completely different game.

What that means in practice

The high-margin store can afford to lose auctions, test broadly, and pay more per click. The thin-margin store cannot afford any of it, and every mistake costs proportionally more.

The levers

Raise price, reduce landed cost, or raise AOV. All three are business decisions rather than advertising ones — which is exactly why agencies avoid raising them.

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