Hey there, I think I have a serious case of sunken cost fallacy and I don’t know if I should just kill my entire store or try one last time. I will try and be as brief as possible with what happened. This is for products that are in the $200-$350 price range.
-Started store In October and spent countless building the foundation of the business. Everything from product SKU spreadsheets, creating a beautiful site, finding suppliers etc
-November I hired an ad agency to take care of ads so I can focus on my main business. Ad agency was extremely poor and I ended up having to do most of the heavy lifting. Ad creation, copy writing, ad strategy ect.
-December I tried stepping back to let them do their thing, as they ran ads to work up to BFCM, they told me everything I wanted to hear. It was a complete failure and they were unable to achieve a single ROI.
-January I told them to stop all ads so I can try on my own. Got some sales but still was not profitable. Seems to be possible to make the site work but it’s extremely competitive.
The ad agency spent $9k USD with zero sales and I spent another $1.5k and made 1k gross sales, so around $500 or so net.
So basically I’m down 10k USD (I’m from Canada) and I don’t know if I should try one last time as the tax return season can be really hot for my niche. I was thinking about giving myself another 1k budget to try as I’ve already invested so much.
Is this a dumb idea as I’m already way into the negatives? I can also focus on my primary business which would most likely create a more profitable outcome, but at the same time I was building a brand for the other store.
Any advice or comments is greatly appreciated. Been stressing hard and I just can’t decide on killing my baby.