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Case study — range structure and cash

5.4× on the ads. The profit was sitting in the stockroom.

A Cairo online fashion boutique, 2020 to 2025. What closed it was not the marketing.

The business is not named. Unusually, we hold the complete books for this one — every order and every unit of stock — which is why this case can go further into the numbers than most case studies can.

The quarter that explains five years

Net sales, October to December 2024EGP 128,685 — 42,895 a month
Return on ad spend5.36×
Net profitEGP 5,658 a month — roughly 13% of sales

Both things there are true at the same time, and most owners never hold them together. The advertising was excellent. The business was thin. A 13% net margin means one slow month, one unsold delivery, one currency move, and the quarter is gone.

Where the money actually went

The stockroom held 241 units across 127 separate lines.

Eighty-three per cent of the range was a single piece. Fifty-nine per cent of the value of the stock was tied up in items that could only ever be sold once.105 of those 127 lines held exactly one unit

This is the part worth reading twice, because it looks like merchandising and it is actually cash.

A one-unit line cannot be advertised profitably. You pay to photograph it, you pay to produce the creative, you pay the platform to find someone who wants it — and the moment that one person buys, everything you spent is written off against a single sale. The ad account never gets to learn, because the product is gone before the campaign matures. Then you do it again, for the next single piece.

A deep line behaves in the opposite way. The photography is amortised across every unit, the campaign has time to optimise, the cost of acquiring the second customer is lower than the first, and the profit compounds instead of restarting.

The boutique traded for five years and closed in December 2025. Demand was never the problem. The range structure was.

What every product owner should take from this

01

Know both numbers, not one

Return on ad spend measures the advertisement. Margin measures the business. A 5× return on a 13% net margin is a business with no shock absorber.

02

Range width is a cash decision

Count how many of your lines hold exactly one unit. If it is most of them, your marketing costs are being written off one sale at a time.

03

Buy depth, not breadth

Variety feels like choice to the owner and reads as a thin shop to the customer. The money is in selling the same good thing repeatedly.

We ask for a stock-by-line report before quoting on any product business. Re-advertisable depth is now a condition of a performance engagement, not a detail to discover later. And we name the constraint even when the constraint is not marketing.What we changed at SNS

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