EverySKUHasaJob
A SKU is not just a product. It is a tool the business uses to achieve a specific outcome, whether that is profit, cash recovery, customer acquisition, or demand validation. The job defines how to bid and what success actually means.
The Core Idea
The mistake is assuming every SKU's job is "make money today." Sometimes its job is to clear warehouse space. Sometimes its job is to acquire a customer who will repeat five times. Sometimes its job is to prove whether demand exists.
"If you do not define the job, you cannot measure success. A 'failed' profit SKU might be a highly successful acquisition tool."
Static thinking breaks dynamic businesses. The product does not change, but business constraints do. When cash tightens or stock ages, the SKU's mission must shift.
1. Profit Drivers
The Cash Cows
Job: Fund overheads. Generate contribution after ads.
Key Metric: Contribution Margin (POAS)
Characteristics: Healthy margins, stable demand, predictable fulfilment, low return rates.
PPC Behaviour: Optimise for POAS, not ROAS. Defend impression share. Aggressive coverage because missed IS here is lost contribution.
2. Customer Acquisition SKUs
The Gateway Products
Job: Fill the funnel. Buy customers, not profit.
Key Metric: CAC:LTV Ratio, Target Break-even at 60 Days
Characteristics: Lower AOV or margin, high first-purchase appeal, strong repeat behaviour.
PPC Behaviour: Ringfence spend separate from blended. Measure payback and cohort LTV. Accept low Order 1 contribution. Killing these because "ROAS is bad" is how growth stalls.
3. Demand Capture SKUs
The Sure Things
Job: Monetise existing intent. Defensive revenue.
Key Metric: Impression Share, Target >90% Abs. Top
Characteristics: High intent search volume, brand or category leaders, hero products.
PPC Behaviour: Coverage over cleverness. Missed IS is lost revenue. Budget caps are artificial limits on capturing demand that already exists.
4. Learning & Signal SKUs
The Scientists
Job: Prove demand exists. Validate or kill.
Key Metric: Data Density, Binary Outcomes (Keep/Kill)
Characteristics: New product launches, untested price points, experimental variants.
PPC Behaviour: Ring-fenced "learning budget." Optimise for data density, not ROAS. Binary outcomes: either demand exists or it doesn't. Kill fast or scale.
5. Inventory Clearance SKUs
The Cleaners
Job: Move dead stock. Free warehouse space and working capital.
Key Metric: Stock Velocity, Units Cleared
Characteristics: Seasonal leftovers, aging inventory, warehouse space constraints.
PPC Behaviour: High aggression to clear units. Lower efficiency targets accepted. Stop spend immediately when cleared. The goal is velocity, not margin.
6. Emergency Cash SKUs
The Paramedics
Job: Generate immediate cash. Survival mode.
Key Metric: Cash Velocity, Conversion Cycle Speed
Characteristics: Liquidity crisis, payroll risk, need immediate turnover.
PPC Behaviour: Maximise revenue volume. Shortest conversion cycle focus. Sacrifice margin for speed. Profit is secondary to survival.
"To the algorithm, a sale is a sale. To the bank, selling dead stock releases cash, while selling a loss-leader burns it. We must control the mix."
When Jobs Change
A SKU's job is not permanent. Consider a product lifecycle:
- • Month 3 (Validation): Learning SKU. Prove demand exists.
- • Month 9 (Acquisition): Gateway SKU. Acquire customers cheaply.
- • Month 18 (Contribution): Profit Driver. Throw off reliable margin.
- • Month 24 (Cash Recovery): Clearance SKU. Move excess stock.
The product did not change. The business context did. Dynamic businesses require dynamic SKU roles.
What is the SKU Jobs Framework for Google Ads?
TLDR: Assign every SKU a job: Hero, Gateway, Cash Cow, or Zombie. Bid based on commercial role, not blended ROAS.
The SKU Jobs Framework assigns every product one of four commercial roles: Heroes (high margin, high volume - fund growth), Gateway SKUs (low margin but drive customer acquisition), Cash Cows (steady margin, repeat purchases), and Zombies (low margin, low volume - drain budget). Each role gets a different bidding strategy and budget allocation aligned to its commercial purpose.
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