Contract pricing, profit-first B2B bidding

A Shopware B2B supplier had wildly different margins by customer group thanks to contract pricing. Blended bidding chased big orders that were often the thinnest.

Store
Shopware
Ads
Google Ads
Duration
150 days

The challenge

Contract customers received negotiated discounts, so a large order from a top-tier account could carry a fraction of the margin of a smaller retail order. Revenue bidding kept favoring big, low-margin contract volume.

Approach

  1. Mapped Shopware customer-group pricing into per-order margin.
  2. Computed POAS by customer group and segment.
  3. Uploaded contribution-margin conversions to Google Ads.
  4. Prioritized acquisition of high-margin retail and mid-tier accounts.
  5. Kept contract accounts served but not ad-subsidized.
Performance

POAS by customer group

Profit Bid
Big contract accounts had the lowest POAS. Bidding by customer-group margin redirected spend to profitable segments.
  • POAS (account)152%
    +43 pts
  • Retail segment spend52%
    Margin-led
  • Thin-contract ad spend12%
    Reduced

Results

POAS (account)

109%152%

+43 pts

Retail segment spend

27%52%

Margin-led

Thin-contract ad spend

38%12%

Reduced

Gross profit/mo

€24k€37k

Same budget

Our biggest customers had our thinnest margins. POAS by customer group stopped us from paying to win unprofitable contract volume.

Markus H., Sales & marketing director, industrial supplier
Pricing

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