How much can you afford to pay for a B2B enquiry, and for a click? Enter your order value, margin and win rate. The answer is usually higher than suppliers expect.
Most suppliers judge Google Ads by the cost per click, and give up when they see RM10 or RM20 a click. That's the wrong number. What matters is what an enquiry is worth to your business. The calculator works it out in four steps:
The affordable cost per click is the target cost per enquiry × the share of website visitors who enquire. The monthly budget is the number of enquiries you want × the target cost per enquiry.
A warehouse racking supplier has an average order of RM15,000 at a 25% margin, so each order brings RM3,750 in profit. A typical customer orders twice in the first year: RM7,500. Half of enquiries get a quote and a quarter of quotes are won, so 1 in 8 enquiries becomes a customer. Each enquiry is worth about RM938, and a sensible target is about RM469 per enquiry.
If 3% of visitors enquire, the supplier can afford about RM14 a click and still make money. That's why clicks that look expensive in industrial markets can still be the best investment a supplier makes.
The maths only works if the clicks come from buyers. In the industrial accounts we audit, we often find budget going to job seekers ("warehouse jobs", "kerja kilang"), students ("latihan industri"), people looking for free PDFs, and products the supplier doesn't stock. In one account, searches for a product the client didn't carry had cost over RM500 before we caught them.
The other common problem is tracking. If quote requests aren't counted as conversions, Google can't learn which keywords bring buyers. About 90% of the accounts we audit have tracking problems like this. Read more about how we run Google Ads for industrial and B2B suppliers.
There's no single number. A good cost per lead is one your profit can carry. A RM400 enquiry is cheap for a mezzanine floor supplier and far too expensive for a small consumable. Use your own order value, margin and win rate.
Break-even means every ringgit of profit goes back into ads. Half leaves room for profit, your sales team's time, and the ups and downs of a campaign. If you have strong repeat business, you can afford to go higher.
For competitive industrial keywords we usually suggest at least about RM4,000 a month, so the campaign gets enough clicks and enquiries to learn from. Smaller budgets can work if you focus on your best-margin products only.
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