OffSider AG Equipment
Scaling From $2.8M to $4M-$7M

Dave's 7% Rule vs Reality

Dave's conservative target is 7% of gross profit for advertising. At the current $400K GP, that is only $28K. At the adjusted $600K GP target ($4M revenue), that is $42K. The current total promotion spend of ~$300K is approximately 12% of revenue, which is actually reasonable for a growing business in the agricultural sector. The key is not spending less; it is spending smarter. Right now, a significant portion of that $300K cannot be attributed to results.

The Real Scaling Question: What Does $4M Cost?

Currently, OffSider spends $300K on $2.8M revenue, which is 10.7% of revenue going to advertising and promotion. If you scale proportionately to $4M at that same 10.7% ratio, the total ad and promo budget would be $428K/year ($35.7K/month). For the $7M stretch target, that becomes $750K/year ($62.5K/month).

That is 1.4x the current spend for 1.4x the revenue, which is a very achievable step up. Most of the current $300K goes to field days ($130-140K) and publications ($20-25K), both of which are untrackable. By shifting a larger proportion of that budget into digital channels (which are trackable, optimisable, and scalable), OffSider could realistically hit $4M while spending less than $428K total, because every dollar can be measured and optimised for maximum return.

The goal is not necessarily to spend more. It is to spend the same amount in channels where you can actually prove what is working.

The Conversion Data Is Unreliable

"Repossessed tractors for sale" shows a 44% conversion rate on a sheep handler landing page. "Farm fence with wire mesh" shows 100 conversions on the OffSider homepage. These numbers are impossible for real leads, which means the conversion tracking is misconfigured (likely counting page views or button clicks as conversions). Every CPA number in this account should be treated as unreliable until tracking is rebuilt from scratch.

The Fix Is Straightforward

The demand exists and the products have traction. But the account needs a complete rebuild: new conversion tracking, negative keyword lists covering tractors/auctions/fencing/livestock sales, match type changes from broad to exact/phrase, campaign restructure, and dedicated landing pages. This is all fixable within the first 30 days of engagement.

View the full detailed Google Ads audit →

Drought-Resilient Product Lines

Grids (Property Access) are not livestock-dependent. Gate and grid demand is tied to property infrastructure, not herd size. This product line should be pushed harder during drought periods as a stable revenue anchor. Similarly, efficiency equipment (crushes, handlers) that save labour hours per head become more valuable when farmers are doing more with fewer staff.

The Core Point

Whether the target is $4M or $7M, the system still needs fixing. Broken tracking, wasted ad spend on irrelevant searches, and zero CRM means every dollar is partially wasted regardless of market conditions. The foundation work (Phase 1) is not dependent on the revenue target. It is the prerequisite for any target.

Key Assumptions

• Average order value: $10,000 (blended across product range)
• Landing page conversion rate: 5% (click to enquiry)
• Enquiry to sale close rate: 20%
• Average cost per click (Search): $2.50-4.00
• Average cost per click (Meta): $1.50-3.00
• These estimates will be validated with real data in Phase 1-2

Important Context

These figures represent revenue from digital advertising only. They do not include revenue from field days, word of mouth, repeat customers, or publication advertising. Combined with existing channels, the $4M target becomes achievable even at the conservative spend level. If conditions improve and drought impact is less severe than forecast, the $7M stretch target remains within reach at the moderate to aggressive spend levels. The key variable is close rate, which the CRM will allow us to measure and improve for the first time.

Why This Landing Page Works

• Pricing transparency: Showing "From $23,691.82" upfront filters out tyre-kickers and attracts qualified buyers who can afford the product. Critical for high-ticket agricultural equipment.
• Brochure as lead magnet: Offering a free brochure gives prospects a reason to submit their details without feeling pressured into a hard sales call.
• Qualifying form fields: Industry, trailer size, budget, and timeframe dropdowns ensure every lead is pre-qualified before the sales team even picks up the phone.
• Trust signals: Australian Made, Hot Dip Galvanised certification, chassis warranty, and customer testimonials all reduce purchase anxiety for a $20K+ product.

Compared to Current Spend

The current total promotion spend is approximately $300K/year. This plan at the moderate level is $172.5K/year, but with proper tracking, targeting, landing pages, and a fully automated sales pipeline. You will know exactly what every dollar generates. The field day budget ($130-140K) can be evaluated separately once digital performance data is available; some events may prove to deliver strong ROI, while others may be candidates for reallocation to digital.