Bob Martin — Amazon Australia

New Cost of Goods: Impact Assessment

Comparison of current net contribution vs. July 2026 COGS update
Prepared June 2026
10 / 12
SKUs with healthy margins (≥10%)
1 / 12
SKU below 10% (Wormer Large)
+17.3%
Avg. retail price increase applied
4 / 12
SKUs that would be loss-making at old prices
Table 1 — Retail Price Changes (Last 4 Months)
Product Original Price (AUD) Current Price (AUD) Change (AUD) Change (%)
Wormer - Small Dogs $14.95 $19.99 +$5.04 +33.7%
Wormer - Large Dogs ⚠️ $19.95 $20.99 +$1.04 +5.2%
Spot On - Small Dogs $21.95 $22.99 +$1.04 +4.7%
Spot On - Large Dogs $21.95 $22.99 +$1.04 +4.7%
Flea Spray 250ml $19.85 $24.99 +$5.14 +25.9%
Flea Shampoo 250ml $18.95 $21.99 +$3.04 +16.0%
Flea Powder 250g $21.95 $22.99 +$1.04 +4.7%
Spot On - Cats <4kg $21.95 $22.99 +$1.04 +4.7%
Spot On - Cats >4kg $18.95 $22.99 +$4.04 +21.3%
Citronella Dogs $23.99 $19.99 -$4.00 -16.7%
Citronella Cats $23.99 $19.99 -$4.00 -16.7%
Waterless Shampoo $19.99 $19.99 $0.00 No change
Note: Citronella repriced downward to improve conversion competitiveness. Their COGS are low so margins remain strong at $19.99.
Table 2 — Net Contribution: Current COGS vs. July 2026 COGS Update
Product Current Price Net Contrib. — Current COGS NC% — Current Net Contrib. — New COGS NC% — New Change (pp)
Wormer - Small Dogs $19.99 $4.41 24.3% $4.02 22.1% -2.2pp
Wormer - Large Dogs ⚠️ $20.99 $2.01 10.5% $1.35 7.1% -3.5pp
Spot On - Small Dogs $22.99 $5.43 26.0% $5.43 26.0% 0.0pp
Spot On - Large Dogs $22.99 $4.14 19.8% $4.15 19.8% 0.0pp
Flea Spray 250ml $24.99 $4.29 18.9% $3.69 16.3% -2.6pp
Flea Shampoo 250ml $21.99 $2.31 11.6% $1.76 8.8% -2.8pp
Flea Powder 250g $22.99 $3.58 17.1% $3.11 14.9% -2.3pp
Spot On - Cats <4kg $22.99 $2.92 14.0% $2.63 12.6% -1.4pp
Spot On - Cats >4kg $22.99 $2.85 13.6% $2.56 12.2% -1.4pp
Citronella Dogs $19.99 $5.07 27.9% $5.07 27.9% 0.0pp
Citronella Cats $19.99 $5.58 30.7% $5.58 30.7% 0.0pp
Waterless Shampoo $19.99 $2.29 12.6% $1.68 9.2% -3.4pp
Range average 18.9% 16.4% -2.5pp avg
Colour guide: ■ Green ≥12%   ■ Amber 8–12%   ■ Red <8%    All figures include $3.00 advertising cost per unit. ⚠️ = requires attention.

⚠️ Action Required: Wormer - Large Dogs

This is the only SKU where the new COGS has pushed net contribution below 10%, now sitting at 7.1% ($1.35/unit). The July 2026 COGS increase has had a disproportionate impact here because the retail price increase applied (just +5.2%, from $19.95 to $20.99) was the smallest in the range.

A move to $21.99 (the target push price already identified) would recover approximately 3.5pp, bringing net contribution to ~10.7%. This should be the next pricing action.

Table 3 — The Price Increases in Context: What Would Have Happened at Original Prices
Product Original Price (AUD) NC% at Old Prices + New COGS NC% at Current Prices + New COGS Improvement from Pricing Work
Wormer - Small Dogs $14.95 -0.4% (loss) 22.1% +22.5pp
Wormer - Large Dogs ⚠️ $19.95 +3.0% 7.1% +4.1pp
Spot On - Small Dogs $21.95 23.1% 26.0% +2.9pp
Spot On - Large Dogs $21.95 16.7% 19.8% +3.1pp
Flea Spray 250ml $19.85 -1.7% (loss) 16.3% +18.0pp
Flea Shampoo 250ml $18.95 -3.5% (loss) 8.8% +12.3pp
Flea Powder 250g $21.95 11.5% 14.9% +3.4pp
Spot On - Cats <4kg $21.95 9.1% 12.6% +3.5pp
Spot On - Cats >4kg $18.95 -3.4% (loss) 12.2% +15.6pp
Citronella Dogs $23.99 38.1% 27.9% -10.2pp (price reduced)
Citronella Cats $23.99 40.4% 30.7% -9.7pp (price reduced)
Waterless Shampoo $19.99 9.2% 9.2% No change
Table 3 is a hypothetical illustration only - it shows what net contribution would look like at original prices with the new July 2026 COGS applied. Citronella was intentionally repriced downward to improve conversion; its margins remain the strongest in the range at both price points.

✅ Key Takeaway

Commentary - Copy/Paste for Word

Suggested narrative text

New Cost of Goods - Impact on Amazon Australia Net Contribution

Following the July 2026 COGS update, we have completed a full review of net contribution across the Bob Martin AU range. The headline finding is encouraging: 10 out of 12 SKUs remain at or above 10% net contribution after the updated cost of goods are applied, with the range average moving from 18.9% to 16.4%.

The impact is real but modest - an average reduction of 2.5 percentage points - and this is largely a result of proactive retail price management over the last four months. Across the core range, prices have been increased by an average of 17.3% since the start of the year. This work has been essential: had prices remained at their original levels, four SKUs (Wormer Small Dogs, Flea Spray, Flea Shampoo, and Spot On Cats >4kg) would now be generating a loss after the new COGS is applied.

The one area that requires attention is Wormer - Large Dogs. The combination of a smaller price increase applied to this SKU (+5.2%) and a meaningful COGS uplift has resulted in a net contribution of just 7.1% ($1.35 per unit). A move to the target push price of $21.99 would recover approximately 3–4 percentage points and should be the next pricing action taken.

All other SKUs are performing within acceptable parameters. The Citronella range continues to lead the portfolio with net contributions of 27–31%, and the Spot On range for dogs is well-positioned at approximately 20–26%.