With a target ROAS, you give Google a return goal and it bids to hit that goal on average. That is how Google's target ROAS help page puts it. An average can hide products that get almost no bids.
Set the target too high and the bidder plays it safe. It spends on the few products it knows sell and bids little on the rest. ROAS looks great. Revenue stops growing. The many products that each sell a little (the long tail) go quiet.
So each margin group gets its own target. The first step is the break-even point on ad cost. Gross margin here means price minus product cost, as a share of the price. Break-even ROAS is 1 divided by that margin. Two examples, counting only product cost: a 60% margin product breaks even around 1.7. A 12% margin product needs about 8.3.
That number only pays for the ads. Real profit also has to cover our fee, shipping, returns, apps and staff, if your margin does not already include them. So the target that makes you money sits above break-even. One shared target for both products fails one of them. Either the 12% product loses money, or the 60% product gets bid too low.
Then we move slowly. We change targets in small steps and give each step time to show. That is our own habit, not a Google rule. A big jump makes it hard to tell what caused the next week's numbers. Between changes we count how many different products still get clicks. When that count drops, we check the target first, then stock, prices and disapprovals.