1 00:00:00,420 --> 00:00:01,590 - It's not just raising prices, 2 00:00:01,590 --> 00:00:03,450 but how do we introduce things like limited 3 00:00:03,450 --> 00:00:05,165 edition specials? 4 00:00:05,165 --> 00:00:08,820 How, how can we introduce things that feel more valuable 5 00:00:08,820 --> 00:00:11,460 and are more valuable so that we can charge a a premium? 6 00:00:24,330 --> 00:00:27,540 All right, Nick Flint, the buzz for right now 7 00:00:27,540 --> 00:00:29,250 and likely the foreseeable future is 8 00:00:29,250 --> 00:00:33,030 what do we do about the tariff madness 9 00:00:33,030 --> 00:00:34,350 that's impacting our industry? 10 00:00:34,350 --> 00:00:36,570 And so wanted to have you on here 11 00:00:36,570 --> 00:00:39,150 so we could talk briefly about what are some ways 12 00:00:39,150 --> 00:00:41,850 that we can mitigate risk, that we can protect profits 13 00:00:41,850 --> 00:00:46,530 so we can cut costs so that we can still find opportunity 14 00:00:46,530 --> 00:00:48,330 for growth and opportunity 15 00:00:48,330 --> 00:00:52,020 to thrive even in this climate. 16 00:00:52,020 --> 00:00:54,690 And so let's dive in. But first of all, how's it going? 17 00:00:54,690 --> 00:00:56,130 By the way, 18 00:00:56,130 --> 00:00:58,500 - I'm doing pretty good over here. 19 00:00:58,500 --> 00:01:00,960 Really starting to dial in with some of our clients 20 00:01:00,960 --> 00:01:04,560 and the strategies that they have with these new changes 21 00:01:04,560 --> 00:01:06,510 and what they might see in their price structure, 22 00:01:06,510 --> 00:01:08,100 differences in the future. 23 00:01:08,100 --> 00:01:10,470 - Great. Well, email's gonna play a big part of this. 24 00:01:10,470 --> 00:01:12,360 So Nick is our, our director of email. 25 00:01:12,360 --> 00:01:15,930 And I think now is the time we lean into the tried 26 00:01:15,930 --> 00:01:17,070 and true, right? 27 00:01:17,070 --> 00:01:20,910 Doing more for our customers, leaning into them more. 28 00:01:20,910 --> 00:01:23,820 Email is one of the, the most guaranteed returns 29 00:01:23,820 --> 00:01:25,200 and the lowest cost to execute on. 30 00:01:25,200 --> 00:01:26,580 So now is the time for emails. 31 00:01:26,580 --> 00:01:28,260 We'll lean into some tips there, 32 00:01:28,260 --> 00:01:29,520 but ultimately what we're looking for right now 33 00:01:29,520 --> 00:01:31,830 and whatever brand wants is how do I protect profits? 34 00:01:31,830 --> 00:01:34,680 How do I continue to grow? How do I protect profits? 35 00:01:34,680 --> 00:01:36,810 And I think ultimately the first thing, Nick, 36 00:01:36,810 --> 00:01:41,550 that we gotta look at is how can you increase prices and 37 00:01:41,550 --> 00:01:45,300 or increase profit per order 38 00:01:45,300 --> 00:01:47,790 without tanking conversion rates, right? 39 00:01:47,790 --> 00:01:49,605 Without killing conversions. 40 00:01:50,445 --> 00:01:52,260 'cause not just as simple as raising 41 00:01:52,260 --> 00:01:53,400 rates through the roof, right? 42 00:01:53,400 --> 00:01:54,360 Raising prices through the roof 43 00:01:54,360 --> 00:01:56,400 because then people will stop buying. 44 00:01:56,400 --> 00:01:58,170 And so let's talk 45 00:01:58,170 --> 00:02:01,740 through some suggestions here on, on what we can do. 46 00:02:01,740 --> 00:02:03,420 So, so raising prices. 47 00:02:03,420 --> 00:02:05,550 One thing to keep in mind, Nick, 48 00:02:05,550 --> 00:02:06,600 and you know, we've been talking to a lot 49 00:02:06,600 --> 00:02:07,710 of our, our bigger clients. 50 00:02:07,710 --> 00:02:10,530 I've had 10 to 15 calls recently. 51 00:02:10,530 --> 00:02:12,540 We've been texting, messaging, you know, talking 52 00:02:12,540 --> 00:02:13,770 to clients frequently. 53 00:02:13,770 --> 00:02:17,670 And so one thing I'm hearing a lot from bigger brands is, 54 00:02:17,670 --> 00:02:19,200 Nick, they're just gonna raise prices. 55 00:02:19,200 --> 00:02:22,620 They're just gonna raise them, have not heard fully, 56 00:02:22,620 --> 00:02:25,200 you know, what, what percentage kinda lift that's gonna be 57 00:02:25,200 --> 00:02:27,210 that that's gonna be brand by brand, 58 00:02:27,210 --> 00:02:29,070 it's gonna be depending on the category, depending on 59 00:02:29,070 --> 00:02:31,560 how much room the brand thinks, they have 60 00:02:31,560 --> 00:02:33,990 to still remain competitive. 61 00:02:33,990 --> 00:02:35,850 Depends on the strength of the brand as well. 62 00:02:35,850 --> 00:02:39,990 But also a lot of people are just gonna raise prices, right? 63 00:02:39,990 --> 00:02:41,160 And so I think you gotta look at that 64 00:02:41,160 --> 00:02:45,630 and whether that's a 5%, 10%, maybe a 20% increase, 65 00:02:45,630 --> 00:02:46,650 it's gotta be on the table 66 00:02:46,650 --> 00:02:48,480 and you gotta be talking about it. 67 00:02:48,480 --> 00:02:50,310 One of the other things that we're looking at is 68 00:02:50,310 --> 00:02:52,350 how do we maybe bundle things 69 00:02:52,350 --> 00:02:54,780 and come with creative offers so that we can raise the a OV 70 00:02:54,780 --> 00:02:57,450 and and like the raise the profit per order. 71 00:02:57,450 --> 00:02:59,860 So what, what are your thoughts on both of those items? 72 00:02:59,860 --> 00:03:01,030 What are you hearing? What are you seeing? 73 00:03:02,260 --> 00:03:03,910 - What's, what's funny is a lot of the stuff 74 00:03:03,910 --> 00:03:07,000 that we're looking at, you should be doing this year round, 75 00:03:07,000 --> 00:03:09,070 but it's really top of mind right now. Like 76 00:03:09,070 --> 00:03:10,330 - Yeah, - What does it come down to? 77 00:03:10,330 --> 00:03:12,820 Charging the right amount and then cutting your costs across 78 00:03:12,820 --> 00:03:13,960 the business when possible 79 00:03:13,960 --> 00:03:16,600 and trying to run a lean operation so you stay profitable. 80 00:03:16,600 --> 00:03:18,160 And it really comes to the forefront where you're starting 81 00:03:18,160 --> 00:03:20,080 to look at every dollar, every statement, 82 00:03:20,080 --> 00:03:21,940 every transaction coming through. 83 00:03:21,940 --> 00:03:24,970 Yep. So some of the easiest low hanging fruit 84 00:03:24,970 --> 00:03:27,700 that they can be doing right now to help raise 85 00:03:27,700 --> 00:03:30,430 that average order value, not give away too much margin. 86 00:03:30,430 --> 00:03:32,800 'cause if you can not discount your products 87 00:03:32,800 --> 00:03:35,020 and extra 10%, that kind of combats 88 00:03:35,020 --> 00:03:36,730 that 10% extra that you're paying Yes. 89 00:03:36,730 --> 00:03:38,920 Over on your, your cost of goods coming across the seeds. 90 00:03:38,920 --> 00:03:41,080 So off the bat, 91 00:03:41,080 --> 00:03:43,090 one thing we've been shifting is the initial, 92 00:03:43,090 --> 00:03:44,710 just the popup offers on the site 93 00:03:44,710 --> 00:03:47,200 and the intro, instead of going with like a standard, 94 00:03:47,200 --> 00:03:50,020 you know, 10, 20% off your first order, 95 00:03:50,020 --> 00:03:52,750 we're putting a minimum threshold in there now. 96 00:03:52,750 --> 00:03:54,820 So, you know, $10 off any order 97 00:03:54,820 --> 00:03:58,990 of $50 plus if they're gonna spend 70, 80, 90 bucks, 98 00:03:58,990 --> 00:04:00,430 that $10 is gonna stay the same 99 00:04:00,430 --> 00:04:03,490 and not gonna be that fixed percentage versus 20% off 100 00:04:03,490 --> 00:04:05,380 of your $90 order. 101 00:04:05,380 --> 00:04:06,910 It's eight bucks that the brand saves. 102 00:04:06,910 --> 00:04:08,515 - Yeah, I love that. So, you know, one, one of the, 103 00:04:08,515 --> 00:04:10,735 the best tools we have to grow our email list 104 00:04:10,735 --> 00:04:11,800 and grow our email marketing is the, 105 00:04:11,800 --> 00:04:12,850 is the popup in the offer. 106 00:04:12,850 --> 00:04:16,750 But nows may be a time to, to be less 107 00:04:17,710 --> 00:04:19,630 liberal with your, your discount. 108 00:04:19,630 --> 00:04:21,460 So make that a flat dollar amount 109 00:04:21,460 --> 00:04:24,610 so it doesn't scale to infinity. 110 00:04:24,610 --> 00:04:26,590 Also, maybe just raising the 111 00:04:26,590 --> 00:04:27,970 threshold for when that kicks in. 112 00:04:27,970 --> 00:04:31,060 So yeah, we're, we're going to limit that, right? 113 00:04:31,060 --> 00:04:32,920 I think the other thing to think about is, is, you know, 114 00:04:32,920 --> 00:04:36,610 how do we bundle products to, to, 115 00:04:36,610 --> 00:04:38,890 and create some interesting pricing there where we're, 116 00:04:38,890 --> 00:04:43,870 we're still getting more profit per transaction even while 117 00:04:43,870 --> 00:04:46,240 maybe our, our cost structure, our cogs have gone up. 118 00:04:46,240 --> 00:04:48,430 So I think that's an interesting one to look at. 119 00:04:48,430 --> 00:04:50,620 And it's something you've talked about Nick, 120 00:04:50,620 --> 00:04:52,060 and we, we've seen this with brands like Nike 121 00:04:52,060 --> 00:04:54,430 and others, is it's not just raising prices, 122 00:04:54,430 --> 00:04:56,290 but how do we introduce things like limited 123 00:04:56,290 --> 00:04:58,005 edition specials? 124 00:04:58,005 --> 00:05:01,600 How, how can we introduce things that feel more valuable 125 00:05:01,600 --> 00:05:03,780 and are more valuable so that we can charge a, 126 00:05:03,780 --> 00:05:05,530 a premium? So what, what are your thoughts on that 127 00:05:05,530 --> 00:05:07,240 - For these limited edition items? 128 00:05:07,240 --> 00:05:10,270 It works for whatever level you're at. 129 00:05:10,270 --> 00:05:12,130 That, that's one kind of really unique 130 00:05:12,130 --> 00:05:13,480 thing about this strategy. 131 00:05:13,480 --> 00:05:16,360 If you're selling a $10 cup, 132 00:05:16,360 --> 00:05:18,610 launching a limited edition collab with someone, 133 00:05:18,610 --> 00:05:21,310 or even like a new colorway, you're just doing 200 of, 134 00:05:21,310 --> 00:05:23,350 you can now sell that for 15 instead of 10. 135 00:05:23,350 --> 00:05:24,820 Same thing on like the sneakers. 136 00:05:24,820 --> 00:05:25,960 Just like you talk about, you know, instead 137 00:05:25,960 --> 00:05:28,480 of $150 via sneakers, you're now going for 180 138 00:05:28,480 --> 00:05:31,120 'cause it's a limited edition release. 139 00:05:31,120 --> 00:05:34,390 So if you can find some kind of way to implement scarcity 140 00:05:34,390 --> 00:05:36,850 with a new product, launch a new variant, 141 00:05:36,850 --> 00:05:38,500 we have a coffee brand doing this, 142 00:05:38,500 --> 00:05:42,190 they're leaning into more select roasts from 143 00:05:42,190 --> 00:05:45,010 around the world and they're really putting the emphasis on 144 00:05:45,010 --> 00:05:47,530 the Costa Rican farmers who are making these beans. 145 00:05:47,530 --> 00:05:49,690 And that's why it's slightly more per bag, 146 00:05:49,690 --> 00:05:52,030 but the quality's there and people appreciate it. 147 00:05:52,030 --> 00:05:55,000 And you also see people start to splurge on some stuff like 148 00:05:55,000 --> 00:05:56,170 that, you know, when they're starting 149 00:05:56,170 --> 00:05:58,640 to look at their own bank accounts a little bit tighter, 150 00:05:58,640 --> 00:06:00,800 you know, I'm not gonna go buy a new car right now, 151 00:06:00,800 --> 00:06:03,860 but you know what, I'll spend 15 for bank coffee. 152 00:06:03,860 --> 00:06:06,320 Might not my coffee. Yeah, totally. It's every morning then. 153 00:06:06,320 --> 00:06:07,835 Really good. 154 00:06:07,835 --> 00:06:08,900 - Yeah, it's a really good thought that, 155 00:06:08,900 --> 00:06:11,300 that even when the consumer is, is pinched a little bit, 156 00:06:11,300 --> 00:06:13,490 even when the consumer confidence is low, it's not 157 00:06:13,490 --> 00:06:14,540 that they stop buying, right? 158 00:06:14,540 --> 00:06:16,280 We still, we all, we love to buy things. 159 00:06:16,280 --> 00:06:18,740 It's our favorite recreation, you know, 160 00:06:18,740 --> 00:06:22,220 retail therapy is a real thing, will always be a real thing. 161 00:06:22,220 --> 00:06:23,960 But yeah, how can you lean into something where, hey, okay, 162 00:06:23,960 --> 00:06:26,930 may, maybe I'm trading down in other categories, 163 00:06:26,930 --> 00:06:29,360 but I'm trading up in your category and 164 00:06:29,360 --> 00:06:32,210 and that's what you want to try to, to create there. 165 00:06:32,210 --> 00:06:34,280 So yeah, I I really wanna underscore, you know, 166 00:06:34,280 --> 00:06:39,110 this is not a time to cut growth costs, I believe, right? 167 00:06:39,110 --> 00:06:41,420 And, and this is, we were talking about this in our morning, 168 00:06:41,420 --> 00:06:44,390 Monday morning meeting today, Nick, where you know, David, 169 00:06:44,390 --> 00:06:46,940 David Ogilvy, legendary ad guy, the the guy 170 00:06:46,940 --> 00:06:49,190 behind Dove stoke and man in a halfway shirt 171 00:06:49,190 --> 00:06:50,840 and Rolls Royce and a number of others. 172 00:06:50,840 --> 00:06:53,360 He talked about, man, I I view advertising 173 00:06:53,360 --> 00:06:56,240 as an essential part of every product, 174 00:06:56,240 --> 00:06:57,830 just like I would an essential, 175 00:06:57,830 --> 00:07:00,080 an essential ingredient or central component. 176 00:07:00,080 --> 00:07:02,630 And just when times get tough, I'm not gonna cut, 177 00:07:02,630 --> 00:07:05,090 I'm not gonna cut the tires outta my Rolls Royce, you know, 178 00:07:05,090 --> 00:07:06,440 because times are tough. 179 00:07:06,440 --> 00:07:08,810 I I've gotta, I've gotta invest in that. 180 00:07:08,810 --> 00:07:10,970 And same is true for marketing. 181 00:07:10,970 --> 00:07:12,950 We don't wanna pull back on marketing 182 00:07:12,950 --> 00:07:14,570 otherwise we'll lose market share 183 00:07:14,570 --> 00:07:16,670 otherwise we'll, we'll create a death spiral potentially. 184 00:07:16,670 --> 00:07:19,130 And so lean into marketing, 185 00:07:19,130 --> 00:07:21,260 maybe you wanna lean into it in a more efficient manner. 186 00:07:21,260 --> 00:07:23,120 Maybe you raise your mirror, things like that, but don't 187 00:07:23,120 --> 00:07:25,490 but your advertising and growth budgets. 188 00:07:26,630 --> 00:07:28,760 But on the topic of cost cutting, Nick, 189 00:07:28,760 --> 00:07:30,080 I think this is a real thing, right? 190 00:07:30,080 --> 00:07:33,110 We've gotta look at how can we get lean? 191 00:07:33,110 --> 00:07:34,850 How can we be lean and mean right now? 192 00:07:34,850 --> 00:07:36,440 So what are some suggestions there? 193 00:07:36,440 --> 00:07:38,600 What have, what have you heard from others? 194 00:07:38,600 --> 00:07:40,280 What tips do you have? 195 00:07:40,280 --> 00:07:42,290 - Especially on the SMS side of things, 196 00:07:42,290 --> 00:07:43,610 we're getting really tight with 197 00:07:43,610 --> 00:07:45,140 who we're sending to right now. 198 00:07:45,140 --> 00:07:48,980 You might have a 20,000 per SM person SMS list with, 199 00:07:48,980 --> 00:07:51,110 you know, 10 k those being engaged 200 00:07:51,110 --> 00:07:52,400 and the other 10 k is like, 201 00:07:52,400 --> 00:07:54,650 you're hopeful they'll purchase one day, 202 00:07:54,650 --> 00:07:56,030 they've been hanging around forever 203 00:07:56,030 --> 00:07:57,650 and you will send them those texts 204 00:07:57,650 --> 00:07:59,600 for the big launches or product drops. 205 00:07:59,600 --> 00:08:01,730 But now we want to tighten up that window 206 00:08:01,730 --> 00:08:06,730 so those SMS sends are to your more guaranteed segment, 207 00:08:06,800 --> 00:08:09,440 keep the revenue coming in from them 208 00:08:09,440 --> 00:08:12,860 and then as things start to normalize, 209 00:08:12,860 --> 00:08:15,770 then breach back out into that broader audience 210 00:08:15,770 --> 00:08:16,910 that you were looking at before, kind of 211 00:08:16,910 --> 00:08:19,520 that hopeful window you're spending some extra money on. 212 00:08:20,420 --> 00:08:21,680 - Yeah, I love it. And you know, one 213 00:08:21,680 --> 00:08:23,120 of the other things we're, we're leaning into, you know, 214 00:08:23,120 --> 00:08:25,220 we do a lot with obviously Amazon ads and Google ads 215 00:08:25,220 --> 00:08:27,470 and YouTube and things like that is, you know, there, 216 00:08:27,470 --> 00:08:28,880 there are times when, when things are smooth 217 00:08:28,880 --> 00:08:31,820 and easy where, where maybe you kind of 218 00:08:31,820 --> 00:08:33,980 ignore some wasted ad spend, right? 219 00:08:33,980 --> 00:08:35,570 Where maybe there's some keywords that are not gonna 220 00:08:36,560 --> 00:08:39,050 performing with an Amazon ads with Google ads, 221 00:08:39,050 --> 00:08:41,270 but when times are good, you kinda let that slide. 222 00:08:41,270 --> 00:08:45,170 We audit, you know, dozens of accounts every month 223 00:08:45,170 --> 00:08:49,070 and we regularly see, you know, wasted ad spend in the 10 224 00:08:49,070 --> 00:08:52,880 to 15 to $20,000 a month range, meaning you could cut 225 00:08:52,880 --> 00:08:56,220 that ad spend and sales would not dip. 226 00:08:56,220 --> 00:08:57,600 Now's the time to be looking at stuff like that. 227 00:08:57,600 --> 00:09:01,620 So don't cut your overall ad budget, but man, cut the waste. 228 00:09:01,620 --> 00:09:03,720 And so I think that's something you wanna lean 229 00:09:03,720 --> 00:09:05,730 into and look at right now. 230 00:09:05,730 --> 00:09:07,830 You know, one of the basic things we do all, all the time 231 00:09:07,830 --> 00:09:11,520 as an agency, Nick, is we at least quarterly and, 232 00:09:11,520 --> 00:09:13,470 and now I'd say you probably do this monthly, 233 00:09:13,470 --> 00:09:15,120 look at all your recurring expenses. 234 00:09:15,120 --> 00:09:16,560 What, what are, what are we paying for? 235 00:09:16,560 --> 00:09:19,290 What tools, what softwares, what are we paying 236 00:09:19,290 --> 00:09:20,430 for that we're not using? 237 00:09:20,430 --> 00:09:22,830 And we see this a lot where maybe you're like, oh wait, 238 00:09:22,830 --> 00:09:25,110 we're paying for three multi-touch attribution tools, right? 239 00:09:25,110 --> 00:09:27,150 We're paying for these two tools 240 00:09:27,150 --> 00:09:28,470 and those reporting, we don't, 241 00:09:28,470 --> 00:09:29,700 we don't need all that, right? 242 00:09:29,700 --> 00:09:32,760 And so what can we cut to get lean and mean? 243 00:09:32,760 --> 00:09:35,370 Because really I think right now we're kind of fighting 244 00:09:35,370 --> 00:09:37,260 and scrapping for every point, every point 245 00:09:37,260 --> 00:09:38,850 of profit that we can get. 246 00:09:38,850 --> 00:09:42,900 And so looking to cut expenses, cut software costs, cut, 247 00:09:42,900 --> 00:09:44,670 cut opex, things like that. 248 00:09:44,670 --> 00:09:45,930 What are the tips or insights you have 249 00:09:45,930 --> 00:09:47,305 on, on cost cutting? Nick, 250 00:09:47,305 --> 00:09:49,020 - It is funny for that. 251 00:09:49,020 --> 00:09:51,630 That's one thing I don't recommend automating it is going 252 00:09:51,630 --> 00:09:53,040 over your p and l. 253 00:09:53,040 --> 00:09:55,470 Yeah. Like, yeah, QuickBooks could automate for you 254 00:09:55,470 --> 00:09:57,360 and shove into the different categories, 255 00:09:57,360 --> 00:10:00,690 but even for my own personal finances on Sundays, I sit down 256 00:10:00,690 --> 00:10:02,520 and I go look at every line item. 257 00:10:02,520 --> 00:10:05,040 And if I have a, a late fee for my gym, 258 00:10:05,040 --> 00:10:07,710 'cause I missed a class, I punch myself in the arm for 259 00:10:07,710 --> 00:10:10,470 that $15 feed. I they hit you with 260 00:10:10,470 --> 00:10:12,240 - Your wife's like Nick pushups right now. 261 00:10:14,010 --> 00:10:15,720 - They, they get you with those cancellations. 262 00:10:15,720 --> 00:10:19,950 But looking at like cost cutting as a whole, get aligned 263 00:10:19,950 --> 00:10:22,590 with your inventory forecasting, 264 00:10:22,590 --> 00:10:26,400 sit on the extra inventory might have been a nice safe play 265 00:10:26,400 --> 00:10:27,870 and good to have in the future. 266 00:10:27,870 --> 00:10:29,730 And what if sales just spike up outta nowhere? 267 00:10:29,730 --> 00:10:31,500 Then I have the inventory for it. 268 00:10:31,500 --> 00:10:33,660 But really start to figure out how much you are selling 269 00:10:33,660 --> 00:10:35,850 through on a 30, 60 day basis. 270 00:10:35,850 --> 00:10:37,080 How much you need to be ordering 271 00:10:37,080 --> 00:10:39,480 so you're not running out of product. 272 00:10:39,480 --> 00:10:40,920 And then start saving some costs. 273 00:10:40,920 --> 00:10:42,720 'cause you don't have a bunch of debt inventory sitting 274 00:10:42,720 --> 00:10:45,180 there in some kind of three pl 275 00:10:45,180 --> 00:10:46,180 - Love it man. 276 00:10:46,180 --> 00:10:47,880 And this is also the time of you looking at your three pl. 277 00:10:47,880 --> 00:10:50,550 How can we cut costs there? How can we renegotiate? 278 00:10:50,550 --> 00:10:52,170 How can we lower shipping costs? 279 00:10:52,170 --> 00:10:54,390 Obviously talking to your factory, to your, your factory, 280 00:10:54,390 --> 00:10:56,100 to the manufacturers you work with. 281 00:10:56,100 --> 00:10:57,510 How can we extend terms, 282 00:10:57,510 --> 00:10:59,910 how can we maybe share in some of the price increases? 283 00:10:59,910 --> 00:11:02,040 So get creative there and, 284 00:11:02,040 --> 00:11:03,810 and really just look for any way 285 00:11:03,810 --> 00:11:05,760 that you can save and partner. 286 00:11:05,760 --> 00:11:08,070 Really nothing should be off the table 287 00:11:08,070 --> 00:11:12,360 because every point of margin matters at this point. 288 00:11:12,360 --> 00:11:14,100 And, and you know, another, another thing we recommend on 289 00:11:14,100 --> 00:11:15,780 the, on the Amazon side, we got a couple services we 290 00:11:15,780 --> 00:11:17,400 recommend where they will go 291 00:11:17,400 --> 00:11:19,680 and help you recover fees from Amazon 292 00:11:19,680 --> 00:11:21,600 because there's probably some fees you've been charged 293 00:11:21,600 --> 00:11:24,690 that you can get a refund on for a variety of reasons. 294 00:11:24,690 --> 00:11:29,550 But often that amounts to 1000, 5,000, $10,000 a month type 295 00:11:29,550 --> 00:11:33,270 of thing in, in recouped fees. 296 00:11:33,270 --> 00:11:36,450 So now is the time to look at everything like that as well. 297 00:11:36,450 --> 00:11:40,230 Try to save as much as you can without 298 00:11:41,070 --> 00:11:42,990 reducing product quality 299 00:11:42,990 --> 00:11:46,650 and without taking your foot off the gas pedal 300 00:11:46,650 --> 00:11:48,900 because you want to still be gaining market share 301 00:11:48,900 --> 00:11:51,300 and growing through this time. 302 00:11:51,300 --> 00:11:53,470 Now another thing we, we talked about Nick, as you know, 303 00:11:53,470 --> 00:11:56,050 hey, now's the time to lean into email marketing. 304 00:11:56,050 --> 00:11:57,970 So what are some creative things we can do 305 00:11:57,970 --> 00:12:00,400 to make our email marketing better that's going 306 00:12:00,400 --> 00:12:03,910 to lift sales, lift profits. What can we do right now? 307 00:12:03,910 --> 00:12:06,640 - I really like leaning into the brand's tone 308 00:12:06,640 --> 00:12:08,140 and the brand's voice. 309 00:12:08,140 --> 00:12:09,430 And just remember that you're talking 310 00:12:09,430 --> 00:12:13,180 to other people on the other side of this transaction email 311 00:12:13,180 --> 00:12:15,370 or SMSI can see a lot of brands kind 312 00:12:15,370 --> 00:12:18,880 of just sending out this one way informational bit. 313 00:12:18,880 --> 00:12:22,300 One account I was auditing earlier today, a text, 314 00:12:22,300 --> 00:12:25,180 it was just super scientific, followed 315 00:12:25,180 --> 00:12:27,490 by read the blog post here. 316 00:12:27,490 --> 00:12:29,590 I'm like, do you think your customers really want 317 00:12:29,590 --> 00:12:31,960 to get this text and will it make them feel special 318 00:12:31,960 --> 00:12:33,160 like that the blog post? 319 00:12:33,160 --> 00:12:36,250 Like, come on, figure out a new way to phrase that 320 00:12:36,250 --> 00:12:39,670 and relate to your customers and work on your tone. 321 00:12:39,670 --> 00:12:42,070 You know, general population probably a little bit stressed 322 00:12:42,070 --> 00:12:43,390 out now as well. 323 00:12:43,390 --> 00:12:44,530 So connect 324 00:12:44,530 --> 00:12:47,440 with them on a personal level that'll make them feel more 325 00:12:47,440 --> 00:12:49,000 connected to your brand. 326 00:12:49,000 --> 00:12:50,530 And a great way to do this is just, you know, 327 00:12:50,530 --> 00:12:53,620 asking questions and having a real conversation with them. 328 00:12:53,620 --> 00:12:58,000 Especially if it's your top a hundred, 300, 500 customers. 329 00:12:58,000 --> 00:13:00,580 I always recommend sending out a question type email 330 00:13:00,580 --> 00:13:03,970 campaign to get those replies to help with deliverability 331 00:13:03,970 --> 00:13:06,460 and to boost your results in the future. 332 00:13:06,460 --> 00:13:09,040 But for now, if you don't have like the customer service 333 00:13:09,040 --> 00:13:11,560 backend to deal with a thousand replies, start 334 00:13:11,560 --> 00:13:13,180 with your top a hundred, 300 customers 335 00:13:13,180 --> 00:13:15,220 and figure out what question you wanna ask them 336 00:13:15,220 --> 00:13:17,140 and actually relate to them and have that back 337 00:13:17,140 --> 00:13:18,460 and forth conversation. 338 00:13:18,460 --> 00:13:20,170 And it's more likely could get you some referrals in the 339 00:13:20,170 --> 00:13:21,520 future when they send people your 340 00:13:22,695 --> 00:13:23,695 - Way's. 341 00:13:23,695 --> 00:13:24,528 Really great. And you know, one 342 00:13:24,528 --> 00:13:26,650 of the other things I'll mention an idea that we actually, 343 00:13:26,650 --> 00:13:29,440 we did this a couple years ago for another client 344 00:13:29,440 --> 00:13:32,020 where they were about to raise their prices. 345 00:13:32,020 --> 00:13:34,450 They had not raised prices in quite some time 346 00:13:34,450 --> 00:13:36,190 and so they emailed their entire list. 347 00:13:36,190 --> 00:13:37,390 I think they started with our VIPs 348 00:13:37,390 --> 00:13:39,040 and then they emailed everybody, but they said, Hey, 349 00:13:40,120 --> 00:13:43,060 you know, we're raising our prices on this date, here's why. 350 00:13:43,060 --> 00:13:44,710 And I, and I think it's another way 351 00:13:44,710 --> 00:13:47,140 where email gives you the, the freedom to do this. 352 00:13:47,140 --> 00:13:50,200 You just explain this to your customers that hey, our cost 353 00:13:50,200 --> 00:13:52,210 of goods are going up 50% right now, 354 00:13:52,210 --> 00:13:54,610 so we're not raising our prices 50%, 355 00:13:54,610 --> 00:13:57,430 we're raising our prices 10% or whatever the case may be. 356 00:13:57,430 --> 00:14:00,100 But here's why we have to do a price increase. 357 00:14:00,100 --> 00:14:02,230 We just, we have to, right? 358 00:14:02,230 --> 00:14:03,610 But here's what we wanna do for you 359 00:14:03,610 --> 00:14:07,210 because you're a valued customer locking in the existing 360 00:14:07,210 --> 00:14:09,670 price through this date. 361 00:14:09,670 --> 00:14:11,290 And what's interesting about that is it, 362 00:14:11,290 --> 00:14:12,700 it's basically a sale. 363 00:14:12,700 --> 00:14:14,440 It's not a sale. 'cause you're not discounting, 364 00:14:14,440 --> 00:14:16,450 you're just saying we're about to raise our prices, 365 00:14:16,450 --> 00:14:18,190 but you can order right now. 366 00:14:18,190 --> 00:14:19,150 Now obviously there are a few things you gotta 367 00:14:19,150 --> 00:14:19,983 keep in mind there. 368 00:14:19,983 --> 00:14:21,700 If you're low on inventory, you can't do it if, if you're, 369 00:14:21,700 --> 00:14:22,960 you know, inventory forecasting is not 370 00:14:22,960 --> 00:14:24,070 precise right now you can't do it. 371 00:14:24,070 --> 00:14:25,720 But if all those things are good 372 00:14:25,720 --> 00:14:27,370 and you wanna raise a little bit of cash right now to kind 373 00:14:27,370 --> 00:14:29,770 of help weather the storm, it's a great way 374 00:14:29,770 --> 00:14:33,040 to do a quote unquote sale without doing a discount. 375 00:14:34,090 --> 00:14:36,160 - Especially if you have a subscription based business. 376 00:14:36,160 --> 00:14:38,410 Hey, you know, subscribe now to get 10% off 377 00:14:38,410 --> 00:14:40,630 for every order moving forward. 378 00:14:40,630 --> 00:14:43,570 Yes. And that'll give 'em reason to not cancel in the future 379 00:14:43,570 --> 00:14:45,340 because we'll see those new price increases. 380 00:14:45,340 --> 00:14:47,560 Oh, if I cancel then I gotta come back into this new higher 381 00:14:47,560 --> 00:14:48,560 - Rate. 382 00:14:48,560 --> 00:14:49,930 Yeah. And maybe, maybe make 383 00:14:49,930 --> 00:14:51,380 that offer just for subscriptions only. 384 00:14:51,380 --> 00:14:52,790 We're like, hey, we're about to raise prices, 385 00:14:52,790 --> 00:14:55,010 but not only are we not raising prices on our existing 386 00:14:55,010 --> 00:14:56,930 subscriptions, we're on this current discount. 387 00:14:56,930 --> 00:14:58,790 So get locked in now so 388 00:14:58,790 --> 00:14:59,840 that you don't have to worry about it later. 389 00:14:59,840 --> 00:15:04,310 And, and yeah, that creates predictable, consistent revenue, 390 00:15:04,310 --> 00:15:06,050 which is worth it in the long run. 391 00:15:06,050 --> 00:15:09,350 So Nick Flint, any, any final thoughts? 392 00:15:09,350 --> 00:15:13,310 How do we protect profits, cut costs? 393 00:15:13,310 --> 00:15:15,860 How do we find ways to win right now? 394 00:15:15,860 --> 00:15:18,860 - Yeah, closing out in less than a minute here, 395 00:15:18,860 --> 00:15:21,050 focus on what's working for your business right now. 396 00:15:21,050 --> 00:15:23,630 Probably don't use this time to test out a ton of new things 397 00:15:23,630 --> 00:15:25,160 that are gonna cost you a lot of money. 398 00:15:25,160 --> 00:15:27,560 So focus on what's working for you. 399 00:15:27,560 --> 00:15:29,450 Communicate with your customers openly 400 00:15:29,450 --> 00:15:32,660 and like a human, actually connect with them. 401 00:15:32,660 --> 00:15:34,520 Look at all of your costs. 402 00:15:34,520 --> 00:15:37,640 And then lastly, consult 403 00:15:37,640 --> 00:15:39,830 an actual tariff lawyer. 404 00:15:39,830 --> 00:15:43,010 You know, yes, before you do something silly, like try to 405 00:15:43,010 --> 00:15:46,310 backend this secret deal with your manufacturer 406 00:15:46,310 --> 00:15:48,830 where they put it as half the cost when it comes overseas 407 00:15:48,830 --> 00:15:49,910 and you're gonna get audited 408 00:15:49,910 --> 00:15:52,640 and probably sent to prison, dodge all that by talking 409 00:15:52,640 --> 00:15:54,380 to an actual professional. 410 00:15:54,380 --> 00:15:55,430 'cause it's hard 411 00:15:55,430 --> 00:15:58,490 to sell products when you're in a jail cell. 412 00:15:58,490 --> 00:16:00,860 - Yeah, yeah. That, that cut in profits, 413 00:16:00,860 --> 00:16:04,310 reduce profits much easier to tolerate than prison foods. 414 00:16:04,310 --> 00:16:07,310 So I I like that. That's really, really sound advice, Nick. 415 00:16:07,310 --> 00:16:08,720 I appreciate that. And, 416 00:16:08,720 --> 00:16:12,200 and just final thought as we wrap up here is that 417 00:16:12,200 --> 00:16:14,420 even in the midst of tariff craziness and, 418 00:16:14,420 --> 00:16:16,850 and the way this all will, will shake out 419 00:16:16,850 --> 00:16:19,070 and likely change a million times here in the, 420 00:16:19,070 --> 00:16:22,040 in the coming months, there's always, always, 421 00:16:22,040 --> 00:16:24,080 always a path forward. 422 00:16:24,080 --> 00:16:25,670 There's always a way to win, there's always a way to grow, 423 00:16:25,670 --> 00:16:27,260 there's always a way to gain new customers. 424 00:16:27,260 --> 00:16:31,490 And so that's why we wanna bring you solutions. 425 00:16:31,490 --> 00:16:33,290 And so with that, we'll wish you good luck. 426 00:16:33,290 --> 00:16:37,280 Thank you Nick, for joining us and until next time, 427 00:16:38,360 --> 00:16:39,193 - See you then.