Well, hello and welcome to The eCommerce Podcast with
Speaker:me, your host, Matt Edmundson.
Speaker:Oh yes, now this is a show all about helping you deliver eCommerce wow.
Speaker:And to help us do just that, today I am chatting with AJ Asgari from
Speaker:Drugstore to Door about transforming eCommerce with turnkey solutions.
Speaker:Yes we are, this is going to be an interesting one, I have no doubt.
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Speaker:Yes, it is.
Speaker:Now, eCom Cohort is a membership group that we run and every month
Speaker:we bring you expert workshops on how to do eCommerce better.
Speaker:Better for you, better for the business, better for the planet
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Speaker:you when we have guests like AJ you can come along you can ask your questions
Speaker:So come check it out at ecommercecohort.
Speaker:com, it'd be great to see you in there.
Speaker:Oh yes, and I managed to do all that before the music ended, which has got to
Speaker:be a first for this show, I'm not going to lie, it's all about timing, and my timing
Speaker:is not great on that whole side of things.
Speaker:Here we go.
Speaker:There we go.
Speaker:Now let's talk about AJ, our guest, a family guy, a serial entrepreneur,
Speaker:and your go to pharmacy doc, who's not just at the helm of multiple
Speaker:pharmacies, oh no, no, no, but also the mastermind behind Drugstore to Door.
Speaker:More than a CEO, he's your everyday superhero.
Speaker:Oh yes, dedicated to lifting others up.
Speaker:His mantra, we're only, uh, we only win when we win together.
Speaker:Oh, yes.
Speaker:Now, AJ, great to have you on the show, man.
Speaker:How are we doing today?
Speaker:Fantastic.
Speaker:Glad to be here.
Speaker:Glad to be here.
Speaker:Ah, it's good.
Speaker:Now, whereabouts in the world are you, sir?
Speaker:I am in Oklahoma,
Speaker:Ah, okay.
Speaker:University of Oklahoma is in my backyard, so not necessarily the tech
Speaker:epicenter of the world, if you will.
Speaker:But we're trying to break boundaries here.
Speaker:That's true.
Speaker:It's not known for that, I suppose, and maybe it should be.
Speaker:Maybe it will be after today's podcast.
Speaker:Hopefully we at least crack it a little bit.
Speaker:Yeah, no doubt.
Speaker:I think, and I hope I'm not doing a disjustice to any previous guest
Speaker:on the show, but I think you're our first guest from Oklahoma.
Speaker:Um, so yes, normally it's Florida, New York, you know, California, sometimes
Speaker:Kansas, Dallas is quite popular, Austin, you know, those kind of
Speaker:places, but Oklahoma, you're trailing a blaze there, sir, trailing a blaze.
Speaker:telling you, I'm telling you.
Speaker:It's um, it's rough, but it's good.
Speaker:It's good.
Speaker:We are.
Speaker:It'd be easier if we're in oil, I think.
Speaker:I think that fits in perfect here, but we could say the same about Texas.
Speaker:Texas has taken a pretty good shift into technology.
Speaker:So we'll, we'll see.
Speaker:yeah, absolutely.
Speaker:The way to do it, the way to do it.
Speaker:So you are a pharmacist by trade, is that right?
Speaker:Fair
Speaker:I am.
Speaker:So I got my doctorate of pharmacy from the University of Oklahoma.
Speaker:Um, practiced as a pharmacist in the beginning for a little period of time as
Speaker:I was acquiring independent pharmacies and, um, Once I got a little bit down
Speaker:the road and realized I wanted to do things a little bigger, impact the
Speaker:space in a larger way, and I didn't want to do it through a hundred or
Speaker:two hundred or three hundred locations of your traditional run of pharmacy,
Speaker:I backed out and now I probably shouldn't work behind the bench anymore.
Speaker:It's been a while, but I definitely started my run there.
Speaker:enough.
Speaker:Yeah, you don't want, you don't want you serving you the, the,
Speaker:the drugs which you've ordered is probably what you're saying.
Speaker:Yeah, it's fair play.
Speaker:It's fair play.
Speaker:Know your skills, know your talents and know where you're at.
Speaker:Always a top tip.
Speaker:I stay pretty current, but not as current as I should.
Speaker:So I'll stay on the sidelines, let my team do what they do.
Speaker:Fantastic.
Speaker:So the, so you started out acquiring pharmacies.
Speaker:Um, uh, I'm curious, when did that particular journey start, AJ?
Speaker:Was eCommerce a thing when you started doing this or was it, was it not really
Speaker:a thing at this point of your life?
Speaker:The big thing, you know, like I'm not that old, but old enough to where like Facebook
Speaker:was coming out when I was in college.
Speaker:Um, you know, so we were just starting to get a taste and flavor of all this.
Speaker:By the time I was in pharmacy though, uh, you know, I worked for CVS for one
Speaker:year before I bought my first store.
Speaker:You know, it's just traditional.
Speaker:You think of independent pharmacy in the U.
Speaker:S.
Speaker:especially as kind of your mom and pop shops.
Speaker:They're the independently owned pharmacies across the country.
Speaker:There's a lot of them, about 20, 000 of them.
Speaker:Um, and so as I got in and started acquiring stores and operating these
Speaker:stores, I just realized Jesus, we suck online, like across the board,
Speaker:we suck and it's not getting better.
Speaker:No one's coming to solve the problem.
Speaker:Um, and so I started honestly, selfishly, just how do I fix it for ourselves
Speaker:and brought marketers in and worked on things and tried to leverage, you
Speaker:know, leverage the Shopify's of the world and other pieces and just kept
Speaker:falling flat because this industry is.
Speaker:A very challenging one.
Speaker:You know, we're not selling t shirts and tennis shoes and, um, and not to
Speaker:discount the struggle of any retail shop, but for pharmacy, there's
Speaker:so many caveats and regulation and all these different situations.
Speaker:And so finally, I just got to the point and said, F it.
Speaker:We've got to figure out how to do it and if we're going to do it and spend
Speaker:the money and the time and the energy and the development and all this
Speaker:stuff, let's just attack it for the industry, you know, let's build it for
Speaker:scale and let's just start taking the lumps now, um, and you know, and see
Speaker:how fast we can go prematurely gray.
Speaker:So I'm, I'm killing it.
Speaker:Yeah.
Speaker:Me both, bud.
Speaker:Yeah.
Speaker:Me both.
Speaker:I'm only 20 years old.
Speaker:Um, so, uh, that's kind of, it's fascinating cause you started
Speaker:your eCommerce journey then as eCommerce was actually becoming
Speaker:a sort of a growing industry.
Speaker:Um, and back in the day, I say back in the day because I remember it like
Speaker:it was yesterday, there was no real Shopify at the time and you all had
Speaker:to, you know, it was a wild west.
Speaker:I mean, there's a lot of stuff you can do now which helps you,
Speaker:which you didn't have back then.
Speaker:Um, so I can imagine you, how complex that was for multiple pharmacists because
Speaker:you would build something and six months later it wouldn't necessarily be the
Speaker:right thing that you would have built.
Speaker:And so did you just feel like you were throwing money into a sort of bottomless
Speaker:pit at this point of your life?
Speaker:Yeah, money was a vacuum.
Speaker:We'd start to get somewhere and you're thinking like, Oh, we got it.
Speaker:We got it.
Speaker:And then come out and be like, this is a turd.
Speaker:Like, what were we thinking?
Speaker:No, like, cause it's moving so fast.
Speaker:Uh, you know, and then when you're a non tech tech founder trying to
Speaker:innovate, uh, it's, you know, with everything else, I always joke and
Speaker:all my other businesses, I can roll my sleeves up and just go in development.
Speaker:I can't do that.
Speaker:Like.
Speaker:It's like you go get the switch out of the backyard and start whipping developers
Speaker:and they're like, that's not going to work, you know, that's not how this goes.
Speaker:Uh, so your hands are kind of locked in that.
Speaker:So we really had to take a hard look at what's out there, how far can we leverage
Speaker:it, what starts to like constrain us.
Speaker:So it was exactly that.
Speaker:It kind of felt like this vortex in the beginning.
Speaker:What can we do?
Speaker:How can we do it?
Speaker:Because we had to solve more than an eCom problem for pharmacy.
Speaker:I mean, you're getting drugs there, prescription drugs.
Speaker:You're getting services like immunizations and testing and all this other stuff.
Speaker:And you've got the ability to buy products.
Speaker:But the products are straightforward.
Speaker:The prescriptions have insurance reimbursement in the U.
Speaker:S.
Speaker:So prices can change, co pays can change, your services, your prices can change.
Speaker:So there's no product carts out there where you can put an initial
Speaker:price in, modify that price without doing a refund, put a new price in
Speaker:the cart and change the overall, you know, so just all these complexities.
Speaker:Start to show up.
Speaker:Uh, and, and so we just decided at some point it's just
Speaker:full on custom development.
Speaker:We don't have an option, um, other than just create it from the ground up.
Speaker:Yeah.
Speaker:Yeah.
Speaker:So, I mean, it sounds like a lot of challenges you had to overcome.
Speaker:'cause like you say, I mean, I sell, I've sold all kinds of things online from
Speaker:beauty supplement, uh, beauty products to health supplements, to spa products.
Speaker:I mean, you know, we've probably sold most things online, but in, in essence, at the
Speaker:end of the day, I'm selling a product.
Speaker:I mean, supplements.
Speaker:I suppose health supplements have, they have more regulation here in
Speaker:the UK than they do in the States.
Speaker:But even so, it's not a heavy regulated industry.
Speaker:It's not like pharmaceuticals where you, you know, you've got
Speaker:some real issues going on there.
Speaker:So it sounds like a real big challenge to sort of overcome.
Speaker:Yeah.
Speaker:In multiple ways.
Speaker:I mean, all the way down to processing, right?
Speaker:Even just finding a processor to run prescriptions.
Speaker:It's easier for me to sell ar fifteens online through a processor than
Speaker:it is to sell prescription drugs.
Speaker:I mean, so there's, there was challenges every single step of
Speaker:the way that we had to overcome.
Speaker:Uh, to create the model for what it is we do today.
Speaker:So every aspect, I can't think of one, we went, Oh, that was easy, bam, nailed it.
Speaker:Yeah,
Speaker:Yeah, it's interesting, isn't it?
Speaker:Because I think, um, every eCommerce.
Speaker:Company I know has got their own story.
Speaker:They've got their own journey and they've got their own difficulties
Speaker:and stuff they've had to overcome.
Speaker:Um, having done work with pharmaceutical companies myself, in
Speaker:terms of trying to get things online.
Speaker:Man alive.
Speaker:My hat's off to you if you've cracked the code because the legislation, just
Speaker:even around what you can and can't say in any promotions or ads, um, it's
Speaker:terrifying in a lot of ways, you know.
Speaker:And so what, what caused you to sort of continually drive to solve this problem
Speaker:was it was it because you saw the pot of gold at the end of the rainbow or
Speaker:because you you think you could solve quite a few problems for a community
Speaker:or whatever and what I'm curious what was the drive because I know in this
Speaker:industry like I do that man that's a lot of tenacity I'm not gonna lie
Speaker:yeah, easier things to tackle for sure.
Speaker:Um, the objective for us was far beyond.
Speaker:We've had acquisition talks and other things that we've
Speaker:turned down at this point.
Speaker:We're pretty mission driven where we are in our current phase of growth, if you
Speaker:will, or I'm just an idiot and too far in.
Speaker:I can't let it We'll leave that to be determined, but we're
Speaker:going to call it mission today.
Speaker:We're going to call it mission.
Speaker:So we really do believe we can solve a fundamental problem.
Speaker:Um.
Speaker:You know, if you just look at the U.
Speaker:S.
Speaker:right now, you've got Rite Aid who's going bankrupt.
Speaker:Um, you've got CVS and Walgreens.
Speaker:Between CVS, Walgreens, and Rite Aid, you've got about 1, 500,
Speaker:1, 600 pharmacy locations across the country that are closing.
Speaker:Um, this limits access to people.
Speaker:You know, when we think about access to people, we think about big cities.
Speaker:You're Dallas, and you know, as we were talking, Dallas and Austin, and
Speaker:all these spots where, sure, there's a pharmacy on every single block, but
Speaker:what happens when you get out into Ida Bell, Oklahoma, or, you know, these
Speaker:little small towns that have communities.
Speaker:Um, that don't have access to appropriate healthcare.
Speaker:This is where independent pharmacy really solves an issue.
Speaker:Not only do we solve it in the metropolitan areas, we solve it in every
Speaker:crack of the U S if you will, right?
Speaker:And so for us, it's how do we take this network of independent
Speaker:pharmacies and leverage what it is they can do and make them incredibly
Speaker:accessible to the user base, right?
Speaker:To people like you or our families or whatever it might be.
Speaker:And at some point, technology will trump, you know, the, the wonderful service that
Speaker:small businesses provide their customers.
Speaker:You have to go beyond that, right?
Speaker:When you go on Amazon and they drone drop a prescription in less
Speaker:than an hour to your front door.
Speaker:You better damn well have something to back up what you're doing, um, in a way
Speaker:that competes to where even if your guy's on the ground in a car bringing it in 45
Speaker:minutes, that's still comparable, right?
Speaker:As long as my path to acquisition was simple, you know, running through,
Speaker:being able to go online and run through.
Speaker:So, for us, we really think, not just in the U.
Speaker:S., but in, in every market.
Speaker:We can really take these pharmacies into a last mile delivery stance.
Speaker:And if we give them phenomenal technology and all the tools to execute, they can
Speaker:just extend all the things they do.
Speaker:We don't have to be that company.
Speaker:We extend their ability to do the things that they do and then from a consumer
Speaker:standpoint, they're going, hey, I'm not giving anything up, you know, I'm
Speaker:saving money, I've got great access, I can get my meds quickly, all of those
Speaker:things that we want as consumers, right, simpler, faster, so on and so forth,
Speaker:cheaper, et cetera, that helps, uh, these, these guys accomplish it because most
Speaker:small business owners are not going to go spend what I've spent at this point
Speaker:to create what we've created, right?
Speaker:It's not going to happen just because it's not feasible.
Speaker:Right.
Speaker:Right.
Speaker:yeah, no, that's very true and I think, um, we looked at something similar in
Speaker:the salon space, in the, in the digital salon space when we owned a beauty site.
Speaker:It's like we'd learned a lot and we had some great tech.
Speaker:Could we then give that tech to smaller businesses who could leverage that
Speaker:for themselves where they wouldn't have, you know, they're not going to
Speaker:go and spend whatever it was, quarter of a million or whatever we spent on
Speaker:that site, you know, just, it's just, it's a pointless thing to think about.
Speaker:But if you can give them that tech, well then that makes it interesting
Speaker:again, like you say, for the small sort of independent, isn't it?
Speaker:Because I imagine Walgreens, um, Which is a large pharmaceutical
Speaker:chain in the States, isn't it?
Speaker:For those outside the States, Walgreens and CVS, um, is both of, both of which
Speaker:I, I was in the States a few months ago.
Speaker:I went into one pharmacy and I thought, man, I think I'm going
Speaker:to have to sell my right kidney just to get some antihistamines.
Speaker:And I'm, I'm not quite understanding why.
Speaker:Um, very different in the UK, I'm not going to lie.
Speaker:And so, um, So I was shocked by the price of, uh, meds over in the States, but I
Speaker:imagine these guys, I mean, I know the profit margins, because I see what they're
Speaker:charging for the medication, right?
Speaker:Um, I imagine these guys are trying to create their own sort of online
Speaker:system to prevent the smaller guys, you know, just to lock them out.
Speaker:We're just going to lock this market out.
Speaker:I won't even get into that.
Speaker:We'll need a whole nother four episodes of podcast to get through it, but,
Speaker:um, it's a really jacked up system.
Speaker:And the bad thing for us as pharmacy owners is the margin on
Speaker:prescription drugs is terrible.
Speaker:I mean, there are times we Taking losses, filling prescriptions for, for patients.
Speaker:And so for us, we have to combat that.
Speaker:And so the way I always talk with pharmacies is let's get into the
Speaker:sport supplements or the cosmetic lines or the other industries.
Speaker:There are plenty of industries that would give their left leg for the traffic flow.
Speaker:A pharmacy, right?
Speaker:And so for a pharmacy to not capitalize on that traffic flow and not to extend or
Speaker:grab more of that customer's wallet when you've already got their attention and
Speaker:they trust you and there's a lot of things you can sell to them is ridiculous, right?
Speaker:But the majority of pharmacy, independent pharmacy, if you
Speaker:will, it's all wrapped up.
Speaker:90 95 percent of their earnings is in the prescription side,
Speaker:which leaves this whole untapped.
Speaker:Um, you know, call it opportunity in multiple areas
Speaker:that they're just not touching.
Speaker:And so we're trying to move them in that direction.
Speaker:yeah.
Speaker:This is interesting because you're talking in some respects
Speaker:about a brick and mortar store.
Speaker:But in eCommerce, it's exactly the same thing.
Speaker:We just call it average order value, right?
Speaker:We just want to increase the average order value because we like to give
Speaker:things poncy names in eCommerce, don't we?
Speaker:And so let's increase the average order value and what else can
Speaker:we sell, upsell, cross sell, downsell, et cetera, et cetera.
Speaker:And I imagine with pharmacy.
Speaker:Uh, the, like you said, the unique characteristic that you have is you
Speaker:have a high trust factor from the clientele walking through the door.
Speaker:Whereas if someone's walking into, I don't know, a smoothie shop
Speaker:or a clothes shop or something.
Speaker:It's not quite the same, is it really?
Speaker:Uh, you're not going to save my life or kill me if you give
Speaker:me something right or wrong.
Speaker:And so, um, I suppose that's, that's quite an interesting point because you
Speaker:do, you may have low margins, um, but you've got this high trust factor, which
Speaker:you can then capitalize on building average order value and stuff like that.
Speaker:What sort of things have you seen then work for that?
Speaker:Online.
Speaker:I'm curious, you know, what, what sort of things have you seen drive that?
Speaker:It's funny.
Speaker:We see, uh, it depends.
Speaker:So for pharmacies that aren't versed, who are not comfortable doing
Speaker:something even like this, right?
Speaker:You got to think your personality type of a pharmacist is very type A.
Speaker:They kind of fit that engineering line.
Speaker:Like I'm the odd ball in the industry, right?
Speaker:I love to run my mouth.
Speaker:I love to be around people.
Speaker:A lot of people are like, you're a pharmacist, you know?
Speaker:But it.
Speaker:For me, it's, it's different.
Speaker:Right.
Speaker:And you don't find that.
Speaker:And I didn't realize that like, Hey, I'm the weird one.
Speaker:They're not the weird ones until I got in and was hiring pharmacists
Speaker:and trying to train them to upsell and do things in the pharmacy.
Speaker:They just got weird about, you know, they just.
Speaker:Literally got weird about.
Speaker:So for us training pharmacies and trying to teach them, I try to find ways to
Speaker:integrate the tech into their daily flow.
Speaker:So we're not stretching them so far out of their comfort bubble that they're going to
Speaker:Yeah, yeah.
Speaker:When you ask what's working, I've guys like me who will get on social
Speaker:media and they have no, they will go the whole nine yards, right?
Speaker:And I, there are some who kill it.
Speaker:on social media, their social media translates to sales, you know, and then
Speaker:their sales and their volume go crazy.
Speaker:They'll get on and do a butt paste video and sell 50, 000 of
Speaker:butt paste in 24 hours, right?
Speaker:And you think it's a joke, but it's not a joke.
Speaker:Like it's the
Speaker:No, I'm sure it's a really example.
Speaker:Yeah, yeah.
Speaker:Buttpaste.
Speaker:I didn't realize there was such a thing, but you carry on.
Speaker:Yeah, it's, it's, it, and I say it for the extreme example, but it's very true.
Speaker:I mean, it's very true.
Speaker:And then you've got others who we just take things that they
Speaker:do, whether it's specialized compounding or filling scripts.
Speaker:So we took our technology and said, Hey, let's, let's take it a step further.
Speaker:Let's take it to the point where a customer doesn't just come in and
Speaker:shop the sites, but we can populate suggested carts for customers, right?
Speaker:Because we are the advice givers.
Speaker:We are the ones who, you know, went to school and got our doctorate degrees and
Speaker:understand how medicine works and what goes with what and what you're going to be
Speaker:depleted in and all of these things that are important for your overall health.
Speaker:So I could come to you and say, Matt, you're on these three medications.
Speaker:I know for sure these reduce these essential vitamins
Speaker:and minerals in your body.
Speaker:I've got two here I've suggested for you with a discount code you
Speaker:can utilize at a checkout, or
Speaker:Genius.
Speaker:you can just delete them out of the cart, no big deal, get your prescription, but
Speaker:right, and now you're gonna, you're not walking into, and I don't know if you've
Speaker:got GNCs or other supplement stores, they've always joked with pharmacists,
Speaker:I'm like, you got people going in getting bro advice from an 18 year old
Speaker:on what they should be supplementing, To be a healthy person, and you got a
Speaker:damn doctorate over here, and you're scared to talk to them about what
Speaker:they should actually be doing, right?
Speaker:So how can we leverage tech to offset that?
Speaker:Because we should be killing the supplement stores at what they do.
Speaker:No, you totally should.
Speaker:Uh, I mean, I sell supplements online.
Speaker:I know how it all works, but yeah, it's what I find fascinating here,
Speaker:AJ, what you're talking about.
Speaker:Uh, cause often I get asked, um, you know, I, it's probably one of the
Speaker:most common questions we get asked.
Speaker:How do we compete with Amazon?
Speaker:Uh, cause Amazon is.
Speaker:It's just crazy what it does, and, um, the technology and the algorithms
Speaker:and the scale and the infrastructure.
Speaker:You go, well, you can't, can you, in a lot of, you can't
Speaker:compete on a like for like basis.
Speaker:What you can do though, is you can bring a level of knowledge and expertise to
Speaker:your website that Amazon simply doesn't.
Speaker:And what you've highlighted here is an ideal example of this.
Speaker:It's like.
Speaker:I know if you take these three medications, you're going to be
Speaker:missing these vitamins and minerals.
Speaker:So take this supplement and we'll put that in your bag.
Speaker:Amazon can't do that.
Speaker:Right, because they, they've not got pharmacists sat around going, well
Speaker:if they order this, they can maybe do it with some kind of algorithm that
Speaker:maybe might, might, might look out.
Speaker:But this is, this is I think where, where I do think it's genius, where you're
Speaker:using your knowledge and your experience and your expertise to go, what else
Speaker:can I do to leverage this relationship I have with a client to help them,
Speaker:but also build my average order value.
Speaker:You're using your knowledge and expertise to do that.
Speaker:And I think as eCommerce entrepreneurs.
Speaker:That's how we compete with Amazon.
Speaker:Absolutely.
Speaker:If you think about, here's how I think about it, maybe this will help some people
Speaker:listening, your value is paid to you.
Speaker:If you're not getting paid for a consult, so if I'm not sitting you
Speaker:in a room like a doctor and saying, an MD for instance, Hey, I'm going
Speaker:to give you 20 minutes of my time.
Speaker:You're going to give me 300 of your dollars to listen to
Speaker:what comes out of my mouth.
Speaker:If you don't have that relationship, then you're doing it through product.
Speaker:So the things that come out of your mouth should be sold, right?
Speaker:And if they're not going to be sold via time, they got to be sold via product.
Speaker:So when I talk to pharmacists, I always tell them, get your value back
Speaker:out of the consults, the time spent, the energy that you're utilizing.
Speaker:You paid a lot of money and spent a lot of time to be the expert in the neighborhood.
Speaker:For when someone comes to you and says, hey, little Jimmy's
Speaker:sick, or I got a fever, or can he take this with that, right?
Speaker:If it's a this with that, you should be selling the this with that while giving
Speaker:the advice on the this with that, right?
Speaker:Not giving them the advice and then the joke we always have in the U.
Speaker:S.
Speaker:is they go to Wal Mart, right?
Speaker:Like they leave your store, take all your advice, and then they go give Wal Mart.
Speaker:The dollars for the advice you'd give, that should not happen.
Speaker:Right.
Speaker:And you should make it in such a way that it, it, the likelihood
Speaker:of it happening is incredibly low.
Speaker:that's really good.
Speaker:Yeah, really fast.
Speaker:It just fascinates me how some of these very simple statements, you
Speaker:know, still apply to eCom, don't they?
Speaker:It's like, you know, you don't need all the latest technology and silver bullets.
Speaker:It's common sense, lads.
Speaker:You know, let's play to our strengths.
Speaker:Um, and, and utilize that.
Speaker:What sort of things, I'm kind of curious, AJ, what sort of things have you seen work
Speaker:well on the sites which you have then, because obviously you're, you get to see
Speaker:the sales data for all the pharmacies which, um, use your system and you, and
Speaker:you're creating these sort of, um, uh, value ads, I suppose is, is a, is a good
Speaker:way to describe it for your, for websites.
Speaker:What sort of things have you seen work well there?
Speaker:Mm
Speaker:So one area I see work incredibly well is, let's call it reminders.
Speaker:Um, but our reminders go a step further because it comes in a populated cart.
Speaker:So if you're getting a medication that you should be taking every single.
Speaker:30 days or you're on a supplement or a vitamin you should be on every 30 days.
Speaker:The more you can help that customer achieve that by automatic orders,
Speaker:populating the cart for them, giving them suggestions inside of that
Speaker:cart, people taking things away.
Speaker:Versus adding things.
Speaker:It's incredible how much more sticks around if it's kind
Speaker:of in a done for you package.
Speaker:Um, and so I see pharmacies win there.
Speaker:And you got to remember, we're talking about, um, we're not
Speaker:just starting out a thin air.
Speaker:We're walking in and saying, Hey, you've got a thousand customers who use you in
Speaker:your brick and mortar every single day.
Speaker:You've got to convince them that online is the new Holy grail for them, right?
Speaker:And so they got to change shopping behavior from a traditional
Speaker:retail brick and mortar customer.
Speaker:Over to online.
Speaker:So we start looking for all the low hanging fruit to
Speaker:help them get to that point.
Speaker:We see it with high-end, um, supplement lines, doctors who are
Speaker:really, um, into preventative care and that type of stuff, right?
Speaker:They're looking at these.
Speaker:Well absorbed, just high quality tested products that are non pharmaceutical but
Speaker:are supplement in nature and if you can turn a few people on to it that become,
Speaker:think of it like your affiliate if you will, that are driving people to you
Speaker:because you've got the expertise, you've got the products, you carry what they
Speaker:carry, you support their line of business.
Speaker:I'm always looking for those mutual relationships and synergy.
Speaker:So those are a couple ways and then you've got people who just do well online.
Speaker:They get online and they give a ton of value.
Speaker:And then in return for that value, people will pay you whatever you're
Speaker:charging them because they, you've built your credibility, you know, continuing
Speaker:to drop value every single day.
Speaker:So we see it all over the place.
Speaker:You know, pharmacy again is different.
Speaker:We'll see custom compounded medications, right?
Speaker:So I'm making something that's specific for you, right?
Speaker:You come in.
Speaker:You are nauseated.
Speaker:You can't take a pill.
Speaker:You've got diarrhea.
Speaker:You can't put something up the back end.
Speaker:So what are you left to do?
Speaker:Right?
Speaker:I'm going to compound you a transdermal gel that you can rub on your wrist.
Speaker:And I'm going to be your lifesaver in about 20 minutes.
Speaker:Right?
Speaker:And then that person gets.
Speaker:That grab again, that trust again, and now everything that supports that, you have
Speaker:the opportunity to start to pull that in.
Speaker:So there's a million ways is just kind of the good thing for us is
Speaker:nobody's really starting from scratch, but the ones who are like startup
Speaker:pharmacies, new pharmacies that go in.
Speaker:I always send them to look for the synergies, and again, it's industry
Speaker:dependent, I'm sure, but there are a lot of industries I can think about
Speaker:the synergies, where if you can go enhance somebody else's service, i.
Speaker:e.
Speaker:the doctor, by providing things really quickly that could be ordered
Speaker:right there in clinic, knowing that the pharmacy can just drop it at the
Speaker:consumer's house or the patient's house as soon as they leave the
Speaker:doctor's office, that's a game changer.
Speaker:Now you've got a little salesperson who's helping drive Your econ sells.
Speaker:Right.
Speaker:And I think this can happen times a million different ways.
Speaker:Um, once you start to build something that gets people talking,
Speaker:hmm.
Speaker:Mate, there's a lot there.
Speaker:Let's dig into some of that.
Speaker:One of the things you said right at the start, um, something
Speaker:that I call the one click cart.
Speaker:So you, you're sending out emails that a customer can click and
Speaker:that takes them to a pre populated cart with their products in.
Speaker:Have you guys been doing that long?
Speaker:we started testing this over the last year or so, um, and it's been, it,
Speaker:it's been one of the most effective runs of everything, quite honestly.
Speaker:Yeah, yeah, it's interesting you say that because actually, I mean,
Speaker:we, um, our sites are all custom.
Speaker:So, uh, our eCommerce sites are custom websites because we
Speaker:started out in eCommerce in 2002.
Speaker:You know, we, we built web development teams, we've, it's just, I'm not going
Speaker:to, I'm not going to change that now.
Speaker:I, you know, it's as good as Shopify is, um, but we have our own.
Speaker:Proprietary system, which we've developed and one of the things I've been talking
Speaker:to the developers about and some of the things that we've been testing,
Speaker:one of which is this one click cart, right, where you send out an email, you
Speaker:click it and everything's in your cart.
Speaker:You don't even have to go shopping.
Speaker:We're probably going to add a few other extras into your cart, like you say,
Speaker:which you can take out if you want to, you know, some kind of bonus or something.
Speaker:Um, yeah.
Speaker:And my initial response to this is this is actually where I don't have any,
Speaker:I can't say to you that it's closed conversion rate, uh, you know, or
Speaker:increased conversion rate by 30 percent or it's reduced out to baskets by 20%.
Speaker:I can't give you that hard data yet.
Speaker:I think what I can say is anecdotally, I think what I can say is anecdotally, Holy
Speaker:cow, do you know what I mean, and I don't know if you've discovered this yourself,
Speaker:Yeah.
Speaker:So I can give you a little bit of it.
Speaker:Um, from a conversion factor, taking someone from brick and mortar to
Speaker:a populated cart for checkout, we've hit 40 percent conversion
Speaker:on our outbound phone calls.
Speaker:Not emails, not texts, but outbound phone calls with a
Speaker:scripted line, which is ridiculous.
Speaker:I'm expecting that to fall off at some point, but those are trusted customers.
Speaker:So when that happened, that holy S H I T line, right?
Speaker:Like, wow.
Speaker:Um, then the next thing we are seeing, and we'll see if this trend remains, is
Speaker:The upsell of the cart is almost nailing 20 percent of the time, which is nuts.
Speaker:So one in five transactions, you've got that extra 20, 30, 40 bucks
Speaker:that you've tossed in that cart.
Speaker:Uh, and so sometimes even those numbers, you'll talk to a traditional retail shop.
Speaker:They don't understand how ridiculous those numbers are from
Speaker:an online perspective, adoption, conversion, all that kind of stuff.
Speaker:yeah, yeah, now I'm with you, a friend of mine, he, um, he owns a hair salon
Speaker:and when we looked at his numbers Um, there was one point in my life where
Speaker:I thought, well, do we get involved?
Speaker:Do we invest in, in, this is when we had the beauty, I could grow a chain of hair
Speaker:salons and beauty salons if I wanted to.
Speaker:And we were looking at it and the, similar to the beauty, I mean, the
Speaker:beauty salon was more than the hair salon because, uh, with the beauty salon,
Speaker:we had a lot more products, but the hair salon had shampoo and wax, right?
Speaker:That was it.
Speaker:Uh, cause it was, it was for men, but the actual sales of the shampoo
Speaker:and wax were accounted for as much as 30 percent of turnover.
Speaker:And you're like.
Speaker:That's fascinating that actually you can increase your turnover just by adding
Speaker:one or two extra things like that, which makes sense for your product or service.
Speaker:And so I can see why that would have such high value for,
Speaker:from a pharmacy point of view.
Speaker:Um, I, I can, um, you're just circling back, sorry, just
Speaker:another line you dropped.
Speaker:You're using outbound calls.
Speaker:So you're still calling people.
Speaker:Um, you're not just emailing people, um, you're still using the good
Speaker:old fashioned telephone to help drive traffic to your website.
Speaker:Yeah, because I'm looking for that edge, the non Amazon edge, right?
Speaker:Amazon's going to bombard my inbox with emails, I'm going to get bombarded, I
Speaker:mean, to the point now with text messages, it's unreal how much spam I get, you know,
Speaker:and so, and we all know as the noise gets louder and louder and louder, we kill it.
Speaker:The thing for the outbound calls is, again, we're going
Speaker:after a trusted audience.
Speaker:So we're not getting hung up on and as long as we bring real value to the
Speaker:phone call which is hey We're gonna do all this stuff for you Anyways, would
Speaker:life get easier if I just shot you a link to check out and then you can just
Speaker:come grab this thing like a Starbucks coffee And you don't have to worry about
Speaker:dealing with the line and the checkout and any of that kind of stuff, right?
Speaker:Yeah, sign me up for that, right?
Speaker:Here's the link.
Speaker:So, again, we're taking the audience we know and we're saying, hey, let's
Speaker:get more out of this audience, right?
Speaker:And it's interesting what you say.
Speaker:We actually have looked hard at the, the beauty salon industry in the U.
Speaker:S.
Speaker:as well, because when I start looking at all mid level market, we're highly
Speaker:focused in drugs, you know, obviously in pharmacies and that's our mission,
Speaker:but we've built a technology so far at this point, it's like, I can
Speaker:solve, you name a business, I can solve their problems at this point.
Speaker:If you handle all the core pillars of, uh, retail business, then it's,
Speaker:give me the business and I can change the rules around the dashboard and we
Speaker:can solve their problems, you know?
Speaker:So I love to hear that you're, you've looked in that space.
Speaker:yeah, yeah.
Speaker:Well, we almost created a product similar to what you've created here
Speaker:in the UK, um, called Salon Digital.
Speaker:And, um, uh, we sold the beauty business, which is why we never
Speaker:sort of carried on with it.
Speaker:Maybe I should do it at some point.
Speaker:Maybe I
Speaker:Here we go.
Speaker:It's a collaboration, man.
Speaker:We'll get off this call and figure it
Speaker:I'll just white label what you've done.
Speaker:Um But I, I, I think it's fascinating, um, AJ, the fact that you're, I don't know
Speaker:of any eCommerce company that is doing telesales, um, and in fact, most people
Speaker:would have got into eCommerce so they don't have to do the phone call thing.
Speaker:But what you've, what you've said there, which I think is so powerful is you,
Speaker:you're trying to not, you're trying to be different to Amazon and you're calling
Speaker:your high value customers, aren't you?
Speaker:I.
Speaker:I can almost hear the anxiety in people listening to the podcast now, um, and
Speaker:I, I, I'm sorry to induce this, but, um, do you find that, my response to this
Speaker:would be if I started calling people, say for our supplement company here
Speaker:in the UK, I'm kind of curious to know what the response to that would be,
Speaker:whether it would be positive or negative.
Speaker:Um,
Speaker:depends, on what's coming out.
Speaker:Like, what are you calling them for?
Speaker:I think that's the big question mark.
Speaker:right.
Speaker:So how would I, how would I, I guess, how would I deliver value then?
Speaker:How do you, have you, what have you guys figured out here?
Speaker:Yeah.
Speaker:taking someone who's.
Speaker:It's coming into the physical store, right?
Speaker:They're coming into the physical store.
Speaker:They're getting their goods either via drive thru or walking
Speaker:into a physical location.
Speaker:Um, they're ordering their prescriptions either through a telephone phone call or
Speaker:an IVR punch button system, maybe an app where they go in and suggest a refill,
Speaker:but they're doing very manual things and our goal is to take those away from them
Speaker:so it's a quick value add phone call, um, that we bring to these customers.
Speaker:Uh, and then it makes it all worth it, right?
Speaker:Because then we can take all of the labor pieces where you're going, Hey, people
Speaker:are probably cringing, listening to you.
Speaker:We're doing it backwards at this point, right?
Speaker:So it's like, how do we take all the backwards stuff and move them into the
Speaker:digital age so that we have less of the hands on, not saying we don't want
Speaker:to see our patients and we don't want to talk to them and all those things,
Speaker:but how can we streamline the simple stuff so that the conversations are.
Speaker:High level or you know, what's actually needed or solving a real problem and
Speaker:take care of the mundane stuff, you know, we should be able to get our
Speaker:prescriptions, like we get our hamburger.
Speaker:I mean, it should be that easy, uh, for the customer . So, uh, we kind of, we made
Speaker:that a thing when we put drive-throughs in, you know, it's like what do you expect
Speaker:a customer to do when they pull up to a drive through and they've been trained?
Speaker:To get a whole family dinner in three minutes.
Speaker:You know, they expect the same thing out of their medicine.
Speaker:Yeah, they do.
Speaker:And again, that, uh, just circling back to something that you said earlier, to
Speaker:be frank, I, I don't know if I've ever seen a drive through pharmacy in the UK.
Speaker:Um,
Speaker:Interesting.
Speaker:I just, I don't know if I have to be fair, but if I, if I'm honest
Speaker:with you, my local pharmacy is like a six minute walk from my house.
Speaker:Uh, which is more how, how, because there's again, a lot of local pharmacy.
Speaker:There's some big chain ones, but, uh, as is a local one
Speaker:owned by Connie, she's lovely.
Speaker:And you walk down, you have a little chat and you know, she's
Speaker:great and then you walk back.
Speaker:Um, but again, the same sort of things.
Speaker:You walk into the shop, she's just selling the drugs.
Speaker:She's not selling all the other stuff, really, you know, not, not
Speaker:really thought it through, but, um.
Speaker:But what fascinates me here is, apart from the fact that I'm curious to see
Speaker:whether a drive thru pharmacy would work in the UK, I'm super tempted
Speaker:just to go and open one and find out, uh, but, um, you, you talk about the
Speaker:local pharmacy being that last mile.
Speaker:This was something that we saw in COVID.
Speaker:Um, that here in the uk and I saw it, I suppose a little in, in the states.
Speaker:You see this, the difference between the states and the UK is size, it's landmass.
Speaker:So we have, um, whatever, 70, 80 million people in a very small.
Speaker:So I can walk, within five minutes of my house, I can walk anywhere
Speaker:and get pretty much most things that I need, if I'm honest with you.
Speaker:Whereas in the States, everything is much more spread out, and
Speaker:land is a lot cheaper, right?
Speaker:So I get that I have to go in my car and travel somewhere for most things
Speaker:in the States, then it becomes about convenience, so drive throughs, they
Speaker:work, they make sense in my head.
Speaker:So you talked about the sort of the last mile with the local pharmacy, um.
Speaker:And like I say, when COVID, one of the things that I noticed was the local shop
Speaker:down the road, which is five minutes from my house, was doing a delivery service.
Speaker:So like if you lived within like so many meters of his shop, it was like,
Speaker:order the stuff online because it was easy to put the website up and I'll
Speaker:drop it at your door by 4pm that day.
Speaker:And I, I am surprised if I'm honest with you that I have not seen this.
Speaker:www.
Speaker:youtube.
Speaker:com or www.
Speaker:youtube.
Speaker:com www.
Speaker:youtube.
Speaker:com But the local corner shop, which has got everything you
Speaker:need from beans to bread, you can get within sort of half an hour.
Speaker:So just speak to that a little minute, because obviously you've
Speaker:played around this and you've worked on this with your pharmacist.
Speaker:Yeah, for me, it's the same thing.
Speaker:It's getting them the appropriate tech to actually accomplish it
Speaker:versus doing a small portion of it.
Speaker:They can actually extend the full digital offering.
Speaker:And then if you can do that, then it's not, well, hey, I could get my
Speaker:beans and my bread and my Tylenol, but if I need my prescription, I
Speaker:got to still go into the pharmacy.
Speaker:So why in the world am I going to get these three
Speaker:yeah, yeah.
Speaker:walk five minutes and get all of it, right?
Speaker:But if you could go on and get your beans, your bread, your Tylenol, your
Speaker:prescriptions, and book a flu shot to be delivered at your front door, if
Speaker:that's the thing that they want to do.
Speaker:Then that's a game changer, right?
Speaker:That's going to take five minutes of your day for, for that to
Speaker:come and come to fruition.
Speaker:And so pharmacies have to build their models to support what
Speaker:they're going to put out there.
Speaker:And I think they absolutely should.
Speaker:You want to talk about the fear of Amazon?
Speaker:I mean, they're testing drone delivery on prescriptions here in the U S so get
Speaker:ready for a drone to zip that thing over.
Speaker:And at your doorstep.
Speaker:And so we have to be prepared.
Speaker:Um, you know, and at some point you see, uh, players like this in the
Speaker:U S like you've got Mark Cuban and others trying to disrupt spaces.
Speaker:They still leverage this network.
Speaker:And if you, I imagine if you go and, and, uh, you know, really take account
Speaker:of who's out there, big chain, who's out there, small retailer in your area,
Speaker:even in that condensed area, you're going to find there's an individual.
Speaker:Owner who could perform at a very high level.
Speaker:Like I would take that challenge all day long and say, Hey, we will put a team
Speaker:together and bring what we do into the uk.
Speaker:I just need to come unpack what it looks like out there.
Speaker:I mean, we have full intention to say, how do we go far beyond?
Speaker:We've explored Canada and Australia and other places, um, you know, and
Speaker:we're growing our footprint here so fast, we're just knocking this down.
Speaker:Um, but it's gonna, it will work anywhere, but we're
Speaker:Oh, yeah.
Speaker:Absolutely.
Speaker:And this, yeah, and I think the takeaways here, um, AJ.
Speaker:For those of you listening who aren't running a pharmacy, a local pharmacy,
Speaker:the takeaways here that you've talked about, um, are quite extraordinary
Speaker:because they, things like increasing average order value, using your
Speaker:experience and your knowledge to add stuff, um, to customers at, uh, carts,
Speaker:Amazon cart, using one click carts.
Speaker:If you have some kind of retail store, utilizing that last mile, like, how can I?
Speaker:How can I just sort of go above and beyond with a little bit of that extra thinking,
Speaker:that extra delivery, and just totally transform our business as a result?
Speaker:I think it's, it's stuff that, uh, we started to talk about with COVID, uh, for
Speaker:most businesses, and then COVID kind of went, and so everyone's sort of starting
Speaker:to go back to their default before COVID.
Speaker:And you think, I don't know, I just think someone needs to, You can keep
Speaker:pushing and innovating in this space.
Speaker:And I think there's a lot that we can learn from what you guys are doing.
Speaker:Like for me in the health supplement space and for others in, in, in
Speaker:whatever space they're doing, you know, selling couches or whatever.
Speaker:Um, I think it's, I think you, there's a lot of conversations to have around
Speaker:some of the things that you've said.
Speaker:So I appreciate, you know, some of the stuff that you've shared with us.
Speaker:It's been, it's been eye opening.
Speaker:Hmm.
Speaker:Covid was like a window of saying, Hey, I'm gonna give you a snapshot
Speaker:of what the future looks like, and then we're gonna retract it.
Speaker:And it's up to you to determine what you're gonna do with it.
Speaker:But when you think about where AI is going, you think about what
Speaker:Apple's about to release, what Magic Leap and all these others have
Speaker:been working on with an augmented reality and meta and all of this.
Speaker:Like if you think about bringing the world to your living room,
Speaker:bringing the world to your space, it comes to you versus you go to it.
Speaker:You are doing yourself a huge disjustice if you are not preparing for that future
Speaker:because it's going to be here so fast.
Speaker:And I'm excited.
Speaker:Quite frankly, I'm excited.
Speaker:Like, I would love to be sitting in my house and have wearables giving me,
Speaker:you know, keeping data feed on me, and am I healthy, and am I two hours from
Speaker:a heart attack, and can I order my stuff on demand, and I love all that.
Speaker:Like, I'm, I'm ready.
Speaker:Um, or we're all going to kill ourselves because we don't know how to
Speaker:control this monster we're creating.
Speaker:Either way, it's going to be exciting.
Speaker:Yeah, either way, it will be exciting.
Speaker:Yeah, is it Terminator or is it not?
Speaker:We just don't know yet.
Speaker:Uh, Cyberdyne Systems, you know?
Speaker:know.
Speaker:It's a tad terrifying, but also super
Speaker:exciting.
Speaker:it is.
Speaker:And I think it's very wise words.
Speaker:I think it's, this industry eCommerce changes at a rapid pace and you don't
Speaker:have to keep up with everything, but you have to keep up in a
Speaker:smart way, I think, that keeps you differentiated from your competitors.
Speaker:Um, whether that's Amazon or whether that's somebody else down the road, you
Speaker:know, you've keeping customers coming back to your site to buy your products.
Speaker:Um, you can't just assume that what you did last year is going to work this year.
Speaker:Um,
Speaker:Probably should stop that assumption, period.
Speaker:It's a rapid change.
Speaker:Like, period.
Speaker:With all, the
Speaker:yeah, yeah, absolutely.
Speaker:There's that great book, isn't it?
Speaker:Was it Marshall Goldsmith wrote it?
Speaker:What Got You Here Won't Get You There?
Speaker:Yeah.
Speaker:in my, I just gave a presentation in Orlando last week, and
Speaker:that was one of my slides.
Speaker:That exact quote.
Speaker:Yeah, yeah, yeah, great quote, really great quote.
Speaker:AJ, listen, I feel like we're just touching the tip of this iceberg, but I'm
Speaker:aware of time, but if people want to reach you, if they want to connect with you,
Speaker:find out more about what you're doing, especially in the States for their local
Speaker:pharmacy, what's the best way to do that?
Speaker:Yeah, honestly, you can find me via my name, AJ Asgari, all that stuff.
Speaker:I don't go crazy on social.
Speaker:I don't build, you know, it's not my avenue, at least not yet.
Speaker:I probably need to pony up and do it, but you can find me through those channels.
Speaker:You can DM me through those channels.
Speaker:I even have a random landing page, which is my name.
Speaker:com.
Speaker:AJAsgari.
Speaker:com, you can find me there, spelled A S G A R I, uh, just
Speaker:trying to make myself accessible.
Speaker:So if we can help someone go, let's help them go, or if you can bring me
Speaker:value, I'll take it all day long, baby.
Speaker:Bring it on.
Speaker:All the way to Oklahoma, definitely.
Speaker:Uh, and why not?
Speaker:And why not?
Speaker:What is the, um, just enclosing there, AJ, then, what does
Speaker:the future look like for you?
Speaker:What's the next sort of year or two's development?
Speaker:What are some of the things you're really excited about?
Speaker:Uh, you know, we've closed the loop here.
Speaker:So for us, really, it's the, the landmass grab over the next 24 months,
Speaker:I really want to have a big chunk of.
Speaker:The independent pharmacy market in the U S I'd really like to see us expand
Speaker:out of the U S uh, in these two years.
Speaker:Uh, and then we want to open the door from, um, uh, national standpoint
Speaker:to where not only are we solving a problem boots on the ground for
Speaker:these pharmacies, but we can actually start to drive value back to them.
Speaker:And I think with the collective network that we're building, we're really
Speaker:going to be able to do that, um, which is a whole nother podcast, but
Speaker:exciting stuff, exciting stuff coming.
Speaker:Fantastic, fantastic.
Speaker:Well listen man, appreciate you coming on the show, appreciate you taking the
Speaker:time to share with us what's working for you, uh, it's um, I've really enjoyed it
Speaker:actually, talking to someone who's doing eCommerce and running the businesses
Speaker:and picking your brains a little bit, so genuinely appreciate you coming on and
Speaker:the best of British with, uh, with what you're doing over at Drugstore to Door.
Speaker:I appreciate you having me.
Speaker:Ah, it's been great.
Speaker:Now of course we will link to, uh, all of AJ's links, uh, in the show notes
Speaker:which you can get along for free with the transcript at ecommercepodcast.
Speaker:net or they will be coming direct to your inbox if you have done the thing
Speaker:which I suggested at the start which was sign up to the newsletter if you
Speaker:haven't go and do it because it will help you yes it will so Great conversation.
Speaker:Huge thanks again to AJ for joining me today.
Speaker:Also, a big shout out to today's show sponsor, the eCommerce Cohort.
Speaker:Remember, do check them out if you're in eCommerce.
Speaker:Go have a look.
Speaker:Join the membership.
Speaker:Be great to see you in there.
Speaker:eCommerceCohort.
Speaker:com Now, be sure to follow the eCommerce Podcast wherever you get your
Speaker:podcasts from because we've got yet more great conversations lined up and
Speaker:I don't want you to miss any of them.
Speaker:And in case no one has told you yet today, let me be the first.
Speaker:You are awesome.
Speaker:Yes, you are.
Speaker:Created awesome.
Speaker:It's just a burden you have to bear.
Speaker:AJ's got to bear it.
Speaker:I've gotta bear it.
Speaker:You've gotta bear it as well.
Speaker:Now, the E-Commerce Podcast is produced by Aurion Media.
Speaker:You can find our entire archive of episodes on your favorite podcast app.
Speaker:The team that makes this show possible is Sadaf Beynon and Tanya
Speaker:Hutsuliak theme song was written by Josh EdEdmundsonand as I mentioned,
Speaker:the transcript and show notes.
Speaker:So that's it from me, that's it from AJ, thank you so much for
Speaker:joining us, have a fantastic week wherever you are in the world, I'll
Speaker:see you next time, bye for now.