Building a $100k/mo Brands For Two Clients In 64 Mins

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In this exclusive workshop, Sasha and Hamen sit down with two community members — Nikki (a civil construction and land development veteran who spent six months developing a custom bedding product, hit 32% of her first month's sales from pre-orders, and now has return customers within seven weeks of launch) and John (a 25-year civil construction project manager who quit with no plan, launched a premium tattoo aftercare brand, and went from $5K to nearly $20K a month in four months). We break down the product-versus-marketing tradeoff, the exact cash flow ratio every founder needs to track, and the conversion and pricing structures that turn early traction into real scale.

If you're new to this channel, my name is Sasha Karabut. I went from $137,000 in debt to building two 8-figure eCommerce brands. Through my company Ecom Capital, I've generated over $75 million in client revenue and helped 1000+ brands scale their businesses profitably.

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TIMESTAMPS
0:00 - Intro: Two Founders, Two Industries, Same Stage
1:00 - Nikki's Story: Leaving the Family Construction Business
3:00 - The Space That Opened Up After Closing One Division
5:00 - Why "Not Knowing What You Don't Know" Is an Advantage
9:00 - The Bedsheet Idea Born From a Throwaway Comment
12:00 - Sourcing and Sampling: The Six Month Supplier Search
16:00 - Why Customization Justifies a Premium Price
18:00 - The Pre-Order Surprise: 32% of Month One Sales
21:00 - John's Story: 25 Years in Civil Construction, No Plan B
24:00 - Choosing Tattoo Aftercare and Finding a Supplier on Alibaba
26:00 - From $5K to Nearly $20K a Month in Four Months
28:00 - Going Head to Head With the Market Leaders
31:00 - The Product vs Marketing Tradeoff Explained
33:00 - Strategy for Nikki: Long Lead Times and Pre-Sale Funding
35:00 - Strategy for John: Mastering the Creative Top of Funnel
37:00 - Fixing Nikki's Conversion Rate and Traffic Split
40:00 - Why the Product Images Need to Match the Price Point
44:00 - The Before and After Hook (Lessons From the Bisu Brand)
47:00 - Organizing the Site Around Your Best Sellers
50:00 - Justifying Premium Pricing With Image Quality
53:00 - Shortening Lead Times and the Just-In-Time Inventory Model
56:00 - The Most Important Number: Product Cost vs Net Profit Ratio
1:00:00 - How to Use Pricing Tiers to Steer the Ideal Purchase
1:03:00 - Final Thoughts and the Road to $100K a Month

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Transcript

SPEAKER_02 0:00

Nikki and John, two founders from the community joining us, and we're going to run through some background story of their brands as well as how they can build up to the next level, 100,000 per month and beyond.

SPEAKER_03 0:10

You know, for the first time I think ever, I had achieved, I wanted to do something for me that I could really take advantage of. So yeah, that that led me into starting the journey. And I was like, uh what's happening here? And then all of a sudden, more three orders, more pre-orders, and then I sold out of those 40, 32% of my sales in that first month was three orders.

SPEAKER_01 0:36

John, tell us a little bit about your situation. Um that's going to be the 24th day, and um just monthly first month and eight days twelve days. Um last month was the start of 20K, and then on the right twenty four to thirty days this month.

SPEAKER_02 1:01

Was it a difficult step in terms of starting and pulling the trigger for yourself? Like, because obviously thinking about it and going through and pondering and been like, you know what, I'm gonna do something you know that I'm passionate about, and then actually been like Nikki, do you want to kick us off and share with us a little bit about your story in terms of what led you to start Tuckley's first, uh, and then how the growth has been over the last, say, 90 days first.

SPEAKER_03 1:24

Awesome, thank you. Um, yeah, so I live on the south coast of New South Wales. Um, and the last um or the 12 months leading up to um launching Tuckley, we moved into our dream home, and um, I worked in the family business, which is civil construction and land development. Um, just here on the south coast. We had about a team of 40 plus um employees on the civil construction side, and we decided that we spent 80% of our time, we made 20% of our profit, the civil construction. So we decided to close that part of our business and just keep the land development, which freed up a lot of my time. Um, so you know, for the first time I think ever, I was my children are getting older. Uh, I had the time, I had achieved a lot. Um with regards to, you know, I've got this beautiful home that I was really proud of. And just my creative instinct and my my want for something that I could actually hold on to just was like ringing in my ears. Like I just I wanted to do something for me that I that I could really take ownership of. Um, so yeah, that that led me into um starting the journey um to to do e-commerce, and here we are.

SPEAKER_02 2:45

Was there um was there a particular moment where you kind of like uh specifically remember that in terms of being like, hmm, I really feel like doing something of my own. You know what I mean? Because what what I find usually it happens is people are, you know, they're busy being busy, they're busy in their lives, they've got all of these things going on, and then something happens, whether it's a shift, whether it's a change of direction, whether it's a a breakup, something happens that causes like a gap, and then all of a sudden there's some space that goes, you know, you know what? I don't know if I want to continue doing like was there anything specifically, was it this kind of shift in the um the movement of the structure of the business that opened up that space or anything?

SPEAKER_03 3:23

It really was. I mean, I've looked working with your older brother and your and your dad isn't for the faint-hearted, and um I I had all these big dreams and these ideas, but um the foundation of that family business just wasn't set up for me to go off on a on my own version of what I thought it could grow to. Um, and it just I don't know, it just brought it back to I I need to do it my way and my business um for me. Uh and yeah, we uh my husband, my new husband and I, we'd also just gotten married. So it was like it was just a big year of achieving a lot of things, you know, that just made me able to go, all right, what's gonna make Icky happy? Um and you know, we went on this amazing holiday and I just kept on wanting more than going back home and and doing the grind of of I'm still very passionate about that side of the business and it will still always exist because it is a you know a family business with a lot of legacy to it. And um I'm there still, but it's um it's just not my passion and I I just really want it, I yearned for it. Yeah.

SPEAKER_02 4:42

Was was it scary? Um, or is it sounds like you were very like decided in like I'm gonna do something for me?

SPEAKER_03 4:49

I you know, I I I keep I've always felt like I'm a bit of a muse. Like I come up with ideas all the time. I have f for as long as I can remember. And I'm like, that person should do that. That person needs to think about doing. But I've never executed any of it. They're just little ideas in my head, and I'm I I was just like, actually, I I I'm as grateful as I am, but you know, you get put into a bit of a a pigeonhole when you're the boss's daughter and um you've given this, or you like people making a very big assumption. And I also was in a a very big man's world who, you know, I felt like I always had to be proving myself, and then I just, you know, I I can prove myself where it actually means something to me because I don't really care whether what other people are thinking, but I I I want to prove it to me. I will, yeah. So um, yeah, that's yeah. Anyway, that's that's what I think about that.

SPEAKER_02 5:48

Was it a um was it was it a difficult step in terms of starting and pulling the trigger for yourself? Like, because obviously thinking about it and going through and pondering and being like, you know what, I'm gonna do something, you know, that I'm passionate about, and then actually being like, okay, here's the bill and pay, it's it's different, right? So how was that?

SPEAKER_03 6:07

Yeah, I um I think actually making the decision to invest in myself was was a big like it's a it's a lot of trust. You have to just believe in yourself. And you know, at I at the early stage, you were like, I actually don't know what this is yet. Like I don't even know what it is. Um but you've got to you've gotta trust that um you're gonna get there because you know I look you don't know what you don't know, and that's probably um I'm grateful for having that perspective. I I didn't know what I what I didn't know, and that meant anything was possible. Um so that actually became a like a a real helpful thing for me rather than than a problem. Obviously, there are times where you go, what the hell am I gonna do? I don't know what my niche is gonna be or my products gonna be. So you you do you can get um you know led down a different path. But as long as you kind of come back to, well, I can do this, I've I can do this, I'm I can be successful, I just gotta figure out my thing, gotta find my groove, you know.

SPEAKER_00 7:16

And and and I think by the way, that that that element that you just mentioned, like the excitement and just doing it thinking, well, I don't know what I don't know, but I want to do it. That actually part, if you keep it in your business, you're gonna be very successful. Because what I've seen with business owners, where they know a little bit, they think they know everything, and they end up with not taking any risk and not having that mindset of I actually could achieve these things anymore. So I would say that part is actually a good element rather than a negative one. It's very positive when you're like, I don't know what I don't know. I I do believe that I can get something else. And doing those things, action on it, I think that's gonna be for any person that thinking, well, why would I actually say do this? It's gonna be you don't know what you don't know, and you should be looking at a change, and that's why with action. So just that part, I think it's very positive.

SPEAKER_02 8:00

Yeah, exactly. Like to what Hammond said. I see the reverse of people that have a lot of um, you know, all of this assumed um knowledge and this assumed kind of like background experience and business acumen and ego about uh I've got this other business and I'm gonna come on over here and start this little e-commerce business. And they come in and they just they just tank, you know what I mean? Because like they're they're coming in with this massive amount of like preconceived ideas, this is how I should do things, I already know everything. This little stuff that you're gonna teach me isn't really that applicable to me and my you know current situation, and they they really struggle, you know, because it's like it's a big adjustment. Uh, and so that naivete, which is like, oh geez, I have no idea. I'm just gonna like listen to what these guys tell me to do and take action and um figure it out along the way, and then you start doing it and you're like, oh, yep, okay, there it is. Um, it's working.

SPEAKER_03 8:53

Oh, totally. I I couldn't agree more. And I yeah, my background from school, like I never went to university, but I did on-the-job training with every single job that I've done my whole life, and I've got certificates coming out of you know what, but I'm I'm a jill of all trades because I just like I'm in it, I'm in this job. Well, I gotta learn. So, you know, educate me. What what else? What else what I what do I need to know to be really good at this particular job? And yeah, just being in the moment and having the the space to to give um e-commerce that that time to go, all right. Well, open, I'm open. What uh what where are we going with this? Yeah, it it was a blessing.

SPEAKER_02 9:38

I think the the one key thing just early on is like hold on to that as much as you can. You know what I mean? Because the downside of that is oftentimes you feel um you can feel really like insecure and almost like, oh geez, I'm I'm a bit of an imposter. What the hell am I doing here? How did I even how did I even get here? Oh my god, like am I even supposed to be in this, like geez, that maybe they made a mistake and uh you know what I mean? Like that whole situation, it can be quite uncomfortable, but it's it's usually a sign that your mindset towards like growth is always like putting you in bigger environments than you're comfortable with. And and and it's actually like a huge blessing for you to continue growing and growing and growing. So very, very excited. Tell us a little bit about um uh the business that you built, how you kind of went through that product selection phase and launching the business and how everything happened around that.

SPEAKER_03 10:28

Yeah, um I came in completely, you know, fresh-eyed to what it was gonna be. Um my husband and I were doing it together, and we really had no idea where we're gonna go and what we're gonna do. Um so that was fun, like trying to, you know, really pinpoint where we're gonna sit. And um, it was something you said, Sasha, in one of your first modules, which seemed irrelevant to the situation, but you were like, get up and make your bed, like like start your day, right? And this little trigger of a oh, remember that prototype of this, you know, fitted sheet thing that you had in the back of your cupboard that you keep on playing with for years and years and years, and you just sit. And it started when you know the kids were young and they didn't know how to make their bed properly, and they could not do a hospital corner for the sake of it. And and I was just like, that I couldn't unsee it then. And it just kind of was like, Nikki, you've always known that there was an issue with with this, and um, you've always thought there was something that could be improved, but you hadn't put the time and energy into figuring out what that was. Um so yeah, once I kind of realized that yeah, I I couldn't get that thought out of my head. I just I went I went deep. I researched the bejesus out of it, and and before you know it, you know, um, I yeah, I'm I'm really, really excited. And then I started getting excited about sheets and everyone's like, you're a you're a land developer. Like sheets, this is weird. Like, what are you doing? And I I remember having those conversations early on with with friends who just aren't in the same headspace or time that I am, and they were like, What why sheets? And I go, you don't understand, like that what what problems do you have? And then I started just getting right into it, and I was like, Yeah, this is my thing. Like I've I found it because I'm passionate about it.

SPEAKER_02 12:33

I love that. That is insane. I that is so good. I'm glad that I was the catalyzer of the day. And you're like, I know exactly what I must do. That's incredible. That's incredible. Very cool. And so, um, and so talk me through like um the the the build because I know you went through and you did some um sourcing and sampling. You had some like supplier shortlisting kind of like situations that you went through and then you landed on supplier, and then you went into this like pre-sale situation, started selling. Talk us through that a little bit in terms of how that all went.

SPEAKER_03 13:02

Yeah, sure. Um yeah, we did um I did a tech pack and I like I I can't sew, I don't know what I'm doing, but I I just thought, well, this is my new skill that I need to figure out today. So I went deep in the in getting a really um well thought out tech pack, and I sent it to many betting manufacturers um that I found through um through the Alibaba, and um most of them were like, Are you sure you just don't want to put your label on our sheets that we already create? And I was like, no, no, no, like there's no negotiation. This is this is what I want to do. Um, I end up getting, I think, six to seven uh samples, which was thousands of dollars. Like samples are ridiculously expensive, aren't they? Um and some of them were, oh my god, they have no understanding of what I was trying to achieve. And some of them were pretty good. Um, and so that kind of whittled down the process, and then the ones that were pretty good, um, the next round of communication was going back and and um critiquing what they'd done and and in some cases getting them to send a new sample, and um, and one or two of them were were really close. Um, and then what tipped um my manufacturer who is amazing over the edge was you know their communication on top of it was just um it just made me feel really comfortable. And they started um coming up with ideas themselves, and then I go, ah, thank you, that's a great idea, let's incorporate that. And and um the communication and the and the connection with them um just left everyone else. And out of a scale from you know, those six, um, the manufacturers I went with were uh the fifth in terms of um cost, they certainly weren't the cheapest. Um, but the communication and and the belief in the product um just blew everyone else out of the water. Um, so that's how that's how we went with that. But I mean the linen process, um, one of my elements was was the fabric. I wanted to not negotiate on that. The length of time is long. And I mean, you guys are really big on get it done, go quick, like go fast. You know, I I placed an order six months ago, like not two months ago, not like six, it's a six-month process because there's two months to weave the fabric, a month to dye the fabric, a month and a half to to sew the fabric, and then and then it's got to get here.

SPEAKER_00 15:47

Um, so it's a really, really but but but I would say just just in terms of that, I would say the more the product is customized, the amount or the more actually your audience would be hyped about it, and then the more you can price it at a higher price, right? Um, so when you tell me, well, it took us like six months to do this, I'm thinking, well, we need to advertise that. And it should be reflective of the price as well. There's actually ways to do like leverage this as a positive. Even though we need to fix that, obviously we're gonna probably talk about that. But the thing is, that's gonna be uh very much something you can tackle. And if you your audience can't get this unless you do the six months kind of production and they're not gonna go to Alibaba to do this, and you already did all the risk in terms of analyzing quality and all the details, the price should be reflective of that. That's my view on it.

SPEAKER_03 16:32

Yeah, well, I'll be interested to know whether you think my pricing structure um sits sits well with that. I um because of that timeline, like my initial idea was to wait until I had the product in hand, which meant I'd I'd be launching now. Um and then I there was a you know a a moment to say about three months, maybe four months ago, where I went, hold on a minute, why am I waiting? Like um, you know, I know it's coming, I know it's on its way. So uh we did, you know, we launched six to seven weeks ago, and um the pre-orders were a really big surprise for me. And I I I would encourage anyone who has the the idea of of doing pre-orders and not sure. Like I wasn't sure is anyone gonna invest in bedding and wait three months for it? Like I I just didn't believe it, um, is the truth. But I mean, pre-orders end up um, because I also had um, you know, their stock fabric, I also did a small order run uh with their stock fabric. So I had that in hand. So I had 40 sets in hand, which felt like too little. I thought if I start to get momentum, I'm gonna have this lull. Well, like what am I gonna do? Um, so the pre-orders kind of were there from the get-go. I focused on those 40, uh, but I had the pre-order on my website and in the back end. Um, and pre-orders started coming in, and I was like, oh, what? What's happening here? And then all of a sudden, more pre-orders, more pre-orders, and then I sold out of those 40. And then I was like, well, now I've got to focus on these pre-orders. Uh, and you know, it was over, you know, um 32% of my sales in that in that first month were were pre-orders. I was I was really shocked by that. Um, and then the good news is we actually got all of our stock early, which is unheard of, and I'm I'm not gonna take that for granted. So we're able to then deliver them ahead of schedule. So win-win. Yeah, it was great. But pre-orders, yeah, who would have thought pre-orders.

SPEAKER_02 18:44

I love that. I just I want I want to share this one thing before we switch into um your uh situation, John, and go through some details. And I I say this quite often, but it's um I find that you you don't uh miss, you don't skip, there's two parts of the process that I find that you you have to pay uh kind of like pay your dues on, right? And then one of them is like this um product almost like a bucket, uh, and then the other one is like this uh marketing bucket, right? And so the way I think about it is essentially if you go uh deeper into the product bucket um at through the development phase, uh what that enables you to do is have a better net product quality to bring to market, and then you don't need to market as hard, meaning the marketing situation can be like this, right? If you do the the reverse and then you fly through the product and you pick something off the shelf and you're just like that's close enough, whatever, that's pretty much good. What happens is usually you need to fight here to sell, you know what I mean? And then you're lipstick on the pig and you're trying to work around and you're manipulating content, manipulating offers. And so you've definitely gone through this situation, Nikki, and this whole six-month arduous process of creating like really interesting, different, high impact product. And then you get to this point and you're like, wait, what? It's it's it's almost like it's selling itself. What what what what's happening?

SPEAKER_03 20:12

Yeah, that's yeah.

SPEAKER_02 20:14

So it seems it seems like that's kind of the effect at the moment. But I see it all the time in terms of people that have um very scalable kind of like back-end supply chain, everything's organized, whether it's a a drop ship type arrangement, they usually are over here trying to fight very hard to get the offer, to get the creative, to try and really get the market to respond. Because if they do get it to respond, they've got the product and the supply chain all taken care of. You know what I mean? With the the the the drop ship type situation, if that's kind of how they've solved it. But you pay in each one of those categories, it just matters where you put your attention on and how you position the product. And I think that's uh it's an interesting way that you've done it. So congrats on the um on the last like few months, and then also broadly, you know, taking the plunge and building um such an epic product. I think it's fantastic.

SPEAKER_04 20:57

Awesome, thank you.

SPEAKER_02 20:58

John, tell us a little bit about your situation, what led you to uh start building the business? How did you get into the kind of idea of building the company? Talk us through that what you were doing beforehand.

SPEAKER_01 21:08

Um being in um civil construction, similar background to Nikki for um 25 years. Um sort of went up to a supervisor role, into a project management role, um, and in about uh mid last year, um, just wasn't happy how things were going. Um, sick of the day-in-day outs and um just quit my job with no sort of plan.

SPEAKER_02 21:31

I I I just said, oh wow, I I didn't know that was this that was the situation. Yeah, wow.

SPEAKER_01 21:35

Yeah, so um I was sitting around at home and I'm like, um and um yeah, looking for jobs and stuff, and I'm like, man, I can't go back to that. I'm just done with it. Um and you know how sort of um Google reads your mind, you know, you start scrolling through your phone and all these things start coming up with um you know, trading and drop shipping and e commerce and like, you know, working from home would be good. Um and then I think I see money. And um reached out. But yeah, going back to going back to that wasn't an option after I sort of you know had that time off. Um and then I thought, you know, I'll just I'll have six to twelve months off and concentrate on this. Um and yeah, and this is this is this is it for me. There's no going back.

SPEAKER_02 22:20

So how was um how like similar to Nikki, but like the idea here, like I a lot of people uh talk about it and they a lot of people think about it, and a lot of people, I don't know, make big arrangements and plans for these, I don't know, elaborate businesses that they're gonna build, but then when it comes to you know doing it and actually committing, it's like, oh, you know, uh maybe I'll you know, it's it's always like an excuse and stuff. So what was it uh about your situation, John, that actually made it easier to make the commitment and be like, I'm gonna do it this time? Because I'm sure it wasn't the first time you thought about starting a business.

SPEAKER_01 22:55

Um, yeah, I have owned businesses in the past. Um, yeah, they didn't they that they were good to me, um, sold them on and whatever, and then just always ended up back in civil construction. But um, yeah, so this time it was more like uh I'm not going back. This is this is gonna work.

SPEAKER_02 23:10

So and talk us through the process of how things kind of came together as you went through the stages um of finding and identifying the product and then kind of going through that branding process, launching the product. How was that um for yourself and talk me through any key areas of that?

SPEAKER_01 23:25

Um, so obviously um when signed up with you guys, um, started off with the modules. Um, yeah, the modules are step by step, pretty easy. Um, yeah, it started getting exciting. Um, and then I think um based on I think in module one, yeah, you look at the market, you look at what's open in the market, what's available. Um Tattoo Aftercare was what I chose based on um, you know, the market of it, um, not just Australia wide but worldwide. Um there's only two really leaders in Australia that that are into it. Um and yeah, so that's that's sort of what I've come up with. I've got on Alibaba, found my supplier, and I sort of yeah, hit gold with with her. Um and and based on yeah, the modules, you know, you don't settle on the first 20 seats. So I chopped around a bit more, but yeah, there was nothing that could compete with her. Um, so yeah, really, really, really hit gold with her. Um and yeah, the first samples I got from her were perfect. Um, I think there was a bit of changes in the packaging. So we went from like a bland sort of um label to gold stamping and sort of really premium premium the product up. Um because that's what we were sort of selling in the end is a premium tattoo aftercare, not just a standard one like the rest.

SPEAKER_02 24:46

Um and yeah, she's she's been she's been an angel, like absolute god sense, and um helped me through the process, made some suggestions and makes a massive difference having a good supplier in your corner to support and communicate and give you guidance on some suggestions rather than just um horrible English and uh you know here's here's your bill, sir. It's like, oh goodness.

SPEAKER_01 25:08

I'm so pleased to have, I really am yeah, very lucky.

SPEAKER_02 25:12

And and and so from a results perspective, John, how was the first like you know, two months, three months, how did that process kind of go for you? Where are you at at the moment in terms of results?

SPEAKER_01 25:20

Um so yeah, it was a scary start. Um, you know, you're not you you let you outlaying all this money and you're not sort of knowing, you know, you're unaware of of where it's gonna go. Um, but no, it's sort of it was the first month was slow. I think we made like 5k in the first month and it went to 8k and then 12k. Um last month were just under 20k. Um, and then looking at it's on the on the road for 25 to 30k this month. So um, yeah, it's it was it was it was a scary start, but um yeah, it it's it's it's it was it was never not attacked.

SPEAKER_00 25:55

Like scary start, like 5k. That's like that that's like scary. Like for me, that's like not really scary. It's like five grand, that's not that bad. But I would think about you know, the growth obviously massive, but just thinking about that like scary. I'm not not really. I'll probably say no.

SPEAKER_01 26:10

I guess compared to the money you're outlaying and you know everything else, um, yeah, it was it was scary, but um, yeah, no, it's it's it was never not exciting, it was always exciting, so that sort of kept the you know the fear away somewhat.

SPEAKER_02 26:24

Um I remember I was speaking to um uh a friend of mine, he has a company uh in America, predominantly America and Europe, and they do about a hundred million dollars a year. Um and he said when they launched the company, the first 12 months um uh of launching it after putting like two years of product development and like intensive investment into like technology and all this stuff that they built into the company, um, two years of product development, two years of like cost and research and all this type of stuff, um they launched, and then the first 12 months they made like um I think it was like 80 grand, and they were like, whoa, like this is like and then I think there was a few kind of like um you know credible influencer type kind of like authorities that came into the brand that started some association, and then the next year I think they did like 10 million, and it was just like bam, like immediate kind of explosion of just like the right kind of things done. Um, which you know it sounds like you you've you you've you've had a bit more of an accelerated journey of that, John, and equally the same with yourself, Nikki, in terms of time frame. Yeah, any key um uh highlights, John, for yourself as of the the last like three months, four months, launching the business, growing any standout moments where you maybe learnt something that you didn't know or you you you found out something that you were like, wow, this is interesting. I didn't expect this um as you were going through the process.

SPEAKER_01 27:44

I think more just um yeah, being uh up and comer um in the Tattoo aftercare sort of market. Um, yeah, you look at these giants like you know, Inknurse and Dr. Pickles and that, and it's um and you yeah, it's it's very intimidating. Um, but then you start putting out your ads, and you've actually got Inknurse and Dr. Pickles commenting on your ads because you're using their product in some of your ads. And um, and you think, you know what, you you aren't you aren't as big as you think. Yeah, you're not you're not giants, you're not intimidating me, you know, I'm coming for you.

SPEAKER_02 28:16

So and so I I imagine that was like pretty uh exciting to be like I thought that these guys were like way bigger, these like you know, absolute titans of industry, and then you're almost like knocking up on their door within like five months of starting your business, it sounds like yeah, not even two months, I think.

SPEAKER_01 28:32

But um, yeah, so just it's just an eye-opening, you just nub a bear bum in a shower, mate, and yeah, I'm coming for you.

SPEAKER_02 28:38

So how about for yourself, Nikki? Any kind of like highlights for you that were like the standout, maybe it was this pre-sale moment where you were like, wait, what people are actually paying for this stuff? Anything specific?

SPEAKER_03 28:47

The pre-sale moment was great, but um like we've been live for six weeks of just going into our seventh, and we've had return customers like that. That actually was a pretty special feeling that okay, we're obviously resignated, they've they've tipped their they've dipped their toe in the water to try and see whether we're as good as what uh we you know we're portraying, and um and they're they're coming through with the second order, and that's a massive reward.

SPEAKER_02 29:18

I think we discussed this the other day as well in terms of exactly that, like seeing people come through at the rate they are right now, and like it means the investment that you made into product uh has been like well received, and people are kind of like, wow, I'm really enjoying this. I think that's such a huge benefit for the future of the business. Yeah, very cool. Excellent. Let's switch gears and let's move into um some of the uh I guess like elements that we would recommend for both of your guys' businesses to begin with. Anything, Hammond, you want to start with um from either Nikki or perhaps John to begin.

SPEAKER_00 29:51

All right, yes. Um, so a couple of things. Um, I would say that you guys like you're really doing a good job at kind of getting into that first phase, which is very exciting looking at the pre-sale, all the things that you did, but everything you did, you did it kind of with not much knowledge, which I would say would put you at potentially the most exciting stage is the next one, not necessarily this one, because you're like level one in terms of knowledge and just getting it done, right? But if you were level 10 or 100, much easier, much more scalable. So every time I see a business that actually gets to this 10K level, I'm thinking, this is not the best version of you, and we were able to get to 10k. So, how about we upgrade that, put in some guidance, and you're gonna be doing massive numbers, like crazy numbers. Like I've had this, this is just kind of a wanted to mention this as um as an example. Had one client, they attended 10k call by the way, and they're doing right now about half a million plus. And we came back, like we looked at a chat we had like two years ago, and they were saying, We had this amazing period that may more like it was 5,000. Right. And they were so excited about it, and it was such a like a thing. Like this, this is so good, and it was five right now, half a million. And I'm like, that's that that that gap, that that evolution, that's what's gonna happen for every business that actually keep working the things, seeing this as this is just stage one, it's not stage two, it's not three. We're just starting, right? And and I believe that if these are the things we're doing right now, if I was to equip you with more knowledge, more money, what would happen? Crazy stuff. So I'm very excited about that. Now, from a structure perspective, obviously, um, for each person, I have some things I want to tackle because you have different products. Um, I think both of you, you're very committed in terms of getting to the next level. So I know you're gonna implement things fast. Um, if I was to just give you kind of a quick view on some things, it starts with Nikki in terms of your business. You do have very long lead time. So I would say we can talk about the ads, we talk talk about everything you want, but if you can't sell, then that's a problem. But they're they're they're pre-ordering, so that's can be a funding machine to your business, which I think if you implement this properly, you can actually get things moving faster. So if I was in your position, I would think about two things. Customers are essentially funding my business. And the second thing, I need to negotiate a better deal with this factory, right? So I'll be more spending the time on the back end rather than the front end, because that's what I would do. And obviously, we're gonna talk about more strategy, but this is kind of the first gap I would work on. Um, I think that you should be selling higher, definitely, because if I have a limitation, let's look at, let's say, a company like Tesla, a massive company, right? When they had shorters or issues, they just were selling at a higher price. That's the entry level. And as they got more volume, they kind of moved to mass appeal rather than in the first level where the car was so expensive because they were just not able to produce that much, right? And customers were paying for it and they were not even receiving it in time. And it was a very messy thing to look at from like broad perspective. But this is what I would do. Like, I think they're very successful, and definitely something to look at is how can we price a little bit maybe higher if it's really a long late time, let's say six months, or negotiate a better deal with your supplier. So, just to give you a feel of what I would tackle. Um, John, on your end, you mentioned like a little bit earlier you have a good conversion rate. Seems like you actually have a very scalable structure and a good supplier. So, probably I think you're more top of the funnel that we need to master that creative structure going because I think that skill, if you master it, you're gonna just scale. You don't have it doesn't seem like you have a massive bottleneck beside fixing that. So I think fixing that would be probably the first thing I would do. And both of you, I think you should think about your business from a media buying perspective. It's very scalable if you know about the ad account and how to do things. So that's probably what I would spend also some time.

SPEAKER_02 33:38

Yeah, very good. Um so in terms of just a couple of things for yourself, Nikki, to begin. Now, um similar to what Hammond, real quick on the um conversion rate, what is the conversion rate at the moment that you're currently having?

SPEAKER_03 33:55

It's not as good as I want it to be. I think I'm at 1.5.

SPEAKER_02 34:00

Okay, got it. And the average order value is like 300 something, isn't it?

SPEAKER_03 34:04

Yes, it's um it's 308 at the moment.

SPEAKER_02 34:09

Okay, got it. So the the conversion rate, um like right and and where are you currently driving the traffic to, just like the home page, or are they driving it to the collection page?

SPEAKER_03 34:21

No, I think um one of my biggest things is I've got multiple products. Um so I've got half of my uh meta ads going to if you go to shop bundle um uh the system um the base bundle, and half of my ads are going to the cover bundle.

SPEAKER_02 34:47

Got it, okay. So half going to this and then half going to this.

SPEAKER_04 34:50

Yes.

SPEAKER_02 34:52

Got you.

SPEAKER_04 34:52

I see. Okay.

SPEAKER_03 34:54

Um yeah, so that that was a bit of a challenge actually, because I I started with um my founders edition, which was um the supplier stock fabric. And then once I I um ran out of that, we created well at at the same time we created a page for the for the pre-order. I'd separated them. Um and that meant like all the momentum we were building with the founders edition, then I kind of had to start again. It's like I launched again with with um sending people to this particular page.

SPEAKER_02 35:30

So yeah, it was Yeah, I understand. So I think from what I from what I know about the the product at the moment is margin as far as like your contribution uh from a cog's perspective is very high, you know, and so like we need to combat that um via either pricing up here in terms of what this looks like, uh, and increasing the price, or working with uh your supplier to like get that um cog's contribution down. Like I said the other day, 20% is really where you want to like aim for, you know, and and and that's kind of like the outcome that you want to get to simply because it just unlocks so much more margin for you to grow. Um, and then the other thing that you mentioned here, which so you said you were like obsessive with the fabric, and you said you were like, you know, that this particular type of fabric, it's you know, spent six months on design and and creation and dyeing and weaving and all of this type of stuff. Um, however, like this imagery, it doesn't kind of like give off the impression of um a certain type of fabric or a certain, you know what I mean? Like it doesn't show that in a way where I'm like, oh, like I see, like that's how it's all come together and that's why it's even more expensive, right?

SPEAKER_03 36:41

And so like that's an interesting um observation because uh because we've we've really focused on the mechanisms almost or like you know, why this is different. Like I if I was competing with the trillions of beddings in Australia, I just wasn't going to have the momentum that I think I've got now. So we're really focused on on what it does and how it does it, and and the fabric hasn't even got a look in yet. I I think it has a a future perhaps starring moment, but it's like it's it's actually not the most important part, which has resulted in people are then receiving the products excited that they're getting um a fix to their issues, and the fabric is like this little extra bonus that they hadn't even realized it has, but the fabric is actually quite stunning. Um yeah, so how to manage that? Because it's it's like you know, you've got to focus your attention somewhere and you can't tell them everything in the neck in the you know first five seconds. So how do you do that?

SPEAKER_02 37:48

Correct. So I think I think I think one uh so from like just a visual perspective, um, the the higher your price point here uh generally continues to trend up, the uh the better quality the the images want to kind of have, right? And so like what we can see here is like the and it's exactly what you said, you focus strongly on the mechanism, the uniqueness, uh, the differentiation of the product and how it works and how it does the the thing as far as deliver the result. Um, now if this was just simply presented in a way that was a little bit more clean, and this is different from ads. Ads, this is a different approach. You don't take the polished, perfect, nice, high resolution, you take the dirty, ugly, just grab it on the iPhone and push it live. On the website, especially when we're justifying the price as like 200, 300, 400, $500. We want to kind of look to how could I give these individuals as close of a uh kind of experience as if they were touching it, as if they were holding it in the wow, like this feels amazing, right? We want to give them that level of like impressional detail, which comes down to just like the images and less about the uh copy and the text, you know. And so I think I think some of these images are we can just ratchet up the the resolution here, you know what I mean? Like they're a little bit blurry in terms of like you can see the resolution here is a little bit blurry. Um, and the the sheet, I don't know, it doesn't do it massive amounts of justice in terms of like that look and feel where you're like a premium type of product that on top of being premium also has this unique structure where I never need to think about freaking changing the thing, and this is just fantastic. So I think there's some small kind of improvements and optimizations that can be had just so you can justify the price point more with um the quality of the images. Uh, I don't think it's like a it's it's a it's a huge, like this should be an initiative for a month or something, but it's something that again, like these images here are instrumental in where people make their decision. And I would recommend see like this first image is which is usually the one um that you first land on on the page as an example here. Um, this is kind of the one, and I've split tested this a lot where you have uh a human or somebody as the ideal kind of avatar using the product, getting the result, seeing and feeling the benefit, head on the pillow, um zipping the thing and not needing to lift the side up, like however that looks. Um, if we look at, for example, uh the the Bisu product, we've tested this with a multiple multitude of different like types of first pictures or first images on the shop page. And um, and this one here with the before and after, just always crushed, always like in pretty large um increase in conversion simply from having like what people were using before versus what they're using after, and having the actual human's face there so they can look at it and go, Oh wow, like I can see myself looking like that. And similarly for yourself, it's like what is that transformational human element? And you've got some amazing content here of like whether it's this kind of before and after or how that looks, like we want to have that human there, like looking and feeling in that transformative type way, so that the first thing that people see is they go, not a uh kind of it, which is what we currently have here. Uh let me just go back here a little bit. So if we go here, if I look at the first image, I'm kind of like uh so okay, I kind of get there's a lot here. You you're trying to like understand what all these parts are. Does that make sense? Whereas if I look at this first image here, I'm like, oh my god, that's me right now. I immediately see myself over here, you know, peacefully, lovingly jumping in and just like changing the sheets in a fraction of a second. So something a little bit more impactful, I think, will help people to connect faster on the page and have a kind of better experience straight away as soon as they kind of like observe the product because they're looking at it from a transformation perspective as opposed to um a kind of features and benefits perspective. You know, the thing, the thing that you've done very well with all of these mechanisms and the way that you've structured your pages is it does communicate all of the particular benefits, but you don't want to go into um features and benefits selling, right? You want to make sure you're always orienting towards transformation-based selling, outcome-based selling, um, identity-based selling in terms of that the mum becomes this, I don't know, better version of herself because she has more time for her family and she's less stressed and her back doesn't hurt as much. And it's like, oh my goodness, I'm selling that outcome. I'm not selling a whiz-bang kind of like sheet, if that makes sense. Like how you get there is by not wrestling at the sheets um every fortnight or every week and having to put your back out, and then you can't pick your kids up and put them in bed. It's like we we want to really get into that clarity around like that's how much this product implement or actually affects you in your situation through the content here. So, just from like a conversion perspective, I think that this is useful. The other thing I think is is probably helpful is just as a general rule on your homepage here, see how it works. This should always drive to your highest selling product. Right. So whichever of that bundle is, whichever of the the types of products sells the most, this should immediately drive there. As we go here, um, we also want to have that catalog that showcases the top selling product number one, top selling product number two, top selling product number three, because people will, especially as the price point is a bit higher, what they'll do is they'll likely hit the product page and they'll navigate around the website a little bit to kind of, oh, okay, I see, oh, there's a few things, and they'll start to make sense of and understand, right? And if they don't understand, then they'll bounce, right? Um, and so we we don't want to go too much into a lot of like um uh confusing type things where a lot of the product here, for example, that's down here, again, it's oriented in a way where um I'm like, where was the one I just saw? Where was the one I just clicked on in the ad? Hang on a second, bands, wait, this is fifty dollars. I thought that one was two hundred and forty dollars. Where is that one? And then you go view all. And so then you're looking through all of these things, and then you're like, oh, it's so how you organize this should be in the order of most popular, second most popular, third most popular, just so people don't need to look through all the products. Because I don't know what the uh sell-through rate of these products here is, but I imagine this top row doesn't sell as much as these ones down here in these sets, right? Like the these sets. So just how these are organized is just helpful for the consumer, mainly because with a higher price point product, there will be a little bit more kind of like scrolling and navigation and movement around the website. And you want to make sure, like as they move around, they're finding a little bit more information that reaffirms their decision to buy. And then the moment they go, I've seen enough, I want to buy now, they can simply press on what they see, and it's right there in front of them, they can and they and they can go and purchase. And they don't need to kind of like search around for a whole bunch of stuff.

SPEAKER_03 44:54

Yeah, does that make sense? Yeah, real a lot of sense. Yeah.

SPEAKER_02 44:58

So just a few small cleanups, just in terms of like the positioning and the framing, it's very clean, and you've done a brilliant job with it. The the higher product product price point that you sell, the more we want to look into the the quality, the framing, that the high resolution of those images, just to give people that extreme confidence that not only does it have all these high impact things as far as uniqueness, but the quality is exceptional. And they can see it and they can feel it and they can touch it. There's a um there's a great brand here that I'll just quickly share. And this is uh I like using this as an example because this is a gym wear brand, right? And um they are let's just have a look. They're one of the probably one of the most expensive like gym wear brands in terms of just like shorts and shirts and all this kind of stuff, like $173 um for like a jumper and like $173 for like some shorts. Like they're not cheap, not like the most expensive, but they're they're certainly a lot more than like the LSKD, like $40, $60 kind of thing. Like four times the price. And so they've got a lot of unique things about the products in terms of these little um the way the pockets are structured, uh, some of these little like you know, uh lines here and the and the stitching and all that type of stuff. But if you look at the images themselves, um, the crisp quality where you can feel and touch the quality itself, you're like, whoa, like that looks like a different level of material. Like I can see how that's that's a lot thicker fabric. Like that's not, and then the zoomed in detail on these types of structures gives you confidence going. It's the same as like when people sell a Rolls-Royce, uh, they don't sell it like from a zoomed out fashion, and they're looking at the whole Rolls-Royce in the parking lot. Maybe there's one photo, but it's mainly the stitching around the steering wheel, the close-up zoom lens of like what's happening on the dashboard and the clock and all the detail. And so it's like when you're selling like higher price points, the details matter, right? And so we want to zoom into those things and show them in a way where people can, like in the same way here, you can see okay, wow, they've got this nice little finished edge on these ropes here, and they've got the really clean stitching here. It makes you believe the quality is a lot higher versus if that was just like a little bit low res, and you know, photos you look through, you'll be like, okay, I kind of get it, looks quite good. But geez, 180 bucks for a pair of shorts, that's kind of extreme. Like, that's that's that that that's that's wild. And so I think I think uh a project to build on in the background is testing um content, and you may just do it for your hero product first, some of the bundles, and just get some really crisp high-res type content similar to this, and then test it just on one of those product display pages. And if you see a lift in performance, then you may start to roll that out across all of the rest of the pages and see what the performance looks like. But it's a justification kind of like mechanism that helps the user to feel like this is uh superior quality, and that's why you're paying uh a more premium price point. Okay. Um, okay, that's that item. The other thing, the other thing that I I think, and this is very similar to um the situation that we discussed with um Eddie, for example. So what he's doing now um as he continues to scale up further and further, is that he's uh taking the trip over to China to look at that lead time and look at that kind of turnaround time, the payment terms, all of those particulars, because that right now is gonna be the biggest blocker of you know 5xing, 10xing your business tomorrow. You know, like simply having that six month lead time or simply having that lead time that extends out further and further and further, it's gonna be really quite challenging for you to do that if you're always waiting like six months into the future. Does that make sense? And so, like my my my view around that would be really aggressively focusing on all of these front-end kind of conversion things that we've gone through now, dialing them in, dialing them in, dialing them in. Um, and and you must uh optimize aggressively for let me just give you a quick example here of this other um tool here. The the the one, are you using uh the the cash flow? Sorry, not the cash flow, the daily profit tracker.

SPEAKER_03 49:08

Yeah, the daily profit tracker, yes. The cash flow not as much.

SPEAKER_02 49:14

Okay, that's okay. Start with the daily profit tracker, keep it simple to begin with. Um I'm just gonna show you uh one thing really here.

SPEAKER_03 49:21

With the lead time while you're um doing that, Sasha. Um one of the decisions we made was to order, we actually ordered nine kilometers of fabric. Like let's put that into perspective. That's a that's a a shed load of sheets. Um we ordered it um so that the lead time hopefully will not be an issue that we have to, you know, chase our tail with. Um so I've I've um negotiated with my supplier to um store the fabric, really, and then um I've uh had a 12-month period to use the fabric up. Um and that allowed me, I could see what was a better seller, and I like I'd already committed to um so many meters of a particular colour, so that was kind of I I had to suck it up if the colour isn't as you know, a good seller. Um, but that's what marketing's for. Um but um I was able to then go, all right, well, now I want, you know, the Queen is my best seller, so I want more of those, and I want less of the double because I haven't sold a single one. So um and and it's there. So I've cut out the slow, uh sorry, the the the weaving time and the dying time, and now I've just got the sewing time and the delivery. Um six months, which is sorry, six weeks so um from yeah, from payment um six weeks, and then depending on uh you know the last the last um delivery I I had also allowed six weeks, but it it got here in three and a half weeks, which is crazy. Yeah, I mean I I I have estimated three months from so in preparation for say Black Friday, I'm assuming the stock I've got now will get me through until um I'll start to dwindle down uh towards Black Friday. So I need to place my next order mid-July.

SPEAKER_02 51:40

Okay, okay, I understand. I understand. Three months. Um, yeah, I see. I I I I I'd love to see that come down to um yeah, six weeks in general, in in end-to-end, in terms of like everything all in all. If you could get it down to that, you'll you'll really notice it from a cash flow perspective, and you'll really notice it just from like how much accumulation. The game of the game of business is essentially like how much money, um, like how much money can I hold on to, essentially, and then how long can I wait before I need to pay my bills? And the arbitrage on that gap there is usually the accumulation that you can then use to invest into things while you're building the business. And so, like, if that's kind of like, well, I'm paying first, and then now I'm needing to wait 12 weeks before I can sell, whatever that is before I can deliver, obviously you're on pre-sale, so it's it kind of offsets that a little bit, uh, which is helpful. But I think um just working towards getting that down shorter and shorter, or alternatively, um, which I always recommend as well, is shortening the uh the kind of like uh ordering frequencies. So as opposed to doing like massive, you know, maybe like once every five months, once every six months, bringing that down and doing uh more frequent orders, maybe once every three months as an example, or once every in that stack in that kind of a time frame. So you're um holding on to less stock, you're outlaying less cash, and you're keeping less cash kind of out and in the market constantly. It's like it's a little bit more logistically kind of like difficult because you're always ordering and always doing it, but it's better for cash flow, except for obviously that some of the shipping stuff might be more consistent on that side. But as far as like the opportunity for debt to be built up in like, oh damn, we've got like, I don't know, 400 of these extra uh sheets here and we haven't sold them yet. That's your money just sitting there, redundant and can't be used. You know what I mean? And so we want to avoid that as much as possible and essentially continue that kind of rotation of like what I've got, I'm selling. And then what lands next, I'm selling. And then what lands next, I'm selling, I'm selling, I'm selling, because that keeps you in a very efficient. If you look at the there's a book on my shelf behind me called The Toyota Way, um, and they uh put together that kind of Toyota Way system whereby they built and manufactured cars similar to what Henry Ford did. They took the car manufacturing process from like, I think it took some obscene amount of time, like uh four months or something, down to something from raw material in terms of like stone getting put into the mill through into a car coming off the actual product production line. I think it came down to like three days or something. Wild, but the whole philosophy was just in time, meaning the raw material arrives in just enough quantity to land on the uh you know conveyor belt as it needs to go into the big smelting pot. And only as that tips over does the next lot start to roll. So there's never any accrual or build up of like there's a pile here, there's a pile here, there's a pile here, and it's just every single stage in that production line is almost running out, and then as it runs out, the next lot arrives. That's the whole philosophy behind it, and a really efficient business does that. It has no uh accumulation of uh components or raw materials or uh you know sheets over here or advertising kind of inventory over here or all that stuff. It's it's constantly just running on as it's about to run out, new stock arrives. As it's about to run out, new stock arrives. Like that is the ideal kind of like nirvana from a cash flow perspective. It's challenging from the level of um inventory management and sometimes your sanity because you're like, oh, I'm about to run out, I'm about to run out, I'm about to run out. You're always on your toes, almost, if that makes sense. But from uh how much money your business will generate and accumulate, it's the strongest um to kind of optimize for for that position. All right. I want I want to run through just one more thing here. Uh Hammond's back. I think he must have had a little bit of a dropout there. Um, I want to run through just one more thing here that's very important, Nikki, and the main number that you want to pay attention to in your uh daily profit tracker, similar with yourself, um, John, we want to look at here specifically. So if we look at um as an example, this is just an example version um from some of the sheets we were going through uh on some of the calls we went through. And so uh if we look at as an example, uh revenue here, 16,000, we've got ad spend, etc. etc. And then the main thing that we're looking at here is uh this here in terms of product cost, we can see as a total uh is 3,500 down here. And then we see here that the total profit is 470, right? So obviously efficiencies is something that we need to work on in this company as an example here that I'm just giving to increase um ad spend efficiency. However, um the ideal situation um in your business, Nikki, that you want to build in towards is likely going to be a situation where I would say at the moment um you would have as an example product costs, let's say out of uh let's say sixteen thousand dollars in revenue, you said your product cost is around 38% or something. Is that right?

SPEAKER_03 56:43

Yeah, 36%, yeah.

SPEAKER_02 56:45

36%, that's right. Okay, so like right here, you're in you're in and around that like almost $4,000 or something of that uh $4,000, $5,000 kind of here is getting allocated straight away towards product immediately, right? Maybe if a bit more than $5,000, it's almost like probably five and a half, six thousand um in terms of what's being allocated straight away towards product. And let's say, for example, out of the sixteen thousand, um, another, let's say five thousand uh goes towards ads. So we've got five thousand into ads, we've got six thousand into product, which leaves uh five thousand remaining. Right? We've got five thousand dollars left over and remaining um after all of these things, meaning five thousand dollars, assume, let's just assume no other business expenses and no shipping. We'll just keep it nice and clean here. Um so you've got five thousand dollars left over, and then you want to go and reorder stock next month, but you spent six thousand dollars on product, but you only have five thousand dollars in profit. Do you understand that? So that then begins to become the gap that you need to make up on either bringing down the cost of goods and pushing and pushing and pushing that down to 20% levels, or extending, which is kind of the natural behavior that's happening at the moment with your customers, people coming back and they're ordering again and again and again. We need to either extend this way or we need to push back this way. We need to create more margin in the middle there so that the you you have more of this position of the middle to be able to actually fund the business and grow. So, this is gonna be one of the um ongoing kind of problems that you want to solve for in the next like three to six months is let me negotiate this side and let me extend this side out further and further. What you want to create is as much margin in the middle that can have your business have plenty of a cushion if you have a bad week or if you have a bad month or whatever happens, there's enough to kind of accommodate for the volatility of marketing, which is just kind of the nature of the beast. So this really wants to be a focus for you and paying close attention to the relationship between how much profit is generated versus what's the total product cost. And what you're looking for here is a two-to-one relationship, meaning um uh let's say our product cost was 6,000. Um, I have 12,000 here in profit, meaning I could, from the cash in the business, double the company next month, fully self-sufficient with only the proceeds of the business. This is really where you move into the position where you can like hyper scale and you or you can just gouge out cash out of the business and pay yourself and still grow, right? But that's kind of the sweet spot that you want to optimize for. And I know we were talking about this on uh Thursday, just in relation to um it's it's all just going back in. It's you know, you know, the business is just like consuming and consuming, and that's very um indicative of this stage that you're at. Usually when you launch, it's it's kind of like that, right? So when you obsess on this number and you start to get that right and create more of a margin between product versus net profit or profit margin and create more of a gap there, you'll notice wow, that seems like my bank account is just filling up and it's just filling up more. This is interesting. Oh, I understand now. I'm making this gap bigger and bigger and bigger, and you'll see it start to um have a very noticeable effect on you the accumulation of cash, which is going to be a massive impact for you. So just yeah, pay close attention to that as you're doing the profit tracking situation. I think it's just um zooming in on it from okay, cool, this is what's happening. But that component of like, and on the day-to-day basis, you might look at it, okay. This day here, we generated this much net profit, and then we had this much product sale. Boom, we actually hit the target of a two to one on this day. So, what happened? And what happened, and what happened, and what happened, which creatives were running, or that, that, that. Okay, and what what products did they buy? Oh, they bought this, this, and this with that average order value. Okay, cool. So, on these days, when we hit these kinds of metrics, we actually unlock the the measurements that the business needs to create huge margin. So then let's optimize more for that, and then we go, let's do more of these these ads, let's sell more of this stock by positioning on the website as the only option. Like, this is just like a no-brainer option. You you would only ever think to buy this as the main product. Uh, one thing that we did, which I really like actually a lot with another client, I'll just share this as an example, more so just from a positioning perspective. Uh, she just rolled this live yesterday, and Hammond, I'm really actually interested to see how this goes. She's she's been uh driving this a lot uh over the last week. Merrill, in terms of this, but mainly this, uh, and so the pricing makes such an impact on the decision making. And I went through this at the events as well, and this is for both of you guys in terms of this positioning. But what we're testing here as an example is um we want to influence the behavior to make the selection of the product uh that we want them to choose, right? And so we do that through uh making the one tube perhaps a little bit more expensive, making the three tubes um middle ground seemingly very affordable, and either going even cheaper with this, where it's just like the no-brainer option, or making this um seem extremely like outlandish as far as like 10, 10 of these cooling tubes that you would never even need for like $180. And you're like, good God, like why would you buy 10? I'm obviously just gonna get three. Does that make sense? And so, in in the similar fashion, Nikki, as you start to separate these two things and really start to see that behavior um of this is the what whether it's the queen set, whether it's the king set, you want to start to organize the landing page a little bit more around this because you you go, I know what people want, and I can see the data that this is exactly what they buy the most of. And I want to organize my product display pages to position that product in a way whereby I can control the pricing through having you know a kind of a front-end like lower ticket product that seems almost like, geez, like that's pretty expensive just for the sheet by itself. And I really don't need two full sets, like that's a bit extreme, $700. But I guess the 400 in the middle, that makes a lot of sense. However, that structure looks, but it helps people to make the decision that's aligned with the ideal person in the ad, buying exactly the product that you make the most margin from in the most efficient type of a manner. Does that make sense?

SPEAKER_04 1:03:07

Yeah, yeah.

SPEAKER_02 1:03:08

And so this is how, again, you you'll continue to build on and graduate and tighten this up more and more and more, and go from um well-presented landing pages to landing pages that are designed to take the ideal person and give them the ideal product at the acquisition cost that gives you the most amount of profit. That's really where it starts to become a very self-perpetuating, self-fulfilling, virtuous cycle. And you get more of your the the right type of customers buying your product over and over again. They love it. Um, the efficiency on ads, it gets better and better and better. You you get more clear with the targeting in your ads, and the whole system really starts to feed itself more and more. So that's kind of what you want to optimize for, but it's driven and uh based on that number in relation to product versus profit. What's that ratio? Is it two to one? That's really where you want to be aiming for. I suspect at the moment, you're probably at like a one into 0.5 or 1 into 0.3, somewhere in that range. And that's expected when you first start. But we want to start to separate that out and start to push that out further and further. Guys, it's a it's a pleasure running this session here. Um, and I'm looking forward to seeing you at the up and coming July event that we have uh fast approaching here. We've got some epic stuff organized. Um, but congrats on this, the the early success you've had. Don't let it get to your head and don't let it kind of like you know, um have you slow down the action that you're taking. But we're going to be in your corner and pushing you really hard to continue driving to the next level, and we really want to see you up at around that hundred thousand plus per month level, all right.