Day 163
11:40 AM
I could raise my prices further.
currently £/$14.99/2 weeks for 4 months
I know for a fact I can do 14.99/2 weeks for 6 months
That's £56 extra, post-VAT that's £45 ish extra
I assume it'll only cause cost per purchase to increase by £10
So that's £35
US store that's £25 ish extra
But if we assume it'll only cause cost per purchase to increase by £5,
Then it's £40 and £30 respectively
Which means I make 60%-100% more per customer
$/£168 though
Is the product worth that much?
Jan 27th – Jan 28th:
- Ad spend: $1629
- Revenue: $21,876 (over 4-month period)
- ROAS: 13x
- Cost of goods: $4577
- VAT (UK): $3646
- Profit (over 4-month period): $13653
- ROI: $1 –> $8 (over 4-month period)
- US refund/cancellation rate: (1 person)
- UK refund/cancellation rate: 10.5%
I'll keep my prices where they're at for now. They seem reasonable for the price.
I could do 'Buy 2 for 14.99/2 weeks (6 months)'
Or buy 1 get 2 free
Or something etc etc to justify the high price
3-4 hoodies for £200 seems more reasonable
But I'd have to figure out how to split it so front-end profitable
Nah I'll do that later, and instead frame it as 'free hoodie + free t-shirt'
then do /7 months or something
Or maybe not at all since that hurts front-end profits
Ahh I'll just work on SAAS for now. Let the e-com store make money. Then increase ad spend.
...Then start testing new products with 14.99/2 week offer.
Really tempted to start testing new products now
But I just don't have enough money atm
I COULD test
Yes
At a small scale
I'll wait for Shopify Payments to be approved for the testing USA generic store...
once it's approved I'll conduct some small scale, £200 ad-spend per product tests
17:55 PM
This is doable. Even with just UK + US clothing store.
3/7 of it is VAT, so £1m = £600k ish.
- Conservative estimate.
- Assumes I don’t create better offers.
- Assumes ad costs double (possible).
- Assumes I don’t make anything from SAAS.
- Assumes I don’t find cheaper products.
If I change the offer from 4 months to 5 months,
I triple the amount:
Week 98 goes from 10m to 30m
Also allows me to donate 25% to charity
Well... let me change it to 5 months for now
I can always go back
Might give people some free stuff on top
Looking back on this, people might think my primary desire is to make money.
Not even close.
Not even close.
1. Financial freedom [1 person]
2. Build software projects to automate nonsense + save time [1-10 people]
3. Advance technology. Begin massive projects with large-scale teams [10-1000+ people]
Is that vague?
Yes.
That’s also why I’m focusing on one step at a time.
Too many big ideas create confusion.
It’s easy to focus on 1 thing here:
- Scale UK e-commerce store.
- Scale US e-commerce store.
- Sell different products.
- Create SAAS.
- Create different SAAS companies.
Anything after that is too fuzzy for me to see clearly.
The things that I do also depend on advancements in technology.
Maybe the game will be different in 5 years, and priorities will shift.
I’ll likely have bigger goals and more money… which allows me to facilitate change.
To what end?
Good question.
I have to be very careful.
Actions compound across time.
I barely know what I’m doing now, let alone 10 years from now.
If you know what you’re going to be doing 10 years from now, perhaps your goals are small.
Anyway, SAAS… I have to work on that in the meantime.
You could say I’m distracted by the whole e-commerce thing I’ve figured out.
Maybe. Maybe not.