I love the Wholesale Formula guys: Dan and Eric (and Dylan). They really have a great program (I am not an affiliate). I should know I have had many of their students on my show. We spend a lot of time talking about relationships and what it takes to really be a partner. Great actionable information.
Transcript: (note- this is a new tool I am trying out so it is not perfect- it does seem to be getting better)
Stephen: 00:00 Want to jump in here and just bring back up episode 250 Toys for Tots campaign put together by Sellar labs. It is such a great opportunity. I was with the seller on Friday. Their team is working on it. I’m very very excited. This is a chance for you to use the skills that you personally have developed. You’ve got sourcing muscles not many other people have it. And this is a chance where we can take and use our skills to help those less fortunate. All the information is on episode 250 such a great cause. Get back give back give back this time of year thanks hope your Q4 is going good. It’s a great time to be selling and sell a lot. Watch you repressors. I just got whacked on one last$15 a unit. I didn’t lose I lost in profit because I should have blocked one wasn’t paying attention so please do me tell you by a couple sponsors you know scope from solar labs.
Stephen: 00:59 If you’re not using it to even just to take your wholesale accounts of course you got to use it for private label. Right. You need to understand the keyword you want to understand a key word go look at your competitors get their keywords and then use them. That’s smart business right because they already have proven that proof of concept but take the same approach to your wholesale accounts make sure that those key words are in there. If not upload those changes many times you can’t. But many times you can’t take advantage sculped from seller labs. Go to Silver labs dot com slash scope use the code word momentum save a few bucks get a few key words get your listings found.
Stephen: 01:35 Got to find that key and scope will be the product that will help you there. Solutions for e-commerce Charron logger. You know again you hear me talk about her because she is my account manager. She’s been doing a great job. Again I had some stranded listings and I notice them down there on the bottom right hand corner. They’re gone. I look back and they’re gone and I see stuff submitted. I see stuff return. It’s such a great process because I don’t have to pay attention. I can pay attention to the other parts of our business solutions for e-commerce slash momentum. I’ll save you 50 bucks. Lowest price she offers. And you still get the amatory Health Report. Take a look at it set up for 2018. Now tell Karen I sent you.
Stephen: 02:17 When you think about Q4 lists and hope you don’t use them just you for hope you use them all year long again you want to learn how to fish right. And so the best thing to do when you’re buying the list is look at what they’re doing and how they’re doing it and then figure that out on your own. That’s the approach that gay lesbian uses and a million dollar arbitrage list. It is closed for the rest of this year. However I have asked them and they have said they would do it if there’s an opening. They will pull from the waitlist. OK so I have the link on my site and this episode that will have a link that will take you right onto the waitlist. So get on the waitlist if there’s something that your interest maybe she’s going to give you a 7 day free trial so there’s nothing to lose.
Stephen: 03:00 But then once you get in there take advantage learn how to fish right sharpen your to sharpen your skills I guess is the right phrase I should use. OK so again I have that link out on this episode. So jump out there and get on that list. You know go daddy and grasshopper are both national sponsors of the show. I’m very fortunate. I have a third one coming on in February very excited about that. Go Daddy. I use them. This was somebody who had a great idea for and for a domain and I’m like. Use my link. Save 30 percent 30 percent yes they pay me. We all know that. However 30 presents real I use it myself because I want to save the 30 percent.
Stephen: 03:41 So let’s try. Go Daddy dot com slash momentum right try Go Daddy dot com slash momentum and you’re going to save 30 percent grasshopper’s the same deal. Try grasshopper com slash momentum and you’re going to save 50 bucks. I saw somebody else just signed up for it. The service makes you a pro.. All of a sudden your business has a phone number has a vanity phone number you can kind of create your own one if it’s available but you don’t need a second phone. And I think that’s the big thing it’s not Google Voice which is choppy Sometimes it works sometimes it doesn’t. This is professional stuff. Press one for customer service press two for my Amazon account manager which we go to Cairnes team. I mean this is a great opportunity. So it’s Try grasshopper dot com slash momentum. Say fifty bucks.
Cool voice guy: 04:28 Welcome to the e-commerce momentum good guys will focus on the people the products and the process of Commerce selling today.
Stephen: 04:37 Your host Stephen Peters and welcome back to the e-commerce momentum podcast. This is episode 255 Dan matters. Now this is the second time I’ve had Dan. Dan is with the wholesale formula. He was originally in episode number 19 over two plus years ago. And I mean it seemed in a few different times this past year around the country at different events and stuff but I’m blown away with what they’ve accomplished in two years. The path they’re on the path they’ve chose the intentional path that they have taken is just leading them further and further and further into success. You know I know they’re strong marketers. They don’t apologize for that. But guess what. They believe in what they do. And quite frankly said it was a lot of the people that I’ve had on my podcast have been students of the whole Sipple me over a thousand people have but a bunch of them have and they just speak highly of it because it’s a proven successful formula and it works.
Stephen: 05:38 And these guys are great guys. They play a little sly but they’re smart smart smart as a box.
Stephen: 05:45 Let’s get into the podcast where it will come back to the e-commerce momentum podcast we’re excited for today’s guests to have them back. That’s I was getting a little stuck there because it’s it’s been so long. I mean episode number 19. I think about that and now you’re episode two 50 something then matters. Welcome
Dan: 06:03 to the a Stephen I’m happy to be here man.
Stephen: 06:06 I am blown away. It’s been that long since we’ve talked on air and we’ve seen each other a couple of times throughout the last couple of years. But you are just so busy. I think getting time with you to record has been a challenge.
Dan: 06:21 Oh for sure. We’re always working on something and it’s that’s one of the things that really excites me about this kind of business is there’s always something to do.
Dan: 06:30 So it’s like we’re you know there we’re always times and things about war times and things about what we’re doing and trying to improve and get better. So it’s always a challenge.
Stephen: 06:40 So there really is. And you guys though I think have done an amazing job. So you know the episode 19 will go into Dan’s background. He’s with the wholesale formula right so he knows those guys these are the marketing machine or Dylan as it’s known that comes out and just pounds everybody however however you’ve had over a thousand customers correct.
Stephen: 07:05 That over a thousand and a thousand students so that says something for the value that they’ve gotten you know so while while you do market and market heavily you’ve really made a difference for a thousand people and I’ve had lots of people on my show that have said that the whole formulas one of the reasons that they’re having so much success and I mean that for sure I mean with a lot of pride in the success for students I mean it’s probably the most important thing to be on. Well you know you still sell correct. You guys still have a working warehouse were you still physically sell products correct. Yes. Then you have a team and at the time I don’t remember you were you were doing several million dollars together you and Eric and you had a team of I think three or four maybe five people. Has it grown since then or is it kind of leveled.
Dan: 07:56 We have a team of six right now. OK.
Dan: 08:02 So six six full time for the for the Amazon.
Stephen: 08:06 So. So on that business you know having been in it for several years has it been kind of level have you been growing. I mean because you have this other big competing business the whole set formula which is a huge piece of time where if you guys stayed the woman Here’s our focus is always to grow and scale.
Dan: 08:26 OK good. You know we always want to be growing our business. So that’s definitely true in our Amazon business. We really focus over the past years on not only growing but but more importantly streamlining. Because here’s the thing it’s like I don’t want to be working when I’m 60 and 70 years old. I would love to have a business that just operates for us. And so that’s what we’ve really been focused on trying to build. Can
Stephen: 08:50 you give an example. Can you give an example of what you’ve been able to streamline. I
Dan: 08:55 mean I can yes for sure but it’ll come with a lot of bit longer of a story.
Stephen: 09:01 And that’s okay because I mean here’s the thing Dan.. Right. Lots of people right now it’s Q4. They’re going crazy. This is the time to make your money everybody knows that. But now they’re thinking about 2018. And I think you guys have said that your goal is to grow. Or I think what you were trying to say streamline mean grow profits and reduce hours and reduce touch points and stuff like that. I think that art form that business because the revenues are receipts it’s not easy to get it’s there but unprofitable revenue can be in there too. And you guys have done a very good job. I think that that’s very helpful for people you agree. Absolutely
Dan: 09:37 . I mean I think it’s the right way to go. And here’s what so here’s what we’ve done is we’ve been focused on reducing the amount of cuts coins that me and Eric and Dylan have with that business. But also creating a situation that allows us to easily monitor the hill and offer insight and things like that into the business. So right now we’ve got it down to where we actually don’t even work in a warehouse anymore ever downtown office. Oh that’s cool I mean but we’ve got it down to where right now we work with the Amazon business about an hour a week.
Dan: 10:13 And what would that involve.
Speaker 10: 10:15 It’s a meeting with generally a meeting with our product team and warehouse team and there are two separate teams a product team and I love that.
Stephen: 10:24 I love those phrases. Product team that’s a distinction and a warehouse team.
Dan: 10:29 Yes. OK and now you know our product team is the team that of purchasing and selling all of our products. So we have a definitive sets of take that there was allow us to really monitor the health and change directions really quick. That’s one of the things we’ve been highly focused on is getting the best possible take as employees to monitor our business. And then the same is true for art for our fulfillment. And our warehouse things to make sure that you know all this all the cool stuff that we’re buying at this point getting the balance out.
Stephen: 11:00 So you’ve been watching these these key performance indicators over time. So you can look at the Delta and it should be you know going in the right direction correct costs down revenues up. Exactly. Okay. And so how long. Let me ask you this question back when you started do you think it’s possible and I guess do you teach this for for a new business getting started in the wholesale model to do this right from day one.
Stephen: 11:27 Would you do it differently had you had to do it over again.
Dan: 11:30 No I think it is possible to get it to.
Dan: 11:34 It’s not possible to be completely outsourced from day one but there’s components to alert. But I think you can prepare yourself to outsource much more easily. And we didn’t do that so much. You know much more of an undertaking for us because we have to go lay the foundation for the processes and things like that because that’s the thing is whenever you’re trying to make a business to operate without you you just want consistency. Right. Because look you know as long as things are performed consistently you can change. You can change aspects and change your result. But you need that process to be predictable. So. That was. Something we had to really focus on. And you know it would have been much easier if we focused on the start. So you know in terms of our course you mentioned that the unteach that’s what we actually teach and of course every time we have on our business model we actually update our course of it.
Speaker 11: 12:29 So you learn something new. You
Stephen: 12:31 go out and you transfer that knowledge to your students. And let me qualify this right here because we’re going to give me a complaint. Dan is not paying me I’m not an affiliate of these guys and it’s just because I love these guys and I love what they do and I love how you help people sites want to say that upfront. I believe in what you do because I’ve seen the results. And to me if you can help others I just think it’s awesome and if people can buy time by buying your course regardless of what it cost it’s a deal right because you know I think about my master’s degree. How much money that cost. A lot a lot of money now it’s like three times the cost. Guess what. And time three years right. So that’s what you’ve got to pay for.
Stephen: 13:08 I’m sorry I want to inject that because somebody will comment about it. OK. So some thinking about what you’re what you’re doing yourselves to improve those key metrics so you get consistency and then you say OK let’s tweak this this is an almost like testing. And then when the results come in if it’s good. Great let’s embrace it let’s go all in. And and then transfer that knowledge and if it’s not is that kind of what you’re doing now at this point.
Dan: 13:34 Yeah absolutely. I mean that’s exactly what we’re doing at this point.
Stephen: 13:38 And so when you think about what your role is versus Eric’s role what’s different I mean you guys had distinct roles you were both complemented each other. Were you working in the business on the Amazon specific business and what is Eric working on in that hour or two hours whatever it is.
Speaker 12: 13:57 Eric him tend to work more with implementation whereas I work more on the design aspects of the business if that makes sense. And what I mean by design aspects is as a more problem solving. That’s the you know we’ve got some pretty. We’ve made some pretty drastic changes in how we operate and how we think about things. And a lot of that was the bill from these meetings and that’s that’s kind of what I’m focused on mostly.
Stephen: 14:28 And so when you go into this meeting you’re you’re really narrowly focused on a metrics right or if you already know it you can address it and then get right to it. Do
Speaker 13: 14:37 you have a an overall manager running the business for you or is there a product manager and a warehouse manager separate.
Speaker 12: 14:45 We have a product manager and warehouse manager. But we also have a general manager that you do want to mention.
Stephen: 14:52 How long is the General Manager been in place.
Dan: 14:55 About three months.
Stephen: 14:56 OK. About three months so that’s that’s drastic. I mean to walk away and give control to somebody else especially who’s more the control freak I think you’re more of a control freak than Eric.
Speaker 10: 15:08 That’s my bribe him to be really cool or be a little more he’s intense. I
Speaker 11: 15:13 mean we all know he’s intense but we’re sure it wasn’t this wasn’t just somebody.
Dan: 15:19 I mean it was it was somebody that worked for us for over a year.
Stephen: 15:23 So we’re incredibly confident in the person in this question it comes up a lot. Why isn’t that person go out and just do this on their own. I mean they have all the inside knowledge. They know the secret sauce. They’ve all seen your course. I mean they’ve lived your course right. Why don’t they just go do it on their own.
Speaker 12: 15:41 It’s not for you. You know I can’t. Mrs. speak to everybody but in terms of I think as a person you have to create an environment that people want to be a part of and for us that we were affectively that we you know we introduce the idea of ownership into into our into our employees. So you know they’re heavily invested in all the projects we do.
Speaker 10: 16:07 We tend to you know we tend to really focus around involving them and everything in life things that make the decisions and things like that. So it’s just much easier and it’s much easier from that respect. But
Speaker 12: 16:20 I think the real key is you know as effectively my team gets to act as owners without having to bear any of the any of the risks. So as you know from that from that perspective it’s actually pretty attractive. Now I will say that you know we do try to recruit people who we believe could be business owners someday I think we should really try to try to recruit people who are credible and capable of running their own business. So you know that’s that it is what it is.
Stephen: 16:50 But what’s it look like at some point. But what’s the street look like I mean when you’re saying that you think that they’re capable so obviously they’re intelligent or they. I mean are they do they think on their feet. I mean what is it that traits that you do see that have really taken you GM to be in that position for example. Sure
Dan: 17:09 . No I mean he’s an incredible problem solver and he’s incredibly self-motivated. Like that’s the thing is a lot of people are a lot of people are you know like there’s a lot of really smart people in the orbit.
Speaker 12: 17:22 But it’s you know it’s you have to be really motivated to take action and you have to be not afraid at be very competent. So it’s a it’s a kind of a unique combination there and it’s in my opinion very few people have that exact combination of the incredible business owners. Now you look at it in comparison to all the people we see every day in the Amazon community you’re like now there’s lots of business owners but that’s just a fraction of the people in the world. Yeah. So it’s like you know we. Granted we are inundated with dealing with these types of people. So it seems like it’s more common than it actually is but it really isn’t I mean it’s those are three incredible unique traits.
Stephen: 18:03 When you think about your friends right. I mean you just look at your circle of friends right. How many of them are true entrepreneurs. How many of them are are willing and or they say they are. But how many of them just go home and say oh man I’m stressed out I just got to go home you know they put that 40 hours in and they’re stressed from that. That’s a telling sign that very few people as you say are these outliers that have those traits.
Speaker 10: 18:26 Exactly. I mean that’s the thing is you know he’s talking about 40 hours like that. You know when you’re when you’re starting a business like manner of dedication that a lot of people just you know if you’ve got a great job and that’s what you’re aware of like you might not want to own a business because you know that time investment 40 hours is just a start. When you start a business. Like you know 40 hour weeks like that’s if you’re just waking up at that point. But you know eventually if your goal was to get it down to be streamlined and outsource things like that you can do.
Stephen: 19:00 You have to put in the hours. So what is that saying you’ve put in an entrepreneur or somebody who’s willing to put 80 hours into a void a 40 hour work week and things like that. That’s a skill set. So looking at where are you guys going. So you know your business you’ve narrowed it down to where you’re working on the business very little. However you know you’re working on processes and streamlining that kind of thing. You’ve taken yourself out of the environment which is a very very healthy thing to do because now you’re kind of a marketing company. Hence
Dan: 19:29 the reason you guys can be so strong in marketing their I mean that well it’s there’s I think there’s a big component like the for us Marketing is a very important thing. You believe in the Amazon side of our business as well. For example I believe that I personally believe that as these games on businesses continue to grow and evolve like marketing is going to become more and more important in that environment. So our goal is to get much better at the marketing that we can transition into being even better on the Amazon side.
Stephen: 20:06 I think it makes perfect sense. I was just approached this morning by a nother PR company I get a lot of them and they’re wanting to their guy wants to talk about Google CEO in helping small businesses grow. And I think I said I wrote back to him saying look you know they’re always like Oh he’d be perfect for it and I’m not so sure unless he’s willing to talk to people who are selling on Amazon eBay their own site and they want to take it. They want to take control of it. They want to have reliance right they want to whether it be on those platforms however they want to show my glass versus your glass right.
Stephen: 20:42 So maybe an independent landing page and it had I direct traffic there and all that stuff makes sense to me that’s what our Amazon sellers want and so how do you market to that. And so I’m in the middle and I said if he can do these things and talk about these things then I would bring him on because I think there’s value that is that correct.
Speaker 10: 20:59 A 100 percent I mean that’s exactly what we’re trying to do.
Dan: 21:02 Because you know our business model is a bit you know amount of cells. Like not your traditional wholesale company or things like we don’t you know I’m not trying to add up a zillion accounts and that’s different than what you were correct. No
Speaker 10: 21:14 no. I mean we still have relatively the same.
Stephen: 21:17 And I understand it originally way back in the day I mean your model was you know you were R.A. and all that jazz you went into wholesale and you started adding products. You guys were products sorcerers heavy. You know you developed those processes but at some point you know you didn’t just keep adding products just to keep adding products right. There’s a point where you can only effectively manage so many of them is that is that that’s where I was going with it for sure. And
Speaker 10: 21:43 that’s kind of what we’ve done is we’ve we’ve reined in and tried to focus on becoming a better partner with the brands we work with.
Dan: 21:51 I mean that’s been like the real central focus of our business and instead of it’s likely we are slowing down the horizontal growth and really focused on focus on vertical growth.
Stephen: 22:03 At what point did you do that.
Stephen: 22:06 I mean well I’m thinking of somebody new coming in. Is this something they do from day one. Is this again something you know of course or is this something you can get to.
Dan: 22:15 I don’t think you can necessarily do it from day one particularly with our strategy so what our strategy is is it’s we we sort all the new companies right.
Speaker 10: 22:23 We had those companies which really start working with them we start tearing the products and try and understand what their goals and motivations are and then we try to develop a better partnership where we’re you know we’re we’re working more closely with them. They may limit sellers or something like that and may potentially work towards an exclusive with that brand like. Our goal is to do nothing but work with exclusives but relationships don’t develop like that. So it’s not like I can come to a company and say hey would you like me to be your schools sell Larry in effect. Right so right. Instead we have to cultivate those relationships. So
Speaker 12: 23:01 in the you know in that sense what we’re doing is we’re we’re we’re finding people that might be good might be a good fit for us.
Stephen: 23:09 We cultivate the relationships and then we see who is actually a good fit for it and hardens and then you put your legs you’re saying you put your heart into it so then you go in and you help them with their titles and you help them with their key words and you help them with their photos your wholesale customers. Correct.
Speaker 10: 23:26 Correct yeah. But it’s more than that. Like we want to help them. It’s not just it’s not just help the products sell better. It’s like because that’s part of the equation and it’s like they want our products to sell better but we believe that Amazon is the foremost search engine forces local products like you know 30 to 30 or 50 percent of your of your physical product searches are starting on Amazon right. So that means that the world’s biggest billboard. So these people need the best possible marketing to be able to accomplish their goals. And that’s what we’re trying to transition to.
Stephen: 24:01 So give me an example of what you would do. I mean so. So I get it. We would we would work on the titles we work on although the backroom stuff the stuff that we know where else would you help them on Facebook. On landing pages on other things and then direct them to your product selling on Amazon for sure.
Speaker 10: 24:18 And you know and more importantly it’s it’s not so much. It’s not so much about direct It’s about keeping our products at the top of the search engine. Looks like you set up glass that you were talking about earlier and it’s like what do you know what’s the difference between this glass and another glass.
Dan: 24:34 We want to be the difference in that glass like we want to be the difference. And you know we put in work to make sure that that product is constantly performing to the profitability.
Stephen: 24:43 Well and what would give me an example miniport idea give me an example of what you would do to make this glass my glass of water jump to the top.
Speaker 12: 24:51 I mean well it’s two simple things it’s trafficking immersion. Learning to drive traffic to a product and make it to work. And if you can do that consistently you can you can sell. You can change the direction for any single product. So that’s what we’re trying to do is we’re trying to get better traffic and divergence. And you know there’s infinite strategies for traffic but you can do Alstine presently Facebook YouTube Google any any of those things you know you’d already talked about.
Stephen: 25:19 So you’re in it you’re helping them create content in essence right you’re helping that product company create content and then directing it to keep it relevant and then therefore that traffic then directs over to happens to be Amazon because that’s the platform that people are searching correct. For sure I get in there I get in a whole way there. I mean you’re you’re you’re. Well basically you’re describing the private label model. Right you’re basically describing you know you Dan metters created this unbelievable glass and now you’re going to get it sold right and so you’re going to go through the process of getting it ranked getting it sold and keeping it ranked right. And so that would include advertising that would include all those different things that you would do in the private label world. But you’re doing it kind of exclusive in its own where I think the secret sauce was is you’re choosing who you do it with. If they’re a fit with your company and your future right that’s not everybody.
Speaker 10: 26:17 Mean that’s that’s what I’ve been like. That’s the exact mindset that we are required to adopt is that it’s so much easier for these private label folks to do these things because they have a fundamental understanding of how to do all of these processes. That’s that’s one of the actually I don’t think private label and also are at odds with one another I agree for virtually the same model. I agree. It’s just you know the focus is a different. Here you know what is the big difference in private label and difference is private label you have to start your brand. You
Speaker 12: 26:50 have to create a brand awareness in those types of things whereas I just get to tap into it immediately and make it better. Like that’s the only difference is I’m not trying to create brand awareness. I’m just trying to make people be more brand aware if I make sense.
Stephen: 27:04 No I think it does. Now here’s part of the challenge that you’re going to hear. But but then the profit margins on wholesale are a lot lower than private label. And I think that’s absolutely true. No I think it’s true. However however there are ways to make it work the other way. So I think if you just go in and start talking to somebody and they say yes to Keystone markup generally. Right. The easy stuff. Yeah you’re right you’re starting at a 50 percent and you’ve got you’ve got to go from assuming it’s Cellcept map right or whatever whatever they’re saying. However there are lots of ways to enhance that. I think that’s where you are going to go that that might be the case. Well let me ask you this. Is that the case when you start out with some accounts that you eventually can get them to a distributor level or get them to share in some of the cost or reduce the costs through shipping and some of the things you talked about an episode 90 which will blow your mind because that did blow my mind a few things.
Stephen: 27:57 I remember those things sticking with me. Two things from your interview one Dylan to the the the way you were able to think ahead and get lower shipping by using your own you know and breaking it out was very smart. So anyway so so back to that.
Stephen: 28:13 I think you know generally I mean if you bring it in something you’re the manufacturer you’re bringing in and you have a much lower cost however to get it rank to get in anywhere you’ve got to incur all those costs were this other vendor did. Right. Am I correct in that or I just mean that’s not exactly right.
Dan: 28:29 You know you’re there when the cost for a for a class where you have well you know what you what you actually have is you just have a widget on a client. It’s not really a product that stick with. Right. But there’s nothing that makes any real any real really any different than any other product. It’s a marketing effort. So that’s what you’re paying for is like your. So as far as what it cost is you’re landing at a very low cost but you’re incurring a heavy marketing cost of fill.
Speaker 10: 28:59 Whereas with the way we work and this is why we love the model that we use is it’s that we for you know and in terms of creating awareness campaigns and advertising campaigns and things like that we use a shared marketing budget with the vendor.
Speaker 12: 29:18 And plus it’s cheaper it’s like you know trying to trying to drive traffic to an established brand is cheaper than trying to drive brand then trying to create a brand because there is brand awareness like you’re going to have converge as long as your wisdom looks great and things like that you’re going to have conversion it’s just you can increase your conversion with better marketing better EBC and all these cool things can help you increase increase of existing conversion. But we don’t really launch products so much. We only do that more and more as a favor. So yes we focus on products that are already performing very well and then we can make some strategic changes to perform even better.
Stephen: 30:01 Well but those favors you do enhance the relationship right. That’s that’s the brand right so you’re selling Steve’s glasses and then all of a sudden I come to you and say hey I’m bringing out a line of forks. Could you help me out there. Sure. Right. You’re the natural person and then that relationship deepens a little bit more and deepens a little bit more.
Stephen: 30:21 Have you. I’m assuming you have some exclusive accounts. Is it is it a used ram Hostetter as an example. He has told me that one of his accounts. He went and said hey this is you know I can help you fix this. And they were like well we have somebody else who did it. But yeah go ahead give it a shot. He actually did it the other person was supposed to do it they didn’t do it. Rob went and did it and the companies like we want to do business with you because you actually did what you said you were going to do. And that gave him that relationship is this is that happened for you.
Speaker 12: 30:51 First off robs a butt kicker. That guy is he is a monster. Incredible stuff. But absol I mean that’s that’s exactly. That’s the thing. It’s really easy to be to be better than the average the average.
Dan: 31:06 And some celebrities the average Amazon seller is concentrating on making making money they’re not concentrating on being a great partner. So whenever you concentrate like ours our first focus isn’t on how much money I can make out of this and how well can I help the scalp improve and eventually make a lot of money from it. But it’s a long game. We’re completely longer like I don’t care who has money on the front end of a transition or something like that. If I know what’s going to pay off one current.
Speaker 10: 31:35 So it’s it’s you know our goal first and foremost is to be the best possible partner that we can and that’s what we try to teach our students is like if you focus on that it’s so much easier to build a relationship when you legitimately want to help some of it right. Whenever you’re working you’re looking for the what can I do for you. People want to work with you. People want to be a part of what you do. So it’s that kind of perspective that I see where it helps us helps us to do really well with these thoughts of attack.
Stephen: 32:07 I love it. We’re going to get to how to be a great partner because I’m not going to lose that because that is such a good thing I probably want to close with that. I want to go back. One more thing and again I want you to go back and listen to Episode 19 and listen to it and talk about getting discounts with shipping and all the ways they can get creative to get a good margin. Right. But one of the other things that you did early on your first hire was a marketing guy by the name of Dillon and and so looking back at that again and what you claim you made was that he or that position was absolutely one of the biggest reasons you guys have had success because from that day one you’ve been focused somebody has been focused on marketing in your whole business and this was before you even had to think before you had the whole formula or right around that time.
Stephen: 32:53 Is that statement still true.
Dan: 32:56 It’s absolutely and it’s not. Here’s the thing is it’s it doesn’t have to be a marketing position in your business but if you want your business to grow massively You just have to surround yourself with people who are smarter than you. And that’s what you know if I say that don’t say that like being serious fill isn’t credible as one person and that’s what we do is we hire. No wait we have a new guy Ryan. Ryan is really smart. I mean all these guys are so much smarter than me and I hear that it’s comical but that’s that’s what you have to do is you have to surround yourself with people who are amazing. So we focus on that. And then from there you’re going to find out where people actually fit in or else. And for you it may be marketing for them may not be the biggest leverage point your business it just depends on what company you’re trying to build in it.
Stephen: 33:44 Well that’s a very valid point if you’re trying it depends on the type of company you’re trying to build. I think that’s a very important point. All right let’s talk the whole formula. I’m going to let you talk about your program your course is not live currently correct.
Dan: 33:58 Yes I’m currently not. So it’s when does it go on sale.
Speaker 10: 34:02 Typically we actually never really we kind of plan around that we like Mike given the fact we’re in.
Stephen: 34:09 I get it. I’m just trying to do a little bit and give some people some idea early.
Speaker 10: 34:13 Typically we do it in around January late January early February.
Stephen: 34:18 OK. So there’s a little hint that’s between all of us there might be an opportunity. Any other events or functions that you guys have. I know there’s been some talk sometime about having people come down to your place for different events and stuff like that still. Are those still possibilities are they exclusive invitation only. What is that.
Speaker 10: 34:37 Typically whenever we run we have two different hats that we like to do. And one of the types of events is that we did our live event and it was amazing like in Vegas.
Speaker 12: 34:49 Yeah we had a couple of hundred people there. We had some really awesome speakers and it was just an amazing event like it was electric all weekend. People were really excited and so they took incredible things away from it. Then we have these you know we a couple of smaller events where people invitation only coming to our warehouse and hanging out and learning about our business and how we apply things because it’s it’s like getting to talk to our getting to talk to our team specifically about you know how they’re implementing and how they’re they’re doing tasks I believe is pretty invaluable and that’s actually Robert Hostetter the guy you talked about earlier was he attends one of those.
Dan: 35:31 Yep. And he talks fondly of it.
Stephen: 35:36 OK. So is there a waiting list for somebody if they have interest in this stuff and again Steve doesn’t benefit in any way other than I get to see somebody have success and I just to me that’s what I want. If this is connecting with someone is there a way to get on a waiting list or just to join a group so they can find out more information about this stuff. I
Dan: 35:54 mean honestly like almost everything we do is pretty much here like we focus on doing for the material I would just say our mailing list and on. So. So how do they get there. The whole formula. The formula. We’ve recently put a lot of effort into our blog as well. So you know if you’re on hold of all of it without candidly check out our blog it’s got amazing free information that will help you to put a link there because I think again the more information you have the better information. OK
Stephen: 36:26 . So what I want to do now is I want to I think what you said earlier about being a great partner is so important. I think that’s such a powerful statement because I don’t think people go into that relationship I guess. You know this is just common sense right to be a friend or to have friends you have to be a friend right. If you go into a relationship and take take take take everything that’s not a relationship that’s that’s dysfunctional right. So it’s common sense when you do that personally. So you’re saying the same thing has to happen with companies you’ve got to go in and help them. And then you get your help right. And and I imagine you don’t get help every time. Right. This isn’t successful for you every single time.
Speaker 10: 37:07 Is that OK. Well first let me start with you know in terms of in terms of this dynamic like the you know buying from a bank for a vendor it’s generally always been I take relationship right. You just think about this. Look what most sellers do for the brands they work with. Not my place in order. But they write him a check period. They write him a check and then that’s that’s the end of the interaction right. So it is just a tight relationship because you’re thinking well you know I am writing a check so I’m Pangle but you’re not writing my check somebody else’s book. That’s just the way Amazon works. Amazon way things have an expected amount of sales right. Right. This is like a pie for example and let’s say that a product sales 200 times a month they can sell 200 times a month.
Speaker 10: 37:54 Whether I’m selling it yourself and you are both of us and somebody else are selling it so all all we’re doing is dividing those sales. So as a taker when you’re not doing anything to help that all you are is a division of sales and then the only competitive thing you have is price period.
Stephen: 38:12 And so that then you see the repricing taking it down to the penny. Right as a Henny Penny Penny Penny pinching pennies so the only competing The only strength you have is price because the products are the same they’re only going to sell 200 of them. People are going to go to the cheapest one because you end up getting close to the top or the buy box ideally but logically so there’s no there’s nothing right you have nothing.
Speaker 10: 38:32 Exactly. So what we focus on is we focus on brands who actually care about what they’re doing and don’t want to have them I don’t want you know to just work with. And this is where being a great partner and it’s like that’s the question that the most common question we get is you know I’m you know I’m relatively new I can’t really do any of these things. Well you know what would you suggest that it’s like here’s the thing it could be a good partner. It doesn’t matter what you can do. It only matters what they need.
Speaker 11: 39:02 What it gives us is deep from a Kentucky boy dude.
Speaker 10: 39:05 I’m telling you that’s pretty deep. It’s not about you think about it from my perspective it’s like it doesn’t matter if I can do if I’m if I’m a wizard. And Facebook advertising I don’t mean Facebook advertising right. Hagar’s right. So why. Why do I have to try to teach myself all these things. I don’t. But instead what we focus on is we focus on defining being very good at two things and being able to define what a company needs to succeed. It’s like I want to be able to go in and fundamentally sit your problems are and develop a plan of action for success. Well
Stephen: 39:45 how do you have that conversation. How does it go. Wait before you leave that because I don’t want to lose that because that’s powerful. How do you have that conversation too.
Speaker 10: 39:53 I mean it’s we actually do it with Typically it’s more like our process is a bit more like a multi coach point marketing company. I don’t know if that makes sense to you.
Stephen: 40:05 So you’re probing them you’re asking them questions following up and looking in and then evaluating it and then creating a plan of action.
Dan: 40:14 Exactly. Which is what sounds really inefficient and that’s what’s in it can be if you’re not focused on developing your processes so you know that the vast majority of these things are low skill intensive and can be outsourced very easily which we do a lot.
Stephen: 40:31 And again this is taught in the class. Yeah. And of course I mean I’m sorry I just want make sure this is this is taught taught in the course because of some of it this is connecting with somebody and they’re like yeah yeah I get it. That’s what I want.
Dan: 40:42 So then of course it’s like you know if our course were just about wholesale it would be like an hour long like you know what I mean it would buy stuff cheap or sell it for a higher price.
Speaker 11: 40:52 OK. All right.
Speaker 10: 40:55 Next we’re what we focus we’re not focused on the just sheer act of wholesale it’s like that parks incredibly What we focus on is we focus on trying to help people create real businesses.
Dan: 41:08 So it’s in that respect of wholesale is like an arbitrary name. We stuck to it. So people have a clue what the process is.
Speaker 10: 41:17 But anyway it’s you know as far as as far as being a great partner it’s it’s just our business. I’m what they need. And then being able to do through them. So it’s you know your two skills are number one being able to isolate the problem. And number two can you. Or can you outsource like that if you can find people to do tasks. You can you can fix any problem right. I don’t have to be an expert copywriter so long as I can find an expert copywriter. OK.
Dan: 41:49 So that’s our focus is is trying to be more where I’m looking for here.
Stephen: 41:57 Well I think you’re becoming part of their team. I mean you’re really becoming an integral part of their team. You know when you sit there and describe this I envision like you said copywriting. Once you find a good copywriter. Now you have those tools in your arsenal so when you go to that next account it’s like OK here are the things we see you need. And we have all these resources now it’s not Dan or Eric or doing that or doing it it’s you guys messaging out to your partner in whatever you know either a V-A or maybe even local and saying OK these are what we need these are the clients and these are what the clients need. And so you now have this over time an established process and a pool of talent on your team that you bring to their team. I think it’s pretty deep.
Dan: 42:42 I mean as you go along the more problems you encounter the bigger your network gets. It’s like you find that you find people you like working with what you said copywriters photographers anything like that. And it’s you don’t have to be able to do all the things I just have to be able to know how to get them done.
Stephen: 42:59 No conduct and now you’re at this place where you could come in and help a company if you guys think that they’re a long term option for you. Right.
Dan: 43:07 And you go in and help them you’re able to share that cost with them is that how it works now for a lot of instances we may have them cover the cost like this is as far it’s whatever makes sense it’s like. But the thing is I get the look I know what I know. That’s going to be from a sale right.
Speaker 10: 43:24 And it those marketing fits into it. If it doesn’t and they want to be a real partner and they’re invested in the process like they’re going to want to they want to promote their products on Amazon because that’s the thing is companies have companies that marketing budgets like this not an unheard of concept. It’s not when you’re going to have to explain to them what a marketing budget is.
Stephen: 43:43 They understand that well you’re a consultant for them. Right I mean that’s what you are. You really are.
Dan: 43:49 It’s like whenever we’re talking about making putting them on the you know putting them on page one product position number one for a for a product on the world’s biggest billboard. It’s like they’re that’s an attractive thing for them that’s something that most companies will want to invest in because guess what it helps their brick and mortar sales like it it just helps or Amazon sales it helps everything.
Stephen: 44:13 No. No doubt. And I say sit and think about this right. We were talking about the comparison with wholesale and private label. Again if you’re bringing in that widget you then have that marketing expense and you incur all that cost to get it to that next level. What you’re saying is to the brand Hey you guys incur that. And so therefore that gets you even closer to that same profitability of that private label product. When
Dan: 44:36 you look at it in its entirety correct for sure. I mean I wouldn’t I don’t think our margins are very different from private or at all because it’s just you know we incur more cost on the product they incur incur more costs than the marketing.
Stephen: 44:50 Right. And B it depends on where you decide to look at it. You know Schir Hey I brought it in and I’m buying it for$2 and I’m selling it for 20. Man this is a great product. OK. Well you’re not selling it for 20 What are you getting. After everything is done. Well I’m netting you know 17 or 18 percent wow OK therefore that’s about the same. By the time you’re done. Exactly. He blew my mind. I mean you know it’s funny whenever we’re together I sit there and I think to myself these guys play this possum routine from Kentucky well because they’re a heck of a lot smarter than they let on get me excited this morning. I’m excited. I’m ready to take on the day. OK. So I’m going to get people to go to the whole set formula dotcom and they can join your your email list which I’m a member of.
Stephen: 45:39 They can also see your blog. There are events that you hold and that’s how they market to you. They will market heavy to you. However you know I like you know talk to people I like that you guys have references and you let people talk to people that’s very important. I heard nothing but amazing things about the Las Vegas retreat kind of thing. I mean it was a great experience for a lot of people. So you know I sit back and hence the reason I bring you on my show because I can’t I can’t disagree with what you’re doing you here hoping people create sustainable businesses and that I think that’s so important.
Dan: 46:15 I mean that’s our passion like this. That’s the thing is you know we all came from politics. I heard their symbol before you before the thing. You know I came from a job and I know I know I know what that’s like. And I know how important it is if you’re if you’re one of those people you’re a person that cares about being an entrepreneur.
Speaker 10: 46:35 I know how important it is to be able to create a sustainable business. And I know how much I don’t like garbage and crap or is out there that just doesn’t deliver. So like I said I mean our focus has been you know we’re not we don’t we don’t focus on trying to be the type of solution out there. Our our focus is being trying to get people to actually succeed.
Dan: 46:55 That’s our number one mission is whenever we call whenever we work with somebody or somebody takes our course we want them to actually succeed so we put a lot of effort into it we put a lot more work in that I think you know most people do. And it’s because of that it’s because we were very results oriented.
Stephen: 47:11 Well you wouldn’t have over a thousand people singing your praises unless there was results so. Dude I’m excited. I’m excited for what’s next for you guys.
Stephen: 47:19 Where where where would be the place he would say I made it. When would you say I’ve made it or are you saying I’ve made it.
Speaker 10: 47:28 Donald the Bay Area I mean for us it’s more about on.
Speaker 14: 47:32 Honestly it’s like I want it the most important thing for us is finding out about those individual changes. Like I talked to somebody on the phone two days ago and they were telling me that you know six months ago they had a good solid business men were doing 30 came on and October they hit 110000. And it’s you know and it was they said you know the biggest part of it was the community. Like people they were. Our community is incredible. And you know that they were able to operate outside their comfort zone by using this movie as the sound board and content.
Stephen: 48:13 Not everything comes from you and not everything comes from you Dan.. All right Dan Eric and Dylan things come from the other sellers in the group and they helped and he always says iron sharpens iron.
Dan: 48:24 Sure. Exactly and I mean honestly I wish I were. I wish we could deliver everything. But that’s not that’s just not possible. And it’s you get so many awesome perspectives and these people you know our community is is with very successful people.
Speaker 10: 48:40 So it’s you’re getting you’re getting the iron sharpens iron type of advice every time you go there any anywhere you guys are speaking next where somebody could see if they want to find out more from me.
Stephen: 48:52 They should go look at the stuff immediately but is there anywhere you guys are out doing any presentations any time soon.
Dan: 48:57 Not that I know of. It’s like this at this time of year for us it’s you know it’s funny because we it’s a it’s a real. It used to be our biggest hustle time of year when we were doing our ale. I mean Eric Oregon you know 80 90 hours a week is just insane. We were constantly out as we weren’t out shopping we were out.
Dan: 49:17 We were in in shipping. So but now we focus is on because you know I have kids as kids and we get to really focus on them during the holidays now. So you know this is going to have been a pleasant change I’ll say them.
Stephen: 49:36 And to be fair. Have you had some of your students get to this same place where they’re now sitting back. Managing pricing right at this time of year that’s that’s one of the big things you do at this point if you’ve got your inventory and or you’ve got your plans in place. Have you been able to see successes like that from them too.
Speaker 12: 49:54 For sure. I mean that’s that’s that’s what I’m saying is you know that’s the difference are. We’re not trying to teach people to make money like you I just need somebody to make money I fill them. You know we’re trying or our goal is to try to help them make real businesses and people a lot of people in our community aren’t. I mean I don’t even think we’re the biggest. I think we have students who are doing more sales.
Stephen: 50:16 Now that’s funny. It’s a little humbling isn’t it.
Dan: 50:21 No it’s great because it. You know how much we’ve learned from our students is we share. You know it’s the same when you have a very open mentality and it’s you know we share what we learn and we get a lot of people share what they learn with us what’s really kind of spin that well always been plaster of.
Stephen: 50:40 Do you guys got me pumped I’m excited. I’m loving. I love the fact that you’ve been able to figure it out.
Stephen: 50:46 You still have an Amazon business it still keeps you in the game. You still walk the walk not just talk the talk however you’ve been able to pull yourself out of it create other leaders without creating competition. That’s one of the big fears. You’ve been able to create an environment where they feel like they can be independent and run their business or whatever in your business.
Stephen: 51:05 And then you’re able to transfer that knowledge. To me it sounds like you’ve come full circle and I bet you everybody listening here is saying that’s where I want to be. So last piece of advice for somebody if that’s where they want to be. What’s your advice.
Dan: 51:19 Start with ears start with your name and mine can start. It’s like it’s very easy to fall into the habit of thinking you know I’m working for myself. I don’t have to have a process for this. It is though it is a long line of thinking but start ironing out your process to start developing your procedures because eventually you’re not going to want to handle it and you don’t want to have to rewrite those things like that. It’s very hard to add them later. It’s much easier to start with them. So when you start with the end game in mine it’s going to make you it’s going to make you a more complete business much faster.
Speaker 13: 51:56 Adams put part. OK. All right. Want to go out to the whole formula and check out their blog. I’m going to check it out in a moment. Dana thank you so much. I wish you nothing but success. Happy holidays. Happy New Year. And I can’t wait to see him face to face. Same
Dan: 52:14 with you brother and congratulate yourself. 250 episode Gruinard. So that’s I’m proud to be on it. I am happy to be a part of what you’ve created.
Dan: 52:29 It’s very kind of you. Thank you. Take care.
Speaker 15: 52:32 Dudes are smart program smart. If this is something you’re interested in go up and sign up and get on their waiting list because again you’ve got to buy time where it makes sense if this is something you’re interested in. This resonates with you and these guys connect with you and I think that’s the most important thing. If you can connect with them that’s really what matters. That’s why we say if you’re going to be with somebody be with them and really go all in. E-commerce will M.Com. Don’t forget my sponsors and Scopus is crushing it right now from solar lamps. Several have star slash scope used to code momentum. Save some money. Get some free keywords. But the key is you got to do it. You gotta go out there even for your whole set we just talk wholesale with then use that for your wholesale accounts.
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Cool voice guy: 54:05 Thanks for listening to the e-commerce momentum. I guess my legs mentioned today can be found that the combers momentum dot.com under episode number. Please remember to subscribe and like us on iTunes.