Pets.Com, Demarco, General Counsel discussed on Mixergy
I understand that they were kind of beaten up after the dot com and were reluctant to do things like ship, big bulky items didn't have a big margin. I get that, but you saw something that they didn't see an opportunity that those guys were already in the space missed. You came in as to outsiders. And it's a good question and it's hard to know dated and see. I think when we saw was we saw initial extraordinary customer traction. And so that meant that our marketing costs was very, very low. So we knew that we probably didn't have spent a lot of money marketing. And then the second thing is we saw a path towards how you could make the margin work. So I think a lot of people were scared off shipping, heavy diapers and wipes because of the pets.com DeMarco in two years earlier. And so we had constructed this model where we knew pretty specifically would as the batting how analytical we were, and I think we were fairly olitical model out, yes, it's gonna be expensive to ship the stuff in a marketing cost willow, but if we can get other stuff into the box, you know, this is the high margin, baby, cesary, clothing, toys, all these other things. The incremental margin there would more than pay for the low more into remaking. March on the diapers that make sense. It does make sense. And then the other thing that I remember reading in book was that you guys had customized boxes for diapers which reduced your shipping fees versus others who are doing more more general shipping my right in that memory. I think that's what we did. We had a whole unit called special ops. We call them special ops and you know, from beginning to end which focused like a laser on trying to take off out of the system anyway, which anyway we could. So with our boxing, we create something called box them, which was a software that was going to tell the warehouse precisely with the dimensions of the order was going to be, let's say, there's two to diaper to diaper boxes. You know, one white on formula exactly what the size of that was so that we didn't have were wasting any box space. So now we had thirty five different boxes. So nice veterans experience each to see vox come from time where you get the big box. Not only is that a terrible user experience but extraordinarily expensive. So we knew if we're gonna play in his game, we had to be really efficient. And so there was a lot of things like that, but you're right about box was a peak. You strike me as someone who uses spreadsheet. In his personal life, do you? Do you have an example of like, nah, he said, yeah, that's Mark. I am not a spreadsheet personal life guy, but it's not me. It's actually Mark, but I like the analytics on not actually don't love, don't love spreadsheets. Are you on a personal level when you're not when you're not doing this? If what do I like? Yeah, like how I'm trying to get a sense of you in business. So you're telling me Mark the person who would have spreadsheet it sounds like maybe first grades in college or for his household budget when he was starting out, what is it about you that how do you what? What is it that you love about business? How do you express that in your personal life? I'm trying to get a sense of your personality. Yeah. I think it's a couple of things. One thing I don't know if this translates to my personal life, but I'm highly analytic. Actually, death Duffy does something about my wife. You highly critical and what I mean. So I'm aware actually. So I was trained as words. I saying general counsel lawyer. If you, you've got to really be able to analyze the facts, present the facts, relate them to law, make your case and smo-. That's my background and trading in when I think about visit. And I think about how all the dots can act and how we're gonna plot out the next five years to make the math work. That's what I love. I love the exit owes of of operations at the same time. I think this is true of mar. Also, I really love Brandt had think about emotion and how you can create an emotionally resonant experience with your users, which very non analytical because that's how we took on Amazon..