Newton, Twenty Dollars, Three Hundred Dollars discussed on Marketing Trends
If you have an oversupply of this product. How do you adjust the pricing to sort of maximize it. It's even more interesting cresting if that product is going bad like it's flowers right so you can't just leave it in a warehouse somewhere so a lot of companies that you don't think of as marketplace companies actually have a lot of those same dynamics mix but the marketers don't always think of that way. They're just like okay. I'm just focused on demand. They're not always looking back at like. Wait a second. Let me understand kind of what my supplier inventory looks like an adjust accordingly final piece on that i do wanna touch on your time at at pro flowers because one of the things without super fascinating was that you help the company avoid hidden high cost orders. I'm curious to to what that is what you did so this was a while ago before four. There was a lot of sophisticated analytics around and what was happening at many companies was at a lot of folks. Were going kind of on averages and not really understand the concept of incremental right so let's say hey i know new customers worth twenty dollars and right now. I'm paying fifteen dollars. The new customer see might say hey. That's great. Let me kind of pay twenty dollars per new customer and i'll get a bunch of new customers the promising and it's so obvious b-best now but this is this is my time ago right like yeah. You can get your average up to twenty. But how much did you pay for those additional customers that that you got from moving from fifteen to twenty dollars because now you paid more acquisition costs for everyone and was turning out that you know a new customer is worth in this example twenty dollars and we're you're paying like three hundred dollars per incremental customer 'cause we were based on the average and not really realizing that by paying more. We weren't getting that much more but we were paying a ton more for everything we would've gotten already knew revolutionary time now. It's kind of obvious hey you know we stand on <unk>. We shoulders of giant air. We stand on the shoulders of giants all right. Let's get it. That's newton right. I think that was new from <hes> detainee. Lean on me as <unk> <hes> all right. Let's get into lightning.