Can someone once and for all define gross margin clearly.. as I've seen different ways to calculate it. Do you mean CM2 e.g. net revenue ( net of VAT and ideally X% returns allowance) minus payment gateway, cost of good, freight, duties, 3PL storage, pick and pack, delivery to customer and packaging? Like literally everything before CAC? 70/80% like this sounds hard
Elon derangement syndrome is real. It's a mind virus. I feel there is an inverse relationship between how much someone likes Elon and their level of knowledge about him. My anecdotal evidence is that every time i meet someone who says they despise Elon, they are people who've never read any of his books or watched full in depth interviews
Dead? Of course not. Changing? Always! From a first principles perspective.. is there any sign consumers have stopped buying physical products? Not at all. Is there any sign that consumers now only buy products in physical stores? No.. quite the opposite actually ( growing share of online vs offline spent).... so ecom is simply part of consumer spending and is just another channel through which you have a chance to offer your product to a market. Of course the way you access the market may change over time ( new channels e.g. applovin, tik tok, etc) and new ways of interacting with potential consumers and presenting your product ( ugc, influencers, new UI features on stores etc) evolve.. ultimately these are simply all new ways to earn trust and earn that conversion?
@PrestonRuther10 Thank you for sharing. Would really love to learn from you how Chubbies has been dealing with seasonality. I assume most of your sales come in the March to August period? Do people buy swimwear as xmas gifts? Would be great if you can share top learnings about seasonality
@macastel3 Hmm.. hard to believe.. if 15M NP means over 20 Ebitda assuming around 28 % tax rate.. 57% ebidta? Seems unlikely? Unless owner is francesco totti and 0 ad spend lol.
@DTCMidas How long till you decide an angle doesn't work/ an ad set does not perform? 1 week? 2 weeks? Or based on # of conversions? If an ad set doesn't do well for the first 5 days is there a chance it will actually start doing super well in week 2?
@seanfrank Actually it's not about revenue per gram but revenue per cubic centimeter.. you want lots of value packed into a small item, not just a light item.
@garyblack00 Gary props to you for keeping on posting your thoughtful analysis here despite lots of " i know better" geniuses commenting and bashing you all the time. In any case, you may not be right, the market will decide.. but you provide good discussion points