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EASY Way To Increase Your Shopify Margins By 10% (For FREE)

Published on: December 4 2022 by Hayden Bowles

EASY Way To Increase Your Shopify Margins By 10% (For FREE)

EASY Way To Increase Your Shopify Margins By 10% (For FREE)

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00:00:00 00:00:04 what is the absolute best way drop it in
00:00:03 00:00:07 the comments right now before I say what
00:00:04 00:00:14 is the best way to increase your margins
00:00:07 00:00:15 by 10% you know what's going on every
00:00:14 00:00:17 day and you're coming back at you with a
00:00:15 00:00:18 brand new video and in this one we're
00:00:17 00:00:21 gonna be toking about not only the
00:00:18 00:00:24 fastest not only the easiest but the
00:00:21 00:00:26 most effective way to increase your
00:00:24 00:00:28 margins on your Shopify store no matter
00:00:26 00:00:30 what you're selling physical and you
00:00:28 00:00:33 know if you're in person but based on
00:00:30 00:00:35 your supplier no matter who it is how to
00:00:33 00:00:36 increase your margins by 10% and you
00:00:35 00:00:39 might have guessed it right by
00:00:36 00:00:41 leveraging the supplier okay here's the
00:00:39 00:00:42 thing a lot of people say oh how do I
00:00:41 00:00:44 give my hats to give me a better return
00:00:42 00:00:46 that's definitely a question you should
00:00:44 00:00:48 be asking 100% without a doubt work on
00:00:46 00:00:50 that that is a great skill to build
00:00:48 00:00:52 first of all and it can definitely work
00:00:50 00:00:54 it'll probably help you actually get
00:00:52 00:00:56 higher margins if you focus on that and
00:00:54 00:00:57 do it successfully but one of my
00:00:56 00:00:59 personal favorite ways to do this and
00:00:57 00:01:01 it's kind of funny you can actually do
00:00:59 00:01:04 this before you start selling any
00:01:01 00:01:05 products to just have a jump do you know
00:01:04 00:01:09 like 10% might sound like a small amount
00:01:05 00:01:10 an extra 10% let's say you're doing a
00:01:09 00:01:11 hundred thousand dollars a month of
00:01:10 00:01:12 revenues I might seem very out of reach
00:01:11 00:01:13 for you right now
00:01:12 00:01:15 but there's a lot of people doing that a
00:01:13 00:01:17 lot of stores doing that we do that left
00:01:15 00:01:19 and right on month one with all these
00:01:17 00:01:21 different brands ok revenue but let's
00:01:19 00:01:24 say you're doing that in revenue and you
00:01:21 00:01:27 have 30 to 40% profit if you raise that
00:01:24 00:01:29 10% that's a big jump that is you know
00:01:27 00:01:31 these big brands would fight for 0.2 of
00:01:29 00:01:33 a percent extra you know that's how
00:01:31 00:01:35 optimized they've gotten it but like 10%
00:01:33 00:01:37 if you can take down right off the bat
00:01:35 00:01:39 or down the road somehow that is a
00:01:37 00:01:41 number that you're gonna want to grab so
00:01:39 00:01:43 what's the best way to do this
00:01:41 00:01:45 negotiating with your suppliers on how
00:01:43 00:01:46 they express I'm gonna explain two
00:01:45 00:01:48 different strategies not one but two
00:01:46 00:01:50 that you can actually utilize to get
00:01:48 00:01:52 them to agree to this it's gonna be
00:01:50 00:01:54 slightly interesting getting them to a
00:01:52 00:01:57 speak English because a lot of them
00:01:54 00:01:59 don't and be reply but the way you do it
00:01:57 00:02:02 is actually fairly simple and you got to
00:01:59 00:02:04 think about it these suppliers just like
00:02:02 00:02:06 any other business is on here to make
00:02:04 00:02:08 money that's it so if you can make them
00:02:06 00:02:10 money and they still have margin they're
00:02:08 00:02:11 gonna accommodate that so it's the
00:02:10 00:02:12 biggest thing you have to realize is
00:02:11 00:02:13 that nothing
00:02:12 00:02:16 is a set price this is what I learned
00:02:13 00:02:18 when I was traveling overseas the only
00:02:16 00:02:21 places that I've been where I couldn't
00:02:18 00:02:22 negotiate on regular things like pretty
00:02:21 00:02:25 much food anywhere from buying stuff at
00:02:22 00:02:27 a store the only places pretty much
00:02:25 00:02:28 Europe that I've been Europe and the
00:02:27 00:02:29 u.s. I'm sure there's other countries as
00:02:28 00:02:33 well but it was all these other
00:02:29 00:02:34 countries where I could negotiate so I
00:02:33 00:02:36 really took that principle under the
00:02:34 00:02:39 other things I do online just negotiate
00:02:36 00:02:40 ask for a lower price I know someone did
00:02:39 00:02:42 who was at what other entrepreneur said
00:02:40 00:02:44 hey just ask for a discount go to a
00:02:42 00:02:47 restaurant hey hey can I get a discount
00:02:44 00:02:50 he said he didn't got 10% off gotta ask
00:02:47 00:02:51 okay so with the Aliexpress supplies I'm
00:02:50 00:02:53 gonna pull this up for you guys here in
00:02:51 00:02:55 a second and show you how to get in
00:02:53 00:02:57 touch with them but the ways that you're
00:02:55 00:02:58 gonna be doing this so you can either do
00:02:57 00:03:00 it once you're already making a lot of
00:02:58 00:03:02 money and pushing a lot of orders
00:03:00 00:03:04 through your supplier that's gonna be
00:03:02 00:03:06 the most effective and allow you to get
00:03:04 00:03:08 the biggest drop but if you want better
00:03:06 00:03:09 margins you can do both if you want it
00:03:08 00:03:10 right off the bat when you're first
00:03:09 00:03:12 starting you know maybe you haven't
00:03:10 00:03:14 launched anything but you want that
00:03:12 00:03:16 extra jump I'm gonna explain how you can
00:03:14 00:03:17 do that as well right away
00:03:16 00:03:19 because it's always nice to have that
00:03:17 00:03:21 extra breathing room even if it's a low
00:03:19 00:03:23 tiket product you know let's say it's a
00:03:21 00:03:25 dollar and you get it down to 90 cents
00:03:23 00:03:27 how would you do that in the beginning I
00:03:25 00:03:28 would go ahead and I would tell the
00:03:27 00:03:29 supplier I would message them on how
00:03:28 00:03:31 Express let me actually show you how to
00:03:29 00:03:33 do that so just as an example right in
00:03:31 00:03:34 here on this watch let's say you're just
00:03:33 00:03:36 starting or any way you want to contact
00:03:34 00:03:39 them just scroll down a little bit and
00:03:36 00:03:40 over on the Left boom contact seller now
00:03:39 00:03:43 you're gonna reach out what would you
00:03:40 00:03:45 say right away if you're trying to get a
00:03:43 00:03:47 lower cost per I mean just product so
00:03:45 00:03:49 this is my personal favorite it's I
00:03:47 00:03:51 don't wanna say it's deception it's it's
00:03:49 00:03:54 a little bit of a Fugazi Fugazi it's of
00:03:51 00:03:56 town foolery you know pulling some wool
00:03:54 00:03:57 over their eyes but that this can work
00:03:56 00:03:59 as long as you can back it up down the
00:03:57 00:04:02 road this definitely helps go ahead say
00:03:59 00:04:03 to them look we are very successful to
00:04:02 00:04:05 what we do we run a multitude of
00:04:03 00:04:07 e-commerce stores doing you know six
00:04:05 00:04:08 figures seven figures just break it down
00:04:07 00:04:12 and you know kind of explain a situation
00:04:08 00:04:13 it puts you on a pedestal say hey we can
00:04:12 00:04:15 get a lot of orders you know just this
00:04:13 00:04:16 is kind of an honest part we can get a
00:04:15 00:04:18 lot of orders we're very confident about
00:04:16 00:04:20 what we're doing and we love your
00:04:18 00:04:22 product however we've been in touch with
00:04:20 00:04:23 multiple other suppliers you definitely
00:04:22 00:04:24 seem like the best bet but we would like
00:04:23 00:04:27 to get a slightly
00:04:24 00:04:29 lower cost for the product especially
00:04:27 00:04:32 since we expect to drive such high
00:04:29 00:04:34 volume right away okay so that right
00:04:32 00:04:35 there a lot of them are probably gonna
00:04:34 00:04:36 say okay
00:04:35 00:04:39 we can do that and they will integrate a
00:04:36 00:04:40 separate link for you on Aliexpress it's
00:04:39 00:04:42 pretty much a private listing link you
00:04:40 00:04:45 can still integrate - Oh bear low and
00:04:42 00:04:46 it's gonna be at a discounted rate so
00:04:45 00:04:48 this is something you can negotiate with
00:04:46 00:04:50 them but you got to think about it even
00:04:48 00:04:52 though the products are so cheap like on
00:04:50 00:04:53 here you know these are kiddies might be
00:04:52 00:04:55 a little more expensive if you go to
00:04:53 00:04:56 anything else on Aliexpress you can get
00:04:55 00:04:59 necklaces like 30 cents and these
00:04:56 00:05:01 bracelets for a dollar 50 like it's it's
00:04:59 00:05:03 very inexpensive that's the point but
00:05:01 00:05:06 they still have margin built in every
00:05:03 00:05:07 company anywhere any middleman frontmen
00:05:06 00:05:09 anything like you know they have margin
00:05:07 00:05:11 built in so they might be selling it to
00:05:09 00:05:14 you for a dollar fifty but it might cost
00:05:11 00:05:15 them 60 cents you know they're still
00:05:14 00:05:17 marking it up a very good amount that
00:05:15 00:05:19 watch probably doesn't cost more than
00:05:17 00:05:21 five to eight dollars to make maybe ten
00:05:19 00:05:23 you know there's margin they can work
00:05:21 00:05:25 with it so you can get them to drop at
00:05:23 00:05:27 ten percent but without you know very
00:05:25 00:05:29 much difficulty so the harder part is
00:05:27 00:05:30 doing that on the front end I think it's
00:05:29 00:05:32 a great strategy what I just mentioned
00:05:30 00:05:34 with you saying hey we're very confident
00:05:32 00:05:35 we've had other successes stuff we've
00:05:34 00:05:37 you know we're gonna confident exactly
00:05:35 00:05:38 what we're doing this product we've
00:05:37 00:05:39 learned a lot this I don't know if I'd
00:05:38 00:05:41 say to learn but you know basically
00:05:39 00:05:42 putting yourself on a pedestal
00:05:41 00:05:44 convincing them that you're gonna sell a
00:05:42 00:05:46 lot right you're kind of almost selling
00:05:44 00:05:48 them on a dream and then they'll give
00:05:46 00:05:50 you that discounted rate it's really as
00:05:48 00:05:51 simple as that you can start negotiating
00:05:50 00:05:53 I'm gonna share that second tactik here
00:05:51 00:05:54 in a second the only thing you have to
00:05:53 00:05:55 think about with that front end deal and
00:05:54 00:05:57 I've seen this happen it's never
00:05:55 00:05:59 happened to me because I don't negotiate
00:05:57 00:06:01 on the front end but I've seen it happen
00:05:59 00:06:03 where people said that they got a
00:06:01 00:06:04 discounted rate then they did not follow
00:06:03 00:06:06 through with what they said they got
00:06:04 00:06:08 like a very minimal like a handful of
00:06:06 00:06:10 orders in like a month and a half and
00:06:08 00:06:13 the supplier pulled the link so they
00:06:10 00:06:15 deleted it at that price so you do have
00:06:13 00:06:17 to be able to back up what you're saying
00:06:15 00:06:18 that's the thing back up the claim so
00:06:17 00:06:19 that's something you could still do on
00:06:18 00:06:22 the front end though to help get a lower
00:06:19 00:06:24 price now what can you do this is the
00:06:22 00:06:27 much easier much better point where the
00:06:24 00:06:29 supplier almost has no choice but to
00:06:27 00:06:31 give you a lower price okay this is once
00:06:29 00:06:32 you're already fulfilling through a
00:06:31 00:06:34 specific supplier you're getting a lot
00:06:32 00:06:35 of orders let's say you're getting 50
00:06:34 00:06:37 orders a day right it's pretty good
00:06:35 00:06:39 amount right that's like 15
00:06:37 00:06:41 a month so you're getting in it let's
00:06:39 00:06:42 say you're paying two dollars a product
00:06:41 00:06:44 or five dollars whatever sort of offer
00:06:42 00:06:46 you're selling so you're getting a good
00:06:44 00:06:47 amount of orders coming in maybe it's
00:06:46 00:06:49 tens of thousands a month I don't know
00:06:47 00:06:51 or maybe you're doing super high take it
00:06:49 00:06:53 and it's just a couple hundred you go to
00:06:51 00:06:55 that supplier and say look here's how
00:06:53 00:06:57 much money were selling in these
00:06:55 00:06:59 products like this is how many orders we
00:06:57 00:07:01 are sending your way as a supplier every
00:06:59 00:07:03 single month and we're about to scale it
00:07:01 00:07:04 again a little pedestal push say hey
00:07:03 00:07:06 we're about to scale or about to
00:07:04 00:07:08 implement this we like where it's going
00:07:06 00:07:10 we want to 10x this however we've been
00:07:08 00:07:12 in touch with other suppliers you could
00:07:10 00:07:14 say something like that or say but the
00:07:12 00:07:16 price is a little bit too high for our
00:07:14 00:07:18 margin what can we do to work something
00:07:16 00:07:21 out since we're bringing such a high
00:07:18 00:07:23 volume this works extremely well with
00:07:21 00:07:25 both I've only seen the ego come into
00:07:23 00:07:26 play with the middle size suppliers but
00:07:25 00:07:28 the really small ones who have next to
00:07:26 00:07:30 no orders but can still facilitate that
00:07:28 00:07:32 amount of orders because they want to
00:07:30 00:07:33 start making money and then the really
00:07:32 00:07:35 big one so they're like okay we're gonna
00:07:33 00:07:37 keep going you know good reputation they
00:07:35 00:07:39 can supply they can make it it's a
00:07:37 00:07:41 streamlined process so their margins are
00:07:39 00:07:43 actually bigger because their cost is
00:07:41 00:07:45 lower because they keep doing it so just
00:07:43 00:07:46 on their business in now the medium ones
00:07:45 00:07:48 I've ran into a few issues doing that
00:07:46 00:07:51 but essentially if you're able to show
00:07:48 00:07:53 be like yo FBI or whatever it is just
00:07:51 00:07:55 show all of your orders bill yo this is
00:07:53 00:07:58 what we got send them the list from
00:07:55 00:08:00 their own freakin supplier stuff like
00:07:58 00:08:02 your exported list I wouldn't send them
00:08:00 00:08:04 your list of data of course but show
00:08:02 00:08:06 them how many orders you've gotten and
00:08:04 00:08:08 that right there as leverage say look
00:08:06 00:08:10 we're about to leave you hey hey we're
00:08:08 00:08:12 about to leave you we're about to go to
00:08:10 00:08:14 another supplier if you don't give us a
00:08:12 00:08:17 lower rate they're there to make money
00:08:14 00:08:18 they're gonna accommodate it so you know
00:08:17 00:08:19 if we think about it like then there's
00:08:18 00:08:21 all sorts of products obviously on on
00:08:19 00:08:24 Aliexpress we can even go over let's go
00:08:21 00:08:26 to the basic jewelry here is it even on
00:08:24 00:08:28 this one we'll just have it in jewelry
00:08:26 00:08:29 in jewelry like a look it out cheap you
00:08:28 00:08:32 know we're gonna do we're gonna go ahead
00:08:29 00:08:33 and we're gonna sorts by orders they got
00:08:32 00:08:36 some you're okay we're gonna look about
00:08:33 00:08:38 price all right you ready 29 cents 39
00:08:36 00:08:40 cents imagine they're probably getting
00:08:38 00:08:41 this for 15 cents that's probably how
00:08:40 00:08:44 much they're paying like there's a
00:08:41 00:08:47 margin on everything so the bigger price
00:08:44 00:08:49 drop like 10% is it's not that much if
00:08:47 00:08:51 it's a dollar that's knocking off 10
00:08:49 00:08:52 they're still making money and your
00:08:51 00:08:53 Marge I might not seem a lot of people
00:08:52 00:08:56 don't even do it because they like out
00:08:53 00:08:58 10 cents but that's ten percent off the
00:08:56 00:09:00 top on something where you don't have to
00:08:58 00:09:02 worry about running ads better or doing
00:09:00 00:09:03 something different in your marketing to
00:09:02 00:09:06 directly increase that conversion or
00:09:03 00:09:09 trying to get a ten percent higher
00:09:06 00:09:12 conversion rate on your website there's
00:09:09 00:09:13 easier ways to go about doing it try and
00:09:12 00:09:16 do all of them but this will definitely
00:09:13 00:09:17 help you so if that helped if that's
00:09:16 00:09:19 something you're definitely in a trial I
00:09:17 00:09:21 definitely recommend you do without a
00:09:19 00:09:22 doubt if it is be sure to drop a like
00:09:21 00:09:24 down below and if you have any other
00:09:22 00:09:26 specific things I know this is something
00:09:24 00:09:27 a lot of you probably didn't think about
00:09:26 00:09:29 probably have never really been told
00:09:27 00:09:30 about but it's definitely one of those
00:09:29 00:09:32 things where I think it's worth trying
00:09:30 00:09:34 it's something that's very I don't to
00:09:32 00:09:36 say unique but it's a great strategy and
00:09:34 00:09:37 it works all the time and you can
00:09:36 00:09:39 actually get I've gotten more than ten
00:09:37 00:09:41 percent off that's a conservative number
00:09:39 00:09:42 you can get 20% they'll not get from
00:09:41 00:09:44 I've seen it this is the biggest I've
00:09:42 00:09:46 had they brought it from five dollars to
00:09:44 00:09:48 380 so I don't know if the math is on
00:09:46 00:09:50 that but that's a that's a pretty big
00:09:48 00:09:53 drop that's like over 30% so that really
00:09:50 00:09:54 really helps right there especially once
00:09:53 00:09:56 you have those orders coming in it just
00:09:54 00:09:59 makes it all that much easier because
00:09:56 00:10:00 you have the credibility okay so other
00:09:59 00:10:01 that let me know if you guys have any
00:10:00 00:10:03 other specific video requests any
00:10:01 00:10:06 questions problems things you're running
00:10:03 00:10:08 into in quarter four as we finish off
00:10:06 00:10:11 2018 very strong and carry that momentum
00:10:08 00:10:13 into 2019 and with that being said by
00:10:11 00:10:15 the end of this month if you guys are
00:10:13 00:10:17 watching it this month in October we're
00:10:15 00:10:21 gonna be hitting a hundred thousand
00:10:17 00:10:23 subscribers absolutely crazy I'm excited
00:10:21 00:10:25 I'm planning something dope not even a
00:10:23 00:10:26 giveaway cuz that's kind of basically go
00:10:25 00:10:28 let me give you an iPhone let's do a
00:10:26 00:10:30 laptop giveaway that's lame we're gonna
00:10:28 00:10:31 come up with something sick if you have
00:10:30 00:10:33 any ideas with things you want to see
00:10:31 00:10:35 for it drop it in the comments as well
00:10:33 00:10:37 and with that being said I'll be seeing
00:10:35 00:10:48 you tomorrow in the next video peace

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