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)

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