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REVEALING The 3 SECRETS To SCALING Your Ecommerce DROPSHIPPING Business SALES!

Published on: November 28 2022 by Peter Pru - Ecommerce Empire Builders

REVEALING The 3 SECRETS To SCALING Your Ecommerce DROPSHIPPING Business SALES!

REVEALING The 3 SECRETS To SCALING Your Ecommerce DROPSHIPPING Business SALES!

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00:00:08 00:00:14 what's up Empire builders welcome back
00:00:11 00:00:16 to another episode today we're going to
00:00:14 00:00:18 tok about the three ways the only three
00:00:16 00:00:21 ways you can increase your business and
00:00:18 00:00:23 I got this concept from a genius marker
00:00:21 00:00:28 called Jay Abraham so make sure you go
00:00:23 00:00:30 follow him he is uh he's one of the best
00:00:28 00:00:33 marketers to ever live he has a bunch of
00:00:30 00:00:35 great books out highly recommend picking
00:00:33 00:00:38 those up but he toked about a concept
00:00:35 00:00:40 called well he toked about these three
00:00:38 00:00:42 ways that you can increase your business
00:00:40 00:00:45 and I think they pair very nicely in
00:00:42 00:00:48 e-commerce especially for those of you
00:00:45 00:00:50 looking to scale your businesses so I
00:00:48 00:00:54 wanted to tok about his three ways to
00:00:50 00:00:58 increase your the to scale your business
00:00:54 00:01:00 is through either one increasing the
00:00:58 00:01:03 amount of customers or buyers that you
00:01:00 00:01:05 know a business gets right increase the
00:01:03 00:01:07 frequency that your customers your
00:01:05 00:01:10 buyers actually buy from your store
00:01:07 00:01:12 right and then he also says the third
00:01:10 00:01:16 way to increase your and scale your
00:01:12 00:01:19 business is to increase your prices okay
00:01:16 00:01:21 so increase your prices so um I just did
00:01:19 00:01:23 some hypothetikal numbers right here for
00:01:21 00:01:26 instance say we have five hundred
00:01:23 00:01:28 customers right they buy from us on
00:01:26 00:01:30 average two times a year the average
00:01:28 00:01:32 cart value is twenty seven and ninety
00:01:30 00:01:36 nine when somebody purchases from us so
00:01:32 00:01:40 we can assume that our average buyer
00:01:36 00:01:44 spends roughly forty one ninety eight
00:01:40 00:01:44 per year actually that's wrong guys
00:01:45 00:01:49 actually no sorry that is right so our
00:01:47 00:01:50 average cart since they're buying from
00:01:49 00:01:55 us two times a year will be roughly
00:01:50 00:01:58 forty one 98 from repeat customers so
00:01:55 00:02:00 let me just italicize that but there's
00:01:58 00:02:03 different strategies obviously guys to
00:02:00 00:02:06 increase your customers right you know
00:02:03 00:02:08 obviously there's a
00:02:06 00:02:10 obviously running ads more ads running
00:02:08 00:02:12 influencers you know that's how you
00:02:10 00:02:14 start building up your customer base
00:02:12 00:02:17 right sending more emails to a cult your
00:02:14 00:02:19 - to your list of non buyers right
00:02:17 00:02:21 turning them into buyers those are all
00:02:19 00:02:23 ways to increase your customers right
00:02:21 00:02:25 you're usually having to pay for a
00:02:23 00:02:27 customer to come in to the door right
00:02:25 00:02:29 order they organically maybe find you
00:02:27 00:02:32 but that's hard to rely just completely
00:02:29 00:02:34 on organic frequency the waste increased
00:02:32 00:02:38 frequency really are you know having a
00:02:34 00:02:41 good referral system in place a referral
00:02:38 00:02:42 system of a bonus point systems let me
00:02:41 00:02:47 write these under directories so you
00:02:42 00:02:49 guys have it a referral system and
00:02:47 00:02:50 there's a bunch of you know referrals
00:02:49 00:02:53 listen up I don't want to go into like
00:02:50 00:02:55 the Nitty Gritty of it all of how to set
00:02:53 00:03:04 you know look the actual tik behind
00:02:55 00:03:09 this come on formatting there so
00:03:04 00:03:11 referral systems work great bonus point
00:03:09 00:03:13 systems are also awesome if you're on
00:03:11 00:03:16 Shopify bonus point systems are amazing
00:03:13 00:03:18 because you there's a free one and I
00:03:16 00:03:23 forget what it's called but basically
00:03:18 00:03:25 what a bonus point system is they they
00:03:23 00:03:26 every time they purchase something from
00:03:25 00:03:29 your sword they get reward aid it with
00:03:26 00:03:30 let's say you know 30 points 50 points
00:03:29 00:03:32 100 points depending on how much they
00:03:30 00:03:34 spent they get you know points for and
00:03:32 00:03:36 then you can set up rules in this point
00:03:34 00:03:38 system where let's say hey and once you
00:03:36 00:03:40 get a thousand points you get a $20
00:03:38 00:03:43 coupon you know 3000 points you get a
00:03:40 00:03:45 you know $50 gift card or whatever it is
00:03:43 00:03:49 but that gets people coming back and
00:03:45 00:03:52 buying from you more and more bonus
00:03:49 00:03:54 point system so just write that in there
00:03:52 00:03:56 and thirdly guys you can increase your
00:03:54 00:03:59 prices this is the one I kind of wanted
00:03:56 00:04:02 to tok about the most here and let me
00:03:59 00:04:02 just write you know paid advertising
00:04:04 00:04:10 paid advertising obviously there's other
00:04:09 00:04:12 ways guys you can joint venture
00:04:10 00:04:14 partnerships and stuff like that but
00:04:12 00:04:20 again I I want to stik with increasing
00:04:14 00:04:22 prices with a case study that we did so
00:04:20 00:04:24 increasing prices it's obvious as we
00:04:22 00:04:26 just increase you know our prices are
00:04:24 00:04:27 average car value is going to go up but
00:04:26 00:04:29 the problem you increase prices as you
00:04:27 00:04:31 might think is you'll have less
00:04:29 00:04:34 customers right so I want to tok about
00:04:31 00:04:37 what we did this was a long time ago
00:04:34 00:04:39 for one of our subscription businesses
00:04:37 00:04:41 also it's all done front-end click
00:04:39 00:04:43 funnels and then we have subscription on
00:04:41 00:04:47 the back end they put them through but
00:04:43 00:04:55 we were at the time right we're at the
00:04:47 00:04:59 time charging $14.99 per membership
00:04:55 00:05:03 right I just called that so we had 1,000
00:04:59 00:05:08 users when we increase this so 1000
00:05:03 00:05:13 times $14.99 right we have one thousand
00:05:08 00:05:16 fourteen nine nine zero per month in
00:05:13 00:05:19 revenue per month revenue all right
00:05:16 00:05:21 which is great right however you know
00:05:19 00:05:22 I'll never forget it this was actually
00:05:21 00:05:24 oh this happened a long time ago I've
00:05:22 00:05:25 read the book I forget what was it
00:05:24 00:05:28 called
00:05:25 00:05:29 yeah I forget what it was called by
00:05:28 00:05:31 Jamie Abraham and that's when I first
00:05:29 00:05:34 learned about this and I was like crap I
00:05:31 00:05:37 should increase my prices for for the
00:05:34 00:05:39 subscription for a monthly basis and in
00:05:37 00:05:41 the back of my mind I was like crap I'm
00:05:39 00:05:45 gonna lose a lot of people like I'm
00:05:41 00:05:47 gonna lose people if they if I increase
00:05:45 00:05:49 prices so I was really worried about
00:05:47 00:05:51 that I was like what if I increase
00:05:49 00:05:53 prices they're not they're all like
00:05:51 00:05:54 everybody's gonna leave but what they're
00:05:53 00:05:58 not gonna want to stay there I can I
00:05:54 00:06:04 want to pay these new prices so what I
00:05:58 00:06:06 did was I accounted for I think I just
00:06:04 00:06:09 bet that I just thought you know what
00:06:06 00:06:12 let's say worst-case scenario I lose 50%
00:06:09 00:06:15 of my subscribers there were my members
00:06:12 00:06:16 because they because they don't like the
00:06:15 00:06:17 increasing price so I was like planning
00:06:16 00:06:18 for the worst
00:06:17 00:06:20 put that never
00:06:18 00:06:26 happen so what I did was we increased
00:06:20 00:06:32 our membership to $24.99 per membership
00:06:26 00:06:36 big increase all right $10 more so we
00:06:32 00:06:36 were at 1,000 members right here just so
00:06:36 00:06:40 everybody knows
00:06:42 00:06:55 one thousand members and then right here
00:06:50 00:07:00 when we increase prices we lost about 20
00:06:55 00:07:02 percent of our people right twenty
00:07:00 00:07:04 percent of our people left there like I
00:07:02 00:07:06 we don't want to pay this extra price
00:07:04 00:07:10 done and you might think Dan that's a
00:07:06 00:07:14 lot of people to lose right but guys it
00:07:10 00:07:17 actually wasn't right give me a second
00:07:14 00:07:22 time sorry I just getting a message here
00:07:17 00:07:26 sorry guys we lost 20 percent of people
00:07:22 00:07:29 so we only had 800 people stay with the
00:07:26 00:07:31 new membership so when I ran that math I
00:07:29 00:07:33 was like wow like that sucks that we
00:07:31 00:07:37 lost two on her people like that's a lot
00:07:33 00:07:46 of people to lose but guess what when
00:07:37 00:07:46 you do 800 times $24.99 we were making
00:07:48 00:07:56 her mom we're making close to 20,000 now
00:07:51 00:07:58 per month in revenue which is crazy
00:07:56 00:08:00 because we lost that many people right
00:07:58 00:08:02 we could have lost even more people and
00:08:00 00:08:04 we would have still broken even we could
00:08:02 00:08:10 have lost 50 percent Houmas let me find
00:08:04 00:08:12 out what that number is exactly so we we
00:08:10 00:08:14 would have had to literally lose over 50
00:08:12 00:08:16 percent of our people and we would we
00:08:14 00:08:20 would have I think been at 12,000 so
00:08:16 00:08:23 still that's crazy that we would have
00:08:20 00:08:24 even have 60 per if we lost 40 percent
00:08:23 00:08:27 we would still be at the same amount and
00:08:24 00:08:28 we have less members which guys you
00:08:27 00:08:30 might think oh it's less less members
00:08:28 00:08:32 that's bad that's a bad thing well think
00:08:30 00:08:35 about it's actually not because now we
00:08:32 00:08:38 are we have to we buy less product
00:08:35 00:08:40 we're buying less products now which is
00:08:38 00:08:42 great for us right it's less product
00:08:40 00:08:44 cost but we're selling now for a higher
00:08:42 00:08:45 price and sending out to less people so
00:08:44 00:08:50 essentially we are making more money
00:08:45 00:08:52 right a lot more money as you can see
00:08:50 00:08:53 just by raising the price this was a
00:08:52 00:08:56 huge
00:08:53 00:08:58 huge thing when we did this guys a huge
00:08:56 00:08:59 realization that increasing your prices
00:08:58 00:09:02 isn't always a bad thing
00:08:59 00:09:04 guys you know like if you're starving
00:09:02 00:09:07 your business every business is starving
00:09:04 00:09:10 itself you need to do one of these three
00:09:07 00:09:12 things right to start being able to pay
00:09:10 00:09:15 yourself to start making some money in
00:09:12 00:09:18 your business right so at that time we
00:09:15 00:09:19 literally just let me zoom out a little
00:09:18 00:09:22 bit so we can get everything in frame
00:09:19 00:09:23 here I said hey you know what we're not
00:09:22 00:09:25 making as much money as I thought we
00:09:23 00:09:28 would be making in this business at the
00:09:25 00:09:31 $14.99 price point if we increase this
00:09:28 00:09:34 by $10 I know that's a lot for the arkin
00:09:31 00:09:35 you know our customers but we need to do
00:09:34 00:09:37 it we need to set this new standard it's
00:09:35 00:09:40 gonna give us enough money to pay
00:09:37 00:09:42 ourselves buy products you know innovate
00:09:40 00:09:45 if we want to and all that and that's
00:09:42 00:09:46 exactly what we did so I think guys
00:09:45 00:09:50 especially you in drop shipping
00:09:46 00:09:51 ecommerce whatever if you want to start
00:09:50 00:09:53 scaling your business you need to look
00:09:51 00:09:55 in one of these three categories a lot
00:09:53 00:09:57 of us are doing this right we're always
00:09:55 00:09:59 running paid ads creating new customers
00:09:57 00:10:01 right but our frequency might be a
00:09:59 00:10:04 little crappy so there's things we could
00:10:01 00:10:07 do like you know daily emails daily
00:10:04 00:10:09 promo emails right we're increasing the
00:10:07 00:10:11 frequency of our current customers
00:10:09 00:10:13 sending them daily emails of promotions
00:10:11 00:10:15 that we're doing you know the referral
00:10:13 00:10:17 system having a bonus system in place to
00:10:15 00:10:19 bring bad customers coming back from us
00:10:17 00:10:22 and keep them buying keep them engaged
00:10:19 00:10:24 right we're thirdly is increasing your
00:10:22 00:10:26 prices which is scary to do sometimes
00:10:24 00:10:29 guys but trust me it works out in the
00:10:26 00:10:32 end so I hope this video is helpful guys
00:10:29 00:10:35 please like comment and subscribe if you
00:10:32 00:10:36 found this stuff really cool and let me
00:10:35 00:10:38 know in the comments below which one you
00:10:36 00:10:43 are going to work on in your business
00:10:38 00:10:43 guys remember your empire starts now