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How I would build a nose strip business.
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Key takeaways
- how I would launch a nose strip business if I were to launch one.
- $19.99 would probably be a price point that I would look at, maybe $24.99.
- I would you know, we'd split test the price points there.
- But, let's do the math on how much money this would make.
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Full transcript
Locally archived YouTube transcript with timecodes. Speakers are assigned heuristically and may be corrected editorially.
0:00how I would launch a nose strip business if I were to launch one. So, they currently sell for about 30 cents a strip. They probably cost a penny or less to make. $19.99 would probably be a price point that I would look at, maybe $24.99. I would you know, we'd split test the price points there. And I'd probably sell 30, 60, 90 packs. But, let's do the math on how much money this would make. If I just did my own promotion, let's say 10,000 people a month would go to a page if I said, "Hey, check this out." And then we converted 5% of traffic, then we would have 500 buyers, 10% churn. That means that every month I would sign up 500 and then I lose 10%. This business would keep growing with that level of traffic until we reach 5,000 users cuz it's 500 divided by 10%, which is the churn. I would be at 5,000 users a month and if my price point was $20, so I'd probably make like say safely even after the cost of the nose strips, which is minimal.
0:46Let's just say we make $16 gross margin on a $20 product. $80,000 a month, million dollars a year in profit from the nose strips.