Don't Pivot. Stack.

0:00So we have uh most of our 80% of what we sell is B2C. And we have a lot >> sell? >> We sell two-way radios. >> Two-way radios, interesting. Okay, like >> Walkie-talkies, yeah. >> Like kids, like >> Uh no, like professional and and hobbyists is what we sell. Yeah. >> How long how far away? I'm just curious. >> Like how how far do they reach? >> Yeah. >> Uh it's line of sight unless you have a repeater on a tower and then it's like regional. >> Sweet. >> Yeah.

0:27>> Cool. Okay. >> Okay, so uh 80% of B2C like hobbyists mainly and like 20% B2B and so I would say for I mean we've had the business for like 20 years but for the last five we've done e-commerce with that 80% and when you talk about like more better best like I feel like we've like skinned that cat is almost as many ways as we possibly can. >> What's revenue? >> It's 3.5 million. >> Okay.

0:51>> Yeah. >> And so 80% of that so 300 sorry 3 million a year is coming from ads. >> Yeah. >> Okay. >> Um and and there may be like some more opportunity there but obviously the B2B just has like an explosive amount of opportunity comparatively. So how do you know when and how to pivot? >> So it's a really good question because typically with e-commerce it's usually at like So do you have like a you have a little bit of a brand a little bit of a following and people are like

1:19>> We definitely do on the hobbyist side but we don't have very much presence in the commercial market. >> Yeah, that's okay though. That's fine. Um we were Who was my weed guy yesterday? I was Yes, we were talking about weed stuff yesterday. So um when you're thinking about So normally we and I to be very clear um I've only had one e-commerce business that got to like 20-ish years. So I I hedge this answer is that's my only experience directly in e-commerce.

1:44Um but typically you get to about a million a month and then that's usually where people start to see the cap. Obviously depends on the size of the market but usually around a million a month is where it gets a little bit more difficult to scale. Again, not to say that there aren't AG1 who does a gazillion dollars like generally. And so that's when having wholesale distribution, you just do it on top of that. And so the idea is that you run the B2C, you know, trade to consumer side. And what that does is then you get all of these people, basically the value proposition to wholesaler is not, "Please give me distribution." It's, "I'm going to send people in the door to buy my product and they're going to buy other stuff at your store, too."

2:21And so that's the shift in terms of the value proposition to the >> I I think I need to re-explain a little bit. So it's not B2B in terms of distributing to consumers. It's B2B in terms of like actually selling to like firemen, county governments, hotels, warehouses, like that kind of thing. >> But 80% of your revenue is hobbyists? >> Yep.

2:46>> Do you know how many like what the market size is for walkie-talkies? I know I'm I know I'm saying the wrong word, but yeah. >> There's like 800,000 hobbyists in the United States. Not all of those are into like exactly what we do, but we know there's like uh how many a month that it do the that get their DMR license? 2,000 a month that are getting a new license. So we know there's like a continuing amount of people.

3:11>> So um what's the ticket size? >> Uh our like average order value? It's about $275. >> Okay, so you're doing 1,000 orders a month at like at 1,200 orders a month, call it that. Does that sound right? Okay. >> Yeah. >> So you're doing 1,200 orders a month. So that's 40 a day. >> [clears throat] >> Does that limit >> [sighs] >> I'd still want to go bigger. Like I just [clears throat] like I've been like if I were you, I'd be like, "How can I make this creative like that much better?"

3:39That would probably like that would be probably like my first thing I would look at. Um and I would I would I would put really strong incentives around UGC. Which I'm guessing you guys >> We do that, yeah. >> Yeah. I just like put as lubrication around that so that I could get like 50 ads a month in there. >> Yeah, we actually have a giveaway every month and part of the giveaway is people send in their UGC content. It's like a constant stream. >> Okay. So, I mean, normally I'd still keep pushing, but how how much do you know about the the B2B space in terms of acquiring customers there? Like, you have 20% of your business that's there now. How did that come to be?

4:16>> So, a lot of that is actually probably more referral because a lot of hobbyists are in businesses and so a lot of times we get it that way. Um we have done just a little bit of like Facebook ads and things like that. And we do have a tiny like email list on that side that we mine. >> So, what's else do you do there? So, you run ads on that side? >> We've actually gone and knocked on doors, too. >> Okay, but you run ads on that side or no? >> We haven't done a lot yet.

4:43>> Yeah, the difficult the thing that I'm I'm so hesitant about with it is that most I would imagine most of the the what I'm using transistor radio. Is that what is that what I Did I say it wrong? >> Uh it's called it it would be like a handheld radio. >> Handheld radios, okay. >> Or two-way radio. >> I apologize. I said it to you. So, handheld radios. I would imagine that most of the handheld radio users or buyers would be government. >> A lot of them are, yeah. >> Right, it's it's such a different pro- it's like it's a totally different business. And that's why I like hesitate a little bit. Um I would I would pull out every single possible last stop on seeing if I can just push the 3 million to a million uh 3 million to 10 million a year.

5:22Personally, um and like I think some of the stuff that I said earlier with like CRO, increasing creative, like all of that stuff applies for you. Um adding upsells to the funnel so that you can increase average order value cuz that might like with the business I talked about yesterday, like us doubling average order value 5x our ability to advertise. And so you probably there's probably Are you only on one channel in terms of your advertising or where you're advertising?

5:45>> We're everywhere. Facebook, Instagram, Google, um on all the social platforms, Reels, YouTube. We have a YouTube channel. Amazon. Yeah. >> I'm just so hesitant cuz it sucks. >> Yeah. >> It's just such a different process. >> Yeah. Oh, I will say one thing. There is some crossover because uh with really like the emergency services side because a lot of hobbyists help with like community emergency services.

6:13>> Yeah. >> And so that sometimes that crosses over into like volunteer firemen or county governments or that kind of thing. So there is kind of maybe some segue there. >> This is what I would do. I have my idea. This is how I would bridge the gap. I would email cuz you probably have a massive list at this point on the on the hobby side. Did you already do this? >> We have a massive list. I don't know what you're going to say. >> I would ask the list if they know anybody who Do you know any law enforcement, firefighters, whatever? We're getting so much feedback. Um we would like to help our first responders get into this. If you have somebody or you work for one of those companies, we'd love to figure out a way that we could make something that works for you.

6:50I would probably do that as my my trying to get the foothold in. And so you may end up finding out that one out of every 100 uh you know, consumers that you sell has a tie directly or indirectly to one of those organizations. And so if you're selling 1,200 a month, you might get 12 really qualified leads. >> We do do that. But one thing I thought of was wondering if we could give them an incentive. Like, "Hey, we'll give you a free radio if you do this deal." >> Yeah. >> You do what you want. >> Yeah. >> Yeah.

7:15So yeah, give someone a free radio. Absolutely. Give them two. Like if >> [laughter] >> Like If like if you think of like what's the cost to acquire a police department if you give away your cost on a radio is probably like what? 8 50 bucks or something like that. Yeah. Like would I pay $50 to get a I would I'd give them 10 of them, you know? I'd give them to all your friends you can hang out. >> Yeah. >> Um that would probably be my my first play. >> Okay. >> That help? Little bit? Little bit. Okay.

7:41Yes. Weed. All right, let's do this. So, up until now, I have been selling products to dispensaries. >> Yeah. SKUs. >> And after the round table, I basically realized that I might need to reframe it in a lot better light. >> Okay. >> And the reframe it that I got from the exercises were instead of saying you're selling SKUs and products to a dispensary, say that you are getting more dollars in their door today with this product. And framing it that way.

8:12>> Yeah. >> Um I just want wanted to, I guess, verify and kind of brainstorm the reframing of the core offer. And see if I'm on the right track. >> Yes. >> Yeah. >> And so, uh what I've been told is um having a initial contact with a VSL funnel that clarifies and kills all the zombies. One of the biggest zombies is pricing. >> Zombies are obstacles.

8:38>> Um the reason Yeah. Uh regionalized price compressions that are >> Two radio is like, "What?" >> [laughter] >> Zombies and we've been waiting for this. >> Yeah. >> Uh Yeah. Our Our Our business would go through the roof. >> Yeah. >> So, in uh in order to address the regionalized price compressions that are happening, having a solid VSL funnel and and sending, quote and quote, the menu and the next, you know, action to them.

9:05Um and then the contact, it's not, "Hey, I want to sell you s- you know, uh products. I would like to talk to you about your business in reference to essentially a conversation or a podcast, which is one of your Jim Launch original, you know, plays. >> you a hack. >> Yeah. >> So, um highest converting outbound message. Ready for it? Uh either a text or leave a voicemail. And so, let's say I'm calling 1 2 3 Pothead, right? So, that's whatever that that's that retail center is. And next door to it is, you know, three four five six uh pothead.

9:40I call 456 pothead and I say, "Hey, this is John calling in regards to 123 pothead. Give me a call back when you get a chance." You just named their competitor. People are like, "Wait, what?" Like you call McDonald's and you're like, "Hey, this is calling in regards to Burger King. Just give me a call back." They're like, "What?" Like the curiosity is crazy. And so they'll call you back and be like, "Yeah, Burger King's killing you." Anyway, so uh like yeah, they're selling my product and they're getting 10 times more people in the door than you are. And so I figured you didn't want to miss out on that. At least even the playing field.

10:15And so if I were you, I the the the I think the most important metric that you need to have for your sales pitch is the demonstration of how many people walk in every day for your product and then also buy other Or just come in for your product. Cuz the idea is like you want to be lead gen for them, not them being lead gen for you. And that's the pitch. Like every single store, if every product at every store brought more people in, every retail store would be filled to the gills.

10:43But most of the time, they pay the rent to have the the people who are driving by and they're the ones who are actually incurring the cost of acquisition. You want to say, "I'm basically like the premium that I charge is your marketing budget of people coming in the door." That's the flip. Cuz then it doesn't matter what the price is cuz it's like what other things are they buying? And if you can demonstrate also like our buyers, for example, on average buy two other things, then it's like we have very high LTV customers who are coming in. So not only sell more people, they'll also buy more stuff.

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