I Built a $50 Million Business in 6 Minutes | Spotify Video Exclusive
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What is the main topic discussed in this episode?
I get asked all the time about these nose strips that I wear. I wear nose strips so that I don't snore at night.
In this video, I'm going to break down how I would launch a nose strip business if I were to launch one and how I would get it to be a $40 to $60 million enterprise and how you can use the same thought process to apply to any physical products business or service business that you use to sell stuff to people that you don't know.
no strip costs pennies to manufacture you can sell them for a hundred times that price so if it costs you two cents and you can sell it for a buck you're making huge margins on the actual thing the second thing is that it's sticky quite literally but also from a recurring standpoint if you can improve how someone breathes they're gonna buy it again and again and again i could have auto ship built into it which would be nice and it makes it convenient for people it's also something that doesn't require willpower to use you don't have to remember to do it like the problem with supplements is that people have to remember Let's take them.
What strategies does Alex suggest for launching a nose strip business?
Most people sleep every day. Most people don't work out every day. And so I'd rather associate a product with something that people are doing on a regular basis without willpower. It's the reason beauty products to me are more interesting than fitness products by and large. I have deep product knowledge. I've used the ones that are like pieces.
Not a huge fan.
I walk around within the morning and I take it in, I put it in my pocket, I leave it on my kitchen table. Get out of bed to go get the thing. I like the disposable ones. And the things that I would probably do to make a difference is I'd focus a lot on the product. I would also probably try and tie in some sort of branding element. I would put like volume or persist or endure across the bridge of the nose. I'd like to have one that was clear that had the word, so the only thing you see is the word, which I think would be really cool. It has to stick all the way through. The different flavors of the nose strips would be the words that people are working on. And so I like having those constant daily subconscious reminders around things.
How can pricing and profit margins impact a product's success?
They actually found in sales rooms that having a single word on the wall affected performance from the team even if it was just huge. So if you just have like one more on the wall, then everyone sees that as this daily reminder that they need to keep going. I would want my face to be the walking billboard for my eyes. And I would have it spelled backwards so that in the mirror someone could see it and they could see it every day. And it would remind people of like a word that they're trying to focus on for a season. And so I'll give you a basic estimate of what I think would end up happening money-wise. Let's say that we retailed the product for, let's see what some strips go for real quick. So they currently sell for about 30 cents a strip.
And I'd probably sell 30, 60, 90 packs. I would want to be a little bit premium. $19.99 would probably be a price point that I would look at. $24.99, I would split test the price points there. But it'd probably be in that range. My cost of goods would almost be entirely based on the shipping cost that's associated. Cost to ship the nose strips would probably be in the neighborhood of like $4. Maybe like two and a half, it depends on like the 3PL that we would use. Even after the cost of all the no-strips, which is minimal, let's just say we make $16 of gross margin on a $20 product, which is really good for physical products, five options on my upsell, one, three, six, 12, all the way down to maybe 15% off if they buy 12 months worth and then cascading upwards in terms of smaller percentages off.
But let's do the math on how much money this would make. Let's say 10,000 people a month would go to a page if I said, hey, check this out. And if I did it consistently, it'd probably be about 10,000 people a month. Just clicks. And then we converted 5% of traffic on that page. 500 buyers.
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