Day 335
14:00 PM
Just figured out they're not even paying us anything technically for the software
If ROI is 30x or 50x they make money so we're technically paying them
E.g. we give them $50k pure cold hard profit, they pay us $1k
Are they really paying us?
Are they really?
Plus on the returns that don't exceed threshold they get a $/5 handling fee
let's assume 30% returns have handling fee
20% of orders are returns
30% of 20% is 6%
on 6% of orders they get $5
that's $0.3 per order they get in additional revenue
they pay us $0.09 per order
They make money
Damn we could charge 2x more based off handling fees alone and they'd still make $0.12 on handling fee
Easy
Easy
Should we?
No one would be able to compete with us on customer acquisition cost
firstly
no one has the same thing I'm doing since I'm a combo of all of them
secondly
the closest competitor is charging
40,000 orders = $600 per month, 500/mo ish on yearly plan
they also make the merchant a lot less than we will
so our ROI is greater too
Anyway so
costs dont make sense
they dont matter
you pay $500/mo to get $10k/mo
or you pay $1000/mo to get $20k/mo
who you gonna go for??
PROFITS > COST
So, they charge 600/mo
for the same thing, at $0.09 per order, we charge $3600 per month
great, we charge 6x more
we can deal with 6x higher acquisition costs
BUT
If we double that, it's $7200 per month
They're getting 40,000 orders
at AOV of $50 even, they're making $2m/mo in revenue
30% margins let's say
they're making 600k/mo
can they afford to spend $7200 per month?
that's 1% of their revenue
In return, they get $300k approx back
or they can use this competitor which looks nice, has nice UI, but ultimately aint quite good enough
$300k i give u
you pay me $7.2k
NO BRAINER
19:13 PM
Damn still doing the last screen on the return self-service thing
Gotta handle every condition and display different text etc for each
if label
if no label
if store accepts returns
if store doesnt accept returns
if pickup booked
if pickup not booked
if pickup failed
if label failed
if no items
if items
if gift card chosen
if refund chosen
and combinations of those
fun times
20:48 PM
Alright done that
Gotta add out of stock thing for variants if they're out of stock
Like 1 hour left before sleep
Then email notifs etc tomorrow
22:00 PM
Done swatches for out-of-stock
Email notifs tomorrow + return dashboard tomorrow
1 day behind schedule
can we make it up
yes
gotta be quick
sleep now
also, for reference - for the future
for the people that might say don't grind too hard etc
I wake up at 8
Sleep at 10
I get 10 hours sleep
Perfectly fine
Anyway by the time you're actually reading this, I'll have solved most of your health problems
inshallah