The E-commerce Leader

[00:00:00] Jason: When time is on your side, when you have the timing that you arrange, and take control of that you can do two or three things that are really powerful.
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[00:01:09] Michael: There are three things that create pricing power, which is the ability to raise your prices without customer resistance, which I think is a kind of magic. So in this podcast episode, we’re gonna dive into those three things. Jason, we’re continuing our conversation based on your book pricing power. And in today’s episode, we’re gonna cover principles five, six, and seven.
[00:01:29] So are three principles that fits together very nicely. So welcome. Back then, , give us the first concept here. What’s the first thing that creates that magical pricing power. We can raise our price and the customers will still buy at the same kind of level.
[00:01:42] Jason: Yeah. Yeah. I’m happy to share the first idea, but I do like the idea of you referring to it as magical, there’s.
[00:01:47] There’s something just very special about businesses that can raise their prices without a lot of customer pushback. Obviously we’re doing this whole series on pricing because right now in the economy, inflation is raging. And, the opportunity for us as e-commerce sellers is either to raise our prices and keep our margin somewhat intact.
[00:02:07] Or if our cost structure hasn’t increased at all, it’s really an open season to race prices cuz everyone else. , if you will. And, , and the operators who have the ability to do that are going to benefit tremendously, and retain their margins and add new value to their business. And the opportunity to do that is, is a challenging one.
[00:02:26] So of course that’s why we’re doing this conversation. So the first thing that I wanted to mention that creates pricing power sort of a special way is the concept of pre-selling. And, pre-selling is the opportunity to Telegraph. Punches, if you will, to your customers, let people know ahead of time, what you’re going to be, offering in the future and the more anticipation, the more buildup of energy and enthusiasm people have towards that idea, the better your outcome for pricing power.
[00:02:57] Those things are connected. And, the. Idea that comes to my mind is, Elon Musk launching the cyber truck. He launched that thing literally years before it was ever gonna even be made. They just obviously had a prototype. The launch didn’t even go that well, they broke the windows.
[00:03:13] If you remember accidentally, they were supposed to be Bulletproof glass or something, and they just threw rocks right through them. And, but nonetheless, he was pre-sell. Cyber truck. And you could sign up, I think, for a thousand dollars deposit. And it has just an extra ordinary number of people who have already said, yep, I want one.
[00:03:30] And they don’t even know what the final price will be. I’m like, it didn’t matter. And so that’s very interesting. When you think about it, like years before the product’s out. The price is not announced. And yet he’s, pre-sold, I don’t re remember the exact number. Maybe we could Google it while we’re talking here, but it’s a huge number of people who have said yes, please, to that.
[00:03:52] And that’s an example of pre-selling and how pre-selling can create pricing power. So this is the first idea we wanted to talk about and really dig into a little bit here.
[00:04:00] Michael: So tell me a bit more about. There’s obviously a kind of magic in it when you get it right. So Elon Musk, the other famous, example is Steve jobs, of course, with the latest iPhone or iPad or anything really was absolutely master at this whole thing of creating lines out the door for the latest iPhone.
[00:04:16] But is, pre-selling mostly about that kind of level of crazy buzz creation or break it down. What sort of other ways can it show up? What all can we implement
[00:04:25] Jason: it? I think there’s opportunity here. Charlie Munger has talked about. Businesses that have the ability to raise their prices that they don’t ever tap into or don’t ever use.
[00:04:36] So some businesses, some e-commerce companies can literally raise their prices. And there’s no drama, no pushback, and they just haven’t done it. So they haven’t done the pricing, adjustments work. And you want to think through that for yourself. And if you’re in a position where you’re like, I’m gonna have a hard time doing this, then pre-sells one strategy.
[00:04:55] And the details that go into it to your question, there are a few things that go into it that, really make it stand out as an opportunity. The anticip. Of a new thing coming out. The other thing, that goes into it is a way to organize it is to think in terms of product suites or, product lines, movies are classic at this, the first Marvel movie Ironman, the, in the modern era Ironman, Tony stark came out.
[00:05:21] It was cool, but it was like, people didn’t know what to expect. But when Ironman too came out, it was like, the trailer for that one was just like, oh my gosh, this is gonna be a massive blockbuster. And then the, they created the whole Marvel cinematic universe. The MCU, all of that was a product suite or a product collection, an integrated product concept.
[00:05:42] So that the second. Had more pricing, power and more built in anticipation than the first one did. And you can stack your products in a similar way when you stack your products like that, you really create the opportunity for, a price point that customers will not. Have an anticipated, fixed number for, or estimation of, or expectation of, they’ll say, I want this new thing.
[00:06:07] I can’t wait for it to come out. I’m gonna get in line. I’m gonna get on the list. I’m going to, get ready. And if you say to them, do you know exactly how much it’s gonna cost? I’m like, I don’t know. I don’t care. So think in terms of product suites, I think is one primary way in which to, to build in this pre-selling, concept.
[00:06:25] The other thing that you can do is launch strategies. Pre-launch is, are really good at doing, pricing power by pre-selling the launch strategy Elon Musk did with the cyber truck. Everyone remembers the lights are flashing. The truck comes out, looks really super. Weird and different.
[00:06:43] Everyone has that fixed in their mind. That was a launch event for his new product. He didn’t just send out a little email with a, little, press release that said, cyber truck will be coming out in 20, 20, whatever. He didn’t do that low key version. He went all in on a product launch and that creates pricing power.
[00:07:02] So there you go. There are a couple more ideas as it relates to how to build this into your, eCommerce.
[00:07:09] Michael: great. Do you think then for the average person, that’s a very difficult concept. What the heck is average these days, but for, somebody who’s a small business owner, they’re not Elon Musk, they’re not Steve jobs, both of whom had spent years getting to the point where they could build that kind of bus.
[00:07:23] So a couple of decades in both cases probably then how do we do a version of this kind of buzz building on a human scale budget?
[00:07:31] Jason: Yeah. I think technically for Amazon sellers or for Shopify sellers, you wanna rig it up so that there’s, pre-orders allowed, like in Shopify specifically, you wanna have your product set up so that people can, pre-order it, that’s a technical step.
[00:07:44] You, you wanna organize it in a Kindle’s books. You can do this on really well on, on Amazon. Michael, can you do launches for regular private label products like that? Where it’s a pre-launch date? That’s.
[00:07:55] Michael: That’s a very good question. I’ve never come across that strategy. It doesn’t mean it can’t be done.
[00:08:00] If you could do it on Kindle. Yeah. Then yeah. I guess it works slightly differently. Put it this way. There’s no reason why you can’t do some of that. If you’ve spent time building an email list or, Instagram following or whatever, or all of the above that you can’t, be building anticipation, but I guess if you could, pre-launch on Amazon, then that would be more powerful.
[00:08:19] So it’s a good question. I’ll have to go and investigate.
[00:08:22] Jason: Yeah, it’s a tried and true strategy for books. I actually have a new book coming out. This is a shameless plug, but Shopify power is, is coming out on the 12th of August. If you’re listening to this live, I’ll put a link to it in the show notes.
[00:08:36] It’s only available for pre-order right now. And, as it happens, it that’s the way it’s rigged up. And I’m eating my own dog food here, as they say, I’m eating my own cooking. And in the, in the Amazon shop, if you just search for Shopify power, or if you search for Jason Miles, by the time you hear this, if you’re listening on podcast, it’ll already be out.
[00:08:57] It won’t be in the presale phase, but, There you go. That’s an example. Let me mention a couple other things before we, move on from this topic. Cause I think there’s a lot here to explore. There’s another couple ways to do, pre-selling that creates really strong pricing power.
[00:09:10] And I wanna make sure we talk about them. One is gift cards. Gift cards are a very underutilized asset for Shopify store owners. And I want to just take people through the logic, steps here for a moment when you create a gift card or, you’ve received gift cards before.
[00:09:27] Obviously we all have what you’re getting is free money and when you get free money, You shop very differently than when you use your own hard earned dollars. And, it’s an interesting concept. And so if you get a gift card, you don’t care what something costs as much as if you’re using your money.
[00:09:50] And it really does unlock pricing power. And so the more you lean into gift cards and gift cards being purchased for people for their birthdays. Christmas time or special occasions, the more you have that in your marketing system, the more money flows through your system that’s gift card, money. The less strict people will be about price points and about, their concern over your, the cost of the product.
[00:10:16] And Shopify owners generally just don’t think about that very much, but it is an absolute, huge benefit to the system to be able to set up gift cards like. And allow people to buy them on behalf of, somebody who has birthday parties coming up or.
[00:10:29] Michael: That’s really fascinating when I’ve always been given.
[00:10:32] I remember back in the day, my, grandparents used to give me, bookmark book gift cards or Waterstones vouchers or stuff like that, because I guess it means you don’t have to think so much about exactly what somebody wants, but also, what’s interesting about it is that you’ve engineered price insensitivity, cuz it’s spending somebody else’s money for the person receiving the gift card.
[00:10:52] So the price of individual items are less sensitive. Profitable potentially, but also for the person giving the gift card, because it’s a birthday or Christmas or whatever it is you don’t wanna be seen as mean. So there’s a degree of, it’s not so much pricing sensitivity as price sensitivity, vying with sort of social perception, which always fascinates when the gift market.
[00:11:11] So I think there are two interesting dynamics at play there. It always fascinates me of this gift thing.
[00:11:17] Jason: Yeah, I totally agree. And, and it’s a joyful thing too. When people come into. Store your Shopify store to buy with a gift card. They’re just on a, like a buying like high, oh, I, I just get, get something.
[00:11:31] And it’s really interesting. The psychology there. And I think the thing about the whole pre-selling thing is there’s a lot of psychology under girding, all of this, there elements that create pre-selling pricing power in my view. And some of ’em I mentioned anticipation already, but some of them are things like.
[00:11:48] And trust people trust, I think creates, pricing power or, and the ability to pre-sale. If you, if people really trust a brand, then they’re gonna say, I don’t know what this is gonna be like. Exactly. And I don’t know how much it’s gonna cost, but I’m gonna put my name on the list cuz I’m I know it’s gonna be good.
[00:12:03] And that degree of trust, we just, there’s some brands where you just say, Whatever these guys put out, I’m gonna, I’m gonna get cuz I like it and I know it’s gonna be good. And I I think that shouldn’t be underemphasized. It shouldn’t be overlooked. Once, I pick an author, I don’t know whoever it is.
[00:12:19] JK rowing is the one that comes to my mind. Once you did it a first or second book, the third book is oh, it’s a foregone conclusion. It’s gonna. Good. And that, that idea of built in, trust and anticipation of the new product coming out, I think is central to the thesis of creating pre-selling energy and pre-selling, pricing power.
[00:12:40] Michael: Yeah, I like that. It’s, I, it feels to me that branding. Power slash trust and pricing are two sides of the same coin. Another way I might put it is your ability to, your pricing power. In other words, raising the price without customer resistance, increasing at least not proportionately is a test if you’re branding, right?
[00:12:58] So if you try and raise your price and you can’t, I guess what you’ve discovered is. People don’t really particularly trust or like you that much. Yeah. Which is a hard realization. And I think people sell on Amazon, get very numbers driven and they forget there’s a psychological component because you don’t see it so much cuz you don’t get to interact with customers.
[00:13:14] And I think, that’s a kind of wake up call isn’t it. If you can see that sort of thing.
[00:13:19] Jason: Yeah, it really is. And it’s, for us on pixie fair, we have about 130 brands and you can just see people who have built trust. In their customers over time and when their new thing comes out, their new thing crushes it.
[00:13:34] And it’s really fascinating how it works and we you’re right. We don’t think about it that way so much when we’re on Amazon, cuz we feel like we’re competing against a million ever things and a million other competitors. And it feels commoditized. But the truth is if you do have a brand that people know and recognize and trust.
[00:13:56] Then you are not dealing with a commoditized situation. You’re launching a product associated with them knowing who you are and the, so those are central ideas. And I think it’s really important for us to realize that and think about it. As we think about how could we possibly pre-sell, nice.
[00:14:10] So
[00:14:11] Michael: pre-selling is one really powerful, tactic or indeed strategic consideration, but there’s more so whilst the second thing that creates pricing power, would you say from the experience.
[00:14:21] Jason: yeah. The second one is really interesting as well. And I think we’ll all resonate with this one. It is timing, timing creates pricing power and all of us, think through times where we’re like, oh, of course, that makes sense.
[00:14:34] You sell Halloween costumes and fall before Halloween. You sell, turkeys in the us the week before Thanksgiving? I don’t know, in, in England, if there’s such a thing that we could say as an example, but you’d get my point, timing for such things. Yeah, time’s similar
[00:14:51] Michael: in that’s similar in the us.
[00:14:52] The only thing we have in the us, you have Thanksgiving, we don’t bother thanking anyone for serving ourselves in 17th century, but we have guy from
[00:15:01] Jason: celebrate.
[00:15:03] Michael: No, we have November the fifth, which is a unique thing to Britain, which is when we celebrate the fact that the parliament did not get blown up.
[00:15:10] And we celebrate by blowing up a lot of fire fireworks, every sell fireworks, or, baked potatoes or that kind of thing at that time of year, maybe mittens or gloves. It’s a very good thing. Yeah. Anyway, total side thing I was gonna ask about, this is it only linked to you occasions?
[00:15:24] Do you think it’s it really a seasonal calendar thing? Or is it deeper than that? Is there other things that you can do to affect use timing as a lever to get better?
[00:15:34] Jason: I think it’s way deeper than that. I think there’s, first of all, I think there’s a lot of granularity you can impose into this, just the general seasonality of things.
[00:15:42] And retailers, especially, fashion retailers, that kind of thing. They’re really dialed in on this. Back to school as we record, this is a hot, market. Concept. And the back to school, marketers always do a great job in, July, August, September, whatever, to, to really push that.
[00:15:58] There’s a lot of granularity, even in social media, people have used a meme version of this, where they would say it’s, it’s national like kitten day or national dog day. You ask yourself, what are they doing? They’re just using a date on the calendar to try to promote their item.
[00:16:15] Those are real weak kind of meme, extensions of the idea, but the real big ones are obviously Q4, Christmas time shopping, those kinds of ideas, but there are other things that, go into this as well. Hobbyists preparing for a project is an example. I put. The book, they’re on their own timeline.
[00:16:34] And I think the main thing that you, what you want to think about is many customers are on their own timeline for a project. And if you’re selling to them in that moment, in their space, in their mind, they’re less price sensitive. If they, if you have to build a new fence in your backyard, this Saturday, Because that’s the time you have to do it, you’re gonna buy your stuff and you’re gonna make that happen.
[00:17:01] And the timebound nature of the activity is something that eliminates price sensitivity. Your car breaks down. You’ve gotta get your clutch fixed or whatever. You have to have your car done by, two days from now, you’re not gonna be price sensitive. These timebound ideas in the mind and life of the customer, I think are really important for us to think about as marketers.
[00:17:20] If we have any product that plays into the life cycle of a hobbyist or, someone who’s trying to, finish a project with urgency, we need to think through how to market that effectively. And that is different than something that’s just. Timebound in any way. And I think that’s, something for each of us as individuals to just ask ourself that question is my customer operating on a timebound, deadline and do I have pricing power because of it?
[00:17:46] How do I express that? What is that timeline? How do I, connect those dots so that I’m not in the position of, selling to the wrong person at the wrong time with a desperation price. Which is obviously the,
[00:17:58] Michael: huge mistake. I think you’ve made a really fascinating point there. So people have their very individualized timelines.
[00:18:05] I could see. As retailers, we get obsessed with seasonal sort of holidays because they’re a heck of a lot easier to plan for. Whereas trying to find somebody at the point where their hop for our products is tricky. But I think as you say, it’s a very worthwhile thing to do. And I guess it’s bottom the funnel search terms, which would be in, in included in Amazon.
[00:18:23] As a search engine, obviously, YouTube, if you have products on there, I know they’re plugable as a company that sells primarily via Amazon, but there’s does an amazing job with YouTube videos. Probably partly because if you can’t plug an electrical item into another one, you get very frustrated. And if you can get the answer quickly and their product is the answer, that’s really smart.
[00:18:40] Google. Obviously the other thing that strikes me is to bring psychology into this. I used to work for an NLP. Trainer who went on to become a bit of a Demonn sales and marketing guy. And he talks about buying states when you ramped somebody up or they’ve wrapped the sales into a buying state. , you really wanna make sure you catch them because that can last for quite a short window.
[00:18:58] And in that window they made very price insensitive. And that’s why, you know what. Another thing he used to say as a buyer is a buyer. So when somebody’s buying something to try and upsell them down, sell cross, sell, it’s very smart. But to broaden that slightly, trying to find people in that sort of purple patch strikes me as a really critical, but quite tricky thing as well.
[00:19:16] If you got any thoughts of how to
[00:19:17] Jason: actually achieve that, it’s a great comment. It’s a great, phrasing. And that by buying frenzy idea, I think we’re, talking the same language here. There’s a very easy way to determine that. In fact, there’s brain dead, simple way to capture that. And I know it might like this might be a weird way to express all these ideas, but let me just, express it this way.
[00:19:39] When people use Google search for a product related. To something they’re trying to solve for, they are in that buying moment. Google text ads to us have always been the best paid ad we could ever offer or ever, put out Facebook ads have never performed as well for us as Google ads are what I like to, I call Facebook interruption marketing when you do ads on Facebook, and Google ads, especially text based ads are demand response.
[00:20:10] Marketing, it’s, the person is saying, where do I buy a tent? Like that is the perfect moment to introduce your tent to that person. And those Google searches happen by the billions or hundreds of billions or whatever every day for in, in mass and for specific key phrases, they happen a lot.
[00:20:29] And those are the opportunities to think. When someone searches for the phrase related to my product, am I Johnny on the spot with, an offer and it’s as simple as that sometimes. And. I know, it sounds like over simplistic, but a lot of Shopify store owners don’t have their Google text based ad set up for key phrases that make sense for them.
[00:20:49] And that is just a massive mistake because you literally are just feeding the hungry crowd as they say, you’re just fulfilling demand. You’re not generating it. You’re not trying to beat the drum to create energy around an idea for your product. You’re just saying to people who want something that you’ve got here, it.
[00:21:05] I’ve got a special promotion or I’ll cover shipping or, whatever your deal is. That’s a very straightforward way to step into the moment where people are in that buying frenzy, that, that idea of the hunger to get something accomplished and all of this is under the timebound, nature of the consumer mindset, I think.
[00:21:23] Yeah.
[00:21:24] Michael: Interesting that, I think this might be leading us to, or next principle really, but the, as an Amazon seller, On the one hand we’re used to the luxury. Unlike people use Google as a marketing channel letter on Facebook of having people who are at the bottom of the funnel.
[00:21:37] In other words, I go to Amazon frequently, but I don’t go there to browse. My wife maybe does, I dunno, but I go there to buy and I’m often in a hurry and I know that Amazon will deliver next day and it’s very reliable and it has a big variety of stuff. So in a way where if you’re running ads on Amazon, particularly you’re very much taking advantage of what you said already.
[00:21:55] That’s right. But the disadvantage of course we have is that Amazon, has always said publicly and, very consistently added on the idea that consumers want bigger choices, lower prices, and faster delivery apart from the faster delivery. Those two things are very bad news for us is as sellers.
[00:22:08] So tell me a bit more about your third principle and, I suspect it print it ties into this thing as well.
[00:22:13] Jason: I just wanna mention one other concept for the timebound nature of pre-selling and, but before we go ID number three and, and that is a very interesting idea, which is actually, we just expressed the urgency in the mind of the consumer and how you want to step into the moment in the right way.
[00:22:33] But there’s a whole nother universe of ideas related to the time creating pricing power. And that is you control the. And this is a very important pricing power principle. When time is on your side, you have pricing power. And let me explain what I mean by that. Imagine if you will, that you say to all your customers were sold out.
[00:22:57] And, if you wanna sign up for our waiting list, once our container gets in from China or whatever it is, we’ll, we’ll put everything back on sale. And if you have a waiting list of people who say, yes, I, I want that product when it comes in, you just took control the time. And that is incredibly powerful for, these ideas of pricing power.
[00:23:19] So I, I think there’s two sides to this stepping into the moment when the customer has the pricing. Or one has the timing urgency, and then there’s you taking control of the time? You can be outta stock and have a pre a get back in stock list and those apps for that back in stock app, you can also do other things running an auction is taking control of the timing, and holding a special selling event, is taking control of the timing, producing in small batches, delib.
[00:23:47] Saying, Hey, we only make 50 of these and if you want one, you need to go buy it. All of those things are taken control of the time. Macy’s in the us, always the department store. They always do a, twice yearly sale. And people know that in the mind of the consumer, that’s the only time they’re gonna put stuff on discount and they, like in their cosmetic counter, they’ll do a, they’ll give you a free gift.
[00:24:09] Because it’s there twice, annual sale or whatever those ideas are all designed to take timing, into your own hands as the seller. And that is a really important thing to think through, to really control the opportunity to have pricing power.
[00:24:22] Michael: Yeah, I love it. And. I think that’s something, Amazon’s so gear to serving customers.
[00:24:28] And if you sell on Amazon it’s main experience of e-commerce, which is my main experience that yeah. We get caught up counter
[00:24:33] Jason: It’s the opposite
[00:24:34] Michael: idea, doesn’t it? Yeah. It’s like actually withholding stock feels weird and different, but actually it makes total sense. It’s price, power supply.
[00:24:41] Alex homo. He’s got a very ING. I’m just looking for the book. I’ve got around a hundred million office. He’s fascinating book one of the things he talks about to maintain profit power, as opposed to just driving revenue, is that if you think you can sell, 10 of, he tends to deal with high end offers, which is a little bit different from a $20 widget on Amazon.
[00:24:59] But nevertheless, if you think he sold 10. High end, training courses or whatever. He works with G owners a lot or used to then make, five available at a higher price and make sure they sell out. And next time you’ll sell six, but, and this is the crucial thing at the higher price because that’s right.
[00:25:16] People want what you’ve got, cuz they can’t have it. And this is the number one psychological bridge sport we want what we can’t have. So
[00:25:22] Jason: I like this and and inherent in that is what I just described a moment ago, which is you controlled the timing. Yes. When you control the timing, you control the pricing power.
[00:25:31] And that is, he didn’t quite say that explicitly. He’s just doing about supply and demand, but the underlying first principle is when you control supply, you control pricing power. And if there’s pent up demand, those two things go together naturally. I think that’s very fascinating, thing to think through.
[00:25:51] As a seller, because imagine going on Amazon you’re right. And saying, these are only available on September 1st and I only have a hundred of them and they’ll ship in six months. And because that’s what some people have been doing in the last two years. Oh, COVID yeah, we can’t ship for six months.
[00:26:07] How much is it gonna cost? Oh, it’ll probably be double or triple. Okay. I guess we’re paying that. So I’m not saying you wanna do, you want to engineer like misery on people at all, but I am saying that you don’t wanna be victimized in the grand scheme of things as a seller, and you wanna figure out the ways in which you can have fair game.
[00:26:29] Serve people well have a price point that can, can survive on. And these are the ideas. So I’m not suggesting we go, brutal and be, corrupt or anything in this. But I am saying that there’s psychology involved and it’s important to think through, with the power you have and the process of putting goods on offer.
[00:26:46] Yeah, I
[00:26:47] Michael: really like this. And the other way I would flip this on its head, just because of the reality I’m seeing on the ground with a lot of the people who import from China. There’s a lot of rolling lockdowns in China. Officially. It doesn’t have, a national lockdown, but unofficially they’ve got rolling lockdowns cuz there’s zero COVID what do you call it?
[00:27:02] Zero COVID policy. And apparently, CNG said that was gonna stay in place until drum roll 2020. As the official policy and they don’t have a vaccine that works. So my personal take on this, and I’m not alone in this Peter Zion who knows a lot more about this stuff means they’re gonna have a lot of supply sources for a long time for China.
[00:27:22] Now that’s bad news in some ways, but if you flip your business model and say, instead of constantly stressing about making stock available, we have to work with reality that stock isn’t very available and use. To, to your point to create scarcity it’s there already, but to manage the scarcity elegantly.
[00:27:38] Yeah. And as you say, not to deprive people, good. They need, but to manage it elegantly, to maximize profits without being, price gouging. Yeah. Then that strikes me is what you are talking about is, really off the moment and that we’re gonna have to get good at this anyway. So we might as well embrace.
[00:27:53] Yeah, this whole psychology. So I’m loving this man. I know you’ve got a head off. We’ve got the third principle. We’re gonna have to keep hanging. Talk about time scarcity. This is genuine scarcity
[00:28:01] Jason: folks. yeah, I do have stop. Yeah, no, I do have a hard stop today, so we’re not gonna cover the third principle until next week maybe, but I wanna just mention a couple things and that is before we wrap up on this second idea, which is, timing creates pricing power.
[00:28:14] When time is on your side, when you have. The timing that, that you arrange, then you, and take control of that you can do two or three things that are really powerful. One is cross sell. So if you say to somebody, Hey, we’re all sold out of this one until October 10th, but I got this other thing that you might really like that cross sell is a logical thing to do.
[00:28:35] The other thing you can do is upsell, or you can escalate people’s queue, you can say to people, if. If it’s logical and it makes sense, you can give people a fast pass. You can say something like, we don’t have this item that you wanted, but we got the alter premium addition still available.
[00:28:52] And it’s, TWI, quite a bit more, but it’s still in stock that upsell that’s totally logical. We don’t have the. Standard edition. We’ve only got the, luxury edition. That makes com perfect sense. The third thing you can do is you can consider things like, recurring payments or even layaway program.
[00:29:12] If you say, Hey, this product isn’t available until September 15th, but you can get on the list and you can do layaway and make sure you get one, will take your slot. That’s what Elon must do with cyber truck, the deposit, ahead of. I don’t recall how much money they’ve collected in deposits for cyber truck, but it’s not a small number and that is cash flow.
[00:29:31] That’s just cash that they have. So these, there’s real deep water, under these ideas that I wanna make sure people really, get into and think. As they’re working on their pricing strategies. So anyway, yeah. To your point, Michael, we can’t cover, the third idea today, but it’s a really powerful one as well.
[00:29:47] Probably the most powerful of the three. And I’m not trying to make a tease for next week, but this third idea is really, the heart and soul of a lot of e-commerce work is wrapped up in this idea. We’ll talk about next week, which is this third way to create pricing power.
[00:30:02] Michael: Love it. That’s a perfect example of genuine scarcity, cuz you have gotta go.
[00:30:06] I know that, but yeah. Just a couple of things to say. First of all, folks, as you can tell deep waters thought through by the master of think of stuff through, in a very practical way for eCommerce seller. So it’s pricing power. Jason G. Miles is what you find Jason on Amazon. So go get the book because as you can tell, this is really powerful stuff.
[00:30:23] And, of course don’t forget to subscribe to the show. We’re seeing our Spotify followers are growing like that. So every week it soon to be going up. So come and join the party, our Spotify or apple. And don’t forget to give us the love by using, apart from the follow button, give us rating out of five stars and we’d be really grateful.
[00:30:39] Jason, thank you so much, man. Really fascinating to dive into stuff as ever. You have a great business brain. I I really enjoy this stuff. It’s good. Fun. Good
[00:30:46] Jason: times, man. See you soon.
[00:30:47]