January + February 2017 Brags

This is another installment of my monthly (or bi-monthly) brag posts, where I post about wins from the prior month.

I’m in a bit of a stressed out mood as I write this, and I know it’s going to be really nice to write this out and reflect on some good things. These are also awesome to look back on later on.

Here are the wins I can remember from January and February, in no particular order:

1. I’ve been helping my nephew learn the importance of a) saving up for what you want versus going for short-term pleasures and b) creating value to make money.

He really wants this truck so I’ve been “hiring” him to help me around the house. The picture here is from when he helped me clean my bathtub.

He’s young, but he took to it very well! He told me he was proud of himself and called himself the “Dirt Monster”.

Later on he went to my mom’s and said (completely unprompted) said, “Grandma, your house is dirty. You should let me clean it.” (Aka, “hire me!”)

I’m being careful to not go too extreme with it because I don’t want him to think money is everything. I show him other things too, like how to give back, and the importance of being a good person. Aaand, since schools don’t teach money management, I want him to have those skills. I also want him to learn how to be a contributing member of society.

Don't get sucked into bad news book2. My new book has finally been published! I’ve been working on and off of this since 2016 and kept letting life get in the way. I’m glad it’s finally out.

3. I just got a renter on my 2nd investment house and put in an offer for a third home. My realtor has been finding some slam dunk wins and it’s cool to be able to invest in a new passive stream.

4. We had some great meetings in the warehouse and finally implemented weekly meetings which I think are going to prove to be very helpful.

5. I’d been putting up with a situation for years that really wasn’t my responsibility or something I should have been allowing myself to get dragged down from. This year is my year of  “Boundaries”, so I left the situation and am proud of myself for that.

6. I wrapped up another Holiday Jumpstart and think it went very well. I’ve been loving those.

7. We shipped out 20,000+ items at my warehouse in one day or less, on average, during this time period.

8. There were many great LHS results like these:

low hanging system results

9. I’m doing well on my goal to retire at 40. I put another chunk of money into WealthFront, where I’m averaging pretty great returns for something passive – 38.99% money-weighted and 33.31% time-weighted for the moment.

I think that’s everything for now. Please feel free to “brag” as well!

Increase sales with these ecommerce pricing tweaks

In the survey we sent out, many of you said you’d like to a) increase your LHS sales, and b) learn how to sell more physical products.

In the spirit of “low hanging”, I thought I’d share a couple quick pricing tweaks that can help you with both of these things.

See – it’s remarkable how making a few changes to the way you word things can help you make more sales.

I’m going to give you a few different, easy, proven things you can do to make more sales when pricing your products.

I’d forgotten about some of these things and can’t wait to implement them!

And remember: even if you’re selling on Amazon, Etsy, etc and don’t have a ton of control over how these things are presented in a shopping cart, you can still edit your descriptions accordingly.

Here goes:

#1 End your prices in .97 to communicate a great deal

Retail studies have shown that “odd pricing” – i.e. prices that end in  1, 3, 4, 7, or 9 – are responsible for more sales than pricing ending in 0, 2, 4, 6, or 8.

Many split tests say that of those odd numbers, “7” converts the best.

There are several theories for this. Some say it’s an unconscious thing related to the sound of the words -i.e. “seven” is apparently the most pleasing because the tone in the word descends, “eight” sounds flat, and “nine” is ascending. “7” is also associated with luck, which might have something to do with it.

Regardless of the reason, large stores who want to communicate “good value” regularly end their prices in 7.

Nordstrom, the high-end clothing store, normally ends their prices in “0” since they don’t compete on price. Nordstrom Rack, their discount brand, has all prices ending in “7”.

At Costco, a clearance price ends with a 7.

Most of Wal-Mart’s prices end in 7.

#2 Show the savings

If you’re offering a discount, show customers how much they’re saving so as to highlight the good deal they’re getting.

If you’re running a sale on an item, say “It’s 50% off. Save $7”, or “Was $14.95, now $7.95”.

This helps illustrate the value people are getting.

#3 Use numerical digits, not words

People have an easier and quicker time processing numbers than they do words.

Instead of saying everything is “half price,” say everything is “50% off”.

Since people “get” numbers faster, they can anchor in the deal better. When they’re sorting through lots of options, this gives you a competitive advantage.

#4 Establish a price anchor

Anchoring refers to the tendency to heavily rely on the first piece of information offered when making decisions.

If you establish the initial value of your goods to be, for example, $19.97 and then indicate an actual price of only $14.97, your customers will feel they’re getting a bargain.

If you’re advertising a huge price difference, like $14.97 down from $99.97, explain why your prices are cheaper so customers don’t feel like they’re being deceived.

#5 Reframe expenses with small words

Little words can make a big impact.

Saying something like “this only costs $9.95″ versus “this costs $9.95” has proven to make a difference in sales.

Another example of this is saying that something has a small $5 fee instead of a $5 fee.

Seemingly insignificant copy add-ons like that can have a surprisingly persuasive effect.

#6 Keep prices simple

Of these three options:

  • $2,399.00,
  • $2,399,
  • $2399

…which do you think appeals the most to customers?

The answer is price #3: $2399.

That’s because it’s the simplest. There are no extra zeros and no commas, both of which make the first two prices seem more expensive. It also has the least amount of syllables, which subconsciously makes it feel smaller.

#7 Use words that are related to a small magnitude

In a study by the Journal of Consumer Psychology, participants preferred pricing on inline skates that had descriptions using words with “small” language, like “low friction” versus “high performance”.

If you want to compete on price, use words that reference a smaller magnitude (“small”, “tiny”, “low) versus words like “large”, “huge”, “massive”.

An example mug description tying this all in:

I know not all of you are selling mugs but since many of you are, here’s an example description that ties everything but #6 (reserved for higher priced items) in:

This easy-to-wash, dishwasher and microwave-safe mug is normally $24.97 — today there’s a 25% discount, making it only $19.97!

Your gift recipient will love this low maintenance mug that is sure to bring a smile to their face.

I hope this helps!

November and December 2017 Brags

In October I mentioned I wanted to re-start my monthly brag posts, where I’d post about my wins from the previous month.

I love having these to look through at the end of the year and it’s a nice way to stop and smell the roses.

Although my intention was to post a new one every month, my warehouse got very busy in December. I didn’t have time to eat or sleep, much less blog.

I’m going to combine November and December in this post so that the momentum keeps rolling.

Here are all the big wins I can remember:

1. Although not perfect, Christmas at the warehouse this year was WAY better than last year. We learned a lot from the year prior and orders were a bit more seamless. We still had some issues, but 98%-99% of orders went out on time.

2. My warehouse printed, made, and shipped out well over 150,000 unique items in just under a 6 week period.

3. For our first Christmas in December 2015, we went from 0 to 10 employees. In December 2016, we went from 7 to 22 employees. This year we went from 15 employees to 70+ at one point. Pretty cool.

4. I went on Santa’s Little Helpers on Reddit and helped out a few families with getting gifts for their children.

People would post their children’s Amazon wishlists and I went and cleared a few out. It was a ton of fun and based on the responses, helped a bit.

By the way, if you ever feel like randomly helping, these are my favorite spots on Reddit.

5. Before living at the warehouse for the Christmas rush, I got to spend tons of time with my nephew.

The picture to the left is a picture of him putting a toy in the donation box a Toys ‘R’ Us. I love showing him that it’s important to give back to others.

6. We spent Thanksgiving with my family and went to Wichita for Christmas. That was really fun. I love Don’s friends and family.

Here’s a picture from Thanksgiving with my mom, nephew, and I:

7. I purchased a second investment home in December. My first one has proven to be a great investment, so I thought I’d try another.

I’ve actually never been to either of my investment homes. I have a realtor I trust to vet the houses, a property manager, and a great contractor. It’s all pretty hands-off.

I was so busy with the warehouse that I didn’t even make the closing on the second house. I gave my sister power of attorney to purchase on my behalf. Ha.

8. A pure-content webinar I ran as a bonus for Low Hanging System made it to the top 100 GoToWebinar webinars in 2017.

A Low Hanging System webinar hit the top 100 before that.

9. Tons of results rolled in for LHS students during the Christmas season.

We had everything from “my first 5 sales!” to $59k in 30 days and a ton in between.

10. My ecom sales did pretty well this year.

There are a bunch of selling channels I use, but some of the top ones:

Amazon$516,594.21 in 2017. Of that, $205,317 was from November 1 to December 25.which was 39.74% of total sales.

Etsy store #1 – $8,677.68 for the year, $4,484.31 from November 1 to December 25.

Etsy store #2 – $8,955.20 for the year, $6635.40 from November 1 to December 25. (This store opened in May 2017.)

Etsy store #3 – $1,823.70 for the year, $1,292.70 from November 1 to December 25. (This store opened in May 2017.)

Etsy store #4 – $10,287.97 for the year, $8,558.80 from November 1 to December 25. (This store opened in May 2017.)

Etsy store #5 – $9,354.25 for the year, $7,885 from November 1 to December 25. (This store opened in May 2017.)

That’s a total of $39,098.7 for the year and $28,856.21 for November 1 to December 25.

The stats aren’t entirely scientific since many stores opened later and products were added in over time, but the pure numbers say that 73.8% of sales were from November 1 to December 25.

eBay – There are people in LHS doing far better than me on eBay, but my numbers were $6007.47 for the year (1266.48, 827.97, 632.26 3,280.75) $2915.85 was from November 1 to December 25. That’s 48.54% of sales during November 1 to December 25.

11. I still have to run the numbers for my other businesses, but it looks like all my businesses combined did between $5m-$6m this year.

12. I have a couple crypto investments that I did very well on.

A few alt-coins got over a 1000% return, I invested money for my mom and got her a 465% return, and my sister has gotten a 177% return so far.

Of course crypto is very volatile and we’re in a bubble and all that, but if you pull money out responsibly and invest the rest, it’s pretty cool.

13. These are in no particular order, ha, but we also had some AWESOME results from Holiday Jumpstart.

One woman told me she was able to pay off a $6630 debt that had been causing her a bit of anxiety. Other people sold out of their FBA boxes. Others told me of all the sales they made, the majority were from the designs we made them.

That was spectacular to see.

I feel like I’m missing a couple, but I’ll update this if I think of more. For now – here’s to an awesome 2018! And please feel free to share your wins. :)