I have spent a ton of time on this. Sooo many retailers. Looking around, understanding market shifts. BigBox retailers DESTROYED mom and pop retailers. And now BigBox retailers are being destroyed in favor of... mom and pop retailers.
Two types of DTC businesses: build to flip, built to serve.
One is purpose driven and that purpose is profit.
The other is mission driven and that mission is profit from things they love and think you will too through service.
The single most difficult part is the storytelling to connect consumers who want to be valued by the people they buy from, with the people who value customers for patronage and profits, not just profits.
Story Concept: Legacy is a different thing for everyone. For some, their legacy is how much money they make. For others, their legacy is how many customers they have served with products they love and made a good living along the way. People are not going to remember or even know the money you make. They are going to know and remember the way you make them feel every time they buy from you. They are going to share their journey with you. They are going to share your journey with others. And they will come back to you time and time again for the service that comes with your products. You get to choose your Legacy. And your customers will help you build it.
I have a half dozen of these noodling around in my head or on paper.
It is VERY hard to do and I have been writing for 40 years.
This is so good. Send me the ones you have on paper - I want to read them!!
But yes, this is something I’m noticing (that I’m sure you’ve long known) where it plays in at a near 1.0 correlation to the rest of the business/marketing strategy. Do they look to cut costs at every point and maximize profit for short term “growth”, but not realize that that short term growth is coming at the expense of long term growth + repeat business?
If they’re looking to sell/flip, they don’t care. If they’re focusing on quarterly targets or investor expectations, that pressure outweighs the fact we know it’s not the best long term play.
But if they’re in it for value and legacy in your later mentioned ways - that’s the long tail, steady, consistent growth with a very strong foundation based on retention/repeat business.
It's weird - almost all of the supplement and health brands are built to sell. High margin, huge consumer demand, but really careless about customer acquisition. Get to high 8 figures and cash out.
I'll send a few other narrative stories over for you to read through. I went to Ohio State to be a journalist, we had a journalism course in my HS and I was one of the editors that wrote "Features" showcasing students and staff around the school and telling their stories. So it's been in my DNA for a while.
Have you considered how you want to tackle this at Loxo?
I have spent a ton of time on this. Sooo many retailers. Looking around, understanding market shifts. BigBox retailers DESTROYED mom and pop retailers. And now BigBox retailers are being destroyed in favor of... mom and pop retailers.
Two types of DTC businesses: build to flip, built to serve.
One is purpose driven and that purpose is profit.
The other is mission driven and that mission is profit from things they love and think you will too through service.
The single most difficult part is the storytelling to connect consumers who want to be valued by the people they buy from, with the people who value customers for patronage and profits, not just profits.
Story Concept: Legacy is a different thing for everyone. For some, their legacy is how much money they make. For others, their legacy is how many customers they have served with products they love and made a good living along the way. People are not going to remember or even know the money you make. They are going to know and remember the way you make them feel every time they buy from you. They are going to share their journey with you. They are going to share your journey with others. And they will come back to you time and time again for the service that comes with your products. You get to choose your Legacy. And your customers will help you build it.
I have a half dozen of these noodling around in my head or on paper.
It is VERY hard to do and I have been writing for 40 years.
Good post Sam.
This is so good. Send me the ones you have on paper - I want to read them!!
But yes, this is something I’m noticing (that I’m sure you’ve long known) where it plays in at a near 1.0 correlation to the rest of the business/marketing strategy. Do they look to cut costs at every point and maximize profit for short term “growth”, but not realize that that short term growth is coming at the expense of long term growth + repeat business?
If they’re looking to sell/flip, they don’t care. If they’re focusing on quarterly targets or investor expectations, that pressure outweighs the fact we know it’s not the best long term play.
But if they’re in it for value and legacy in your later mentioned ways - that’s the long tail, steady, consistent growth with a very strong foundation based on retention/repeat business.
It's weird - almost all of the supplement and health brands are built to sell. High margin, huge consumer demand, but really careless about customer acquisition. Get to high 8 figures and cash out.
I'll send a few other narrative stories over for you to read through. I went to Ohio State to be a journalist, we had a journalism course in my HS and I was one of the editors that wrote "Features" showcasing students and staff around the school and telling their stories. So it's been in my DNA for a while.
Have you considered how you want to tackle this at Loxo?