- Joined
- Jul 1, 2023
- Messages
- 606
User Power
Post/Like Ratio
110%
Current SaaS MRR: $303
Daily Routine
- FAIL Wake up early and get some fastlane work done
- DONE Listen to my motivational audiobooks when I walk my dog or do chores
- DONE Record and play back self-talk on my morning commute
- N/A Stay late at the office to get more fastlane work done
- DONE Listen to my motivational audiobooks on the evening commute
- DONE No YouTube
- DONE No chess or mobile games
Weekly Goal
- Complete 2023 financial audit
Ok, so I want to actually double my daily business by the end of the month, which sounds outrageous. My plan for immediate expansion is primarily via FBA, which means I need to buy and sell enough inventory to hit 20 orders per day if I stay at the $25 profit per order.
So far I've bought 30 items of inventory for FBA across 2 SKUs. I ran some calculations on what the profit should be:
So assuming I can sell these at the same speed on FBA, Product 1 is clearly the winner. The main reason is that I got a steep discount by buying them in bulk, but for Product 2 it was the same price per unit for 10 as it was for 1.
I would buy more of Product 1, but I already bought out all of the Amazon US stock!
I need to make incremental sales of 10 orders per day to hit my target. I doubt that either of these products will sell 10 per day even if I have the stock. So I need to buy a wider variety of items, while trying to maximize my per-unit profit.
For now I have to take an assumption about how fast everything will sell. I have sold about 7 of each of these two over the past month, and that was with 14 days shipping time. They should move faster under FBA, but I don't know how fast. I'm going to assume that I will sell about one per day for now.
So in order to hit my target I need to find and order 8 more products to stock with FBA.
Before I order anything, I'm going to calculate the per-unit profit. I will try to keep my profit above $20 per order on everything and above 20% gross margin, to limit the working capital intensity. The last condition is to avoid products that have many variations, such as clothing, since this will also increase capital intensity.
And so I started my research and here is what I came up with:
It turned out to be not so easy to find the ideal product. I will keep looking tomorrow and also focus on looking for bulk discounts.
This afternoon I went to the warehouse with my intern and showed him how to start processing the return orders for FBA. He will do this early next week. While there I also discussed a few operations points with the warehouse staff.
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