Maximizing Profit & Reducing Cost
Are you regularly looking at the costs in your Amazon private label business so that you can reduce them and maximize your profits? We look at a couple ways that you can make sure that you are staying on top of your costs. And we look for strategies that can help you with maximizing profit in your Amazon business.
Today we’re going to be talking about how to reduce costs and while maximizing profit in your Amazon Private Label business. And really those go hand in hand. Obviously, if you’re reducing your cost you’re going to be able to maximize your profits in a way that someone who’s not reducing their costs in a smart way isn’t going to be able to match you. Not only are you going to maximize your profits but you’re going to potentially be able to beat out your competition. They won’t be able to compete because their margins end up being too thin. Then they either go out of business or it just doesn’t make sense for them to continue selling that SKU.
So, we have a number of tips that we are going to go over today. Now that all 3 of us have been selling for a number of years, there are a number of costs that buildup. We will talk about software costs and a lot of flat costs that get added as layers to your business and to specific SKUs that you’re launching. The three of us have experienced that and we’ll talk about strategies for reducing those costs. Something that Andy, you really have talked about for years now especially for those who are just getting started, is how to bootstrap into your business.
Andy, why don’t you start off talking about some of the bootstrapping techniques that you talked about for years now, and why you think it’s so important for a new seller especially to be really aware of the expenses that can build up in their business.
Andy: it’s key to always keep track of your numbers from the very beginning. A lot of people make the mistake of acquiring inventory and the business kind of becomes a machine. They lose track of the numbers and which is ultimately going to lead to failure. You have to be very aware of what your numbers are at all times. The great thing about Amazon business is you can scale up. If you don’t have a lot of capital when you start and you have more time, you can actually spend more time sourcing profitable inventory. And so that your purchases are going to bring you back a better ROI, which helps in maximizing profit.
Some of the ways that I did that when I first started was I started purchasing at thrift stores. The inventory there is obviously is very low and very cheap and a lot of times you can get new items at the thrift stores. Because when I started I didn’t have a lot of capital. So I just had to build my way up slowly. Basically, month after month I continued to add revenue to my Amazon seller account. So that’s one way that you can do it.
It’s a totally different story if you have capital. If you’re starting out with a large amount of capital then you can scale up a lot faster. But if you’re just beginning then you want to bootstrap you want to be careful about the number of services that you subscribe to. You don’t want to oversubscribe the services that you don’t need when you’re just starting out.
Somebody asked me just the other day, they were just starting out. They asked me if they needed a certain service, and I said, “No, you really don’t need that”. maybe when you have a hundred thousand dollars in sales, that’s when you can start adding another service. Those are two things that I advise:
If you don’t have capital and you have more time, then just spend that time sourcing more profitable inventory.
Just be careful about the number of services you subscribe to when you’re just getting started.
Nathan: Awesome, so it really comes down to the amount of capital that you have versus your time really, the value of your time. Liran, something that you talked about before on the podcast and I know in our inner circle group you said this often. When you start off and you don’t have as much capital but have lots of time, you’re ok doing those 10 to 20 dollars an hour job. You used to get all your inventory delivered to your house. And you packed and prep it in your basement and eventually you hire someone else to do it. But what you have grown into is focusing on those jobs or tasks that make you a hundred or 500,000 dollars an hour.
Can you go over that and what you think is a mindset that a seller can have as they progress just from getting started to growing? What is that mindset and those task dollar amount levels?
Liran: I think you want to ultimately have a good vision for where you want your business to go. And it doesn’t necessarily need to start with you outsourcing everything in your business. If you’re starting out with less capital than you’re looking to maximize for inventory like Andy said. If you put your vision out, what does your business look like when you get to a certain dollar amount? And then what does it look like when you increase that, let’s say after 6 months? Or a year in the business?
You really want to be outsourcing all the tasks.
or not doing it yourself all the tasks that you can outsource out for 10, 15, 20, 30 dollars an hour. Start to build out either VA’s or team or outsourced to a variety of services that can do those things for you.
One of the first things I did was I started sending my products to a prep center instead of sending all of my products to myself to prep. Then I started sending products direct to Amazon from China. And now I’m using a third-party warehouse, which we could talk about more and what’s the benefit of doing that. But now I don’t do any of that prepping & shipping, labeling products, any of those tests that are easily outsourced to anybody.
When I first started out before I was living in a house, I was doing the prepping, packing myself out of my apartment. And then when I moved into a house, I had four college kids come over and do the prepping in my house. I started to kind of outsource. And then eventually just got it all out of my house and outsourced in a better way.
You want to look to what’s ultimately the vision of the business, which is for you to focus on your next big breakthrough as opposed to focusing on the day to day 10 to 20 dollars an hour task.
Nathan: Liran, let me ask you this, so I think a lot of the listeners do other forms of selling on Amazon maybe arbitrage or thrifting like Andy mentioned. And a lot of them still do the packing themselves. Or even when it comes to Private Label like you said you first have it sent to your house. And obviously, that reduced the cost of a prep center or hiring an employee to help you with that or contracting it out.
What’s that level of someone who is looking to grow? I think most people wait too long but we’re talking about reducing cost. How did you figure in your head that I’m actually spending more money by not outsourcing this tasks and what should listeners be thinking in their head, when should they make that transition?
Liran: I think once you have cash flow coming in from the business and you’re able to begin maximizing profit. You should be looking to how best you can utilize those funds to invest that in the growth of your business. It also depends on if you need those funds initially to live on or not. Hopefully, if you’re just starting out then you have another form of income coming in. Either from a job or a spouse or somewhere else where you can take those dollars. I think once you have money coming in, then you need to decide how much of that you’re going to put back into inventory. And then how much of that cash flow can I put into automating something or outsourcing something. So that I can spend my time figuring out what’s the next big thing for my business.
Because if you’re packing inventory that means you’re taking time away from doing something else that will ultimately yield bigger results for you. Whether that’s reaching out to wholesale brands to resell their products. Or whether that’s doing higher level tasks like potential product sourcing. Or whether it’s figuring out marketing strategies on how to grow the business. You’re going to be able to do those things if you’re focusing on lower level tasks. So, as soon as you have some cash flow coming in you want to figure out how to best utilize the cash flow to be able to continue to invest in inventory. And then also outsource things so I can figure out what’s the next thing in my business that’s going to help me grow.
Nathan: Awesome, makes sense. Andy, I’m gonna give you a minute to think, I’m gonna ask you the question now and give you a minute to think about it:
What’s the software that you use in your Private Label Amazon business that you just could not do without? Then try to think of one that is really helpful and now that you’ve grown to be a million dollar seller, you use now but if you were just starting off, you would maybe wait to get to a higher level?
Liran: As far as software, I think there are some essential things that you wanna have in business. Once you’re realizing “Ok, this is a real business and not just a hobby anymore”. One of the first things after my first year on Amazon, I was doing my own taxes. Using like Turbotax and all that and I decided to hire an accountant. And one of the first things they said was “okay, you need Quickbooks so that we can hook up your bank accounts and your credit cards and your entire business to really manage it correctly from an accounting standpoint.” They set me up on Quickbooks online account. They had like a wholesale, the account was 14 buck a month. To me, I saw that as a necessity for having my numbers correct and having accounting set up correctly.
Nathan: Liran, let me ask you something. When you do that, it allows you to every month see where your progress is as far as your numbers. Because you have the setup and you have someone that’s actually helping you with it. I think a lot of people go too long without setting something like this up. Like you said is essential and then the year is done with and they really don’t know their numbers until they figure it all out. The way you have it set up now, you can see month to month what your profit is?
Liran: Yeah, exactly and then along with that, I use a tool like Fetcher, for example where I can enter in all my cost of goods and it pulls in all my Amazon fees that I’m paying. It pulls out my sponsored ads fees. I can see my profit margins after those expenses. Then my accountant does a quarterly profit and loss, I can see the entire business with all the other fees that are outside of just Amazon fees and sponsored Ads. I can see software fees, any other marketing that I’m doing outside of Amazon. Facebook ads, all that spending, I can see that. Those tools I consider to be essential for running a business.
You want to be able to understand your numbers.
Any tool like that, that helps you get a better view of what your numbers are is important to look at early on and track your expenses and track what’s actually coming in.
Because things can look really great from a revenue standpoint. But then you want to actually understand what does my business look like after spending on Sponsored Ads? What does it look like after I spend money on software? Or after I pay my accountant, after VAs or assistants or everything else? I think I would consider any software like that, probably essential to get early on. And at the same time spending the money on getting set up properly.
When I started out as a sole proprietor for 6 months or so and then I set up an LLC. In hindsight, I probably should have set that up earlier. But when you are starting out, you don’t know if it’s gonna be a hobby or a real business and you might not think of that. But it would have been easier to get started with that just right off the bat and make things a lot cleaner.
Nathan: Right, I like that recommendation because we don’t really plan this but it really goes well if you set this up the right way. Like you just mentioned, it’s honestly just low cost as far as software goes and it’s essential, getting your numbers right. And what it allows you to do is every month, if you wanna go through and itemized what’s going into your accounting practices, you can see if you’re overspending on things like software and your storage cost. Which we are going talk about in a minute. I like that because this fits really well into that, this is essential.
Andy: As a Private Label seller that I think you have to have:
ViralLaunch extension, I believe is 19.99 a month now. And if you go to Amazingfreedom.com/viral, we have a $10 off the first month.
So very low cost. If you’re a Private Label seller, you gonna wanna get that. Because it’s gonna save you a ton of time as you research potential Private Label products. We always say that’s where the money is made. If you can learn the skill of sourcing good products, that’s what’s gonna help you be able to scale up your business quickly. I would definitely get that one.
If you’re looking for one to help you manage your numbers like Liran just talked about, I use Inventory Lab, it’s also a listing software. So it will help you list if you wanna list through that instead of Seller Central. But I’ve found Inventory Lab to be really good to help me get a gauge on what my larger numbers are. Maybe you’re not at a level yet where you need QuickBooks and you need an accountant when you’re just starting out, Inventory Lab is gonna help you. I have an accountant, he actually pulls from Inventory Lab as well as from my Amazon seller account.
It’s kind of like checks and balances so it’s helpful for him as well. Those are the 2 top ones that I think you really, as you begin to start out and if you’re making this a real business, you want to look at the Viral Launch extension and then as well as the Inventory Lab.
Nathan: Awesome, and for a lot of our listeners that do other forms of selling, they’re probably familiar with Inventory Lab because it’s really more beneficial if you have lots of SKUs and it’s easy to set up because it’s designed just for Amazon. If you’re just doing Private Label and you only have 1 or 2 SKUs, Inventory lab is probably overkill, Quickbooks is probably the more efficient cost, efficient strategy because Inventory Lab is a higher monthly cost but if you’re doing other forms of selling anyways and you’re getting to Private Label, I think it still makes sense to continue that on, I use it as well.
I think those are great tools and really comes down to knowing your numbers. We didn’t really talk about this before, this is kind of impromptu but I think that it’s good that the software you guys are talking about involves looking at your cost and you profits and everything that’s in there because once you do that, you really can start analyzing all the other stuff like Viral Launch and like Splitly and all the tools we talk about.
Liran, let’s talk about real quick, manufacturing and actually getting your product made for people who are going after their very first Private Label product. And they’re on a budget, they only have let’s say 2-3 thousand dollars to work with, starting capital. which is kind of towards the minimum of what we recommend people start with when they’re getting into Private Label.
Do you have any recommendations when they are looking for a product? When they are talking to a manufacturer when they’re trying to decide, maybe the manufacturer has 2 versions. One that’s a cheaper, lower quality version and higher quality version. What is your recommendation for someone because I think this is a real strategy. I know it was for me when I first started off. I kind of skimped on some of the quality of my products because I didn’t wanna spend as much.
What would be your recommendation for, where is it worth cutting cost? And where is it worth paying it and maximizing profit by not cutting cost?
Liran: Right, absolutely. I think you definitely want to get the best quality that you can. It doesn’t mean that your product has to be expensive. But it means that you really should focus on quality. Because Amazon’s ecosystem is all based on reviews. And if you start getting some negative reviews, you’re gonna actually end up probably losing money on the product. Because you’re gonna have a difficult time selling it. You’re either gonna have to lower your price or liquidate it.
Now it doesn’t mean that there aren’t good, sort of medium quality products on Amazon versus premium quality. You can have both but product needs to be able to work properly and needs to meet people’s expectations for the price that they are paying. If I buy a KIA, I’m not gonna expect it to perform and go to 0-60 the way a Porsche might. But I’m still going to expect a certain level of performance. You kinda meet customers where they expect to get for a product. I wouldn’t skimp on quality. I think it’s one of the biggest areas of trouble that sellers get into is when they have quality issues with a product. Either by not doing inspections. So that’s another place that I really wouldn’t skimp. I think it’s worth paying $100, $200 to get an inspection done on your products and get a good quality product. Because ultimately, that’s a place you’re gonna spend money but is going to reduce, save you money in the long run.
Nathan: Liran, let’s talk about this, shipping when it comes to your first Private Label product.
Is there a way that you can reduce your cost by doing efficient shipping from China?
Liran: Yeah, absolutely. One of the mistakes that I made early on was I wasn’t familiar with shipping by boat and so it was very easy to just have the manufacturer ship by FedEx or DHL. but it was costing me a lot more money until started I started importing by boat. I think its OK if on a first shipment you wanna get the product in and test it and you might be willing to pay more. And not have as good margins if you ship it by air if it’s even possible for your product. but you wanna make sure that your second, third, the rest of your shipment after are by boat and that you are importing enough where you are not stuck in a situation where you need product fast because you’re gonna ran out of stock and then you’re gonna end up paying a lot more to ship it by air.
I think to ship by boat and then ultimately if the product is doing well or you’re getting multiple SKUs from that supplier if you can consolidate your shipments. Where you’re now shipping a container, a 20-foot container or 40-foot container, that’s gonna got down your cost even more. For example, I’m going to start sending some products to UK and it’s going to be my first time shipping product there. So I don’t want to ship a container full of one product but I’m going to take multiple products that I buy from one supplier and to put that in a container so I can minimize my shipping cost. But not necessarily send too much of just one product over there because I don’t know what the sales are gonna be like yet. There are definitely ways to one, go from air shipping to boat shipping. And then once you get into boat shipping, you really wanna start seeing if there are ways that you can ship in containers because it’s a significant amount of savings.
Nathan: Awesome, so when you’re just starting off, quality is definitely not the area where you try to cut corners. So really what it comes down to is probably gonna have to try to get a lower minimum order quantity. Something we share with our course members a lot is different strategies for trying to get lower quantities that we’re not gonna talk a lot right now. But for your first shipment, you really need to do almost like a test order of let’s say 2, 300, 500 units whatever ends up being that you can afford to make sure that your customers are confident with the quality of the product.
And then on your next shipment, you plan to do a larger order. You might have to do a bit of back and forth with your supplier through chat. But a lot of times though eventually, it might take a couple of days and a couple of chats. A lot of times they will eventually come down to meet you on that lower MLQ. Again that’s because you’re trying to start with a lower capital amount. You’re trying to bootstrap and get in with a lower amount, that might be the way to do it.
Andy, you recently got a warehouse.
Andy: If you’re just starting now, I would probably say even if you’re selling less than a million a year, you probably don’t need a warehouse. Now, if you have access to a very reasonably priced place then it’s always more convenient. When you’re just starting out, a lot of Amazon sellers, myself included, we started out working in our home. I know the 3 of us, that’s how we started. Working out of our garage, in our basement but as you grow, you tend to run out of space pretty quickly. Once you get to a certain level where it’s not manageable anymore in your home then you can do a couple of things –
1. You can start using a third-party warehouse and that’s generally what most people scale to, that’s what I did.
I started using 2 or 3 third party warehouses where I would have my goods shipped to them, I would have them store them and then have them send them in. Obviously, their storage is a little less than what it would be if I just send it all straight into Amazon and then I had some things I needed to be bundled prior to being sent in so they were able to do that for me as well.
But those fees start to add up as your inventory level starts to go up. I reached a point where it was going to be beneficial for me to be able to acquire a local warehouse and to be able to have all of my inventory shipped and stored right to my local warehouse. Now, I’m the one that’s prepping it, that’s the only downside. Prior to using those third-party warehouses, I was able to outsource all of that prepping. Which again is another decision that you have to make. But for me the financial benefit of being able to store my product. And some of them are oversized in my warehouse is going to greatly reduce what my storage fees are and then also right now what my fulfillment is because I’m doing it.
A long-term goal is I wanna be able to hire somebody full time that’s gonna run that warehouse. As well as I wanted to be a small prep and pack center for other Private Label Amazon sellers so that way I’ll be able to recoup some of my fees that I’m paying for the warehouse.
Now, you don’t need to worry about a warehouse if you’re just starting out or maybe you’re only selling 10 or 15 thousand dollars a month. I personally would say you don’t wanna worry about that until you hit a million. And even then, you may not want to. Liran still utilizes and he does it very well, third-party warehouses and there are a number of very large Amazon sellers. They don’t want anything to do with owning a warehouse, they much rather outsource that. It definitely is a more hands-off doing it that way.
Here is the thing, Amazon storage fees are just going to continue to go up.
I actually toured an Amazon warehouse about a year ago. We could barely walk in that warehouse because there were so many products in the aisles, it was really overflowing with product. Amazon knows that and they are really trying to be careful that you don’t send in products that aren’t gonna sell. But along with that, they’re going to continue to raise their fees. So I think it’s going to save me money in the long run by owning my own warehouse and being able to store inventory there.
Nathan: Awesome, that makes sense and it really depends on the level of inventory that your moving like you mentioned. In your case, the warehouse is actually going to save you money this year. Where for other people if they’re not moving as much inventory then having that warehouse and it depends where you live. I know Andy, in your case you can get warehouse space very very cheap near you where someone that’s living maybe out on the west coast is probably not going to be able to get warehouse space for nearly as affordable of a rate. It does depend on a couple different factors. But in your case, it’s going to save you money, in other people’s cases just using a third party prep center or Amazon storage until you hit a certain level is going to make the most sense.
Liran, Let’s finish off today talking about maximizing profit.
Talk about maximizing by not going out of stock. Strategies that you’ve used, maybe some pricing and anything else that you wanna throw in there that you feel like has helped you in maximizing profit. And things that you’re going to look to maximize this year as well.
Liran: One of the things that hurt me in terms of being able to maximize profits has been going out of stock. Now, sometimes there isn’t much that you could do in terms of going out of stock. You may have a new product that you’re launching, you bring in 500 units and they sell out a lot faster than what you expect. Or maybe you just brought in a product then Chinese new year hits, you can’t order or replenish your product and you’ve gone out of stock. Hopefully, that only happens to you once with the product when it’s new. And when you realize what the sales potential is you really wanna be able to double down on that product and bring in a lot more inventory so that you never ran out of stock on that product again.
I would say we probably all have the 80/20 rule. We probably all have the top 20% of our SKUs or top 20% of our products that are driving 80% of our sales. And so on those products, you really wanna double down. Order a lot more inventory than you need. And that’s why using a third party warehouse for storage I think makes a lot of sense when you’re going to do that instead of sending it all to Amazon. One of the mistakes I see people making is they order inventory for Q4, but they don’t think about what happens after Q4. So it gets into December 15th and suddenly you’re out of stock. You didn’t order enough inventory where you would be good through let’s say middle of January until you can replenish. You really wanna take a look at what are my top 20% of products. And I never wanna go out of those products and if you do, learn from that mistake because there’s a lot of cost of going out of stock on a product:
What did you lose out of potential sales? If you’re out of stock for a month or for a few weeks on a product that does 20-30,000 dollars of revenue a month, you just lost all of that revenue. But what else do you lose?
Well, you may have lost some ranking and when you come back into stock. You’re going to need to do potentially some kind of launch or giveaway. You may need to update the amount of sponsored ads that you do to get back in. It not only costs you those days where you’re out of stock, but also cost you potentially whatever marketing competition you need to do to get it back up to the ranking position where it was beforehand.
And what about losing customers that may have bought from you who might buy from you in the future but now those customers have bought from your competition? So you lose out on potential sales in the future. Especially if you have a replenishable type of product or consumable product even more so. There’s tremendous amount of cost of being out of stock on your products.
How do you pair that with the flip side of it though someone who’s worried about ordering too many products and then possibly incurring long-term storage fees?
If you’re just using Amazon warehouse that’s obviously a big area that you have to reduce cost, avoiding those long-term storage fees. If you’re using a third party, you don’t have to worry about that but how do you deal with the flip side of that?
Liran: If this is one of your top products then hopefully it’s not a product that you’re going to incur long-term storage fees because it’s one of your faster movers. Where it is one of those things that 20% of your product that’s driving 80% of your revenue. You wouldn’t wanna do this on every product where you just keep a mass amount of inventory for a product that’s moving slowly. But on your best seller, on those products that are moving faster. Ideally, you would get inventory where it’s not over 6 months of inventory into Amazon.
If you’re going to run across those issues then you’re gonna need to find a way a month leading up to those potential long-term storage fees to run a sale, run a coupon, run lightning deals, run promotions. So that you can avoid those fees. But ultimately it does lead up to the fact that if you have a product like that, that’s a good fast mover and you wanna order massive amounts of inventory then maybe you should use a third-party warehouse.
I have a product that was one of my best sellers sold out in December, I just got it back in now.
I got 2,000 units into Amazon of that product and I was out of stock for over a month and a half, it was sold out in December. So I lost a significant amount of money for that but I also have another 2,000 units that are on a boat right now before Chinese New Year. And that’s going to a third party warehouse. I would advise you to utilize either like Andy is doing he has his own warehouse space or a third party warehouse.
Like you said, I think it all depends, I’m in New York City. If I wanted to get a warehouse here it wouldn’t make financial sense for me to do that. So I’m using a third-party warehouse in California and I’m saving on those storage costs. It is also an oversized product so I’m saving a significant amount of money. But I’m also keeping more products in the US.
One of the things that you can do if you don’t have a third party warehouse and you don’t want to send in too much inventory into Amazon is you could always have the product produced in China and possibly either your supplier or actually stored in a warehouse in China. Maybe your supplier can just keep it for you and then you could ship it maybe a month ahead of going out of stock on Amazon. But the product is at least made so you’re saving some time there.
With your top products, you should only learn from that mistake one time as far as going out of stock. Then really strive not to go out of stock on those products. I have other products that if I went out of stock on, it wouldn’t be the worst thing in the world because those are not the ones I’m doubling down on that have really good sales velocity.
Why don’t you finish off some of the maximizing profit talking about your pricing strategy and one of the tools or multiple that you used to help with that, and that will help give us another way to maximize profits that you use pretty well this past Q4?
Liran: Another area where you could be leaving money on the table is in your pricing strategy. Because a lot of people that sell their own product, they pick an arbitrary price based on competition. Based on what margins they wanna make but they’re not properly testing what customers are willing to pay. And what customers are willing to pay at different times of the year. So if I have a product that’s a great holiday gift or great Valentine’s gift let’s say like right now, I can probably sell that at a much higher cost as opposed to after Valentine’s Day where there isn’t gonna be much demand for it.
I use a tool called “Profit Peak” from Splitly where it automates my pricing based on velocity. So in Q4 as my velocity increases, my prices increase also. I do give it a range of pricing. I don’t necessarily charge 3x or 4x what I typically charge because I want to avoid negative reviews. But I give it a range where I think the pricing is still good, customers are still getting value. But I am charging more when there are peak demand times.
Using tools like that to automate your pricing or just thinking about A/B testing, there’s a lot of tools where you A/B test your pricing, A/B test your main images. Doing all those things can help you maximize your profit. Because maybe your conversions are not as good in one image being your main image versus another image for example. You want to focus on those things that could be little tweaks that can really maximize your profits.
Nathan: That’s huge, a lot of people, myself included, for most of my Private Label price kind of just guessed what I thought would be good. Maybe based it on a competition. But once start getting rolling and you’re doing better than the competition you don’t really know what you should be doing. That’s good advice and I wanna wrap up saying, another way that you can, maybe not reduce cost but maximize your profit is getting back money that’s owed to you. A lot of people know that if you use Fulfillment By Amazon which is awesome that you can occasionally have products that get lost damaged, destroyed. Over refunded or customer concession they call it to Amazon where they give the customers more than they paid for it. And this is stuff that can eat into your profits because you’re losing inventory and you’re not getting reimbursed for it and you don’t even know it.
That’s huge, you really want to look at your business report. We did a Facebook live, Andy and I did just recently in the Amazing Freedom group. You can go and search for that there where we talk about account management techniques. And a lot of those account management techniques really fit into reducing your cost that we talk about here today.
You can also go to AMZProfessional.com that’s a partner service of ours where we actually help sellers recover lost reimbursements.
We’ve helped some sellers recover thousands and thousands of dollars in lost reimbursements that are owed to them. And then also do other things like remove negative seller feedback and look at negative product reviews and removed unfulfillable inventory. All that stuff that nobody really likes to deal with but can really be eating into your profits and making sure you’re getting money that you can spend on additional inventory. I think that’s really important.