Case Study With Tyler Jeffcoat: What Your Numbers Are Saying
Do you know what your numbers are saying about your business? Don’t get caught just covering expenses and making very little real profit! Our special guest, Tyler Jeffcoat, shows us exactly how to get your numbers just right to keep growing your business.
(03:08) – Tyler describes the typical financial picture of an Amazon seller.
(05:20) – The average million-dollar sellers should have these percentages.
(08:44) – The Four Keys/Levers to Profitability is designed to help sellers radically improve the performance of their companies.
(10:08) – Sell More Stuff!
(18:49) – Cost of Goods
(24:53) – Advertising
(31:16) – Overhead
(35:27) – eBook Coming Soon! Listeners can email Tyler at email@example.com and reach out to our company at www.selleraccountant.com
—————————————————-FULL SHOW TRANSCRIPT ——————————————————–
You’re listening to the Amazon seller podcast. We’re about to hear from Liran and special guests, Tyler Jeffcoat. As we get into that, don’t forget that we are still running our intro to Q4 special pricing for the magic image & listing services now through October 14th so through October 14th you can get seven enhanced main images for just $129 that’s $50 off the regular pricing for your seven main images.
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Okay. Welcome to an episode of the Amazon seller podcast. Today we have a special guest with us, Tyler, Jeffcoat, who is from selleraccountant.com. Tyler helps and works only with e-commerce sellers and more specifically Amazon sellers to help them with bookkeeping and to be an outsourced CFO. He can work very closely also with your existing CPA to get your books in order. Welcome to the show Tyler.
Thanks, Liran, always good talking to you, my friend. I appreciate your having me.
Yes, thank you. And now I’ve done some work with Tyler in the past as well. And can, can vouch for the kind of work that Tyler does. Let’s kinda jump into it. Before this podcast, you shared with me a kind of a case study that you have done. Now that you have aggregated, you know, a good amount of Amazon sellers. You’ve sort of done this case study to better understand what kind of a typical financial picture of an Amazon seller looks like. So why don’t you tell us a little bit about that, the study that you did and we can go through some of the results of that study?
Yeah, that sounds good. Yeah. So for us, you know, when we got into this space, we, we opened the accounting firm that’s 100% focused on, on Amazon and other e-commerce sellers. You know, Liran, I see you at conferences and you talk to sellers all the time and it’s really easy to talk to sellers about sales. And that’s kind of the, that’s the thing that comes out of the cocktail party. What’s, what’s more difficult to understand is actually how much money the these hardworking entrepreneurs are making. And so we kind of went on a quest as a team at seller accountant to understand you know, we, we kind of are, are big believers in the adage, sales is vanity, profit is sanity.
And so how sane are these e-commerce sellers that are selling using the the Amazon platform? And so you know, we just used a, you know, admittedly a fairly small sample size, maybe right about $50 million in Amazon sales of, of just sellers around the country that were willing to share some data with us and then we put that data together in a little aggregate study. Nothing sophisticated, but just trying to understand the answer to the question, you know, what does the typical Amazon seller, how do they perform financially? And, and I guess I have to qualify the word typical a little bit. You know, anyone who would come in contact with, with my firm is, is already going to be one of the top 10% sellers, Liran, because they, they’re off the ground there. There’s some volume, there’s something to count. And so they’re worried about CFOs services unless they’re a little bit larger. But, but amongst those sellers, we just got the sense that they’re wearing enough profitable as they want it. It’d be, and we wanted to understand kind of what was, what was happening there.
So so from these sellers that you, that you’ve done this case study with, what is sort of an average seller look like? You say, you know, these are A little bit more advanced. Obviously you have to have sales if you’re going to come to Use your services and have it make sense for somebody to Outsource their bookkeeping or or look for an outsource CFO. What’s kind of a typical business that was included in, in the case study that you’ve done?
And so we took all this data in and I guess kind of normalized it to let a million-dollar seller would look like. And you know, basically after refunds, if you have a battle, $1 million in total income, total sales for the year, we would expect you to have about 30% and your product cost of goods sold. Yeah. About 20% in FBA, although once you add some additional freight storage, maybe total fulfillment’s about 25% Amazon commissions are obviously going to be the 15%. And so once you take those factors, they’re gonna remember gross profit is the income minus your total cost of goods sold. The average seller had a 30% gross profit, which meant if they did $1 million in sales for the year, they would have $300,000 that they can then choose to put against advertising, which is the most important one. Plus anything else that might be, I’m below the line, right all of your other overhead expenses.
Including your own salary, let’s say as part of that?
That’s right. Yeah, that’s right. So, so, you know, 30% is that gross profit number that we kind of saw across the board. And and then really right below that we, that we were surprised at, not, not surprised in a bad way, it’s just interesting to learn this, that the average seller which meant to do is probably skewed a little bit towards the private label sellers, but had about 10% of their budget in advertising. So, you know, I know you’re listening to a podcast here, but if you’re following the math here, we have a 30% gross profit minus the 10% in advertising. That leaves us with 20% that we would consider really truly, I guess, cash flow from these products that can then be, like you said, Lee, run a plan, pay and myself are paying the contractors, paying my SAS products, paying my interest expense, and what we’re hoping is over after we pay our taxes that we can actually keep this money and take it home.
And so I think that’s where the first maybe big surprise came with us is now admittedly these are, even though these are larger sellers, they’re small businesses, right? These are going to be 500,000 and maybe $5 million/year sellers. Yeah. And so they’re going to be embedded in their overhead, right? They’re probably going to be paying themselves a salary and, and so I just think that what was most surprising to me is after salaries and wages, right? We had a net income of about 5%. And so all this work, you know, all the work that the seller is putting into it, generating $1 million of sales generally have some debt being used to fund those, those purchases. And they come out on the back end of it with about $50,000 or 5% in profit.
Uncle Sam gets his cut and you get to keep something like 30 to $35,000. Which is a pretty depressing number if that was true for all the sellers, right? Yes. So what does that tell you? I mean, this is obviously a case study that you did on what, about 50 50 sellers? Yes, sir. And so what it tells me is that there’s probably more insanity than sanity across the Amazon world, right? I think what it means is that there’s a desperate need for understanding the underlying factors that drive profitability for sellers and as a really, really important need in the marketplace for the sellers who once they’ve gotten there basic traction, they’ve caught up the Hill enough, they have some recurring sales they need to really get focused on, on what we’re kind of calling the four levers are kind of the four keys to profitability. And so I think that’s kind of become our battle cry this year, Liran, is how do we help sellers understand the things that if they can place a little bit of on it could radically improve the performance of their companies.
Got it. Okay. so let’s talk about those four different areas that you would look to kind of focus on. If this was you and this situation, right? You have a bet $1 million in sales, you end up with, you know, about a $50,000 net income in the business. How do you, what are those, what are those four things that you should be focused on too Improve those numbers?
Yeah. And I’ll just take them one at a time and maybe let you weigh in on each of them all. Some great insights. Well, not to sound over-simplistic, but it’s just sales, right? I mean, you look at them, yeah, you and I have never met a profitable seller who doesn’t have sales. I mean, you, you’ve got traction, you’ve found some products that are moving and maybe, more importantly, products that are moving at a price that leaves me some profit margin, right? The good sellers are good, bad sellers haven’t quite found the product yet or, or are in a, a product strategy that isn’t leaving them enough profitability. What, you know, so that’s, I think we’re kind of seeing that across the board. Obviously it’s kind of like everyone’s talking about sales. The [inaudible] the most obvious thing to correct. If you want to increase your profitability, just sell more stuff and you can do that by increasing prices or you know, finding a way to sell more of your existing products. Or you can go find new products to add to your portfolio. But again, if you’re looking for the quick win, you know, kind of lever number one that you can pull, it would be how do I increase the sales of the products that I, that I have on Amazon.
Got it. And you know, there are obviously some things you could be doing with your existing products like testing, higher pricing maybe, maybe, maybe testing lower pricing is actually going to be produced more volume, which actually could produce a greater profit, right? There are things you could do there to test what you’re, what you’re currently doing as far as pricing. Maybe it’s creating, taking one of your products and adding a cheap, very cheap accessory as a bundle and increasing the price to create more margin. Maybe it’s adding a consumable type of product into your product line to create recurring revenue. But yes, obviously increasing, increasing sales would be one way to try to get a greater net income. So, as you know, when we say increasing sales, would you generally tell somebody, so somebody has, you know, 10 products, they’re doing $1 million a year you know, as the first thing to audit their current products and see if they can increase sales on the existing product line. Is it launching a new product? What have you seen sellers doing to increase this number?
Yeah, I probably would agree with that statement. I think starting internally cause it’s pretty expensive to source of a good product. Well not to mention you’re kind of taking risk of not knowing whether it’s gonna work or not. And so if there’s any low hanging fruit, I think it’s going to be in your existing portfolio. And you mentioned a couple of things that I really liked there. One is you might test some different pricing and I agree with you, it’s not always increasing. The prices sometimes decreasing the price can actually give you enough of a volume boost that you on that way. Yeah. Another way is that the idea, how do we get the also bought with how do we, how do we create some, some packages or some recurring revenue? You talked about the consumables. But yeah, that’s where I would go first as I’m, I’m almost picturing the, I’m in my, my brick and mortar. I’m trying to figure out how can I sell more to my existing customers with the suppliers that are already coming to my shop to bring stuff in and those are going to tend to be your least expensive lowest risk ways to increase your sales and then put it there later on once you’ve exhausted that our, our, my, our listings optimized as my advertising doubt and correctly are my, are my product photos in the right light and all this kind of stuff that really just makes everything else, even the advertising later be more effective, get that dialed in. Then maybe phase two is how can I extend to the existing product line to make it more profitable? And then maybe once you’ve exhausted those options, now you’re going to look to travel and try to create a new product line or try to go outside of your existing offerings,
Right? So it’s taking a look at your, it’s optimizing your existing products in a sense. And you know, there are additional strategies that you could be adding on in terms of how do I sell this existing base of customers, more of my products? And part of that is, you know, when you’re selling on Amazon, you don’t have the customer data is utilizing things like inserts in order to, you know, build, build an email list or build a chatbot list or a recommend, you know, other products who the inserts that you can create a higher longterm value for that existing customer, selling them additional products without necessarily without doing much else other than optimizing a post-purchase funnel. Well for example, and kind of building a list around that. And that I would say is also part of optimizing kind of your existing sales flow. One of the great advantages obviously of selling on Amazon is the access to, you know, a hundred million plus of prime customers around the world. One of the downsides is we don’t get the data unless we are more strategic with product inserts for example. So those are all good ideas in terms of how to take your existing sales and try to optimize, you know, optimize your listings and optimize your process to sell more products to the same amount of traffic that you’re, that you’re already getting.
And one more thing I would add to that, Liran, is because you’re spot on there, but if you, the other thing that needs to inform your product expansion strategy, it’s how healthy your business is from a cashflow standpoint. So there are a this is another reason why I may be going internal and maybe trying to bundle something that you already own. A, obviously it’s less expensive, there’s gonna be a shorter cash cycle, there’s gonna be a shorter return on investment cycle on those kinds of investments. Whereas if you choose to try to you know, build a subscription model or you should try to build a brand new brand, it would almost be like trying to build a brand off of Amazon. You just need to be ready to float some losses for a few months in order to get that off the ground. And if you’re going to have to float some losses, you need to have some cash. And so if I’m, if I’m the entrepreneur and I’m really running low on cash, I don’t have access to good capital but I’m going to try to lean towards what I would call kind of quick wins. How do I find quick wins? How do I find really high ROI products that I can make lower investments into? I can then get an I sales up, but get it up in a kind of a quick man fashion. Obviously the opposite is true. If you’re very well funded or if you really understand a particular customer or a particular category, well then you’re going to be able to go for the long ball. Go ahead and, and you’re going to go to wait six months before you get paid, but you’re going to have probably a greater likelihood of having a home run, having something that’s a, a long term profitable product.
Yeah. And you know, and I think it’s also very timely that we are putting up this podcast now because we’re coming up. In fact, you know, we’re already into the fourth quarter here. And it’s a great time starting, you know, black Friday until the end of December to test price increases. I’ve historically every single year have raised prices during Q4 and has not slowed down my sales. Now obviously I think there’s a good balance between, you know, raising prices and gouging and also, you know, if you have a brand that is current, you know, that is selling all year to a certain price, you kind of don’t want, if you have an audience saying, Hey, you know, this brand gouges their customers over Christmas time. So I think there’s a balance of, you know, if you have a $35 product, you know, selling it for 40 to 45 let’s say during the holiday period versus trying to take that to 55 or 60 even if you can get those sales, maybe not something yet you want to do. But I, I think certainly testing higher prices, there’s a, I’ve historically used software like Splitly or other split testing software or you could do this manually and Q4 for me every year has been the period of time in the year where I’ll not only make the most sales, but we’ll also make the best margins because of that increase a demand, especially, especially if you are, you know, if you have certain products that are starting to sell very well, again, you know, into December and you know, you’re going to run out of stock and won’t be able to get stock back in. So you know, after the holiday then it definitely makes sense to increase your price, make more profit and take advantage of those sales since you’re going to go out of stock. So very timely thing here. I think to take advantage of this one period a year where you can you know, there’s so much demand that it allows you to increase your profit margins and can make your, the entire balance sheet look a lot better, especially if your products are more, you know, if you’re selling supplements then you know, somebody is not necessarily gonna buy fish oil at a higher price during Q four, but if you’re selling any sort of, you know, toys or any, anything that could be a stocking stuff or a gift item you know, you, you can, there is more of, you know, emotional kind of irrational buying, right? That happens in the fourth quarter of this year. I think even more so will be an opportunity because now Amazon has one-day shipping. So, you know, they’ll sales are going to get closer and closer to the 25th. And you know, a great, great time to test higher pricing. I think starting with black Friday. Let’s talk about the next thing on your item. So the other things you had here are your cost of goods.
Yeah. So we talked about sales, you know, and again, not to keep this too for simplify, but yeah, I was amazed at how simple the levels are. The levers are that we should pull to increase profitability. Number two was cost to get sold, I think, you know, sales is so important because you can’t have a business without sales. But in the eCommerce business model, we are fundamentally buyers. We make our money when we purchase our goods if we don’t know how to purchase goods correctly, both from the standpoint of profit margin and from the standpoint of managing our cash flow cycle, we are in deep trouble and we’re in deep trouble really quickly.
And so I think the second thing that we saw as separate, the most successful sellers was just their ability to build in margin from the very beginning, negotiated those sellers negotiated better terms. Those, those sellers negotiated better pricing. They, they knew how to purchase, they just fundamentally understood how to measure their product, blend against what the market would bear from a pricing standpoint and were, therefore, able to capture a fair margin instead of giving all of the profit away to the, to the producer or the manufacturer. And so, you know, the costs of goods sold. If you were to look at your profit and loss statement literally has three of your largest expenses. I think I mean maybe even more so in our business model, even more so than taxes, your three largest expenses are going to be product costs. This is what it costs you to get it from the factory, get through tariffs, get through duties, get it freight shipped in. You’re going to have some other fulfillment costs.
For a lot of us, this is just FBA expenses, picking pack and whatnot. And then you’re going to have a 15% Amazon commission. And normally Amazon commission is by far the smallest, right? I mean, so you might have 15% Amazon commission, you may have 20, 25% fulfillment. And then you may have, I said earlier, 30 to 35% and product cost. And so these are huge numbers. I mean, again, on $1 million business, this is, this is where you get that almost, almost 40 to 50% of your higher budget ends up being money going to your actually more than that really in this situation going to your products themselves. And so sellers who know how to select and put forth the right products win and layer on this is just an area that I’ve always really respected what you do. I mean, you do the hard work, you go to China, you meet with the suppliers directly, and as a result, you’ve had a pretty good track record of selecting products that are going to be more likely to be winners. And if they’re not winners, at least they’re profitable losers, right? Instead of being ones that you have to eat for a long time. I mean, what have you learned that’s helped you be a better buyer?
You know as a buyer, and this is something that I kind of you’ll hear me say if you’ve heard me on this podcast before or anywhere else is, you know, you need to answer a question of why would somebody buy from me. And I think one of the biggest laziness across the board from Amazon sellers is putting out meat to kind of products and thinking like, I’ll sell a little cheaper, you know, make it, you know, like, like poor excuses. I’ll make a better listing. Okay. You know, these are poor excuses and somebody can easily improve their listing or somebody can easily lower their price. Just you know, just to a make you, you know, lose money for a couple of months, right? A bigger competitor. And so I think the baseline of this is all greeting a product that has a unique selling proposition. Yesterday I heard, I don’t even know where it was, but I heard somebody, Oh, I heard a friend of mine, Joe Lau, talk about a superior value proposition. I’m not just a unique value proposition, but a superior value proposition is creating a product that it has something to it that somebody can’t just compare your product based on price and reviews. And if somebody can’t compare apples to apples, you can charge more. You’re not just competing on reviews more. And you, you’re going to have better margins with that. At least for a period of time at least you’re going to have a six-month run rate before, you know, even if you don’t have IP before somebody else comes in and competes, and during that time you can establish first to market, you can establish those reviews. You can establish being, being the original sort of version of something and the, and some branding around it and can allow you to price at a higher, at a, at a higher price.
And I think what you said is spot on. You know, I see sellers a lot of the time. You know, we, as part of our private group sellers can submit to us a product evaluation guide before they pull the trigger on a product. They kind of show us the numbers. They show us what the product idea is, what the keyword is, what the search volume is. And oftentimes we look at something, we just say there’s just not enough money here. You know, when you look at your cost of goods, you’re going to end up with like, you know, a 20% margin to 25% margin. It’s not good enough. I like to look for at least a hundred percent ROI on a product, something that can give you that cash flow to reinvest back, into the product. But the, the, the fundamental foundation of all this is creating a product that isn’t the same as what everybody else is selling or has very little competition or you know, is not, or has a bigger barrier to entry you know, product that you’re going to sell for 200, $50. That might cost you $50 to source is not going to be a product that everybody, you know, the new seller getting in. It’s not gonna be their first product. They’re going to go in and buy, you know, 500 units of a product that costs, you know, $50 to source. And so that’s kind of what you need to think about and that is going to play out I think better for you in the longterm in terms of not having a lot of competitors come in, not having to drop your price and creating kind of a unique offer. So to me, the product is actually the product side and the right marketing approach to position that product a, with a superior value proposition that people will be willing to spend more money for. Great packaging, good messaging. All that I think is is important. The branding and product side,
You know, that kind of leads to the, to the third thing here we’re talking about advertising. I think the relationship Liran between advertising strategy and what you just said, which is the product selection strategy. That relationship is the most important relationship that a seller has to manage. And what I mean by that is if you’re selecting products that have a fairly low margin, so there are a lot of your, a lot of costs of goods sold relative to the sales. You have to be incredibly efficient from an advertising standpoint. You have no room for error, right? I mean, think about a product where, you know, the, if a sale price is $100 you’d get $65 in the cost of goods sold. You can’t spend any money on advertising, or if you’re spending it, it’s gotta be very, very narrow advertising. Yeah. The opposite side of that is if you, if you have a brand with ’em, you know, tremendous margins, you have really good margins, maybe you’re paying a dollar for an accessory that you’re able to sell for $10.
You know, first of all, you should expect more competition in that space because there’s more opportunity. And second of all, your advertising game is going to be absolutely critical. You’ve got to spend the money, on ads. You’ve got to have the right optimization strategy. And so I think that’s maybe the silent killer. Maybe, but in all of this is the lost discipline to measure advertising and cost a good soul together, right? Kind of taking that traditional gross profit, which is sales minus cost of goods sold but then taking it one step further and, and, and, and subtracting your advertising expense so that you can see what these products are actually giving you in cash. We’re actually generating and profit and measuring that. Obsessive Lee for the CFO clients we serve, we measure, we measure that metric. It’s called sellers discretionary earnings, S D, E if you want to Google it. But okay, that metric is the most important thing that we have sensitively look at every month for our clients. And the reason is that that helps us. It gives us an objective scorecard, Liran, to look at advertising in the relationship with the product blend that they have,
Right? And you know, with Amazon today you have the top fold is, you know, when you’re looking at, you know, at a laptop, a desktop is the first row was just ads. And then underneath that, you might have editorial reviews from, from certain publications and then underneath that you might have the organic. And so it’s kinda like advertising, becomes that much more important as Amazon wants to continue to increase their ad revenue, they’re going to have more, more placement. Advertising just becomes more important. And you know Russell Branson click funnels, he, he says, whoever can pay more to acquire a customer wins. Right? And how do you put yourself in a position to pay more to acquire a customer? Well, if your cost of goods is lower than you’re a competitor. If your, if your margins are better if you have a good followup strategy where you can take advantage of that lifetime value of a customer, right? All those metrics will allow you to spend more than your competitors to acquire that customer’s end.
Having an offering that allows you to sell more products than in the future or the consume bold type product. All that is going to help you win over your, ah, over your competitor advertising and knowing how to optimize it, on Amazon. And knowing how to kind of control it. Like, as you said, you kind of seen an about a 10% 10% spend of sales on ads. I think that’s a pretty good target. Unless you do have a consumable product, no lifetime value of your customer and you’re willing to be very aggressive upfront in order and you have an amazing product that you know, gets a certain percentage to reorder rate. I just spoke to a friend of mine who sells a consumable product on Amazon and they have a 40% reorder rate, which is really, really good. And so they have a really high-quality product. They have a lot of reviews, they’ve done things the right way and so they know they can spend X amount to acquire a customer because they have a 40% reorder rate on that, on that product. If it’s competitor has a 10% reorder rate or 15% reorder rate, reorder rate. Obviously they’re not going to be able to spend as much to acquire the customer.
And that’s how they’re winning because they also have a great product. They are, the product is priced competitively and they’re doing the marketing right. On that post-purchase funnel to make sure people can reorder the product and they, they also capture that person’s email. So definitely, you know, advertising has to be a, I think you need that advertising strategy especially on Amazon.
I couldn’t agree more. I mean, think about Amazon was the banner bearer for what it looks like to buy customers for 20 years. Right? I mean, they really out the lifetime value of a customer as far as they possibly could and made those investments. The difference between Amazon and you and me, okay. Is that we don’t have, you know, billions of cheap dollars of funding. Right. And so it’s always just this balancing act, Liran with how can I set a realistic trajectory for this set of products and then make sure that I have the funding, You know, slash margins. Right? Cause if I have more margin, I’m not going to have to eat as much loss as upfront or have to advertise I’m into the red or you know. So the combination is again, do I have the runway?
Do I have the fuel to get this thing off the ground? I couldn’t agree more with Russell Brunson more. I love that statement. Whenever people ask me this all the time, how much should I be spending on advertising? I’m sure they asked you also we were on correct answer is as much as you can and making, making a profit, meaning you know, I’m not giving away my products. I hate that. I hate looking at seller accounts where once you actually run the numbers, you realize that they, they are, they’re selling the products at a loss because they haven’t understood what their margins really are. But if I have great profit margins and can afford to bully my competitors out of a listing zone or out of a keyword, man, that’s, that’s exactly what Russell’s talking about that quote. And that’s exactly how the most successful the successful sellers win is they have a real, as you said earlier, kind of a superior value proposition or a sustainable competitive advantage. And they use that to be as aggressive as they can be on advertising so they can really dominate one, two, three, four on, on a, on a listing page, that kind of thing.
Yes. okay, let’s go, let’s go on to the last item here, which is overhead. So what is, what would you consider to be part of overhead for an Amazon business? A lot of sellers even ones doing, you know, $5 million a year are basically working this business out of their home. If they have a team their team is typically a combination of maybe US and overseas and they’re also working from home. What is, so that’s all good in terms of limiting overhead. They might be using a third party warehouse instead of their own warehouse. And the combination of that and Amazon FBA what are those overhead expenses that one could kind of optimize around to increase their overall net income?
Yeah, so the advantage, as you kind of alluded to there being an eCommerce seller is that we tend to be lean. We tend to be able to work wherever. We don’t have to have a brick and mortar until we really want to have a warehouse. And we, and we, if we choose to, we don’t even have to go down that route. And so every eCommerce business starts with very little overhead. But what ends up happening, especially as you, as you alluded to early around a kind of get to a million, even maybe to 5 million in sales salaries, whether they’re domestic or overseas, a, your product development expenses, the trips that you take to, to source products.
It’s amazing how many SAS products, the average Amazon seller keeps on the books every single month. So for a seller who doesn’t have the right capital, doesn’t have enough money in the business, interest expense can be a gigantic crushing wait, that just hits the bottom of that P and L every single month. And so you think about things like contract or salaries, like I just said, SAS interest and whatever’s left at the bar, at the bottom of it is the profit, right? And so, you know, everything we’ve talked about for one, two and three, which were sales, cost of goods sold, and advertising, that’s all about how do I increase seller’s discretionary earnings? How do I get cash flow from the products themselves up?
This fourth one is how do I get to keep some of that money? I want to keep it by keeping my, my overhead, my operation as lean and mean as I possibly can. And I want to be disciplined enough to audit my own, kind of audit, my own expenses periodically, or have my accountant or CFO team do that for me to say, Hey, here’s something that we may be overspending money on. Because the other thing, I almost thought you were gonna say this a minute earlier on, but like there are so many business owners that work there, butts off just to pay everybody else. Everyone else gets a salary. Right. I’m thinking I taken all the risk and I, and I get paid last. Right. And I get paid after uncle Sam. So it’s like, you know, I just think there are so many sellers, there are so many entrepreneurs that are, They’re kind of living entrepreneurial poverty. Yeah. Because they have an out of control expense, a part of their P and L and just incurred sellers that if that might be you, you know, take a few minutes to take a look at those expenses because you may find that you can keep a lot more of your money than you thought you could.
Yeah. I mean, I think definitely doing an audit of all the different tools that you’re using in your, in your business. You know, sometimes I’ll, I’ll suddenly get a charge or something and be like, Oh, that’s some annual thing I signed up for last year that like, I’m not using any more, like I need to cancel that or, right. Like there are so many things that we, tools and services and, and everything else that you may not be using anymore. You may sign up for something on a recurring billing or whatever and someone’s just happy to keep billing you until you cancel that. But I’m sure you see a lot of that kind of stuff in your audit, especially I think you said like all the different sorts of software as a service tool that e-commerce and Amazon sellers are subscribed to.
Yup, You’re right. So you know, I think this is really a helpful kind of recapping these four areas that you can look at to optimize your books better, your sales, your cost of goods, your advertising, your overhead. Really helpful insight. I think you at some point I’m going to put some of this case study. I’m out there more, more. So I don’t know if you’ve published any of this out there, but how do people get in touch with you and maybe able to see more, more about this case study?
Yeah, so we are, we’re in the process, of putting this into more of a kind of an ebook kind of thing that we can give away and just really help sellers navigate some of these areas better. So I think for right now, if you want to get in touch with me, feel free to email me, firstname.lastname@example.org, but the website, www.selleraccountant.com is the best way to interact with our company. Liran, it’s always a pleasure to be on your show, man. Thanks for having me.
Yes, thanks so much for coming on and we’ll see you, I’m sure in a future episode.