From $20K/mo to $345K+/mo Revenue in Just 4 Months

  • Additional +$130K in Net Profit generated

  • 42% Increase in Average Order Value

  • 41% Increase in Lifetime Value

Against All Odds

At a pivotal marketing event, 'The Whalies’ by Triple Whale in Austin, TX, Joseph, co-founder of this eCommerce brand, confronted a harsh reality. Struggling to make enough profit to scale, he sought advice from industry experts Nik Sharma and Moiz Ali. Their response was stark and unexpected: to shut the business down.

While Nik and Moiz had great points, shutting down the business was not an option (not to discredit them, they didn’t have too much context on the business). That same night, the journey began…

At the event’s after-party, Joseph and Miguel (founder of Point Guard Media) connected. This encounter was the catalyst for a partnership that would defy expectations.

The Turning Point

How did a brand skyrocket from a meager $20K/mo to an astounding $345K+/mo in just a few months?

The Problem

Upon analyzing Joseph's business model, it was clear that the challenges extended beyond marketing.

While the challenges were daunting, the product’s potential was undeniable.

It was time for a strategic overhaul.

The Strategy

Our collaboration started with weekly consulting calls where we identified the biggest gaps in profitability and scalability. We did this through:

  1. A comprehensive audit of the company’s finances to determine the actual costs and areas of improvement.

  2. Rigorously controlled pricing tests where we eliminated extraneous variables to isolate the true impact of price changes. This caused a dramatic increase in AOV.

  3. New products and winning creatives that allowed us to continue to raise ad spend and scale.

Before and After

What Worked Well

  • Business Models & New Products

    As we began to change the business model, we changed the way we created value, the way we delivered value to our customers, and the way we captured value from our customers by creating new products and offers.

    AOV: 42% increase (from $34.76 to $59.82)

    LTV: 41% increase (from $38.06 to $64.90).

  • Winner Ads

    We hit a winner ad on the first try. And then… another winner ad on the second week (third try).

    This allowed us to fix the bottleneck at the top of the funnel and bring prospects with way better efficiency.

    As we developed a foundational media mix with our ad creatives, the brand ad account had what was required to scale exponentially.

  • Price Testing

    One of the highest-leverage tests was due to price testing. We increased prices to make sure that we were maximizing profits according to the customer behavior we were seeing.

    Our new pricing structure positioned the brand to scale in the best months of the year and maximize profits like never before.

What We Could’ve Done Better

  • We Sold Out

    As we began scaling up in December, our top-selling product completely sold out within the first two weeks (by December 14th). Remarkably, in those 14 days, we sold a total of $191,610.

    This rapid sell-out called for a strategic pivot in our marketing approach, compelling us to promote other products. However, these products yielded a lower return on our marketing dollars, which consequently led to a reduction in our profit margins. For a detailed comparison, please refer to the "Before & After Chart" provided above.

    Inventory management is crucial for maximizing profitability. Lesson learned. We have already taken measures to address this issue in future operations.

  • Last-Minute Shipment Costs

    Due to our sell-out, we had to quickly order more products by air for restocking, incurring significant additional expenses. This was necessary to ensure we could keep selling during Q4.

    As a result, the shipping cost per unit increased by more than 3X, which was a contributing factor to the decline in our net margin during Q4.

    Despite these challenges, our net margin remained healthy. It makes us think about how much better our net margins can be in the future by avoiding the need for expensive air shipments!

“Within the first month, we had more than doubled our sales and the net profit increase was even more drastic!

After that, we 2x’ed our sales every month until the end of the year…”

Business models can change, offers can change, marketing can change… results can change.

Work smarter, not only harder. Because if we did it, so can you.

- Miguel Mendez, Founder of Point Guard Media

If you need help scaling your eCommerce brand and you think we might be a good fit, schedule an Intro Call with me today.

“And remember, even if we’re not ready to work together yet, I’ll be rooting for you from afar. Keep going, never give up!”