Welcome to Car Talk. This is not talking about cars. This is talking inside of a car. Today’s topic is about adapting to thrive. Not adapting to survive but adapting to thrive. It’s been a very eventful week or so in the business. The bulk earbud market is a relatively uncrowded space, but I knew as time went by, as my star in this realm of things grows, and as happens in most business areas in life, competition starts to pop up.
Now, I am a very established seller on Amazon and I have high feedbacks, high product feedbacks, high seller ratings, high seller velocity, all those things that Amazon looks at, But there have been a couple of people that have started popping up as far as competitors on there. Now, I’m not overly worried about them, but in the same way, I am extremely worried about them. Are they a serious threat right now? No, but lots of people and businesses can die from a series of pinpricks versus a grenade to your face. If you lose a couple of percent to someone here, a couple of percent to someone there, a couple of percent to someone there. You do that 20 times, you end up down 40%. Not acceptable. So, because of those people, those other sellers, I’m gonna have to adapt to thrive. Not adapt to survive. I already am thriving, but I need to provide the 100% best customer experience, period. And to do that, I have to make some adjustments. Some pretty expensive adjustments, I have to say.
I sell earbuds, as of yesterday, as individually bagged and bulk packaged. As of today, switching everything over, phasing over to only individually bagged. Not a big cost difference on my part, but it does cost more to have that done with the factory. But, better customer experience to help differentiate myself and then, I spent all weekend strategizing. You might have seen it on my snaps yesterday, or anything if you follow my Insta-story, strategizing on how to phase this over because I have listings on Amazon that I need to keep because they have super high velocity, super good rankings, so I need those to rank as well on the individual versions.
And it was a lot of thinking of how do I phase it over to give the customers the exact thing they ordered and also not anything less, because if you intermingle inventory then you end up getting, and paying, expecting bagged and get bulk packaged and that is bad if you under-deliver to a customer. Bad, bad. So I spent a lot of time strategizing and getting everything worked out in the system. It’s all worked out. It’s gonna take probably the next two months to really switch everything over. It will take a little bit of time, but it’s already switched over on the website as of today. But, making that change, I have to buy a whole lot more inventory. Also gonna move over to the 50-count minimum versus the 100-count minimum to have, once again, a better customer experience. So I had to, today, order about $20,000 of inventory unexpectedly to make this change happen. And it’s not gonna be a recurring expense but it’s a expense, last week on this day, I did not expect to have to do. So, to a big company that’s not a whole lot of money, but to 99.9% of people to unexpectedly spend $20,000 is a lot. For me it’s a lot as well, but I had no choice. It’s not an expense, it’s an investment in the business, an investment in myself.
And if I want to keep growing this business into new and further, greater things, I have to continue to invest in the business and spending that kind of money to make the customer experience better is a substantial amount of money for me and for most people, but I have no choice and, thankfully, I managed cash flow accordingly that I can do that and it’s not a problem, but unexpected 20 grand, had to spend today, just the way it goes, to increase that customer thing. I also had to spend 2,000 dollars unexpectedly last week as I’m gonna push into the headphone market as well, ’cause there is a demand. Even though the earbuds are by far the bigger seller, it would be helpful to have what it is people want all the time. And some people do want headphones for any number of reasons, so I’m gonna have to have those as well. So, it’s been an expensive couple of weeks, but you have to adapt to thrive. Not adapt to survive. You have to be willing to give the best customer experience all the time, every time, because that is what builds businesses. That is what builds legacies and that’s what you have to do and what I’m wiling to do to build a legacy, to build a huge business. And you have to roll with the punches and make changes on the fly. But you have to adapt to thrive. Car Talk. Tyler Douthitt.