709. Ask Jacq: How to Boost Your Order Value Without Lowering Prices | Q&A

Summary

Episode Summary: The Product Boss Podcast - Episode 709: Ask Jacq: How to Boost Your Order Value Without Lowering Prices | Q&A

In Episode 709 of The Product Boss Podcast, host Jacqueline Snyder delves into strategies for increasing order value without resorting to price cuts. This episode centers around a live Q&A session where Jacqueline addresses real-time questions from her audience, providing actionable insights tailored for product-based female entrepreneurs striving to elevate their businesses.

---

Introduction

Jacqueline Snyder opens the episode by welcoming listeners back to another installment of The Product Boss Podcast. She emphasizes the show's commitment to helping product-based entrepreneurs scale their businesses to achieve their dream lifestyles. With over two decades of experience and a track record of assisting thousands of businesses, Jacqueline sets the stage for a session focused on practical strategies to enhance sales and customer engagement.

---

Listener Questions

1. Bundling Bestsellers in a Skincare Line

Listener: Kelly
Timestamp: [04:07] – [07:03]

Kelly's Inquiry: Kelly, a skincare entrepreneur, poses two questions:

1. Bundling Strategy: She asks whether offering a discount on a bundle of three best-selling skincare products would be effective in increasing order value compared to selling each item individually.

2. Subscriptions: She seeks Jacqueline's perspective on integrating subscription models into her existing sales strategy, especially considering her current business scale.

Jacqueline's Response:

• Bundling Bestsellers:
  Jacqueline affirms the potential of bundling, especially in the skincare industry where customers often seek comprehensive regimens (e.g., nighttime, daytime, anti-aging). She suggests that effective bundling isn't solely about discounts but also about creating value-driven packages that resonate with specific customer needs.

  • Quote:
    “What you're actually selling them is a nighttime regimen, you're selling them a daytime, you're selling them an anti-aging...”
    — [04:23]

  • Examples Provided:

    • Beauty Inn Beauty: Noted for their strategic bundling on their website, offering discounts and value-added items like makeup bags to reinforce brand loyalty.
    • Arcana: Renowned for their "basic five" core products that serve as a foundational skincare routine, encouraging customers to explore additional products.

• Subscriptions Insight:
  Jacqueline advises caution before implementing subscription models, especially for businesses that haven't yet established a consistent customer base.

  • Quote:
    “I don't recommend subscriptions. ... if you don't have a customer base that's coming back and buying again and again and again, you're creating something for them that they're not actually asking you for yet.”
    — [06:15]

  • Recommendation:
    Focus on building a stable revenue stream and understanding customer purchasing habits before introducing subscription options. Once a loyal customer base is established, data-driven decisions can inform the viability of subscriptions.

---

2. Enhancing Order Value in a Jewelry Business

Listener: C
Timestamp: [08:52] – [11:20]

C's Inquiry: C, a jewelry entrepreneur based in the UK, operates both an Etsy shop and participates in in-person markets. With over 50 products on Etsy and an expanding range at markets, she seeks advice on how to add more value to her orders. Specifically, she wonders if introducing additional items like necklaces, bracelets, or rings alongside best-selling earrings could effectively increase her average order value.

Jacqueline's Response:

• Understanding Customer Behavior:
  Jacqueline acknowledges the complexity of C's query, emphasizing the importance of comprehensively understanding her customer base and their buying patterns before making strategic decisions.

  • Quote:
    “What you'll learn ... is we're really going to deeply understand who your customer is and what you're known for.”
    — [10:09]

• Sales Accelerator Program:
  Jacqueline highlights the benefits of her Sales Accelerator program, which is designed to help entrepreneurs like C analyze customer data, identify purchasing trends, and tailor product offerings accordingly.

  • Customized Strategies:
    Instead of providing a one-size-fits-all solution, Jacqueline suggests that through her program, C will gain the insights needed to make informed decisions about product bundling and expansion.

  • Quote:
    “If you trust the process, I think that will unfold with you with more data than me just giving you some random answer.”
    — [11:16]

---

Key Insights and Takeaways

1. Strategic Bundling Over Discounts:

   • Bundling should focus on creating coherent product regimens that address specific customer needs rather than merely offering discounts.
   • Highlighting the value and synergy of bundled products can lead to increased order values without compromising profit margins.

2. Cautious Approach to Subscriptions:

   • Subscriptions can complicate business operations if the customer base isn't yet reliable.
   • Prioritize establishing consistent sales and understanding customer loyalty before implementing subscription-based models.

3. Deep Customer Understanding is Crucial:

   • Tailoring product offerings to align with customer preferences and behaviors is essential for effective scaling.
   • Programs like Jacqueline's Sales Accelerator can provide the necessary frameworks and data analysis to inform strategic decisions.

4. Examples of Successful Brands:

   • Learning from established brands like Beauty Inn Beauty and Arcana can offer valuable insights into effective bundling and customer retention strategies.

---

Notable Quotes with Timestamps

• On Bundling Skincare Products:
  “What you're actually selling them is a nighttime regimen, you're selling them a daytime, you're selling them an anti-aging...”
  — [04:23]

• On Subscription Models:
  “I don't recommend subscriptions. ... if you don't have a customer base that's coming back and buying again and again and again, you're creating something for them that they're not actually asking you for yet.”
  — [06:15]

• On Understanding Customer Needs:
  “What you'll learn ... is we're really going to deeply understand who your customer is and what you're known for.”
  — [10:09]

• On Trusting the Process:
  “If you trust the process, I think that will unfold with you with more data than me just giving you some random answer.”
  — [11:16]

---

Conclusion

Episode 709 of The Product Boss Podcast offers invaluable advice for female entrepreneurs aiming to enhance their order values without diminishing prices. Through real-life questions and personalized coaching, Jacqueline Snyder underscores the significance of strategic bundling, cautious implementation of subscription models, and a profound understanding of customer behavior. By leveraging these insights, product-based businesses can navigate the complexities of scaling, ensuring sustainable growth and increased profitability.

Listeners are encouraged to engage with Jacqueline's programs, such as the Sales Accelerator, to gain deeper, data-driven insights tailored to their unique business challenges. As always, Jacqueline fosters a supportive community, empowering entrepreneurs to transform their passions into thriving, profitable ventures.

---

Don’t miss out on future episodes! Subscribe to The Product Boss Podcast and join a community of like-minded female entrepreneurs committed to building successful product-based businesses.

Transcript

[A]

Hi, I'm Jacqueline Snyder and this is the Product Boss podcast. I've helped launch and grow thousands of product based businesses, even one of my own. And over the last 20 years, I've seen behind the scenes of businesses just like yours. Whether they are makers, manufacturers, artists, or food and beverage businesses. I have spent so many hours studying it all. I've discovered what makes them successful, what mistakes they could have avoided, how did they turn their ideas into successful business, and what are the strategies that they have used to make more sales and be discovered by more customers. And this is what this show is all about. Whether you're just starting out or you're looking to become a million dollar product boss, I'm here to give you the permission to chase your dreams, no matter how big or small. All you need is the right mindset, a little courage, strategy and support, and you too can be the next million dollar product boss. Let's do this. Oh my goodness. Friends, if you are anything like me, you probably spend more time running errands than running your business. Am I right? Like, everything needs something, we gotta run around. And I knew that this was like a major issue for me back in the day, which is why I decided to get help where I could. And I decided to let Instacart handle all of my grocery shopping. So I no longer had to worry about running all the errands and having to run out and get more almond milk. My lattes rather. I was like, you know what, we're just gonna let Instacart handle that. So I want you to imagine skipping the store and getting back to designing packaging, orders, making, or maybe actually taking a break, even a nap. Remember those? Okay, so with Instacart, you can get groceries and essentials delivered in as fast as an hour, so you can focus on growing your business without sacrificing a meal. Plus, less stress and more focus. And here's a tip. I've actually used Instacart before to order gifts from my daughter's friend's birthday parties. Because I haven't had time to run out and get presents. And I've been able to get the packaging, like the gift bag and the gift hello, Sephora. Delivered to my house while I was in the middle of coaching sessions so that I could have the present right. It's like having a personal assistant without having a personal assistant. So if you want to do what I do and get the help where you can, you can try it now if you head to the Product Boss. Com Instacart. Hey, Product Bosses, quick check in. Is your sales growth feeling stuck, like, totally flatlined despite all of your hustle? Or maybe you're like, okay, this should actually just be harder. Maybe you're feeling like you're walking in mud and it's like, why does this feel so hard? You're either way, if you're nodding your head thinking, someone, please, please, please just tell me exactly what works so I can finally grow without grinding myself in the ground. Well, I've got something so good for you. Say hello to the accelerate your sales podcast bundle. Okay. It's my absolute best, totally free playlist of episodes that'll show you exactly how to stop being the best kept secret. Right? Let's get those products seen. Or how about expand your sales across multiple channels without overwhelm. Hello, abundance. Or create products your customers can't wait to buy over and over and over again. And it's going to really help you start to build your business with that clarity, ease and joy. Because growing your business should feel amazing, not exhausting, my friend. This is your shortcut to more sales, less chaos, and way more fun along the way. Grab it now. It's a hundred percent free. I just wanted to make it super easy for you to find those episodes. You're like, which episodes should I listen to, Jacqueline? Here it is. And it's packed with pure gold. All you have to do is head to the productboss.com growth or click that link in the show notes and then pop into your email and let's do this. It's your time to feel the freedom to find that abundance and to get passionate about your business again. All right, I'll see you in there. Hey. Hey, product boss. All right, welcome back to another episode of the product boss podcast. And today's Ask Jack Q and A is a short coaching moment pulled from one of our live calls inside of my programs like the standout society and sales accelerator. So these are real product based business owners, real students of mine that are asking real questions inside of the live program and they ask them and we go really deep, really fast. And I know that you're going to find a juicy takeaway. So if you're ready, let's dive in.

[B]

Hey, my name's Kelly.

[A]

Hi.

[B]

So I have two questions. So on the bundling, if we're bundling like three bestsellers for like a skincare line, would you offer a discount on that bundle so that it's a little bit cheaper versus buying each thing individually?

[A]

You're doing skincare? Yes. What I love about skincare is you can create regimens. So what you're actually selling them is a nighttime regimen, you're selling them a daytime, you're selling them an anti aging, you're selling them a dry skin, you're selling them this summer, whatever. So part of what you're doing is the marketing, the packaging, like how you're naming it. And then the second thing is is sometimes they would like a little bit of a discount or a value of X at X. So it could be, if we priced it all together specifically it would be $200. But if they buy them all from you, they get em for you know, $198 or $182. Like you can kind of choose because a lot of times we might give a discount to first time buyers. Also a brand I'd like you to look at is in Beauty I N n Beauty. They discovered them at Sephora but they do a really good job on their website of like bundling product and like at one point they were giving away like they didn't give a discount on the. Well, no they did. I think if you added five products you got 20 off. And at some point they were also giving you a makeup bag which reinfor force the brand. So there's a lot of different ways. Another brand that I really like is Arcana A R C O N A. They are known for their basic five. So they've got different skin types. But what they teach their customer in the very beginning is you need the basic five. They have all these other products after that. But if you buy the first five products that's like your baseline of skincare and you can look at like what the individual bar sell for and then what their basic 5 bundle looks like. Okay.

[B]

And then my other question is, is what are your thoughts on subscriptions? On like if you had a bundle.

[A]

Like a bestseller bundle, people do subscribe and save. Do you have a big business right now? Like how's your business?

[B]

No.

[A]

Okay.

[B]

I mean I have a website, I have Shopify, I do, you know, local pop ups and I'm have it trademark and I'm currently working on trying to set up wholesale.

[A]

Okay, you're doing a lot and yeah.

[B]

I have a few products. I have four products that are manufactured now.

[A]

Okay, cool. Yeah. Okay. And if you decide to join me and hopefully you decide to join me in my sales accelerator, it's gonna speed you up so much faster and all the things you just said. But I don't recommend subscribers. I think when you guys add on Subscription. It's like if you're like, you know, they say if a tree falls in the woods and there's no one around to hear it doesn't make a sound. So if a product boss has a subscription and there's no one around to take that subscription, does it make a sale, you know, or whatever it is. So if you don't have a customer base that's coming back and buying again and again and again, you're creating something for them that they're not actually asking you for yet. And it just adds complication to your business. I'd rather you get to a revenue like a consistent like, you know, let's get you to. Are you, you're not a hundred thousand dollars business yet, are you?

[B]

No, not yet.

[A]

Okay, so let's get you to $8333. Let's get to a hundred thousand, let's get to a set amount of customers that come back and rebuy. Then you'll have data on what they rebuy and then you can make a choice at some point later if you decide that subscription is the thing you want to do. Right now we just need to get them to believe in your products enough that they buy. Okay, cool. Thank you. Hey friends. Okay, so I don't know if you wrote anything like me, but sometimes it feels like my self care routine is slipping through the cracks. Because when I'm juggling and wearing all the hats in my business and doing all the things, I mean the last thing I have to do is like really fulfill that self care routine that my daughter's talking about. She's like, mom. So listen, so when it comes to running a successful business, you can't really pour from an empty cup. And a lot of times that self care is like one of the first things to get yourself recalibrated. So that's why I want you to meet Glossy. Now Glossy is my favorite daily beauty supplement designed to transform your skin and gut health from the inside out. And I'm actually an investor in this business because I, I so believe in this idea of science backed ingredients for digestion and skin hydration. And Glossy makes it really easy to look and feel your best without that whole 10 step routine in the mirror. The thing I don't actually have time for, all I have to do is simply mix the stick into my water and I'm good to go. So if you want to try this because I so believe in this business, I think it's amazing. It's done so many wonders for my Skin and my gut, which are two things that I need help with. And you want to simplify your wellness and, and your beauty. All you have to do is click in the show notes and you can use the code Jaclyn Snyder. So it's my full name. Use the code Jaclyn Snyder and I'm hooking you up with 15% off your order. So cheers to glowing skin and a thriving business.

[C]

Hello. So my question is this. I do jewelry and I have two different avenues. I have a shop on Etsy and I have markets, like in person market. I'm in the uk. Yeah. So I've been trying to look into my best sellers. Obviously on Etsy, it's quite easy for me to pinpoint what my best sellers are.90 to do only earrings. So I know which earrings, which model, which color that goes the best. And one is I'm in person in the markets. Everything goes. I do a lot of products. I mean, I've got more than 50 on my Etsy shop. On the markets, I've got more and more. It doesn't mix the same thing. Okay, question. I like the idea of adding more value. So would you say that in order for me to add more value to my order, I need to maybe add, I don't know, a necklace, a bracelet, a ring so that, you know, the people can buy the earrings together with this in order to increase my value, my order value?

[A]

Yeah. I'm unsure to be able to give you that coaching in this moment on what, Because I don't know enough about your customer and their buying habits. So what you'll learn. Did you end up joining the sales accelerator?

[C]

Yes.

[A]

Yeah, perfect. So what you're going to learn in the next two weeks is we're really going to deeply understand who your customer is and what you're known for. So I think that those answers are going to kind of come to you in very, very quick time where we're going to deeply understand who she is and why she needs it and what she wants. So then when you make her the offer, the offer aligns with what she actually wants versus, like you just guessing right now and thinking, well, maybe she would do this too. And we'll be able to look at like data and historical data and say, all right, this is the right decision. And then it's all going to be test and try. Does that make sense?

[C]

Yeah.

[A]

And then what we'll, we'll balance between is your different marketplaces like I talked about. Sarah Cornwall, Jewelry Etsy wanted something different than online, but what we knew is that they wanted necklaces and earrings. I have another student that, like, has a very similar background to you where it's like all the earrings, and she does earrings left and right and center. Right. But sometimes it's studs versus the danglies versus, like, the really big piece you're wearing right now. So if you trust the process, I think that will unfold with you with more data than me just giving you some random answer.

[C]

Okay.

[A]

Thank you. I'm so excited to work with you.

[C]

Thank you.

[A]

Sometimes one question is all it takes to shift something big in your business. So I hope today's Ask Jack gave you exactly what you needed. So shout out to my amazing students who ask these real vulnerable and powerful questions. And thank you so much for being a student and part of this community. So make sure you hit follow on the show and I'll see you next time.