Do you run a DTC startup?
And you sell a consumable CPG?
Here’s when to push for scale!
… here
we
go!
And you sell a consumable CPG?
Here’s when to push for scale!



If you didn’t read this previous thread, you should https://twitter.com/jackybh/status/1487619248969207810?s=20&t=qiD1Xq8CuS8XFe9Y1chcOw
1/ PRODUCT
You have iterated a few times. Product is close to being great
Customers send you personal emails, 5-star reviews and share their stories
And the negative ones complain about trivial things... “Oh, loved the soda, but the color is too dark”
You have iterated a few times. Product is close to being great
Customers send you personal emails, 5-star reviews and share their stories
And the negative ones complain about trivial things... “Oh, loved the soda, but the color is too dark”
2/ RETENTION
My experience is very narrow here, so please take with a grain of salt…
For a consumable product, like deo, and selling subs & one-offs
- Subs: Avg monthly churn < 15% and getting better
- Overall: 70%+ repurchase rate TTW
Recco: @sourcemedium for analytics
My experience is very narrow here, so please take with a grain of salt…
For a consumable product, like deo, and selling subs & one-offs
- Subs: Avg monthly churn < 15% and getting better
- Overall: 70%+ repurchase rate TTW
Recco: @sourcemedium for analytics
3/ YOUR MAIN FUNNEL
You have tested many things already.
Ad/gender/message-specific LPs, diff offers, gifts, etc… and you still have a long list of tests to run, but
Your main funnel is converting at 4%+
Recco: Google Optimize “redirect test”
You have tested many things already.
Ad/gender/message-specific LPs, diff offers, gifts, etc… and you still have a long list of tests to run, but
Your main funnel is converting at 4%+
Recco: Google Optimize “redirect test”
4/ LTV/CAC ratio (MER)
Calculate using Gross-Profit-LTV instead of Revenue-LTV.
Most VCs want 3+
But If you are at 1.5+ you can push for growth and slowly increase the LTV
Recco: at 3+ don’t dilute yourself, use http://settle.co @RosenZone
Calculate using Gross-Profit-LTV instead of Revenue-LTV.
Most VCs want 3+
But If you are at 1.5+ you can push for growth and slowly increase the LTV
Recco: at 3+ don’t dilute yourself, use http://settle.co @RosenZone
5/ MARGINS
Your Gross Margin is at 65%+
Assuming that COGS = Landed cost + fulfillment + CC fees + Avg Shipping cost
It varies between categories, but for low AOV products this is a good benchmark
Your Gross Margin is at 65%+
Assuming that COGS = Landed cost + fulfillment + CC fees + Avg Shipping cost
It varies between categories, but for low AOV products this is a good benchmark
6/ EMAIL MARKETING
This channel represents AT LEAST 20% of your DTC revenue.
Ideally 30% or more.
This channel represents AT LEAST 20% of your DTC revenue.
Ideally 30% or more.
7/ TEAM
You have the key positions covered. Doesn’t have to be all in-house
Paid social, paid search, SEO, email marketing, customer support, retention, operations (logistics).
You have the key positions covered. Doesn’t have to be all in-house
Paid social, paid search, SEO, email marketing, customer support, retention, operations (logistics).
8/ EXTENDED TEAM
You have developed a strong rolodex of quality creators, video producers, consultants, shopify experts, etc
This is allowing you to quickly execute on any new idea/tactic
You have developed a strong rolodex of quality creators, video producers, consultants, shopify experts, etc
This is allowing you to quickly execute on any new idea/tactic
9/ MANUFACTURING
You found a manufacturer that not only has the capacity to scale, but is supportive.
Gives you priority, suggests improvements to the product, extends you credit and heck maybe even invested in your business!
You found a manufacturer that not only has the capacity to scale, but is supportive.
Gives you priority, suggests improvements to the product, extends you credit and heck maybe even invested in your business!
10/ PATH TO RETAIL
You already met the category buyers of your target retailers, and know what you need to work on to get the product on the shelves.
P.S: I love DTC. But brick-and-mortar still accounts for 80% of retail sales.
You already met the category buyers of your target retailers, and know what you need to work on to get the product on the shelves.
P.S: I love DTC. But brick-and-mortar still accounts for 80% of retail sales.
11/ CAPITAL
Yes, how else would you scale without it?
At least 18 to 24 months of runway
Yes, how else would you scale without it?
At least 18 to 24 months of runway
12/ LFG
http://Duradry.com is ready to scale and we’re raising a $2M SEED
We'll disrupt incumbents with a MORE effective antiperspirant that's also packed with natural ingredients.
Join us!
a) Request our deck via DM
b) Let’s hop on a call asap
c) Requests samples
http://Duradry.com is ready to scale and we’re raising a $2M SEED
We'll disrupt incumbents with a MORE effective antiperspirant that's also packed with natural ingredients.
Join us!
a) Request our deck via DM
b) Let’s hop on a call asap

c) Requests samples