Launch A Physical Product Brand The Right Way

I get asked all the time about these nose trips that I wear. I wear no strips so that I don't snore at night. In this video, I'm going to break down how I would launch a no strip business if I were to launch one, and how I would get it to be a 40 to 60 million dollars enterprise. And how you can use the same thought process to apply to any physical products business or service business that you use to sell stuff to people that you don't know. No strip costs pennies to manufacture. You can sell them for 100 times that price. So if it costs you 2 cents and you can sell it for a buck, you're making huge margins on the actual thing. The second thing, that it's sticky, quite literally, but also from a recurring standpoint, if you can improve how someone breathes, they're going to buy it again and again and again. I could have auto ship built into it, which would be nice and it makes it convenient for people. It's also something that doesn't require willpower to use. You don't have to remember to do it. Like the problem with supplements is that people have to remember to take them. Most people sleep every day, most people don't work out every day. And so I'd rather associate a product with something that people are doing on a regular basis without willpower. It's the reason beauty products to me are more interesting than fitness products. By and large, I have deep product knowledge. I've used the ones that are like pieces. Not a huge fan, walk around within the. And I take it and I put in my pocket, leave it on my kitchen table, out of bed to go get the fit. I like the disposable ones. And the things that I would probably do to make it different is I'd focus a lot on the product. I would also probably try and tie in some sort of branding element. I would put like volume or persist or endure across the bridge of the nose. I'd like to have one that was clear that had the word. So the only thing you see is the word, which I think would be really cool. It has to stick all the way through. The different flavors of the nose strips would be the words that people are working on. And so I like having those constant daily subconscious reminders around things they actually found in sales rooms that having a. A single word on the wall affected performance from the team, even if it was just huge. So if you just have like one more on the wall, then everyone sees that as this daily reminder that they need to keep going. I would want my face to be the walking billboard for my eyes. And I would have it spelled backwards so that in the mirror someone could see it and they could see it every day. And it would remind people of like a word that they're trying to focus on for a season. And so I'll give you a basic estimate of what I think would end up happening money wise. Let's say that we retailed the product for. Let's see what some strips go for real quick. So they currently sell for about 30 cents a strip. And I'd probably sell 30, 60, 90 packs. I would want to be a little bit. 1999 would probably be a price point that I would look at $24.99. I would split test the price points there, but it'd probably be in that range. My cost of goods would almost be entirely based on shipping cost. That's associated cost to ship. The nose strips would probably be in the neighborhood of like $4, maybe like two and a half. It depends on like the three PL that we would use. Even after the cost of all the no strips, which is minimal, let's just say we make $16 of gross margin on a $20 product, which is really good for physical products. Five options on my upsell, 1, 3, 6, 12, all the way down to maybe 15% off if they buy, you know, and then cascading upwards in terms of smaller percentages off. But let's do the math on how much money this would make. Let's say 10,000 people a month would go to a page. If I said, hey, check this out. And if I did it consistently, it'd probably be about 10,000 people a month, just clicks. And then we converted 5% of traffic on that page. 500 buyers. Let's just keep it at the monthly rather than getting in the average bundles. 10% churn, and it's not very low for physical, but just leave it at that. Every month I would sign up 500 and then I'd lose 10%. This business would keep growing with that level of traffic until we reached 5,000 users, because it's 500 divided by 10%, which is the churn, which is the number of maxed out users at a hypothetical max where you're in equilibrium between number of signups and number of cancellations. I would be at 5,000 users a month. Price point was $20, $100,000 a month, $80,000 a month to a million dollars a year in profit from the no strips. And if I was focusing on Like a branding perspective. I would probably go after the entrepreneur community first, because it's obviously a community that I have access to. The brand would actually be more of a personal development brand of, like, becoming the person you want to be with the daily actions and reminders of who you want to become. Because I'd want it to be mass market. I would show different walks, different problems. Moms. And their word is patience. Patience can apply to anyone. But like a prisoner who just gets out is the next con. It might be like forgiveness. It could be a much wider brand if you focus on the deficiencies that people want to fill. And then I have to think of some kind of sexy word for the brand name. I don't know. I feel like it'd be something around, like, better be better nose trips, short and simple that people could understand and share. You want it to be about the prospect and more specifically, about the problem that we're solving and the person that they want to become and the person promises that we're fulfilling. If you can help someone feel better about who they are, people will pay anything for that feeling. And so the wedge product is the idea that we are helping people breathe better, but the brand and the promise is about we're helping people be better. What I would really want to do is build the capacity to make the words easy to print on there. So we could have people put their own custom word in. So it's like you can choose from one of my five words, but if you want to put your own word in, it's $30, and I get this huge premium. But it's worth it for a lot of people to have their own custom words. So that would be like a unique competitive mo Develop a manufacturing capacity that can, like, on demand, create the word that someone wants. You can literally 2x3x sometimes the price of the thing, because value is there for people. And they would get a text, they would say, hey, what word do you want to work on this month? They text it back, it automatically goes into the system and then ships it right out to them. And I would probably ship no strips with two or three variations of influencers that I thought were words that their communities dug. So someone sends me Mozy nation, or someone sends me s and me 500. Someone sends me those terms on a strip, I'm going to be like, dude, this is dope. And then because I have such high gross margins, I could say, hey, man, I'll give you 40%, by the way, if you're making your own business, if you ran 40% margin on your own audience. It's a great business anyways. For me, I was able to add a million dollars to business and then you add 100 influencers. Maybe they're not as big or they're not as no strip centric like I am, but maybe if they did a tenth of the volume that I could do, on average it's 10 times what I'm doing, which is $10 million. Theirs was only 40% margin to me because I had to give them 40 and there's 20 that was cost. So let's cut that in half again so I get another 20% from the 10x volume that I get from them. Mind you still have to run the business, but let's just keep it simple for now. So now we're probably looking at a three or four million dollars E business that is recurring, not dependent on one single face, very high gross margin so that they can go into new channels that has a unique and competitive moat that allows it to have a premium pricing which I didn't even factor in. Like if we sold it for 40 rather than 20, that would be a really interesting business model that would have huge enterprise values. If you're curious, the final piece is that what would this business be worth? If we're doing 4 million in EBITDA for physical products business like this, this business would probably be worth somewhere in the 40 to 60 million dollars range. Mozi Money Business breakdown if I were to get into physical products, what I would make and how I would make it to be a cool business. Have you been thinking about this for a while or did you come up with this? It was mostly on the fly.