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Good morning!

In today’s newsletter,

  1. Know your real margins with these six Excel models

  2. What your zip code has to do with your shampoo

  3. How to get customers to trust you before they buy

  4. Plan for the customers you're about to upset

  5. A free newsletter with the marketing ideas you need

This issue takes 2 minutes to read.

Check out our DTC tool stack here

Let’s dive into it👇

Resources

Know your real margins with these six Excel models

Your P&L shows what happened, but it can’t tell you if you’re actually making money. These six Excel models go a layer deeper: 13-week cash by bank balance, component-level COGS, channel margin per unit, inventory roll-forwards, monthly payback, and itemized trade spend.

Built by ex-CPG FP&A leads. Unlocked and documented in Excel and Google Sheets, so you can check every formula and defend it to your board. No Drivepoint account required. Plug in your SKUs, thirteen months, your own numbers, and know your margins, fees, and break-even cold.

Brand Breakdown

What your zip code has to do with your shampoo

We're doing a 100 days of stealing strategies from brands that are already winning.

For day 15, we have Prose

Every DTC brand runs a quiz now. 

Hair length, texture, goals. It feels personal, but most of it just sorts people into a handful of pre-built formulas. 

Prose does one thing differently. 

First they ask the generic questions like 

How long is your hair?

What's your natural texture?

Etc

But then they ask something strange.

Kind of a weird question right?

But it’s genius because then they tell you what your hair is actually up against there: local water hardness, pollution, humidity, UV exposure.

Then they build your shampoo around it.

So here's what you should do today: your quiz doesn't need more questions. It needs one question that captures something about your customer's environment or context that actually changes what they need, not just what they prefer. 

Operations

How to get customers to trust you before they buy

Grace Lee started Birdy Grey to fix bridesmaid dress shopping. $99 dresses, sold online, no fittings.

There's an obvious problem with that. You can't feel fabric through a screen.

So when customers started asking for fabric swatches before they'd commit, Grace didn't have a system for it.

She hand-cut fabric squares herself, taped them to little cards, and mailed them out one at a time.

That's not a scalable process. But it answered the one question standing between a browser and a buyer: what does this actually feel like?

The swatches worked so well they became core to how the whole site is built.

Birdy Grey bought a swatch-cutting machine and now produces tens of thousands of samples a year.

Here's the part worth stealing: she didn't wait until she had the infrastructure to offer this. She offered it the day someone asked, using scissors and a mailer. The system came later, once she knew it worked.

Action Summary:

  • Pull your last 20 support tickets or negative reviews and look for the word "expected" ("I expected it to feel different," "not what I expected")

  • Identify the one physical detail customers can't judge from your photos or copy

  • Build the cheapest possible version of a preview for it this week (a mailed sample, a texture close-up video, a size comparison photo) — don't wait for a polished system

  • Track how many people who request the preview go on to buy

BFCM

Plan for the customers you're about to upset

Most brands assume Black Friday has to be the best deal of the season. Cyber Monday just repeats it, or comes in a little weaker.

Colby Kane, founder of Aviator, is planning to break that pattern this year. Cyber Monday's offer will be better than Black Friday's.

The logic makes sense once you hear it. Black Friday shoppers are moving fast because they assume it's the best deal they'll get. Cyber Monday shoppers are still deciding, so a slightly better offer gives them a reason to finally buy.

But that plan creates a problem. Someone buys on Friday, feeling good about their deal. Monday rolls around and they see a better price on the same product. Now they don't feel like a smart early shopper.

Here's the part worth stealing.

If a Friday buyer reaches out after seeing the better Monday offer, they get store credit for the difference, plus a little extra.

That one decision changes what would've been a complaint into a second purchase.

Colby's expectation is that a good chunk of those customers will use that credit to buy something else.

Action Summary:

  • Look at your planned promotions and ask who could reasonably feel shorted by a later, better offer

  • Decide your response to that complaint now

  • Make the fix something that keeps the customer buying from you

Credit: Ethercycle

A free newsletter with the marketing ideas you need

The best marketing ideas come from marketers who live it. That’s what The Marketing Millennials delivers: real insights, fresh takes, and no fluff. Written by Daniel Murray, a marketer who knows what works, this newsletter cuts through the noise so you can stop guessing and start winning. Subscribe and level up your marketing game.

Have questions or feedback? You can write to kaushal@dtcdailynews.com