We acquired a brand

Hey there,

Welcome back for another bite to chew on

We hope you’re having a great Labor Day weekend and are ready to spend the next 2 minutes and 34 seconds with us on this lovely Sunday.

Some of you may have seen on Twitter that we recently acquired a brand called Coffee Over Cardio.

In this newsletter, we want to show how we plan to take this brand, refine the operations, and then scale it.

Before we dive into it, there are three things we want to tell you about

1. On Wednesday we launched our text-based service called “Daily Chews”. Think of it as a condensed newsletter with bite-sized content that you can use to move your business forward - delivered EVERY day.  If you didn’t get a chance to sign up - click here to do so

2. We’re hosting a free dinner in Austin with Rabah Rahil, Chris Hall, Darwish Gani, and a few other heavy-hitters in the DTC space. If you’re around and want to chat with multiple 8 and 9 figure founders - hit the link here to RSVP

3. We’re cooking up some Youtube content for y’all. If you don’t want to miss it - click the link here to subscribe to our channel

Alright, without further ado - let’s dive straight into it.

Warehousing and logistics

The first thing we did at our all-hands meeting after acquiring the brand was move all the inventory to our 3PL in Wisconsin.

We did this to:

1) Centralize all warehousing and logistics

2) Save upward of 10-15% on 3PL fees and warehousing costs

Get live inventory tracking up and running.

If your 3PL doesn’t offer live inventory tracking…

You shouldn’t be reading this email.

You should be finding a new 3PL

(Kidding… read this email till the end and then find a new 3PL)

Set up live P&L

3PL rhymes with P&L…

And that brings us to the next point.

Live P&L. Get it set up from day one.

It’s money well-spent, and you will never regret buying yourself clarity over your business.

If you’ve followed us online, you know that our tool of choice is Finaloop.

Get the sales team started on talking to retailers.

Don’t sleep on retail.

For most CPG brands, retail can change the trajectory of your business and give you:

1. Stability

2. Profit

3. Brand awareness

Now, we’re in a position where we have resources available at our current company (Obvi) - which we can easily plug into a new company.

Although we do appreciate that not everyone has a sales team, they can just plug into a new brand - this was definitely an important move for us.

Product Development through Amazon Keyword Research

During our diligence process, we asked our Amazon agency to do some keyword research for us to figure out how big the potential for the brand was.

… and One of the things we discovered in this process was that there’s a HUGE demand for coffee concentrate (similar to Javvy).

So we’ll explore that…

Get proper tracking

We shouldn’t have to explain too much on this point.

If you don’t have proper tracking set up, you’re literally playing the (already hard) game on hard-mode.

Right after we got the “keys” to the business, we went and installed Elevar to get accurate tracking across all channels

Start revamping ads

Although we’re focusing on re-starting the brand with an organic-first approach, we still need to analyze all the ads that have worked historically and try to re-create some winners similar to that.

Start seeding products to influencers & content creators.

We know that we’ll need tons of content in the near future for paid ads and websites.

Therefore, we started the process of seeding products to influencers and content creators from the get-go so they have the product whenever we need them to make content for us.

Start analyzing the community and customer service tickets to get the best understanding of the customer.

To our advantage - the brand already has 8,000 community members.

… and that makes our lives 100 times easier regarding ad creation and content research.

Website - Check all apps and remove unnecessary fluff.

Let’s face it…

We all have apps & SaaS tools downloaded that we rarely use or get any ROI from.

So, the first thing we did when taking over this brand was go through all the apps and remove all unnecessary fluff.

We’ve been forced to do this a few times at Obvi - so by now, we’re pretty experienced in this exercise.

Tool of the week

One of the more boring (yet still important) things you also need to sort out when acquiring (or starting) a new business is…

Sales Taxes

Thank god for SaaS, because if it weren’t for Numeral - we literally don’t know where we would find the time to file sales taxes for three different brands.

We’ve used them for everything sales-tax related for Obvi - and we also plan to do the same for all current and upcoming brands.

If you’re looking for a white-glove service that handles everything sales-tax related for you, we highly recommend you to check out Numeral

Thanks for reading along

As always, thanks for reading along.

We appreciate you and hope to see you again on Wednesday for another bite to chew on.

All the best

Ron & Ash