Box did something over the last 12 months that I've never seen They increased their Gross Margin by more than 6% from 73.5% to 79.9% in the last 12 months. To put this in real terms in Q3 last year cost of rev was $69M this year it was just $55.5M despite doing 5% more revenue. This helped them to drive a big increase in operating income. From $11M in Q3 last year to $23M this year. The problem for Box is the same problem that they've had for the last 7 quarters. Single digit ARR growth. This quarter was just 5%. You have to go back to Jan of 23 to find a quarter with ARR growth north of 10% They spent $95.2M on S&M in the quarter to generate jst $23M in net new ARR That gives them CAC Payback of 61 months Magic Number of 0.25 The story for box at the moment is a growth one. or lack thereof. Because of this they get just a 4X ARR Multiple
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Box did something over the last 12 months that I've never seen They increased their Gross Margin by more than 6% from 73.5% to 79.9% in the last 12 months. To put this in real terms in Q3 last year cost of rev was $69M this year it was just $55.5M despite doing 5% more revenue. This helped them to drive a big increase in operating income. From $11M in Q3 last year to $23M this year. The problem for Box is the same problem that they've had for the last 7 quarters. Single digit ARR growth. This quarter was just 5%. You have to go back to Jan of 23 to find a quarter with ARR growth north of 10% They spent $95.2M on S&M in the quarter to generate jst $23M in net new ARR That gives them CAC Payback of 61 months Magic Number of 0.25 The story for box at the moment is a growth one. or lack thereof. Because of this they get just a 4X ARR Multiple
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Pricing is a game. Start at a number and make a sale. Make another sale, and raise a little bit. Repeat until you get a few no's. Sit at previous sold price. Add pricing options. They want it much sooner? Add an expedited fee option. Add tiers and package options. Memorize everything & understand your value. This is what I've learned since January.
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+27% higher AOV overnight. Just one simple change. Bundles. Here’s what I did: ↳ Create 1x, 2x, 3x and 4x bundle ↳ Made 3x obviously best deal. Before: ↳ Product costs $49.99 ↳ Most of users buy 1 unit. ↳ No one bought 2 or 3 After: ↳ 1x costs $49.99 ↳ 2x cost $99.99 ↳ 3x cost $112.48 ↳ 4x cost $159.99 Most users still buy 1x. But surprisingly 26% take the 3x option. As it looks like a steal. Sure, profit per unit sold went down. But it costs the same to bring in a buyer with paid traffic. Handling, packaging costs almost the same. Bottom line, more profit is left. Have you tried aggressive bundle pricing?
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+27% higher AOV overnight. Just one simple change. Bundles. Here’s what I did: ↳ Create 1x, 2x, 3x and 4x bundle ↳ Made 3x obviously best deal. Before: ↳ Product costs $49.99 ↳ Most of users buy 1 unit. ↳ No one bought 2 or 3 After: ↳ 1x costs $49.99 ↳ 2x cost $99.99 ↳ 3x cost $112.48 ↳ 4x cost $159.99 Most users still buy 1x. But surprisingly 26% take the 3x option. As it looks like a steal. Sure, profit per unit sold went down. But it costs the same to bring in a buyer with paid traffic. Handling, packaging costs almost the same. Bottom line, more profit is left. Have you tried aggressive bundle pricing?
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That's why I always suggest if you really want cash and high profit you should work on high ticket products 💸. This is FBM product 📦. Today sold out this product inventory and also reordered new stock 🚀. #highticketproducts #OnlineArbitrage
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Here’s what $624K could have bought you in North Hazel Dell. This home went fast, on the market for under 3 days. Pricing just below market value induces bidding wars. Pricing a home above market value causes a home to sit on the market for extended periods of time. Thinking of selling or buying? Let’s talk specifics about how to take advantage of this market selling or buying, DM me…
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Here’s what $624K could have bought you in North Hazel Dell. This home went fast, on the market for under 3 days. Pricing just below market value induces bidding wars. Pricing a home above market value causes a home to sit on the market for extended periods of time. Thinking of selling or buying? Let’s talk specifics about how to take advantage of this market selling or buying, DM me…
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