Meeting Title: ABC Project Market Sizing and ROI Date: 2026-02-03 Meeting participants: Robert Tseng, Amber Lin
WEBVTT
1 00:00:13.890 ⇒ 00:00:14.870 Robert Tseng: Hello.
2 00:00:19.490 ⇒ 00:00:21.039 Robert Tseng: How’s it going?
3 00:00:21.370 ⇒ 00:00:23.830 Amber Lin: Pretty good. New hat today!
4 00:00:24.260 ⇒ 00:00:26.399 Robert Tseng: Yeah, my hair… I need to get a haircut.
5 00:00:27.580 ⇒ 00:00:29.959 Robert Tseng: I have many hats.
6 00:00:30.450 ⇒ 00:00:31.150 Robert Tseng: Very cool.
7 00:00:31.950 ⇒ 00:00:36.500 Amber Lin: I found that it was nicer to wear hats when I have shorter hair.
8 00:00:36.980 ⇒ 00:00:37.840 Robert Tseng: Oh, yeah.
9 00:00:37.840 ⇒ 00:00:46.669 Amber Lin: And it just looks more balanced, because then if… if not, I have a bunch here, and then it’s just, like, a little… little head right here, and I look like a triangle.
10 00:00:46.780 ⇒ 00:00:48.080 Robert Tseng: Yeah.
11 00:00:48.780 ⇒ 00:00:54.150 Robert Tseng: I have to go get a haircut, hopefully tomorrow. My barber’s out on a Tuesday, so…
12 00:00:54.150 ⇒ 00:00:55.809 Amber Lin: I see, I see.
13 00:00:56.240 ⇒ 00:00:56.830 Robert Tseng: Yeah.
14 00:00:58.590 ⇒ 00:01:07.119 Amber Lin: Cool. I’m just… currently, I’m still working on the ABC stuff and looking at the…
15 00:01:07.490 ⇒ 00:01:16.370 Amber Lin: like, the lead funnel, I’m trying to get data there, but they have… we don’t have an API connection, and then there’s just a lot of tables, so I’m, like.
16 00:01:16.370 ⇒ 00:01:20.660 Amber Lin: Trying to run through different tables to see which one works best.
17 00:01:20.660 ⇒ 00:01:42.039 Amber Lin: So that’s just taking a lot more time there. But, like, I think, luckily, it doesn’t need to be too in-depth, because we don’t have too much time for the final presentation, so I’m just gonna try and extract some high-level insights of, hey, like, this… this funnel stage, you lose a lot of people, so I think that should be achievable, and then I think that’s enough.
18 00:01:42.340 ⇒ 00:01:49.629 Amber Lin: for the final presentation, because I just don’t think they have enough time to go through in detail of what I would find. So…
19 00:01:49.630 ⇒ 00:01:50.350 Robert Tseng: Okay.
20 00:01:50.350 ⇒ 00:01:59.110 Amber Lin: probably don’t need too much resistance there. On the Eden side, no progress. I have not had time to work on that.
21 00:01:59.110 ⇒ 00:02:00.350 Robert Tseng: Okay, no worries, yeah.
22 00:02:00.350 ⇒ 00:02:15.620 Amber Lin: So my main… I think my main question today is, like, if we have time, if we can go over, like, the market sizing, ROI, like, just to go over that exercise, so I can also prep that, for the clients when we do the final presentation.
23 00:02:16.030 ⇒ 00:02:17.299 Robert Tseng: Yeah, sure, let’s do that.
24 00:02:17.580 ⇒ 00:02:19.939 Amber Lin: Yeah, let me pull it up.
25 00:02:20.610 ⇒ 00:02:23.530 Amber Lin: I haven’t touched it since, like…
26 00:02:23.730 ⇒ 00:02:33.630 Amber Lin: a week, two weeks ago since I created it, and we said it wasn’t great. I just moved on to other stuff. So let me try and find that.
27 00:02:35.660 ⇒ 00:02:39.520 Amber Lin: Cool.
28 00:02:40.360 ⇒ 00:02:41.290 Amber Lin: Oh…
29 00:02:45.770 ⇒ 00:02:51.330 Amber Lin: Right, so essentially, I think the goal of this…
30 00:02:51.490 ⇒ 00:02:59.670 Amber Lin: I have one, this is just the ROI. Like, this is still… it’s essentially revenue per job.
31 00:02:59.940 ⇒ 00:03:01.020 Amber Lin: pack.
32 00:03:01.290 ⇒ 00:03:04.770 Amber Lin: How much it repeats, so, to estimate LTV,
33 00:03:05.060 ⇒ 00:03:24.779 Amber Lin: And then I got their actual margin, and so I can calculate, like, contribution per customer, and then get an ROI. So I think this is… this is okay, but, like, if we get the actual CAC, I can refine this, but I don’t think there’s much I can… I can do here. This is essentially, like, estimates at LTV.
34 00:03:25.140 ⇒ 00:03:31.890 Amber Lin: fiber cat. Like, that’s… that’s… That’s this model. Like, any comments on this?
35 00:03:33.520 ⇒ 00:03:39.770 Amber Lin: If not, we can look at, like, the market… market sizing one. I think that one has the bigger issue.
36 00:03:40.280 ⇒ 00:03:41.930 Robert Tseng: Yeah, let me just look through this.
37 00:03:41.930 ⇒ 00:03:43.300 Amber Lin: Oh, okay.
38 00:04:03.950 ⇒ 00:04:08.910 Robert Tseng: Contribution per customer? That’s just, like, margin per customer?
39 00:04:10.160 ⇒ 00:04:16.779 Amber Lin: Estimated LTV based on repeat. I don’t…
40 00:04:17.089 ⇒ 00:04:18.630 Robert Tseng: I see.
41 00:04:29.160 ⇒ 00:04:32.130 Robert Tseng: ROI per $1 of CAC.
42 00:04:33.800 ⇒ 00:04:37.920 Robert Tseng: yeah.
43 00:04:43.160 ⇒ 00:04:47.600 Robert Tseng: Oh, it’s like LTV hacked as a percentage rate, yeah.
44 00:04:47.600 ⇒ 00:04:48.190 Amber Lin: Yeah.
45 00:04:52.140 ⇒ 00:04:52.710 Robert Tseng: Okay.
46 00:05:08.290 ⇒ 00:05:12.450 Robert Tseng: Okay, I mean, yeah, this makes sense. This gives me kind of… it gives us, like, the…
47 00:05:12.790 ⇒ 00:05:18.690 Robert Tseng: like, the margin profile for each service slide. I guess now you’re gonna show me the…
48 00:05:18.990 ⇒ 00:05:21.400 Robert Tseng: The market size for each of these as well?
49 00:05:21.850 ⇒ 00:05:33.690 Amber Lin: Yeah, so I think this is okay. They really like this, because I don’t think they’ve ever looked at it that way. But then… then this is my market sizing, which, like, doesn’t… I don’t think it makes sense.
50 00:05:34.030 ⇒ 00:05:34.550 Robert Tseng: Okay.
51 00:05:34.550 ⇒ 00:05:43.499 Amber Lin: top parts over here, like, I… this hasn’t been updated, but this part is relatively the same. Yeah. But then it’s…
52 00:05:44.140 ⇒ 00:05:47.370 Amber Lin: I was thinking of looking at…
53 00:05:47.850 ⇒ 00:05:56.369 Amber Lin: like, when we talk about market sizing, like, I guess we can ignore everything that’s down here. I just look at, like, what components I’m using for…
54 00:05:56.370 ⇒ 00:05:56.860 Robert Tseng: Yeah.
55 00:05:56.860 ⇒ 00:06:16.579 Amber Lin: market sizing. I would say, okay, so if you were to improve your stuff, you can get more customers in your existing reach, so you convert more, and you can get more customers by expanding from what you were currently doing.
56 00:06:16.780 ⇒ 00:06:21.489 Amber Lin: So, like, this is… That’s great,
57 00:06:22.710 ⇒ 00:06:28.869 Amber Lin: Proving. So this is kind of, I think, like, existing markets of what you can do, and then, like.
58 00:06:29.710 ⇒ 00:06:32.480 Amber Lin: Like, I just called it, like, expansion?
59 00:06:33.080 ⇒ 00:06:39.880 Amber Lin: of what they can get, like, I… then I based it on of, like, Clarence’s…
60 00:06:40.200 ⇒ 00:06:55.250 Amber Lin: Texas market size research for these services, which I don’t know how accurate it is. And then I sized it to the actual markets that they serve, because they do not… they don’t serve all the… all the markets in Texas.
61 00:06:55.430 ⇒ 00:07:00.009 Amber Lin: Yeah. And then I try to estimate the growth of…
62 00:07:00.170 ⇒ 00:07:13.060 Amber Lin: like, essentially the markets, which I think this is where everything kind of breaks down, I don’t really know what I’m doing. You can ignore whatever I have here, like, this was my attempt previously, like, I don’t like it. So…
63 00:07:13.390 ⇒ 00:07:26.729 Amber Lin: I think my two questions is, one, in market sizing, should I even consider the lift from existing markets, say, from retention, conversion, and upsells? Should I even consider that?
64 00:07:28.140 ⇒ 00:07:32.050 Robert Tseng: Yeah, I think those are… so, the way I think about it is,
65 00:07:33.830 ⇒ 00:07:50.919 Robert Tseng: like, you’re trying to understand what… yeah, I mean, from… if you know what the TAM is, then you’re trying to get a sense of what the current penetration is, and, like, you know, how much more market share you can get based off of different, you know, actions, so…
66 00:07:51.100 ⇒ 00:08:02.220 Robert Tseng: To calculate your penetration rate, like, you… Need to look at…
67 00:08:02.520 ⇒ 00:08:09.249 Robert Tseng: Well, I mean, there’s… there’s a lot… there’s different ways that you can… that you can calculate penetration. I guess if you’re doing it off of…
68 00:08:11.500 ⇒ 00:08:17.999 Robert Tseng: Current, like, what you had in your current market share, you had your…
69 00:08:19.750 ⇒ 00:08:23.269 Amber Lin: And, like, conversion, retention, like, attach.
70 00:08:25.260 ⇒ 00:08:30.039 Robert Tseng: Yeah, I mean, it’s a bit abstract there, so…
71 00:08:30.840 ⇒ 00:08:35.000 Robert Tseng: I mean, conversion doesn’t really get you…
72 00:08:36.309 ⇒ 00:08:52.910 Robert Tseng: you’re basically trying to look at… you’re looking at internal measures to try to figure out if you can calculate penetration internally, which is hard to do. I think it’s easier to calculate it ex… with external… at least with some, like, market research data or something.
73 00:08:53.420 ⇒ 00:08:56.309 Robert Tseng: So I’m trying to think of how you would do it.
74 00:08:56.310 ⇒ 00:09:04.659 Amber Lin: Yeah, I was thinking, like, the first part is just mostly, like, internal improvements of, say, like, on… on GA, Zora helps them do something on.
75 00:09:04.660 ⇒ 00:09:14.720 Robert Tseng: Yeah, that’ll help you with, like, incremental, like, that’ll help you figure, like, figure out, like,
76 00:09:14.960 ⇒ 00:09:21.170 Robert Tseng: It doesn’t answer the what is your current penetration rate, but it may answer, like, what you could incrementally do.
77 00:09:25.100 ⇒ 00:09:31.199 Amber Lin: Yeah, I think what I have here is my assumption, like, incremental lift. I don’t…
78 00:09:31.200 ⇒ 00:09:32.920 Robert Tseng: So this is, like, an incremental lift, yeah.
79 00:09:32.920 ⇒ 00:09:33.410 Amber Lin: out.
80 00:09:34.900 ⇒ 00:09:42.439 Robert Tseng: Which is fine, like, they may not care about the market overall, like, I mean, I think if they are to do a full market sizing, then…
81 00:09:42.440 ⇒ 00:09:43.050 Amber Lin: Huh.
82 00:09:43.050 ⇒ 00:09:56.430 Robert Tseng: I think they don’t… I don’t really think they have enough to do that. Like I… like I mentioned, I designed, like, a pretty robust, like, market research study to go and figure that out for, Workable before, so…
83 00:09:56.880 ⇒ 00:10:02.720 Robert Tseng: trying to think of what other proxies you could use for…
84 00:10:03.730 ⇒ 00:10:19.970 Amber Lin: Yeah, the only thing I really have is, like, Clarence’s estimate of what the size are, and, like, I know their current service size, I kind of know how long they’ve been in that market, and I have, like, anecdotal evidence of, like, hey, they.
85 00:10:19.970 ⇒ 00:10:23.379 Robert Tseng: Well, then that kind of, yeah, that’s your estimate for penetration then, yeah.
86 00:10:23.380 ⇒ 00:10:23.960 Amber Lin: Yeah.
87 00:10:24.310 ⇒ 00:10:24.960 Robert Tseng: Okay.
88 00:10:27.150 ⇒ 00:10:32.479 Amber Lin: Like, pet… oh, I’ll just say, like, penetration.
89 00:10:32.780 ⇒ 00:10:34.169 Amber Lin: That’s red.
90 00:10:40.980 ⇒ 00:10:44.830 Amber Lin: So, I’ll just… if I estimate that, I don’t…
91 00:10:46.220 ⇒ 00:10:49.840 Amber Lin: How would I estimate, like, the lift?
92 00:10:58.270 ⇒ 00:11:01.719 Amber Lin: when I consider, like, incremental penetration lift.
93 00:11:02.160 ⇒ 00:11:08.359 Amber Lin: Like, what would I… what should I be putting in there? Should I be putting, like, actions they would take?
94 00:11:08.480 ⇒ 00:11:19.760 Amber Lin: Or, say… Like, or just external factors of, say, how intense competition is, what’s the barrier to entry?
95 00:11:20.070 ⇒ 00:11:24.929 Amber Lin: Like, what should I consider when I talk about, like, how much of a lift they might have?
96 00:11:25.760 ⇒ 00:11:42.779 Robert Tseng: Yeah, I think you should talk about what internally they can do to kind of get more market share, and then, yeah, you should also talk about the barriers as well. So, it’s kind of like, if you don’t do these things, like, these are the things that will continue to, like, work against… work against you.
97 00:11:46.110 ⇒ 00:11:50.450 Amber Lin: I see, so, like, opposing factors and, like, actions.
98 00:11:50.450 ⇒ 00:11:58.489 Robert Tseng: Yeah, because, like, doing nothing doesn’t mean that you stay the same. In no scenario do they stay the same. You’re either, like, gaining market share, or you’re losing market share.
99 00:11:58.930 ⇒ 00:12:00.500 Robert Tseng: So.
100 00:12:03.630 ⇒ 00:12:05.850 Amber Lin: Okay, okay. And.
101 00:12:05.850 ⇒ 00:12:22.310 Robert Tseng: Yeah, so there are some things that you do to, like, you’re, like, you’re playing offense, like, you’re… you’re spending the… like, you’re investing in paid media to go and, you know, generate more… to go and get more demand. But then there’s also defensive plays as well, where…
102 00:12:22.660 ⇒ 00:12:28.349 Robert Tseng: Like, yeah, you, like, I think you have to think about…
103 00:12:28.350 ⇒ 00:12:28.750 Amber Lin: Yeah.
104 00:12:28.750 ⇒ 00:12:30.689 Robert Tseng: What they could do there, yeah.
105 00:12:30.690 ⇒ 00:12:38.520 Amber Lin: Yeah, I can… I can totally think about those factors. I think another issue I had when I was creating this is I didn’t estimate
106 00:12:38.520 ⇒ 00:12:54.689 Amber Lin: like, my calculations was kind of weird. I was like, oh, if you do this, you get up by this percentage point, and then you do this, you get up at this percentage point. How would you recommend doing this? Do I go by, like, a dollar amount? Do I go by a percentage lift?
107 00:12:56.690 ⇒ 00:13:03.480 Robert Tseng: So you… based on the levers that you have, what, they’re just, like, conversion rate, and…
108 00:13:03.930 ⇒ 00:13:13.580 Robert Tseng: something about repeat purchases, right? It’s, like, it’s either new… new customers, increasing existing customers, or, like, what, what, or, like, increasing existing revenue.
109 00:13:14.360 ⇒ 00:13:16.450 Robert Tseng: What else… what else can they do?
110 00:13:17.330 ⇒ 00:13:25.590 Robert Tseng: Well, like, for… anyway, I got whatever that ends up looking like, upsells, retention, or,
111 00:13:26.320 ⇒ 00:13:28.650 Robert Tseng: What else would they be able to do?
112 00:13:30.050 ⇒ 00:13:41.279 Robert Tseng: Well, so, like, I think if you’re able to break out, like.
113 00:13:46.860 ⇒ 00:13:51.889 Robert Tseng: Well, you don’t know how much of their revenue is new… is new customer revenue, right? So…
114 00:13:53.130 ⇒ 00:13:57.889 Amber Lin: I can try and find it somewhere, but, like, I… not immediately.
115 00:13:58.730 ⇒ 00:14:02.870 Robert Tseng: Yeah, I mean… I think…
116 00:14:07.970 ⇒ 00:14:14.789 Robert Tseng: You’re… you’re… Like, from a cost perspective, it’s…
117 00:14:15.620 ⇒ 00:14:21.900 Robert Tseng: I mean, generally speaking, it’s easier to get new customers than it is to,
118 00:14:24.090 ⇒ 00:14:28.890 Robert Tseng: how to grow revenue from the existing customer base, like…
119 00:14:28.890 ⇒ 00:14:30.650 Amber Lin: I thought it was the other way around.
120 00:14:30.650 ⇒ 00:14:43.570 Robert Tseng: like, easier meaning that, like, if you put dollar into it, you can just keep driving that number up. I may not be very efficient, like, the cost… like, the actual dollar amount, like, the cost will be… will be… it will be an inefficient way of growing.
121 00:14:43.570 ⇒ 00:14:46.690 Amber Lin: So it’s less effort, but more expensive.
122 00:14:46.690 ⇒ 00:14:51.110 Robert Tseng: Yeah, it’s less effort, but more expensive, yeah. But then, retaining customers, like.
123 00:14:51.950 ⇒ 00:15:03.950 Robert Tseng: yeah, it’s technically… it’s higher effort, because you have to launch new product lines, you have to, like, do all this personalization stuff, like, but it’s, you know, supposedly less expensive, to do that. So,
124 00:15:06.000 ⇒ 00:15:10.780 Robert Tseng: I think that if you were to…
125 00:15:11.560 ⇒ 00:15:18.719 Robert Tseng: Yeah, like, it’s like, okay, if we diversify our product line, if we, like, you know, so let’s just…
126 00:15:19.130 ⇒ 00:15:33.750 Robert Tseng: like, how do you get new customers, right, to get conversion up? You either offer new products, or you… or you experiment with pricing, or you’re spending ad dollars, right? So, like, if you’re… if you’re experimenting with pri… if you’re changing your prices.
127 00:15:33.750 ⇒ 00:15:48.010 Robert Tseng: If you move upmarket, like, if you… if you have more pre… if you… if you shift pricing up, you’re gonna lose some customers, and you’re gonna… you’re gonna… yeah, you’re gonna lose customers that, like, gotta get… get excluded by your pricing, but then you’re also gonna gain some at the top.
128 00:15:48.010 ⇒ 00:15:52.150 Amber Lin: Yeah. And each customer’s gonna be worth more. If you add new product lines.
129 00:15:52.150 ⇒ 00:16:02.690 Robert Tseng: Yeah, maybe you’ll get new customers that way, but you also risk, like, kind of losing existing customers that they may, like… maybe there’s, like, some cannibalization of service, you know?
130 00:16:03.180 ⇒ 00:16:08.660 Robert Tseng: I mean, yeah, so that… and then, if you were to just, like,
131 00:16:09.040 ⇒ 00:16:12.960 Robert Tseng: You know, invests in, like, kind of paid… paid channels.
132 00:16:13.520 ⇒ 00:16:19.960 Robert Tseng: Your… the efficiency of, like, your cost of acquiring a new customer will continue.
133 00:16:19.960 ⇒ 00:16:20.389 Amber Lin: continue to.
134 00:16:20.390 ⇒ 00:16:28.390 Robert Tseng: go up over time. So it’s like, yeah, in the short term, you’ll be able to get a lot of… you may be able to just go and get a wedge, like, be able to drive a wedge.
135 00:16:28.720 ⇒ 00:16:34.430 Robert Tseng: you know, you spend X dollar, you grow by X percent, but then the efficiency kind of goes down over time.
136 00:16:34.830 ⇒ 00:16:44.089 Robert Tseng: Those are kind of the trade-offs that you… that you should be thinking about when you’re, kind of… trying to model out what, like,
137 00:16:44.240 ⇒ 00:17:02.010 Robert Tseng: what a growth estimate would be. So, I think it’s hard to do all of them at once, like, I think you should just pick a couple. Like, I… I don’t fully know, like, what you’re trying to do, right? Like, I think I’ve shown you analysis where I’m, like, my directive was, Robert, model out, like.
138 00:17:02.090 ⇒ 00:17:16.789 Robert Tseng: what… like, what happens if we launch premium products versus basic products? Like, just from a pricing perspective, how does that change, like, our market share in… in the rug market? So, that to me, I was only looking at pricing. So, like, I was, like, kind of giving an estimate around that.
139 00:17:16.790 ⇒ 00:17:30.780 Amber Lin: I don’t really have a directive, because they don’t even know what question or investment decision they’re trying to make. I think we’re just… I’m just trying to give them to say, hey, like, look at these services, look at these options you have, here’s…
140 00:17:30.780 ⇒ 00:17:42.059 Amber Lin: what will happen if you do this, and then, like, we come in and say, hey, like, let us help you do this, because we see it’ll have more… a better result. So, like, I’m also…
141 00:17:42.460 ⇒ 00:17:46.559 Amber Lin: a little bit in the air of, well, I don’t really know what factors to include.
142 00:17:47.250 ⇒ 00:17:50.830 Robert Tseng: Yeah, well, I kind of think of it, it’s like, those are…
143 00:17:51.240 ⇒ 00:17:57.689 Robert Tseng: I mean, I don’t know, I’m not saying you should, but, like, to me, that’s, like, 3 separate slides, like, showing them, like.
144 00:17:59.040 ⇒ 00:18:04.899 Robert Tseng: Growth by, like, paid media versus, like, or just, like, just…
145 00:18:05.030 ⇒ 00:18:15.779 Robert Tseng: Yeah, by paid media versus, like, pricing… pricing changes versus, like, launching new products. Like, those are very, very different approaches to… to get there. I mean.
146 00:18:16.060 ⇒ 00:18:16.860 Robert Tseng: liked…
147 00:18:17.740 ⇒ 00:18:36.839 Robert Tseng: a ruggable CPO would be, like, we want to do all of them, and so I may be doing the pricing analysis, but then he’s having two other kind of people be running the other ones, and then, like, they end up picking. It’s like, okay, actually, we’re going to choose premium products, we’re gonna… we’re gonna build… we’re gonna launch premium products, and we’re going to be doing it,
148 00:18:37.390 ⇒ 00:18:48.140 Robert Tseng: For, we’re gonna… we’re not… we’re gonna change the pricing, but then we also need to diversify our product line, because he feels like the cannibalization risk on existing products is too high.
149 00:18:48.140 ⇒ 00:19:11.050 Robert Tseng: So in order to charge higher prices, he wants us to have a whole new set of products to go for higher pricing. So that changes, like, the material, whatever, like, it’s a whole, like, that led to, like, ruggable premium, like, textures or whatever. Like, there’s, like, a whole, like, line that’s, like, around that. So, I’m just trying to… I’m just trying to tell you, like, how this kind of works in practice, where…
150 00:19:11.160 ⇒ 00:19:25.230 Robert Tseng: I mean, the answer, like, is probably gonna be… they’re gonna choose, like, a mix. They’re gonna see the… the gains and the risks of each approach, and they’re gonna wanna pick, like, which one they wanna… like, what assortment they wanna go with, so…
151 00:19:25.670 ⇒ 00:19:30.349 Robert Tseng: Like, at least that’s… that’s typically… or at least that’s… that’s how I’ve seen it done before.
152 00:19:30.770 ⇒ 00:19:32.080 Amber Lin: Gotcha, okay.
153 00:19:32.370 ⇒ 00:19:41.899 Amber Lin: That’s very helpful, so I think, like, I’ll use these factors. I kind of have them here, so I’m gonna expand, like, redo it to
154 00:19:42.020 ⇒ 00:19:55.720 Amber Lin: cover, like, offensive tactics, and then maybe I’ll also cover defensive, but, like, these are slightly less… I think, like, the lift will be slightly smaller. So I’ll do this.
155 00:19:55.720 ⇒ 00:20:09.569 Robert Tseng: Advertising seems like the direction we’re pushing in, if we’re looping in with Qatar, like, that seems… it is the easiest. Like, you just throw dollar at it, and it will… it will go up. It may not be the most efficient, but it’s easier than telling them what service lines to launch.
156 00:20:09.570 ⇒ 00:20:17.440 Robert Tseng: And to change pricing without really understanding their business that well. So, like, I think it’s… yeah, anyway, I think it’s fine if you…
157 00:20:17.440 ⇒ 00:20:20.790 Robert Tseng: Yeah, I’m just making that observation.
158 00:20:20.790 ⇒ 00:20:31.640 Amber Lin: Yeah, and then I think I’ll do that, consider the different factors, and calculate a incremental lift to penetration, and I’ll just use the…
159 00:20:31.810 ⇒ 00:20:50.249 Amber Lin: like, either use an estimate based on current, their current sales, or use an estimate based on, like, their overall… overall market. I guess, like, a more specific question is, like, how… how does that equation work? Like, how do I balance their current
160 00:20:50.380 ⇒ 00:20:54.750 Amber Lin: Revenue, and then they are, like… reachable.
161 00:20:55.190 ⇒ 00:20:56.660 Amber Lin: Market.
162 00:20:57.850 ⇒ 00:21:01.059 Amber Lin: Or do I not account for the current revenue at all?
163 00:21:02.340 ⇒ 00:21:03.120 Robert Tseng: Boom.
164 00:21:03.630 ⇒ 00:21:08.220 Robert Tseng: So, like, when you’re doing the additional revenue, I mean, yeah, like, I…
165 00:21:10.690 ⇒ 00:21:15.400 Robert Tseng: I thought you tied, penetration rate to their revenue.
166 00:21:16.270 ⇒ 00:21:20.159 Amber Lin: Yeah, like, it’s in there.
167 00:21:20.960 ⇒ 00:21:21.959 Amber Lin: I think it’s…
168 00:21:22.250 ⇒ 00:21:38.090 Robert Tseng: Yeah, so, I mean, I don’t really understand the question then, because it’s like, if you have an estimate for incremental revenue, that will lead to an incremental, like, that’ll give you the incremental penetration.
169 00:21:38.870 ⇒ 00:21:39.550 Amber Lin: Okay.
170 00:21:39.710 ⇒ 00:21:43.160 Amber Lin: I will… I’ll redo that penetration.
171 00:21:45.160 ⇒ 00:21:50.119 Robert Tseng: Yeah, but I… if I just pick one, I mean, 5% is… is… is interesting, like, I…
172 00:21:51.400 ⇒ 00:21:52.300 Amber Lin: 5%…
173 00:21:52.300 ⇒ 00:21:52.850 Robert Tseng: is…
174 00:21:52.850 ⇒ 00:21:58.349 Amber Lin: Like, that’s for their most popular, like, their main product that they started with.
175 00:22:00.220 ⇒ 00:22:00.850 Robert Tseng: Yeah.
176 00:22:03.680 ⇒ 00:22:06.969 Robert Tseng: I mean, there’s something to be said about, like,
177 00:22:07.580 ⇒ 00:22:14.379 Robert Tseng: for advertising, it’s easier for them to advertise, like, something that they’re more well-known in, right? So, like.
178 00:22:17.090 ⇒ 00:22:21.079 Robert Tseng: Yeah, like, I… I think probably, like, you could say that
179 00:22:21.290 ⇒ 00:22:37.170 Robert Tseng: commercial… commercial residential pests, like, that’s kind of where, like, kind of the advertising approach is going to be more effective, because, you know, the market is already more aware of them, and so, like, yeah, you know, ads don’t really work
180 00:22:37.280 ⇒ 00:22:47.329 Robert Tseng: by themselves, it’s more of, like, a holistic kind of awareness campaign, and so if the market already knows your brand more, like, the advertising’s gonna be more effective there. So…
181 00:22:48.060 ⇒ 00:22:56.390 Robert Tseng: Whereas, like, the less mature ones, maybe less than 1%, those are, like, kind of, you know, it’s less…
182 00:22:56.830 ⇒ 00:22:58.340 Robert Tseng: like…
183 00:22:58.610 ⇒ 00:23:05.569 Robert Tseng: like, maybe, I mean, I don’t think… I don’t think Azure would be very effective there. Like, you’re… you’re still trying to figure out, like.
184 00:23:05.860 ⇒ 00:23:06.830 Robert Tseng: what…
185 00:23:08.260 ⇒ 00:23:25.039 Robert Tseng: products you want to sell, so… or, like, what, yeah, or, like, not just products, like, you’re still trying to figure out your positioning in the market. So, I think, like, the other pricing and service line, you know, experience, like, kind of approaches would probably be more effective there.
186 00:23:27.740 ⇒ 00:23:42.739 Amber Lin: Okay, so, like, I’ll… I’ll give it another go. I think, like, before I… I write down a model, I feel like I’m just asking you questions that don’t really hit, the key points, so let me do that, probably have it…
187 00:23:43.000 ⇒ 00:23:59.280 Amber Lin: like, later today or either early tomorrow. I think we have a drive run tomorrow, so if I can, I’ll grab, like, 5 or 10 minutes at the end to just look over this so that we can have it prepped for the presentation.
188 00:23:59.840 ⇒ 00:24:00.480 Robert Tseng: Okay.
189 00:24:00.810 ⇒ 00:24:01.839 Amber Lin: Yeah, okay.
190 00:24:02.390 ⇒ 00:24:08.120 Amber Lin: Thank you, this was really helpful. I was very… I was very confused of, like, how… how I would do this.
191 00:24:08.120 ⇒ 00:24:13.569 Robert Tseng: No, all good. I think, yeah, you probably overcomplicated it, so…
192 00:24:15.190 ⇒ 00:24:17.679 Robert Tseng: But yeah, no, I think… I think you’re on the right track.
193 00:24:18.040 ⇒ 00:24:19.260 Amber Lin: Okay, thank you.
194 00:24:19.600 ⇒ 00:24:20.210 Robert Tseng: Talk to you later.
195 00:24:20.210 ⇒ 00:24:20.770 Amber Lin: Right.