Meeting Title: Eden Q4 Roadmap Strategy Session Date: 2025-12-11 Meeting participants: Clarence Stone, Henry Zhao
WEBVTT
1 00:01:42.240 ⇒ 00:01:43.790 Henry Zhao: Hey Clarence, how’s it going?
2 00:01:44.040 ⇒ 00:01:46.620 Clarence Stone: Hey, what’s up, man? How’s it going?
3 00:01:47.090 ⇒ 00:01:49.790 Henry Zhao: Thank you for your time. I promise I won’t steal too much time.
4 00:01:49.790 ⇒ 00:01:50.570 Clarence Stone: time.
5 00:01:52.750 ⇒ 00:01:54.340 Henry Zhao: Thank you. Alright.
6 00:01:54.770 ⇒ 00:01:56.740 Henry Zhao: Thank you. Yeah, so I’m a little bit…
7 00:01:57.590 ⇒ 00:02:00.360 Henry Zhao: I need some ideas on…
8 00:02:00.810 ⇒ 00:02:03.629 Henry Zhao: or just some tips on how I can build a roadmap.
9 00:02:03.780 ⇒ 00:02:10.880 Henry Zhao: For a client that, okay, so let me go through this deck real quick.
10 00:02:11.580 ⇒ 00:02:14.080 Henry Zhao: Sure. So, are you familiar with Eden?
11 00:02:14.720 ⇒ 00:02:15.740 Clarence Stone: Not too much.
12 00:02:16.330 ⇒ 00:02:25.459 Henry Zhao: Okay, so they’re one of our clients that’s, like, a healthcare… not healthcare, but basically they sell a bunch of different drugs, like weight loss drugs, hair kits.
13 00:02:25.460 ⇒ 00:02:25.810 Clarence Stone: Hmm.
14 00:02:26.280 ⇒ 00:02:29.230 Henry Zhao: Energy, drugs, and things like that.
15 00:02:29.360 ⇒ 00:02:36.599 Henry Zhao: People basically go to… One of these products, they fill out an intake form.
16 00:02:39.030 ⇒ 00:02:51.490 Henry Zhao: They fill out an intake form, and then their order gets sent to a pharmacy. There’s a bunch of different pharmacies, as well as Eden has their own pharmacy. And then these orders get fulfilled. They have, like, an SLA goal of 3 days.
17 00:02:51.500 ⇒ 00:03:02.150 Henry Zhao: To get the medicine to the client and the customer, and then we hopefully want the customer to renew their treatments, or obviously buy other treatments, right?
18 00:03:02.240 ⇒ 00:03:17.809 Henry Zhao: So, I was brought on to do kind of the marketing piece, so to kind of understand, like, which UTMs are bringing in the best customers, clean up their UTMs, which I’ve already done, set up Mixpanel to get insights there.
19 00:03:17.810 ⇒ 00:03:31.420 Henry Zhao: And now I’m kind of stuck on, like, what other insights that I can bring. So, one thing that Robert had asked me to do is, like, look at their farm ops roadmap, so, like, look at their operations for pharmacies, and see if we can improve their SLA, if we can lower their cost of goods sold.
20 00:03:31.520 ⇒ 00:03:41.979 Henry Zhao: The issue is, I don’t have accurate data on COGS, so I don’t… I’m very limited in the analysis that I can do. The other things that we wanted to look at also were maybe some finance objectives.
21 00:03:42.590 ⇒ 00:03:53.699 Henry Zhao: So, like, how can we predict future revenue? How can we lower cost of goods sold? How can we increase return on ad spend? Which is not my area anymore. Like, basically, we hired a guy to take care of all the marketing stuff.
22 00:03:54.010 ⇒ 00:04:10.599 Henry Zhao: And there was also some product objectives, like, can we cross-sell, can we do some pricing surveys? But I don’t really have experience in pricing surveys, so I’m a little stuck there also. So I just need kind of some guidance on what you would do to kind of figure out a roadmap of what additional
23 00:04:10.620 ⇒ 00:04:14.429 Henry Zhao: analysis we can do for Q4, as well as going into Q1.
24 00:04:14.460 ⇒ 00:04:15.660 Henry Zhao: Of next year.
25 00:04:16.490 ⇒ 00:04:20.450 Clarence Stone: Gotcha. Okay, so, if you could,
26 00:04:21.240 ⇒ 00:04:25.850 Clarence Stone: go back to, I guess, like, all the objectives that you had originally, right?
27 00:04:26.600 ⇒ 00:04:27.820 Clarence Stone: So…
28 00:04:28.820 ⇒ 00:04:49.189 Clarence Stone: like, at this point, you have cleaned up the data, you’re slicing through it, and you’re trying to extract, you know, some sort of value for your audience, right? You’re saying, like, hey, I’ve got your data now, like, let’s try to figure out how I can get you just more, right? It could be attachments, it could be testing out different price variables.
29 00:04:50.490 ⇒ 00:04:58.999 Clarence Stone: I… so, like, on this challenge, I would start looking at the data you already have, like… like what you have up here, right? And…
30 00:04:59.000 ⇒ 00:04:59.570 Henry Zhao: Nope.
31 00:04:59.570 ⇒ 00:05:04.700 Clarence Stone: And then start seeing where the efficiency loss is. That’s one suggestion.
32 00:05:05.000 ⇒ 00:05:08.729 Clarence Stone: Right? So, yeah, like, this is a pretty interesting view.
33 00:05:09.650 ⇒ 00:05:16.659 Henry Zhao: Yeah, so here I’m saying, like, when you, like, ramped up the orders by a lot to a pharmacy, then you started missing SLA a lot as well.
34 00:05:16.780 ⇒ 00:05:18.489 Clarence Stone: But that’s kind of also like a…
35 00:05:18.630 ⇒ 00:05:21.830 Henry Zhao: A lot of… one of the issues I run into often is, like.
36 00:05:22.160 ⇒ 00:05:26.740 Henry Zhao: how do I get… find stuff that’s not, like, oh, duh, like, duh, you know?
37 00:05:27.540 ⇒ 00:05:30.870 Henry Zhao: like, obviously, higher order counts are gonna be higher missed SLA.
38 00:05:30.870 ⇒ 00:05:44.929 Clarence Stone: Yeah, so I think what’s valuable here could be, like, a breakdown on the exact pharmacy. So you can say, like, hey, these pharmacies you can scale up. These pharmacies actually are what contributed to this.
39 00:05:46.490 ⇒ 00:05:57.450 Clarence Stone: Right, because that’s meaningful then. For me, as an executive, I could say, oh, okay, let’s just double down on shipments to Absolute Pharmacy. They probably have internal processes that can handle our volume. Those guys can’t.
40 00:05:58.160 ⇒ 00:06:04.909 Henry Zhao: Okay, so according to Robert, that was also an, duh information. He says, they are in their operation, so they know this stuff already. So…
41 00:06:05.500 ⇒ 00:06:21.299 Clarence Stone: Okay, I mean, that’s good. Like, but let’s go another layer then, right? Like, maybe, like, some of these, right, can’t, keep up with the volume for certain types of drugs, but they’re fine with others.
42 00:06:21.980 ⇒ 00:06:22.450 Henry Zhao: Okay.
43 00:06:22.450 ⇒ 00:06:34.550 Clarence Stone: Right. And if you start looking at, you know, total orders and start seeing what items are bought together with each other, I mean, that might be able to satisfy the,
44 00:06:34.550 ⇒ 00:06:51.739 Clarence Stone: your slide had some suggestions on, you know, getting the right product attachments and configurations and packages, right? Like, I think, Henry, like, overall, the theme is, you have to act like a CEO here, and it’s really hard to do because this isn’t entirely your business, right?
45 00:06:51.740 ⇒ 00:07:03.370 Clarence Stone: And use this data, because, like, CEOs don’t have time to look through this data. They’re, like, trying to keep the business up and running, right? So, like, look at the data and say, if I was the CEO, like.
46 00:07:03.370 ⇒ 00:07:17.859 Clarence Stone: what would I want to dig into? What would I want to know in order to grow this business, right? And data is gold. There’s always going to be something that is the not-duh, like, freaking awesome insight that’s gonna, like, double their sales, right? Yeah.
47 00:07:17.860 ⇒ 00:07:26.050 Clarence Stone: So, let’s take, like, I, like, I don’t know the data, so I can’t even give you a morsel of, like, a hint. Let’s take a look at COGS.
48 00:07:27.000 ⇒ 00:07:27.590 Henry Zhao: Yeah.
49 00:07:28.670 ⇒ 00:07:31.019 Henry Zhao: So this COGS is not even reliable.
50 00:07:32.420 ⇒ 00:07:46.979 Henry Zhao: So, I don’t even know… so I was just trying to look at, like, by product, what are the highest COGS? What is, like, the… I was looking at also COGS per order, so I have this, like, random… this, like, COGS estimate, as well as the number of orders. So, I was looking at…
51 00:07:52.620 ⇒ 00:07:56.780 Henry Zhao: Like, cogs per order… But there’s, like, not really any correlation…
52 00:07:57.410 ⇒ 00:07:58.920 Henry Zhao: You know what I mean? So…
53 00:07:59.610 ⇒ 00:08:00.390 Clarence Stone: Yeah.
54 00:08:00.530 ⇒ 00:08:12.050 Clarence Stone: There isn’t a correlation there, but you did check, so it’s a good thing. Let me, let me actually, like, maybe get out of this world and start you into thinking, like, so when I’m stuck like this, Henry.
55 00:08:12.050 ⇒ 00:08:24.070 Clarence Stone: what I do is I look at how other, you know, companies are figuring out their structure and success, and seeing, like, hey, can I somehow shoehorn that into here?
56 00:08:25.020 ⇒ 00:08:34.130 Clarence Stone: Right. So, like, I’ll go and look at different sales models from different organizations and go, would this work for this?
57 00:08:34.700 ⇒ 00:08:35.600 Clarence Stone: Right?
58 00:08:35.890 ⇒ 00:08:54.789 Clarence Stone: And my favorite one, because this… it looks like utter nonsense to somebody who… who hasn’t looked at the data within the industry, but makes total sense once you, like, understand the complexity of the, you know, the specific industry itself, is, I’m gonna take over for a second.
59 00:08:54.790 ⇒ 00:08:58.180 Clarence Stone: Like, dude, when I first joined this company.
60 00:08:58.280 ⇒ 00:09:00.880 Clarence Stone: I’m gonna send a request back in Screenshot.
61 00:09:01.100 ⇒ 00:09:12.139 Clarence Stone: When I first joined this company, I was like, this is a frickin’ mess, this is like a nightmare. Like, I cannot believe that they sell things this way. And then when you look at the metrics, you’re like, whoa, like, they literally actually
62 00:09:12.480 ⇒ 00:09:20.319 Clarence Stone: dug in, and they know their numbers, and they created these things that make a ton of sense now to me, right? So… so here’s this, like.
63 00:09:20.410 ⇒ 00:09:32.719 Clarence Stone: if I was looking for this camera, the S5, right, the worst customer experience is getting, like, frickin’ 16 options for it. Like, look, there should not be this many. It’s all the same camera, by the way.
64 00:09:32.870 ⇒ 00:09:33.590 Henry Zhao: Yeah.
65 00:09:33.590 ⇒ 00:09:40.329 Clarence Stone: Right? But what I found out, once I looked into the numbers, was that What they were doing.
66 00:09:40.500 ⇒ 00:09:54.549 Clarence Stone: Was throwing in free items sometimes that have, like, substantial value, which allows them to make it into the, like, sales and deals listings, even though it’s not a better price than their competitors.
67 00:09:54.820 ⇒ 00:09:55.680 Henry Zhao: Oh, okay.
68 00:09:55.680 ⇒ 00:10:11.200 Clarence Stone: Right? And then, like, for essentials, they started identifying what, like, things you need for your camera, and for just a nominal fee of, like, $40, they throw all of it in for you. And what they were doing was buying all of these things in, like, massive bulk.
69 00:10:12.420 ⇒ 00:10:27.629 Clarence Stone: Right? And then saying, okay, you know, I know that if you buy this camera, you need an SD card. You’re gonna need, you know, a spare battery, another charger, maybe a, you know, a strap, or whatever, right? And this is just, like, based on the order attachments that they were already getting.
70 00:10:28.880 ⇒ 00:10:37.539 Clarence Stone: So they just bought a ton of them and created these packages. And the craziest thing, Henry, is, like, nobody buys just the camera at Adorama.
71 00:10:37.760 ⇒ 00:10:49.260 Clarence Stone: Right. They always fall for one of these things, and automatically, your, like, average order value goes all the way up, right? Because, like, these things end up just being… costing, like, a dollar or two.
72 00:10:49.440 ⇒ 00:10:54.970 Clarence Stone: For, like, their dead stock, right? So they just automatically got $40 more than they could have.
73 00:10:55.530 ⇒ 00:10:58.429 Henry Zhao: Yeah, I guess Eden could do the same with,
74 00:10:58.610 ⇒ 00:11:01.879 Henry Zhao: Like, when we say cross-selling, like, we could start looking at some bundles.
75 00:11:02.180 ⇒ 00:11:16.069 Clarence Stone: Yeah, yeah, and the craziest part, so, like, I worked on, like, scaling this model, like, infinitely, right? So, after you buy this S5, I put you in a marketing bucket knowing that you own a Panasonic S5.
76 00:11:16.070 ⇒ 00:11:24.950 Clarence Stone: And what happens within the next month is that if there is an item that is on sale that works for this camera, you will get a custom-catered email.
77 00:11:25.230 ⇒ 00:11:32.690 Clarence Stone: So, Henry, like, imagine you buy this camera, and then I go, hey, how about this 50mm lens that’s currently 50% off this week?
78 00:11:33.770 ⇒ 00:11:37.969 Clarence Stone: Right? Dude, the capture rate on that is, like, 33%.
79 00:11:40.170 ⇒ 00:11:49.549 Clarence Stone: Right? Because people go, oh, I just bought that camera. Yeah, that’s a sweet lens. I’ll buy it. So now you’re marketing towards what you already know that the customer needs.
80 00:11:50.410 ⇒ 00:11:51.010 Henry Zhao: Yeah.
81 00:11:51.190 ⇒ 00:11:56.160 Clarence Stone: Right, so maybe you can look at, if somebody buys this drug, what else do they buy later on?
82 00:11:57.210 ⇒ 00:12:06.530 Clarence Stone: Right? So, like, tons of creative ideas that come from an entirely different industry can be applied to Eden, and that’s really where the creative value comes in.
83 00:12:06.850 ⇒ 00:12:07.420 Henry Zhao: Yeah.
84 00:12:08.100 ⇒ 00:12:09.200 Clarence Stone: You know what I mean?
85 00:12:09.760 ⇒ 00:12:19.599 Clarence Stone: So, yeah, this takes, like, a little bit of technical knowledge, but some creativity, and if you just look at their data, I don’t think you’re gonna, you know, be able to see it clearly, right?
86 00:12:19.930 ⇒ 00:12:27.669 Clarence Stone: Like, because it’s already catered towards the duh type of things that they need to see on a daily basis, but not the hidden value like this.
87 00:12:29.890 ⇒ 00:12:30.670 Henry Zhao: Yeah.
88 00:12:31.440 ⇒ 00:12:32.940 Henry Zhao: Okay, that’s super helpful.
89 00:12:33.120 ⇒ 00:12:34.170 Clarence Stone: Right?
90 00:12:35.250 ⇒ 00:12:58.020 Clarence Stone: So, I think I would go to your favorite retailers, see how they do it, right? And then compare it to Eden’s website. Like, for one, I wonder if they already have a suggest… like, a AI-powered suggested recommendation. Dude, this section that we coded out was actually using a set algorithm in the original days, where, like, we actually knew the
91 00:12:58.140 ⇒ 00:13:09.609 Clarence Stone: like, that if somebody bought this, they also bought one of these things. And it would just show it by the highest rate that they also bought. And this makes a lot of sense, right? Like, if you bought this camera, you’ve probably bought another battery.
92 00:13:09.990 ⇒ 00:13:10.760 Henry Zhao: Yeah.
93 00:13:10.760 ⇒ 00:13:21.710 Clarence Stone: And these are, like, the popular lenses for it, and these are, like, the popular tripods for it. So, like, this… this bar in itself increased average order volume, value by another 15-10%.
94 00:13:21.930 ⇒ 00:13:22.550 Henry Zhao: Yeah.
95 00:13:22.840 ⇒ 00:13:24.280 Clarence Stone: Right,
96 00:13:24.420 ⇒ 00:13:38.869 Clarence Stone: So, I think you can find inspiration in that, right? Go check out other sites, maybe that are outside of Eden’s Vertical, and also within Eden’s Vertical, and see how they do it. Let’s take a look at Eden. Yeah, and I think a CEO would probably do that as well, so I think it’s very helpful.
97 00:13:38.870 ⇒ 00:13:53.030 Henry Zhao: I think the sentence that was an aha moment for me that you said is that the CEO doesn’t have time to look at the data, they’re just trying to keep the business afloat. So I can think of myself as, like, the CEO that somehow has time to look at the data. What would I look at and then bring the
98 00:13:53.590 ⇒ 00:13:56.669 Henry Zhao: insights to, I guess, the leadership, yeah.
99 00:13:57.280 ⇒ 00:14:04.700 Clarence Stone: Yeah, and another thing, I think this is, like, another interesting thing I would look at, is I would look at seasonality.
100 00:14:05.150 ⇒ 00:14:11.809 Clarence Stone: It’s not so much important in the camera world, but we did realize, and, you know, it’s so weird, because you just…
101 00:14:11.810 ⇒ 00:14:28.790 Clarence Stone: don’t see certain concepts from certain, you know, corners of the room, right? So, like, there’s no seasonality in cameras, but there’s a ton of seasonality in laptops, and Adorama sells a ton of laptops, right? So, when you look for a MacBook during, like.
102 00:14:29.380 ⇒ 00:14:33.039 Clarence Stone: Back to school, you see the best laptop deals.
103 00:14:34.330 ⇒ 00:14:42.079 Clarence Stone: Right, and they, they cater it towards students and whatnot, and then just, like, by doing that, we sold a crap ton more laptops.
104 00:14:43.120 ⇒ 00:14:43.710 Henry Zhao: Yeah.
105 00:14:44.260 ⇒ 00:14:49.159 Clarence Stone: Right? So, maybe seasonality makes sense for some of these drugs, right?
106 00:14:50.230 ⇒ 00:14:55.280 Clarence Stone: Let’s see. Let’s see if they’re doing attachments. I’m just gonna go into one of the items.
107 00:14:56.650 ⇒ 00:15:01.640 Clarence Stone: An injectable B12, interesting. Okay, so benefits, pricing, yeah.
108 00:15:02.200 ⇒ 00:15:07.739 Clarence Stone: Yeah, there’s no, like, hey, this is great with that other thing from Eden here.
109 00:15:08.980 ⇒ 00:15:14.479 Clarence Stone: Right? It doesn’t really say that. Well, maybe if I add it, what happens?
110 00:15:15.020 ⇒ 00:15:21.720 Clarence Stone: Oh, see if you qualify thing. Okay, cool. That’s it. Yeah, so there isn’t a cross-sale at all on their website right now.
111 00:15:21.870 ⇒ 00:15:22.440 Henry Zhao: Yeah.
112 00:15:22.810 ⇒ 00:15:37.019 Clarence Stone: Right, and that’s… that’s a normal pattern. I think anybody who’s dropped at, like, Amazon knows what cross-shopping is, right? Like, I’m just gonna pick, I don’t know, these Dolce & Gabbana ridiculous-looking shoes. They’re gonna sell me other D&G things. Where is this?
113 00:15:37.990 ⇒ 00:15:46.709 Clarence Stone: Right, so if you just said, let’s, you know, do some deep research and say, like, what is the average, you know, value that’s increased by doing something like this?
114 00:15:46.760 ⇒ 00:15:48.689 Henry Zhao: Right? And say, like, hey.
115 00:15:48.690 ⇒ 00:15:58.159 Clarence Stone: we know what items people typically buy along with the item that they’re looking at, right? Doing this featured or related items.
116 00:15:58.160 ⇒ 00:16:14.250 Clarence Stone: section has a overall composite increase of, like, you know, 20% of average order volume or whatnot, right? So we should build that for you, and, you know, based on our analytics, you know, this is what’s commonly bought with the B12, this is what’s commonly bought with the GLPs.
117 00:16:14.370 ⇒ 00:16:15.210 Henry Zhao: Yeah.
118 00:16:15.420 ⇒ 00:16:16.140 Clarence Stone: Right.
119 00:16:18.660 ⇒ 00:16:19.370 Henry Zhao: Okay.
120 00:16:20.500 ⇒ 00:16:22.359 Clarence Stone: Yeah. Feeling better about it?
121 00:16:22.360 ⇒ 00:16:24.999 Henry Zhao: Yes, thank you, yeah, you already gave me a lot of great ideas.
122 00:16:25.900 ⇒ 00:16:35.609 Clarence Stone: Yeah, yeah, so, yeah, I guess, like, the best part is just stepping out of this… it seems like you’re, like, in the data, and kind of living it too hard, right?
123 00:16:35.950 ⇒ 00:16:40.550 Clarence Stone: Yeah, but this is also, I think, goes along with the discussion of, like, GTM and growth, is, like.
124 00:16:40.550 ⇒ 00:16:46.660 Henry Zhao: I wasn’t thinking enough of, like, how do we grow this client? I was just kind of, like, being too reactive and not more proactive.
125 00:16:46.770 ⇒ 00:16:52.829 Henry Zhao: I was just like, as long as they’re happy and their business is doing well, it’s fine, but no. Like, Robert wants me to think more about, like.
126 00:16:53.320 ⇒ 00:16:57.839 Henry Zhao: being like the CEO, right? How can I grow the business and not just keep it afloat?
127 00:16:58.320 ⇒ 00:17:05.200 Clarence Stone: Yeah, yeah, and that data you have is powerful. I’m not sure, you know, where the power is yet. Like, I’d have to sit with you and kind of dig through that, right?
128 00:17:05.869 ⇒ 00:17:21.819 Clarence Stone: But maybe what would be helpful, Henry, is if you can tell me which data has been reliable, and I can give you some leads on, you know, some, you know, marketing strategies that… or, like, data strategies, or, you know, that you can kind of propose or explore with Eden.
129 00:17:21.819 ⇒ 00:17:22.139 Henry Zhao: Yeah.
130 00:17:22.140 ⇒ 00:17:23.089 Clarence Stone: is good.
131 00:17:24.200 ⇒ 00:17:29.020 Henry Zhao: I would say, like, the revenue data is good, the order counts, obviously, I think are okay.
132 00:17:29.790 ⇒ 00:17:42.110 Henry Zhao: it’s pretty much just the COGS is not good, and then even if the COGS data is good, I would struggle to understand, like, how can I provide a meaningful insight to lower COGS, right? Because costs are always going to be there.
133 00:17:42.850 ⇒ 00:17:52.939 Henry Zhao: and obviously, if you just go for the cheaper things, it’s gonna be lower COGS. But are you sacrificing quality? You know what I mean? Like, what is the actual insight?
134 00:17:53.230 ⇒ 00:18:00.389 Henry Zhao: I can provide for them to actually lower COGS meaningfully without sacrificing quality. Or maybe they don’t mind sacrificing quality, I don’t know.
135 00:18:01.100 ⇒ 00:18:16.920 Clarence Stone: Yeah, so that’s a great point, and I’ll go back to Adorama, because it’s so relevant here. The worst part about, like, this kind of e-commerce retailer is that they almost have zero control over COGS. Like, the price of a camera from Sony is gonna be the price.
136 00:18:16.920 ⇒ 00:18:17.680 Henry Zhao: Right.
137 00:18:17.680 ⇒ 00:18:36.219 Clarence Stone: Right, and that’s what they sell to every single vendor, right? It’s probably gonna be, like, 20% below MSRP, and that’s gonna be the price. So they don’t have much control over that. But they… there are things that they have control over with COGS, right? And I showed you the bundle. Those free items, they have so much control over those COGS.
138 00:18:36.220 ⇒ 00:18:36.870 Henry Zhao: Right.
139 00:18:36.870 ⇒ 00:18:42.780 Clarence Stone: Right, so maybe there’s, like, not the drugs themselves, but, like, the…
140 00:18:43.020 ⇒ 00:18:50.729 Clarence Stone: You know, like, yeah, it doesn’t seem like they sell any, like, reasonable, like, accessories.
141 00:18:51.350 ⇒ 00:18:52.030 Henry Zhao: Yeah.
142 00:18:52.030 ⇒ 00:18:57.090 Clarence Stone: And dude, those accessories are the crazy, like, high…
143 00:18:57.090 ⇒ 00:18:57.690 Henry Zhao: Margin.
144 00:18:57.690 ⇒ 00:19:03.609 Clarence Stone: margin things, like, you know, let’s, go to Smile Direct, right? Dude, Smile Direct…
145 00:19:04.040 ⇒ 00:19:12.549 Clarence Stone: They’ll sell you that base service, whatever, but if you look at oral care and accessories, this stuff, they’re probably getting for, like, you know, like.
146 00:19:13.090 ⇒ 00:19:25.220 Clarence Stone: half or even less than half of the price that they’re selling it for, right? Like, this lip balm that’s a ball, they’re charging 12 bucks, dude, they’re probably getting this for, like, you know, $2.
147 00:19:25.520 ⇒ 00:19:26.110 Henry Zhao: Yeah.
148 00:19:26.600 ⇒ 00:19:35.390 Clarence Stone: Right? So, so maybe there is a way for you to algorithmically or, like, use an AI engine to say, if I had
149 00:19:35.790 ⇒ 00:19:51.579 Clarence Stone: if I was focused on weight loss and using GLPs, what would I need as an accessory to make this happen, right? So there’s the injectable itself, but, like, are people buying, you know, you know, I don’t know, band-aids that go along with this? Like, are there…
150 00:19:51.970 ⇒ 00:19:54.489 Clarence Stone: Things that you need on top of this that are.
151 00:19:54.490 ⇒ 00:20:04.590 Henry Zhao: We do something as crazy as, like, clothes? Because if you think about it, right, once you lose weight, you’re gonna need different sized clothes. Or maybe we do, like, a… we recommend, like, a partnership with a clothing brand.
152 00:20:04.940 ⇒ 00:20:05.660 Henry Zhao: I don’t know.
153 00:20:05.870 ⇒ 00:20:07.750 Henry Zhao: I’m just trying… just throwing ideas out there.
154 00:20:07.920 ⇒ 00:20:27.249 Clarence Stone: Yeah, I mean, those are great things, right? I think the power, the thing that you need to do as… now, that’s a great idea, I would chase it, right? But, like, it would only be viable if you can, like, show to the client that this is going to be, like, the guaranteed results that you would get from it, right? As in, like, this other company did it.
155 00:20:27.250 ⇒ 00:20:28.359 Clarence Stone: Right? And this is how much
156 00:20:28.730 ⇒ 00:20:35.010 Clarence Stone: If you did it, you know, we think you would do that, because, like, this has the same item relationship.
157 00:20:35.940 ⇒ 00:20:37.820 Clarence Stone: Right?
158 00:20:37.980 ⇒ 00:20:48.009 Clarence Stone: So, I mean, that’s a great idea, right? But, like, you kind of see what I’m saying here, right? Like, they have no business selling toothpaste and toothbrushes that are branded SmileDirect.
159 00:20:49.050 ⇒ 00:20:49.650 Henry Zhao: Yeah.
160 00:20:49.830 ⇒ 00:21:01.669 Clarence Stone: But they already have a ton of people who are, you know, going to them for retainers, and part of that, you know, process is, like, just taking care of your oral health. And they’re just selling all of this with, like, massive value.
161 00:21:01.990 ⇒ 00:21:07.089 Clarence Stone: Yeah. So, I think you can impact COGS in this way, but not the base drug. That’s definitely true.
162 00:21:07.480 ⇒ 00:21:09.920 Henry Zhao: Yeah, exactly. That’s where I was stuck, yeah.
163 00:21:10.210 ⇒ 00:21:28.120 Clarence Stone: Yeah, so basically, like, obviously I’m not gonna sign up here, but, like, when I get to the end state, there should be an, like, a, you know, before I check out, it should say, like, hey, Clarence, before you check out, people who typically buy these GLPs, right, they also enjoy, you know, this list of products.
164 00:21:28.850 ⇒ 00:21:30.940 Clarence Stone: Do you want to add any of them before you go?
165 00:21:32.220 ⇒ 00:21:52.159 Clarence Stone: Right? And that’s, like, that’s sort of like, you ever go to, like, the supermarket, they always have the candy and the mints and, like, the dumb, like, magazines at the checkout? Dude, they always get people. They never get me. I’m sure you’re smart enough not to do it, right? But, like, those are massively high margin, and
166 00:21:52.160 ⇒ 00:22:03.470 Clarence Stone: they always get people on the way out, right? So, it doesn’t look like Eden’s doing this, so, you know, maybe you should figure, like, you could figure out from that data what a good list of attachments could be.
167 00:22:04.220 ⇒ 00:22:04.790 Henry Zhao: Right.
168 00:22:05.100 ⇒ 00:22:07.470 Clarence Stone: Right, so…
169 00:22:08.470 ⇒ 00:22:22.799 Clarence Stone: Does that help? Like, I don’t know, like, yeah, like, I think SmileDirect is a really good, you know, correlation to it, right? Because it’s not a simple, like, I can just buy this, right? This is an interesting model where you can also notice that they have…
170 00:22:23.130 ⇒ 00:22:26.910 Clarence Stone: Huge amounts of, you know, revenue in this section.
171 00:22:27.450 ⇒ 00:22:28.010 Henry Zhao: Yeah.
172 00:22:31.780 ⇒ 00:22:32.540 Clarence Stone: What else?
173 00:22:33.270 ⇒ 00:22:35.560 Clarence Stone: We got 8 minutes, let’s brainstorm together. There’s tons.
174 00:22:35.560 ⇒ 00:22:38.169 Henry Zhao: I would say another thing that I could maybe do…
175 00:22:38.350 ⇒ 00:22:48.069 Henry Zhao: to improve retention is maybe give a discount for people that, like, pay for the full treatment already, right? So, like, if somebody’s… so you saw the weight loss goal…
176 00:22:48.070 ⇒ 00:22:48.430 Clarence Stone: Like, 50…
177 00:22:48.430 ⇒ 00:22:53.229 Henry Zhao: plus pounds, so they might need a longer treatment. Instead of charging them, like.
178 00:22:53.730 ⇒ 00:23:00.610 Henry Zhao: piece by piece, like, offer them a discount to just… so let’s say that the retention is 80%, right?
179 00:23:00.790 ⇒ 00:23:13.929 Henry Zhao: if we can offer, like, a 10% discount to just pay for the entire treatment already, then that’s increasing their margins, right? Because instead of losing 20% of the customers, you’re just taking a 10% discount to guarantee that they’re gonna have paid for the whole treatment.
180 00:23:14.290 ⇒ 00:23:18.459 Clarence Stone: Yeah, yeah, and if you showed those numbers side by side, I think that’d be sick.
181 00:23:18.710 ⇒ 00:23:19.350 Henry Zhao: Yeah.
182 00:23:19.540 ⇒ 00:23:25.250 Clarence Stone: Right? Like, hey, you’re charging this amount with an 80% retention, right?
183 00:23:25.750 ⇒ 00:23:33.470 Clarence Stone: And the 20% that you lost is this number. It could be, like, you know, 10,000, 20,000, whatever it is, right? And if you…
184 00:23:33.660 ⇒ 00:23:39.039 Clarence Stone: gave people a 10% discount, but locked them in, this would be how much you would make.
185 00:23:39.510 ⇒ 00:23:42.380 Clarence Stone: Right, so you’re recouping that 10%.
186 00:23:42.850 ⇒ 00:23:53.310 Clarence Stone: that’s how much money you would get just by doing this. Like, that’s a guaranteed layup, Henry, right? So, yeah, if you showed that in the numbers, as a CEO, I’d be like, that’s sick. We need that option.
187 00:23:54.160 ⇒ 00:24:01.770 Clarence Stone: Right, so that’s sort of like this complete alignment… alignment treatment, right? Like, instead of 1,295.
188 00:24:02.080 ⇒ 00:24:02.670 Henry Zhao: Right.
189 00:24:03.430 ⇒ 00:24:10.300 Clarence Stone: Whereas, like, hey, you want to start with just, you know, getting an imprint of your teeth, we’re gonna sell you, you know, your aligners month by month.
190 00:24:10.510 ⇒ 00:24:11.390 Clarence Stone: Right.
191 00:24:11.560 ⇒ 00:24:12.220 Henry Zhao: Right.
192 00:24:13.140 ⇒ 00:24:16.439 Clarence Stone: That’s a great idea. What else you got? Dude, you’re full of ideas, come on, man.
193 00:24:17.820 ⇒ 00:24:24.140 Henry Zhao: Yeah, but I think that’s good for today. I think I have some things to kind of write down and take notes on.
194 00:24:24.300 ⇒ 00:24:30.370 Henry Zhao: And yeah, thank you so much for your time, and maybe I can ping you if I have any other questions, but thank you again so much, Clarence.
195 00:24:30.600 ⇒ 00:24:32.520 Clarence Stone: Yeah, absolutely, I’m here for you, man.
196 00:24:32.520 ⇒ 00:24:33.999 Henry Zhao: Thanks, really appreciate you.
197 00:24:34.170 ⇒ 00:24:34.750 Clarence Stone: Cool.
198 00:24:34.750 ⇒ 00:24:35.470 Henry Zhao: Take care.
199 00:24:35.720 ⇒ 00:24:36.440 Clarence Stone: Yep, bye.