We interviewed 3 team members on how to reduce your COGs. Here’s what they said...

Hey , We asked 3 members of our team what are some key ways to help eCom brands reduce their COGs. As a reminder, COGs = Cost of Goods. Our team has been focusing on this for some time now and ultimately, the tips are rather consistent, but thought about in a different way. To kick this off, we asked Quintin, one of the media buyers on our team. He says, knowing how to manage and reduce your COGs is essential for building a successful business. Here are his three tips to manage your COGs. - Build a good relationship with your suppliers. Having a good relationship with your suppliers means that you are able to leverage your actual cost of goods and create payment plans if needed. - Do your research on raw materials. If you have a product with multiple materials like capsules, labeling, bottling, etc. You can source these on your own accord outside of the manufactures. A lot of the time a one stop shop manufacturer adds their own margins to source the materials. By doing this yourself, you can look around and price compare, without being stuck to one company. - Try to reduce your operational costs. Your operational costs include: marketing, CPA, software, and salaries. These can be referred to as indirect COGs. Try working these into your actual COGs and work out an average price based on the sales each month to get a better idea on what you’re spending on each product on average. Next, we talked to Zsoka, another one of our rockstar media buyers. Here are her three tips on managing your COGs - Actually get to know your cost data - knowledge is power! By calculating your cost, you might find gaps where you can lower your COGs. - Follow the economic trends. Recession-inflation-growing costs? Be up to date and be ready to adapt as times are changing. - Beware of hidden costs - eliminate costs coming from inefficient production and delivery damages. And, lastly, we hear from Tatev, one of our content managers / copywriters. - Negotiate with your suppliers - research the market to find the best deal, determine if you should switch or if your current suppliers are willing to negotiate. - Eliminate Unnecessary Product Features - identify which products are profitable and eliminate the unnecessary items. Custom products cost more than mass produced products and any non-standard features requires an additional step in the production process driving up costs. - Reduce Waste - Modify your product designs by altering production methods in order to utilize standard raw material units. Still need a couple more tips, tune into our podcast to hear from Media Buyers Matej and Ago on the effects of COGs on small and large businesses. What's your thoughts on this topic? We'd love to hear how you reduce your COGs Hit the reply button to start up a convo! Cheers! DimNiko Team  This message was sent to {EMAIL} by DimNiko Agency. 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