Limited Supply

S8 E4: The Dirty Truth About Fad Products (We're Looking at You, Prime Energy)

May 15, 2024

The podcast discusses the sustainability of fad businesses like Prime Energy and Stanley, the impact of private equity takeovers on brands, and the challenges of distribution in the beverage industry. They also explore the latest trends in social media marketing, including TikTok shops and dominating the funnel on Google Maps.

54:55

AI Summary

Highlights

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Fad businesses' sustainability raises concerns about hopping on bandwagons before they fade out.

Private equity takeovers pose risks for brands, prompting questions about maintaining quality post-acquisition.

Innovative marketing trends like TikTok shops and unique furniture tryouts challenge businesses to stay ahead in the competitive market landscape.

Deep dives

Shopify's Expanding Reach Across Platforms

Shopify aims to become a central hub connecting various e-commerce platforms like Facebook and TikTok, enabling seamless checkouts through ShopPay. As more revenue funnels through external platforms, the competition among channels intensifies.

Focusing on creating good content leads to long-term success

01:22

Beware of Fake Locksmiths on Google Maps

01:34

Evaluating a Beverage Brand Acquisition

01:35

Building Businesses on Fads vs. Sustainable Concepts

01:36

Introduction

2min

Exploring the Acquisition of a Plant-Based Protein Shake Brand

3min

Exploring Beverage Brand Acquisition Strategies

2min

Analysis of Protein Brand Acquisitions and Holding Companies

2min

Analyzing Fad Products in the Beverage Industry

21min

Exploring TikTok Shops and Affiliate Marketing Dynamics

18min

Exploring the Concept of a Tracking System and Pricing Transparency in Companies

2min

Negotiating Prices and Teasing Future TikTok Brand Insights

2min

Polish up your POG collection because Moiz is still trying to pawn off his slammer at an absurdly high price to anyone gullible enough to buy it.

In this week’s ep, the guys debate the sustainability of fad businesses. What’s the lifespan of the average fad—and is it wise to hop on the bandwagon before it dies out? Nik and Moiz break down the ways to build a sustainable and discuss whether or not brands like Prime Energy and Stanley are poised to fade into oblivion soon.

The boys also explore the pain points of distribution in the beverage world and the potential pitfalls of private equity takeovers. Is there any way a brand won’t go to shit after a private equity takeover? Does flooding the market with knock-off fad products ever work?

And later, the guys dive into the latest trends in social media marketing, including the difficulty of going viral through TikTok shops, building a timeline for CRO changes, and outwitting the competition by dominating the funnel on Google Maps.

00:01:04 - Protein Shake Brand Acquired for $280M

00:07:00 - Private Equity's Impact on Wellness Industry

00:13:39 - Prime Sales Decline

00:20:51 - Stanley Cup: Fad or Sustainable?

00:23:49 - Building Businesses on Fads: The Truth

00:31:30 - TikTok Shops Increase Revenue Cuts

00:43:11 - Cutthroat Lead Gen Strategy

00:47:24 - Innovative Furniture Company with Local Tryouts

00:49:42 - Business Timeline Creation: A Must-Have

00:55:03 - Private Label Brands and TikTok Marketing

Unravel the complexities of fulfillment with Red Stag - a 3PL that guarantees zero shrink, zero mispicks, and zero missed shipments. Backed by performance assurances, they ensure excellence in every order —Literally, RedStag offers coverage at no additional cost for any guarantee that is missed AND $50 reimbursement per instance for the inconvenience. Discover why Red Stag isn't just another fulfillment provider - visit redstag.com/limited today.

Want more DTC advice? Check out the Limited Supply YouTube page for more insider tips.

Check out the Nik’s DTC newsletter: https://bit.ly/3mOUJMJ

And if you’re looking for an instant stream of on-demand DTC gold, check out the Limited Supply Slack Channel for Nik and Moiz’s most unfiltered, uncensored thoughts.

Follow Nik:

Twitter: https://www.twitter.com/mrsharma

Follow Moiz:

Twitter: https://www.twitter.com/moizali