The Andrew Faris Podcast

60% Price Drop: Sales Exploded, Reorders Collapsed

Oct 11, 2025
Guest
Dan Carnat
Dan Carnat, Co-founder and CEO of Fiera Cosmetics, dives into the pitfalls of pricing strategies and their profound effects on customer lifetime value and reorder rates. He reveals how a drop in price can boost initial sales but lead to long-term losses. The conversation covers the value of strategic customer targeting, incrementality testing, and the complexities of product development. Dan also emphasizes the importance of repeat purchases and shares insights on successful branding efforts, making this discussion invaluable for anyone in direct-to-consumer markets.
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INSIGHT

Price Changes Alter Buyer Quality

  • A $40 concealer buyer behaves very differently than a $16 buyer, especially in reorder habits.
  • Lowering price raised conversion but reduced LTV and reorder rates, hurting unit economics.
ADVICE

Calculate Reorder Value Before Cutting Price

  • Do the math on profit per visitor and the value of future reorders before changing price.
  • Wait for multiple reorder cycles when possible to judge true LTV impact of price moves.
ANECDOTE

60% Price Drop: Big Volume, Collapsed Reorders

  • Fiera lowered concealer price, drove huge volume, then saw acquisition costs rise and reorder value fall.
  • They later raised prices incrementally and launched a new premium SKU to recover LTV.
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