Lunch With Norm
Posts
[LWN] 🔥 My Vacation From Hell...

[LWN] 🔥 My Vacation From Hell...

Lunch With Norm's Weekly Newsletter - Amazon Fees, Snow Cones, and Greed

May 27, 2024 • Estimated Read Time: 10 minutes

🔥 My First Vacation Was Hell…

After starting my business, I was finally able to take a vacation with my wife. Let’s just say it didn’t go as planned…

What you’ll find in this week’s newsletter:

🔥 My First Vacation Was Hell… [True Story]
🗞️ This Week’s Amazon News & Updates
🎙️ What You Missed Last Week
🌎 Upcoming Amazon Seller Events

Aloha Beardos 🤙

I’m currently writing this as I’m flying over the island of Hawaii. The water is crystal blue. I added some pics at the bottom of this newsletter of my last week here. I’ll be back next week with my full length newsletter.

PS if you’re ever in Hawaii, make sure you grab some haupia… It’s incredible.

PPS thank you to my friend, Kevin King for putting on another incredible Billion Dollar Seller Summit and the first ever Level Up event. It was a game changer. I highly recommend you come to the next one in Iceland.

One of many snow cones…

😔 My First Vacation Was Hell… [True Story]

I remember it was a beautiful Sunday afternoon, with blue skies.

I had my #1 sales guy over for a barbecue.

This guy was making over $100,000 a year back in the nineties, plus, 3% of our sales as an override.

He was a pretty happy camper back then.

At the end of the day, he brought out a gift for me.

It was a crystal bowl along with four glasses with the company logo etched into it.

Not exactly this but you get the idea.

He told me how much he loved working for the company.

It was a great day.

Then things changed.

On Monday, I was flying out to Bermuda and Antigua on my first holiday since starting this company.

I was very excited.

I've been working a lot, building this company, and I was finally at that point where I could take off some time with my wife for two weeks.

So Monday arrives, and he comes in, and asks, “Can I talk to you?”

Here we go again…

”I wanted to let you know that I'm starting my own business.”

He goes, “You never offered me an equity position in the company. So I'm doing it myself. Today’s my last day.”

I was stunned.

This was my #1 guy and also my sales manager.

I never even had a hint that there was an issue.

I was in full panic mode.

I've had people leave the company before, sure.

If they want to go and start something else, why would I stop them?

This guy just up and left with 0 notice.

I did as much damage control as possible that day, and left for my trip.

In those two weeks that I was gone, he set up and established his new team, and reached out to all of my past and existing clients, all while using my resources doing so… what a scum bag.

The only reason I found out about what he did was because the emails he was using to contact my clients bounced over to me.

I went to my lawyer and heavily considered suing him.

The problem was, if I were to do this, it would have cost me a minimum of $125,000 just to bring it to court.

And there’s no guarantee I’d even win.

Also, that’s a ton of negative energy for the next year or two.

I had to make a decision.

I could either concentrate on going after this guy for the next year, losing money and my own mental health or put my nose to the grindstone and get to work to rebuild my company.

I decided to move on.

This has happened many times in business.

I often find when you help somebody out, there’s always a very real chance of that person snubbing you in the end. Be aware, and keep that in the back your mind.

But I’ve also realized over the years, if you keep a wound open, it’s never going to heal.

Not to say you should let people walk over you, but sometimes it’s best to let things go.

Enjoy the rest of the newsletter.

— Norm

What would you do in my situation?

🗞️ AMAZON NEWS & UPDATES 🗞️

What’s happening in the world of Amazon today…

🇮🇪 Amazon is launching new online store in Ireland, Amazon.ie, in 2025 - Read More
🤖 Elon Musk’s xAI raises $6B at $24B valuation to build new AI services - Read More
🚚 Amazon Ramps Up Logistics Expansion to Speed Delivery, Reduce Costs - Read More
✅ Walmart adds a huge benefit that Amazon does not offer - Read More
💰Amazon plans to charge monthly subscription for Alexa - Read More
🧐 TikTok is aging out of Gen Z - Read More

WHERE IN THE WORLD IS THE BEARDED GUY?

Can you find Norm in the picture below? Scroll to the bottom of this newsletter to see the answer!

WHAT YOU MISSED LAST WEEK

👇 Highlights from last week’s Lunch With Norm podcast episodes👇

Monday - How to Audit Your Amazon PPC like a Pro

Watch the full episode here

Main Takeaways:

Set Clear Audit Schedules:
- Schedule weekly quick audits and monthly comprehensive audits to stay on top of performance and make timely adjustments.
Defend Your Brand:
- Run brand defence campaigns to protect your brand keywords and prevent competitors from gaining market share.
Address Budget Shortfalls:
- Ensure that successful campaigns have sufficient budget to avoid running out of funds and missing potential sales.
Hire Experts When Needed:
- Consider hiring professionals to perform detailed audits and provide expert insights if you lack the expertise or time to manage audits effectively.

Wednesday - Amazon Seller Strategies: Fees, Programs & Profits

Watch the full episode here

Main Takeaways:

Retail Opportunities:
- Retail is still a viable and potentially life-changing opportunity for the right products, despite misconceptions about its decline.
Regularly Audit Fees:
- Conduct regular audits to understand and manage Amazon’s evolving fee structures and their impact on your profits. Check out this Smart Scout low inventory fee calculator.
Adopt an Omni-channel Strategy:
- Leverage both online and offline channels to maximize brand visibility and sales opportunities.
Utilize Reimbursement Programs:
- Regularly check for reimbursement opportunities to recover fees and improve profitability.

Friday - The Effect of the New Amazon Fees on the E-com Ecosystem

Watch the full episode here

Main Takeaways:

Evaluate Product Turnover:
- Regularly assess your product's sales velocity. If items are slow-moving, consider liquidating or discontinuing them to avoid low inventory fees.
Plan for Inbound Placement Fees:
- Calculate the impact of the 20 to 60 cent inbound placement fees on your margins. Adjust your pricing strategies accordingly, especially for low-cost items.
Implement Automation:
- Use tools like FeedbackWhiz for automating feedback requests and inventory management systems like RestockPro to streamline operations and improve efficiency.
Explore Fulfillment Options:
- If FBA fees are too high, switch to FBM for slower-moving products. Partner with a reliable 3PL or manage fulfillment in-house to maintain profitability.