EXPOSED: 2 OVERLOOKED levers consumer brands can’t ignore before scaling from $3M to $100M (& how to implement it)

BONUS: low-hanging fruits to implement this for a smoother scale for consumer brands of all categories, shapes, sizes and likings.

Akshath Kumar
Akshath Kumar
Founder, The Leverage Company

Is your ecommerce brand doing between $1M-$10M in sales? in for a treat?

Let’s start this off with a personal story…
(lets challenge you to see if you can pick up the 2 big levers & where this is going, early)

Illustration: a salesman welcoming two customers into a dimly lit luxury rug showroom

There was a big event coming up & I had to buy luxury carpets to host a dinner at my place.

My budget for this was about $65 (being all luxury), so I went to a dealership to buy these carpets.

As we entered the place, they had set the scene right:

It was the smell of an Oud luxury incense stick, dim top-down yellow lighting, glass walls till the roof, minimal design.

A well-groomed, charismatic representative walked in, shook our hands, and dressed in clean formals.

As I am looking at the rugs, this one handcrafted rug catches my eye.

It was about $90 ($25 over my initial budget, but maybe not today)

I ask him the best price on this:

He says,
"Oh, this is $90, but for you, let's make it $85."

And I see a sticker on the rug that says three things:

  • "Lifetime Craftsmanship Warranty": Complimentary repairs if fringes, edges or knots come loose, subject to warranty terms.
  • "30-Day Money-Back Guarantee": Full refund if you decide it's not the right fit, subject to the return policy.
  • "Try It at Home": Take it home and experience it in your space for a week before making your final decision, with a full refund if you return it within the trial period.

Immediately I thought to myself:

"Wow, these guys know what they are doing. They've made the purchase much easier by addressing my three biggest concerns in three sentences, and the salesman didn't even have to explain a thing?"

Right as I was thinking & reading that, the salesman hands me something.

"Here is a brush to clean it without a vacuum. This comes free with the rug. I have something else for you, let me be back..."

And he goes to get another thing while I admire this brush that matches the rug's design.

He gets me four other things and hands them to me:

  1. Rug pad / non-slip underlay: This helps reduce slipping, protects the floor, and helps extend the rug's lifespan. (this was a concern in the past for me as my floors are marble)
  2. Stain removal kit: A gentle wool-safe cleaner, a cloth, and a spray designed to help remove insects and bugs.
  3. Storage or carry bag: A breathable cotton bag for when you roll it up or move house.

And finally,

  1. Rug Care eBook (he would send this to my email): A step-by-step monthly cleaning guide so you or your cleaners can maintain your rug and keep it looking its best for years. (this is great to give to my cleaners)

And as he explains all of these things individually, he says:

"Most of these things individually would cost you about $25, but you get them as complimentary bonuses with the rug if you purchase within the promotional period of a day’s time."

“And what happens if I do not buy today?” I ask.

“You can still get the rug for the same price but you do not get the bonuses for free… ” he answers.

I went in here wanting to buy a basic luxury rug for $65 & now I am considering an $85 rug, as the offer that was presented was too good to pass up on...

I say,
"Okay, let's do it."

As he smiles, picks up the rug & the bonuses and walks towards the counter, he stops.

Right before I check out, he asks me one last question.

"If I may ask you, how many rooms, bathrooms & kitchens do you have?"

"Ummm... 1 kitchen, 2 bathrooms & 4 rooms..."

He says,
"Would you like to buy carpets to match the rug so your house looks on theme? We have about 7 carpets that would complement your rug, and the stain removal kit works for everything. It's just an additional $45, but since you're buying the rug, it's $35 as a one-time offer."

Now I have entered a hyper-buying cycle because I do want my house to look on theme & it does make sense with the purchase, plus such a great discount? I was sold.

Now we are at $85 (rug) + $35 (carpets)

I thought to myself…
“damn these guys got me good”

I went in with a budget of $65. I walked out CONSIDERING “$120”
almost double…

“I say sure let’s do it”

Final question he asks before we actually go to check-out:

"How big is your living room? This rug is a 2.5 x 8 ft. We can upgrade it to a slightly bigger 3 x 10 ft at 10% off."

Now, as I almost considered it, I remembered that my sofas were gigantic & I had just bought a rocking chair,

so I politely declined.

But close try, almost did it too…

I got my card out and paid the $120 and thought to myself, wow, I really thought $65 was the ceiling for today?

I was a happy customer afterwards because it lived up to my expectations.

They gave me value beyond the purchase & did it in a smooth, subtle way.

I referred them to a lot more people and bought from this store for my other house too…

The company here pulled 2 levers really well. (Could you guess which ones?)

I know what you are thinking, does this apply to online commerce?

We've applied these principles across 35+ companies, with promising results.

The funny thing is that even while I knew the manoeuvres this company was pulling, I still considered almost every offer because these are timeless principles that can work regardless of the products you sell, where you sell, etc.

If you sell online, these principles are worth understanding.

Regardless of what you sell.

These are some of the lowest-hanging fruits that can have a significant impact on top-line sales without additional ad spend, no change in creative team, no increase in traffic volume or even without a MEGA COOL influencer with millions of followers.

The only condition is that your company should ideally be doing over $100k/mo in D2C sales, as these strategies are generally more impactful when you already have an established product, consistent traffic and a validated product-market fit.

But these could potentially be optimisations and systems that improve sales, which could be implemented within a few weeks and sometimes with just a text message to a designer, while creating opportunities to improve top-line revenue and margins so that the leaders can work on product, create a brand and build a world-class team.

In fact, this first lever is so overlooked, even by billion-dollar companies, but can influence purchasing decisions and is often the tip of the spear of a landing page.

How do we know? Because my team has worked with these levers on massive enterprise level brands to work on these exact systems.

And A BIG FAT NO, none of the suggestions in this page has anything to do with:

  1. Signing a star agency for a gazillion dollars a year.
  2. Increasing ad spend to 10x to get 100x the return (ridiculous).
  3. Signing an influencer/celebrity that will make the brand a household name overnight.

In fact, when considering these above steps, these two levers can help amplify the impact of everything above.

So getting this right is crucial.

If D2C is a major driver of sales for your brand and you overlook these fundamentals:

Traffic acquisition can become increasingly expensive, and customer acquisition costs can put additional pressure on your margins.

Compressing your margins and putting pressure on your business economics.

You need to nail this tip of the spear before you work on anything else.

Now that we know this is important, let's get into the nitty-gritty.

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