Reid Archer joins the Leaders on Shopify Podcast
We’re pleased to share that Pricemaster Co-Founder Reid Archer has joined the Leaders on Shopify Podcast for a conversation about ecommerce growth, profitability, pricing and the danger of becoming a “busy fool”.
Why chasing revenue can make you a “busy fool”
In the episode, Reid talks about some of the lessons learned from more than 17 years working in ecommerce — particularly why growing revenue doesn’t necessarily mean you’re growing a better or more profitable business.
The discussion covers the commercial realities behind ecommerce growth, including advertising spend, pricing decisions, margin and the importance of understanding what is actually driving profit.
One of the key themes is something we see regularly:
Revenue is easy to measure. Profit is what actually matters.
The conversation also looks at the relationship between ecommerce businesses and Google advertising, and why platforms designed to help you spend money aren’t necessarily going to tell you when spending less could produce a better commercial result.
Listen to the episode
The full episode, “Why chasing revenue can make you a ‘busy fool’, and why Google will never tell you to spend less”, is available now.
Spotify
Listen on Spotify
Apple Podcasts
Listen on Apple Podcasts
YouTube
Watch the full episode on YouTube
From ecommerce operator to Pricemaster
A lot of the thinking discussed in the episode is also behind why we built Pricemaster.
After years of running ecommerce businesses, we repeatedly came across the same problems: businesses could see revenue, advertising spend and competitor prices, but it was much harder to understand how all of those things were affecting margin and actual profitability.
Pricemaster was built to help ecommerce businesses bring more of that information together — combining market pricing data with their own commercial data to make better pricing decisions.
The objective isn’t simply to sell more.
It’s to understand what to sell, what price to sell it at, how much margin you’re making, and whether the activity driving those sales is actually profitable.
A big thank you to the Leaders on Shopify team for inviting Reid onto the podcast and for a great conversation.