BI 360: From Dunkin Donuts Dumpster To the Fastest Profitable Company to Become a Unicorn (Ft John Hefter)
May 4, 2021
On the show with me today is John Hefter; a founding member of the team behind Thras.io; a company that has acquired over 100 FBA brands in the last 2 1/2 years.
In the first part of John's interview, we talk about what's going on in the marketplace, and how Thras.io is differentiating themselves from the legion of competitors that have surfaced in the last 6-9 months.
Then, in the second half of the interview, I asked John to share with me what makes a good product, how to launch them using what he calls "stupid smart" ideas and what brand owners should be doing now if they are hoping to sell within the next year.
Episode Highlights
[05:34] — What is Thrasio, and how do they buy a business?
- Thrasio had humble beginnings. Their office used to be adjacent to a Dunkin Donuts dumpster, but they’re now the fastest-growing profitable company in American history,
- Thrasio is an Amazon-based company that buys a business and operates them. They focus on sound operational systems and companies with a small-scale mentality.
[11:05] — Early experiences and lessons
- Their methodology of trying to turn-around declining companies proved ineffective and challenging.
- The seminal brand 'Angry Orange' marked their major hit and initial story as a company.
[14:52] — The initial steps in creating a big hit
- To make something go viral, John believes that it has to be attention-grabbing, 'in your face,' and vibrant.
- People should pause and 'see light' when they see your creative branding.
- John recalls a story of working with Snoop Dogg. Listen to the whole podcast to learn more about it!
[18:08] — Focus on your business instead of your competitors
- The primary goal of the company is operational excellence.
- There's plenty of room for other people to come in and build a healthy, thriving market.
- An abundance mindset certainly helped their business avoid distractions, evolve rapidly, and create gold rush ecosystems.
[24:42] — Being operationally superior is paramount
- Having expertise in virtually every field, such as supply chain and branding, assures their clients that they will grow an Amazon business.
- The sense of security businesses have from being taken care of by them cannot be equaled by most upfront payments.
- Their average company grows at a rate of 158% from just the first year of acquisition.
[28:17] — The recipe for a winning product
- Whenever the company does a product launch, they do it with purpose, care, and a differentiation strategy.
- To increase your chances of success, you should leverage one asset to send traffic to another product rather than grow something from scratch.
- Focus on long-term viability, instead of short-term profit, when launching a product.
- Pay attention to "stupid-smart" ideas that seem obvious. Don't always chase the silver ball in front of you.
[37:35] — Stimulating the Amazon system
- The tough nut to crack in terms of product launches is: making the Amazon algorithm believe that people want your product.
- You also have to focus on outside traffic to generate traffic from multiple places.
- People generally want to find the hack or shortcut around success, but the non-hacky way is usually the best way to do something.
[44:02] — Useful advice for future brand owners
- Build a business for yourself without the perfect goal of being acquired. Focus on excellence.
- Don’t look for someone out to buy a business. Instead, ensure that you have relevant expertise and you can optimize your operations.
- They buy a business based on products that are boring and stand the test of time.
- Brand owners should work on having good creatives and making sure that the product sells.
[49:50] — What is next for Thrasio?
- The company is buying businesses at a rate that is both 'exciting' and daunting. Precisely, they predict a jump from 100 brands to 200 brands in a year.
- Their goal is to continue to be the best Amazon and eCommerce operators on the planet. They don't want to rest on their laurels.