Howdy Dog Pack! Welcome to Dogonomist, what discerning dogs and dog lovers like to read.

Follow us on Twitter

THIS WEEK'S TOPICS:

• 👑 Royal artwork for your dog fetches $355K

• ☕ Origin of the puppuccino

• 🪄 Why you should teach an old dog new tricks

💼 BUSINESS BARKDOWN: ROYAL ARTWORK FOR YOUR DOG FETCHES $355K

We’ve dug up another gem in this week’s business barkdown.

This time, we are looking at a US based e-commerce business that creates regal renaissance style oil portraits from photos of dogs and humans.

This business has been listed for sale on Acquire.com for $275,000 and reportedly has made $355,230 in revenue over the last 12 months.

Let's get our paws dirty!

The Numbers 📊

Here is the excerpt from the posting:

So let's break this down a little more and add in some detailed info:

• Last 12 month margins = 26%

• Last month's margin = 17%

• Earnings multiple (how much more the asking price is than the earnings / profit) = 2.9x

• Unit price = $59 - $149

• Customers = they list between 1,000 - 10,000

• Reviews = 4.6 ⭐ Trustpilot score

• Customer return rate: 12.72% (less than 1% have returned a painting)

• Top acquisition channel: = Paid search, which makes up roughly 75% of new customers

• Standout Attribute: Only 1 full-time employee (lean operation!)

• Business model: Print-on-demand, customer selects design, uploads photo, it gets sent to supplier to print then shipped directly to customer

• Annual growth rate: 37%

• Reason for selling: “I have a full-time job that has been demanding after the removal of work-from-home privileges, so I haven’t been able to put in the time & effort recently to grow this brand.”

What we'd want to consider 🤔

• 🖥️ Expenses - 1 full-time employee ($400/mo 😮) who handles the operations. They also have a network of 30+ artists whom they hire in the holiday season as the demand grows, pay them per order + web maintenance

• 🧍Customer acquisition cost (CAC) - one of the most important metrics in e-commerce. They don’t list this, but mention that a bulk of their customers come from Bing ads and SMS campaigns

• 💵 Is their profit calculation net or gross? - meaning, the the profit what the owner makes, or just how much is left after paying for the product?

• 📧 Marketing programs successes and failures - most of their success comes from Google and Bing, they’ve yet to tap into Facebook/IG & Tik Tok

• 🤼 Competition - Crown & Paw, Turn Me Royal, Noblified

• ⏰ Time spent and reason for selling - This is a side hustle for the current owner, so this has solid potential for somebody who could operate full-time

What we'd do if we ran this thing 👔

1. 📈 Scaling Paid Campaigns on Facebook and TikTok: Given the popularity and user demographics of these platforms, investing in targeted campaigns can quickly drive visibility and conversions.

2. 📱 Enhancing Email and SMS Marketing: With an already highly engaged email and SMS list, maximizing this channel for re-marketing, cross-selling, and upselling is a low hanging fruit.

3. 🌐 Market Expansion: Expanding into untapped EU markets can provide a significant boost to sales. Initial research can identify the most promising countries, followed by a localized marketing campaign.

4. 👕 Launching Complementary Products: Introducing related products can increase the average order value and encourage repeat purchases from existing customers.

5. 🖱️ Conversion Rate Optimization: A minor uplift in conversion rates (current conversion is 2%) can have a significant impact on revenue. A/B testing, site design optimization, and enhanced user experience are critical in improving conversions.

Do we think this is a good idea? 🤨

Yep. ✅

If you have the digital marketing chops and know how to optimize social ad campaigns, then this has strong potential to be a winner!

☕ ORIGIN OF THE PUPPUCCINO

Ahh, the pup cup, or "puppuccino."

Whether you've gotten one at Starbucks or your local coffee shop, it's always a treat to see your pooch's eyes bulge with excitement when they realize you aren't just feeding your caffeine habit (and don't worry, puppuccinos are just whipped cream, no jolt for the doggos!).

But where did this wonderful treat come from and why?

According to our research (you know, googling things 😂), the term puppuccino was coined by rescue advocate Rocky Kanaka in 2008 when he started serving them to pups in his store.

In 2015, Starbucks rolled out their pup cup, much to the delight of dogs and humans everywhere. In fact, Rocky later ordered 100 pup cups to give to 100 homeless dogs.

At first glance, this all seems like a fun treat which likely came into existence for the pure love of dogs, but as our old econ teacher said, "there is no such thing as a free lunch."

What we might not think about is the economic benefit coffee shops and other businesses can see from offering a free treat.

Many dog owners walk their dogs along the same route and businesses understand that if they are along that route, they are more likely to capture their business.

So for these businesses this is a strategy to increase foot traffic and win over your dog walking route.

No different from sandwich board signs on the street, or bakeries sending their smells out to the sidewalk.

It seems to be working to, as illustrated by this search trend for "pup cup" over time.

This got us thinking about other clever tactics to capture business by going through the dogs.

We found that Pedigree once strategically placed stickers of dog bowls with food in them all over city sidewalks near pet stores. They then sprayed the stickers with dog food scents so that passing pups would stop for a good lick. Genius!

Don't get us wrong, we don't see puppuccinos as nefarious or bad.

It's another business tactic, and one that we think is a win-win.

I mean, who doesn't love seeing whipped cream on a snout?

🪄 WHY YOU SHOULD TEACH AN OLD DOG NEW TRICKS

We have a bone to pick with the saying "you can't teach an old dog new tricks".

Not only can you, but according to veterinary behaviorists, you should!

Dr. Lore Haug says it's very easy for older dogs to get into what she calls "shrinking world syndrome". You get them into such a routine with the same walk, the same feeding time, the same tricks, that they lose stimulation and enrichment.

We get it, as dogs get older, we worry more about overdoing it with them, and the routine becomes to feel familiar. However, if you lose out on stimulation, there's a greater chance of physical and mental decline.

This can include things like:

• Less acute sense of smell and sight

• Stiffening joints

• The canine equivalent of Alzheimers

• Forgetting training

• Increased anxiety

What can you do?

It is necessary to accommodate the fact that they are getting older, but don't let that stop you from continuing exercise or new mental stimulation.

So if you need to get carpet runners, a memory foam dog bed, softer toys, etc, go for it. But along with that you can try some of the following:

• New tricks that are age appropriate such as:

  • Spinning

  • Backing up

  • Bow

  • Fetching specific items

• For the next walk, go on a "sniffari" where you let them lead in a new location

• Try some water play

• Instead of exercise, take them to a new place like a park, forest, preserve and just let them hang out for a bit

• If their hearing seems affected, start to teach them hand signals

• For additional items check out this guide from The Farmer's Dog

At the end of the day think of them as you'd think of any older adult.

Yes things start to slow down and age has many effects, but having an enriching environment arguably becomes even more important.

We want them to be happy and healthy as long as we can, and teaching an old dog new tricks is a great way to help that.

KIBBLE BITS:

Every week we love to shoutout a pooch that has made another trip around the sun.

Happy 9th birthday 🎂 to Oscar! Your golden coat doesn’t look a day over 1!

That's all there is to bark about this week.

If you want more, be sure to follow our Twitter (@dogonomist).