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Tuesday, January 17, 2023 2:46:41 PM
A few things that should be considered.
I doubt the sale price will be $100 - $250 per product - even though it's likely the best topical antibiotic in the world. There is always consumer price sensitivity. I think they can do well around $29.95, $34.95 to $44.95 ranges. Vitastem should probably be priced around $29.95 or $34.95 if they want high converting and high volume sales online and offline with B2B too. We'll see though.
Average ecommerce conversion rates are around 2-3% for most industries. But, depending on the intent behind the searches, there can be lower or higher conversion rates too.
See: https://www.bigcommerce.com/articles/ecommerce/conversion-rate-optimization/
DTC sales would probably look something more like this though...
The assumptions
35,000,0000 google searches on average each month
Vitastem page rankings get them in front of 3% of all that traffic available
The Results
> Vitastem gets 1,050,000 brand impressions from search rankings
> Vitastem gets 1% of those available clicks = 10,500 visitors / month
> Vitastem converts 3% of visitors into sales at $35 (average order value, assuming only 1 product is purchased per user session)
> Vitastem generates $367,500 in DTC sales revenue monthly or $4,410,000 yearly (not factoring in any CMGR)
* higher rankings gets more visibility and more traffic and more sales. higher conversion rates (over 3%) will get more sales too.
Not out of question that Vitastem could do far more volume than the figures above and these don't even factor 2024, 2025 online sales figures either.
Now, let's assume Vitastem grows CMGR to 10% monthly...
They'll be doing 8 figures in sales yearly for DTC alone. Not even factoring repeat buyer orders or any number of large B2B deals (6 to 7 figures?)
If they start hitting 3x to 10x+ growth, they'll garner a much higher valuation from likely acquirers too which would result in a 10 figure acquisition, which would be incredible! IMO.
The big things in the equation are they really need new websites. Professionally designed and mobile friendly. Vitastem.net is terrible and is not helping the company. SEO and social media should really help get a lot more visibility too.
Dr Otiko still has quite a bit to prove here to everyone.
Still a big TBD but things are looking positive.
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