Outsmartly

Maybe you need more products?? Here’s some unconventional advice: New products can save your business. Yes, it’s a massive pain in the A$$! Developing, producing, and marketing them takes serious effort—but hear me out… Most DTC businesses rely on one to three hero products, those top-performing items that dominate ad spend and drive the brand forward. At Portland Leather Goods, we doubled down on two hero products in 2023—the Circle Bag and Mini Crossbody Tote. These products delivered the best balance of acquisition costs and lifetime value, enabling us to scale advertising dramatically and achieve exponential efficiency gains. But here’s the catch: while “Hero Products” are critical, they only account for 30% of our new customer purchases. The other 70%? That’s the rest of our catalog. Why does this matter? Because while hero products drive traffic, a broader, well-curated catalog converts that traffic into sustainable revenue. If we relied solely on three to five hero products, we wouldn’t exist today, at least not at the sale we're at currently. It’s the depth of our catalog that keeps our advertising profitable and our customers engaged. Obviously we’re always hunting for the next hero product. But just as importantly, we’re expanding our catalog strategically. By listening to customers and analyzing data, we launch products that complement our existing offerings, improve retention, and increase overall efficiency—even if they’re not immediate advertising powerhouses. Take a look at your own business. Are you confident you’ve released the best product you’ll ever offer? Or could expanding your catalog make your brand more dynamic and valuable? Not everything is going to be a smash hit, and that’s alright! Start by digging into your sales and cohort analysis. Understand the lifetime value of customers based on their first purchase. Focus your advertising on the products that truly drive long-term value. Not just those with the lowest acquisition costs!!! Then, think bigger: What products could amplify your brand, complement your heroes, and unlock new opportunities? It’s not just about having a hero—it’s about building a catalog that works together to power your business forward. This might not be the right advice for everyone, but it’s definitely the right advice for someone out there. I’d love to hear your thoughts on this, what do I have wrong??