How do you build a DTC offer that raises profit without hurting conversion rate? Simplify the offer so a shopper understands it in seconds, then raise MSRP so you can show a bigger discount at a higher final price. The offers scaling DTC brands run today are buy more save more, a discounted first subscription order, or tiered dollar-off bundles. Brian Ng of Digital Ride raised one brand’s MSRP to $74.95 behind a 50% discount and saw conversion rate hold steady while the brand moved from a monthly loss to profit. In this episode, Andrew Foxwell, Brad Ploch and Zach Stuck talk DTC offer strategy with Brian Ng of Digital Ride, covering how to raise prices without losing conversions, the three offers scaling brands run right now, and how a $10M a month brand manages creative with outside agencies. You’ll learn why raising MSRP behind a bigger discount can lift profit at the same conversion rate, how to test a new offer with a single URL parameter, and why more creative volume often makes performance worse.

We discuss:

• What a bad DTC offer looks like, and why confusing offer pages lose the sale
• The three offer structures scaling DTC brands use: buy more save more, subscription-first, and tiered bundles
• How Brian raised MSRP to $74.95 behind a 50% discount and turned a monthly loss into profit
• How to test offers with Convert or Intelligems experiments versus sending ads to a new landing page
• How to forecast ecommerce revenue year over year and why you shouldn’t scale before new customer ROAS is there
• Running a $10M a month brand’s creative through three agencies with no in-house strategists
• Pricing psychology: why $39.99 beats $35.99, and a $30 price change that lifted profit per session 40%

Get the newsletter: https://www.scalabilityschool.com/scalability-newsletter Learn more: https://www.scalabilityschool.com This episode of the Scalability School podcast is sponsored by NorthBeam and they just launched Northbeam Incrementality. Northbeam Incrementality gives you easy, automated, self-service incrementality tests, while protecting you from the major mistakes so many people make while running incrementality tests. Your MTA handles the daily tactics, your MMM guides the long-term planning, and Incrementality provides the causal truth. It’s a closed loop that allows you to scale what works and cut what doesn’t. Right now when you head over to www.northbeam.io/incrementality, they’re offering Scalability School listeners 50% off unlimited tests for a year when you join. Just tell them we sent you! To connect with Brian Ng: https://x.com/briannjho To connect with Andrew Foxwell send an email [email protected] To connect with Brad Ploch send him a DM at https://x.com/brad_ploch To connect with Zach Stuck send him a DM at https://x.com/zachmstuck Learn more about the Foxwell Founders Community at https://foxwellfounders.com Learn more about the The Hive Haus Creators Community at http://HiveHausUGC.com

Scalability School is the podcast for media buyers, agency owners and DTC operators who want to grow without guessing, hosted by Andrew Foxwell, Brad Ploch and Zach Stuck.

Chapters

00:00 DTC offer strategy: why $39.99 beats $35.99 02:35 How Digital Ride grows DTC brands as a growth partner 05:27 How to forecast ecommerce revenue year over year 08:56 Can creative agencies replace an in-house creative team? 14:26 How much creative a $10M/month brand launches 22:29 The 3 offers scaling DTC brands run right now 23:55 How to test a new offer: Convert experiments vs new landing pages 25:29 How raising MSRP turned a monthly loss into profit 30:25 Pricing psychology: the $30 price change that lifted profit 40%