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You have to have a good product, a product that is high in quality for anyone to even consider you. Chaz: Obviously, we strive a lot on content.
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When it comes to imagery, explanations, specifications. Imagery and video I would say is probably our key way of communicating it.
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The other way is actually people holding our watches in their hands. We have a day return policy, no questions asked. The feedback has been great from day one. I was in production earlier on. I spent about five years in production so I have a very, very good handle on what a good quality watch should be like.
Felix: So, is when you got your start in the industry, so 20 years in the making before you started LIV Watches. Talk to us a little more about that background. What were you doing during that time to build up the expertise in the industry? Chaz: Yeah, okay. I started with a small brand called Daniel Mink. I got a job right out of high school. I started work, then I actually started packing watches.
Then, I was slowly promoted. A year and a half later I went into sales, which was great, by the way, because it gave me a really good idea of what people wanted, what was going on. That part of the business I think was … It was that transition that I had I think was optimal.
Going from starting in the packing room to sales and then from sales, I moved on to production. That company unfortunately folded, but the five and a half years that I spent there was a phenomenal … It was phenomenal for me. I got a lot of experience, the ins and outs both from a logistical standpoint also from sales and, like I said, production.
Felix: Can you talk a little bit more about that? Chaz: I think from a production, I think, is the most important thing I would say is relationships. You have your case supplier. You have your dial supplier, crowns, small components like screws, gaskets, crystals, movements. Each one of those pieces are sometimes produced by different people. Having those relationships, knowing those people, and knowing exactly what the lead times are for things, knowing exactly how to coordinate. Like you were saying, one of the key aspects of doing that is to build those relationships in the industry, know who the players are, have some kind of personal relationship with them.
Chaz: Yeah, absolutely. I think just going from working for another company and then all of a sudden to making your own brand could be a sticky transition. Then, I spent about close to eight years of just trading watches. I moved away from the manufacturing side and I was just trading high-end watches. Felix: I see.
You spent time in a different kind of role in the place. So, the production side was great, but I only got to really understand what we were producing at the time.
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When I went into trading watches, I got a very good grasp of what brands were doing successfully and unsuccessfully. Felix: Okay, I think this is important. Another important segue in your path, which is to reiterate, you started by working for someone else, then you started essentially becoming a retailer, right?
What did you see then?
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Chaz: Yes. I think the big part was really the evolution of, I would say, social and smartphone. Well, it actually started obviously with the internet. When Amazons of the world came along and I think the consumer became more and more comfortable buying stuff online and then they …. Interestingly enough, when the whole internet thing came on the scene, a lot of the big brands sort of shied away from it because they were so set in their ways of doing business.
You have your production side.
You have your distribution side. You have your retail. They have all these different channels and all these layers. This is not how we were built to do things. What challenges did you face with that approach? What challenges did you face along the way? Chaz: Obviously, as a new watch brand, I think the biggest challenge is, how do you find customers and how do you get people to know that you exist?
For us, we obviously had to create a product. We had to come up with some kind of idea of who we are, what our DNA is. We had to do that part, but I think the biggest challenge was, okay, if we get the design right and we get the product right, which I think we could, how do we reach people and let them know that we exist without blowing tons and tons of money on advertising? I think that was our biggest, biggest challenge. How did you determine what people wanted in a watch that was different than what they could maybe get out there currently?
Their retails are completely out of touch. That was the kind of place where oh, if you need … All the big brands had that price point. There were no middlemen involved that ate away your profits and required you to charge a higher price for a higher quality product. Now, you mentioned that one of the issues, once you create a product like this is to be able to reach them, reach your target audience. How would you describe your fans?
What is the ideal fan like?
Chaz: The ideal fan, believe it or not, a lot of our fans actually own a lot of high-end watches. I think this is also a little of a shift in the consumer mindset. You have social.
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You have the web, obviously. You have the mobile phone and you have the mindset of the consumer. I see an ad in the Wall Street Journal. I see an ad in Business Week or any other big publication and, okay, this is what I need to buy because they have some ambassador on there.
They paid some George Clooney to wear the watch.