AMAZON FBA: Why I Decided to Stick with Product #1

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Why I decided to stick with product #1:

I owe you an explanation.

In several videos, you have watched me hem and haw about sticking with my first product and re-ordering versus moving forward and trying my luck with somethings else.

I’ve decided to go all in and re-order my first product. I believe that I can make incremental changes to increase my margin overtime, as well as raise my sales. I can turn this product from a zero to a hero.

Watch to see what I mean!

Transcript:

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there has been a lot of hand-wringing

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about this that you will be happy to

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know I’m ready to move forward

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hey welcome back for another episode of

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the disrupting tea queer beginners

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filled businesses I am glad you’re here

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today because I am going to tell you all

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about why I ultimately decided to stick

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with product one so you all know you’re

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very well acquainted with the struggles

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I’ve had with product one and it’s just

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kind of lack of profitability I wasn’t

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making any money off of it at all and so

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I talked about it in other videos and I

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was like I don’t know what I’m going to

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do and I finally know what I’m going to

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do and that is I am reordering I’m going

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all-in I guess on another 250 order unit

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of product 1 and this one is going to be

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successful and it’s going to make me

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money and I have the numbers to back

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that up I know why and that’s what I’m

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going to share with you today so as I

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mentioned before product 1 I was selling

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at $24.99 and when I first launched I

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was selling quite a bit and then it just

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kind of was tapering off that I was

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averaging between 1 and 3 sales a day

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really more like two or three a day at

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that $24.99 price point however was PBC

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and with the cost of goods and all that

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stuff I was really making very little

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money probably less than two dollars a

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unit depending on what my PPC spent had

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been for the day and I was like this is

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crazy I mean because it is crazy right

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like you don’t go in business to make $2

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$4 a day and so I was like this isn’t

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working I don’t think that I’m going to

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do 4 with this I think I’m just going to

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say this was not a success and go do

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something else then I got the

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opportunity to shop with Scott bulk

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we’re on this podcast which is really

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cool somehow I worked my way into a free

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coaching call with him and he was like

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you know I really think that you can do

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some stuff to lower your cost and if

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you’re already selling and you’ve

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already invested in getting photography

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in UPC code and all that stuff and you

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can probably turn this around and I was

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like yeah okay

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I really just thought I was humoring him

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a little bit but like there’s no way

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like you don’t know my life come on but

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what I did was I contacted some shipping

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companies from freight forwarders that’s

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the word I was looking for and I got a

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quote back and I

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save $700 plus on shipping those 250

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units and and that’s she C shipping I

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love you a little bit more for air

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shipping I’m still waiting on that final

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quote but they said it was going to be

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pretty competitive so we’ll see I’m

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excited about that I also contacted my

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supplier and asked for a discount on

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pricing they said that because I wasn’t

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ordering more it’s a higher moq to get a

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lower rate I’m not ready to invest that

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much money if you’re like $8,000 in

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product costs I’m not really ready to do

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that yet but you know we are working

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towards I know what my next goal is to

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be able to get lower cost on on the

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products so this is exciting this is all

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good stuff turns out there is money to

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be made or saved in this case selling so

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now the next shipment if I sold it

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$24.99 I know I could make a profit

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that’s pretty exciting I probably get

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out more around five dollars a unit

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which isn’t that pretty I would be

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pretty happy with that

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but let me tell you I am really excited

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about ordering products one again as I

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was getting lower in inventory I’ve

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raised my rate I raised my rate from

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$24.99 to $29.99 which is absolutely

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like top a market for this product and I

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was like you know it’s going to slow

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down I’m probably only going to sell one

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every day or so but who cares not making

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money anyway and least that way I’ll

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make a little bit of money and I will go

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out of stock before I give this

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opportunity to order and more funny

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thing happened myself looks doubled so I

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went from selling about one to three a

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day at $24.99 to throw in four to eight

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a day at $29.99 that’s more than

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doubling but you get my point

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I was shocked so now not only do I know

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at $24.99 I can make it okay profit

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selling this product but at $29.99 I can

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make a better product and potentially

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sell way more sign me up that was the

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happiest accident I think I’ve ever had

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so but here’s the problem right I raised

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my price so I wouldn’t go out of stock

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and now I’m selling faster than I’ve

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ever sold before so I’ve raised my price

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again from 34 sorry from $29.99

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to $34.99 and sales dropped but they

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went down to the same rate I was selling

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at $24.99 I’m back into that 1 2 3 sales

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range rate and I’m like I can’t even

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believe so you’re telling me for the

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first 175 units I could have been

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selling them at the same velocity sing

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sales velocity for $10 profit more I

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mean that now I’m making even with my

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high cost – good 12 dollars and five

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cents a unit profit much so hey guys

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here’s the cake away tester price

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because you don’t know where you’re you

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know your sales of your profit curve is

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going to peak out because my peaked out

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at $29.99 and I never would have guessed

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that for my first 250 units that I saw

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I’ve had very low PPC spent I’ve got it

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started that I have not spent a lot of

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money on it I think five dollars a day

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would be like the absolute most I’ve

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spent so far I also did no outside

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marketing I had nothing outside driving

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sale to Amazon’s with read people to buy

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my product and then finally I had no

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giveaway I have mentioned in the past

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also the giveaways just never really

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appealed to me that much I really never

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wanted to play that game I did talk with

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this guy who runs fetcher which is in

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partnership with jumbo Scout and he was

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like you know if you gave away like 25

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units five a day for five days that

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could really bump your VSR you probably

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really surprised at how many fields you

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started to get just from doing that so

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it’s something I am considering and

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still just it’s not excited about it

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it’s still not excited about just giving

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away product but if you can spend a

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little money to make a lot of money then

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that’s a trade that we should always

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make so the other thing that I did not

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do on the very first unit if you order

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or shipment now I have some other areas

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that I know I can improve in order to

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probably sell at a higher sell

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philosophy right lower my BSR that would

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be adding more pictures right now I only

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have studio photos I don’t have any

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lifestyle pictures and I always hear

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that people really like lifestyle

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pictures another thing is I could do

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giveaways if I choose to do that and

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then the last thing would be the

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hence brand content I don’t have that

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currently only available through brand

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register which I were working on but

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it’s a longer process now we need to get

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trademark we’ll talk about that in

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another video but I looking at that

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enhance brain content because a lot of

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my competitors have that that’s just

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something else that I note will only

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help it certainly is not going to hurt

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so we’re going to work towards that also

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I guess in the end of the day I was just

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like Megan this is a good product and

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it’s selling with you basically doing

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nothing with it so if we put a little

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effort into it we can probably sell a

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lot more and that’s what I’ve decided to

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do is really focus on making product one

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is success and I will tell you that

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there are some of you guys in the

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comment section that kind of kicked my

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butt on me wanting to just drop it and

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move on to the next product and not

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really taking time to figure out what

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was wrong what I did wrong with the

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first product so thank you guys so much

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for being that support and that

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accountability for me I couldn’t do it

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without you do you have any questions

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about anything I didn’t cover here about

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how it ultimately came to the decision

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to stick with product one reorder and go

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all in on it

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leave those down in the comment section

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below I will certainly be checking in

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and happy to answer any other questions

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that you have for me there

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as always guys take care have a great

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week I will talk to you next time
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there has been a lot of hand-wringing