02:02:04 · John Coogan, Sean Frank, Jordi Hays, Thibault Sottiaux
[02:02:04] S1: And if [02:02:04] S6: you got it wrong, it bankrupted your company. Yep. Right? Like, you had bad inventory or you get, like, shorts in December. Right? Like Yeah. Yeah. It ruined a bunch of businesses. Mhmm. AI has totally solved that. Really? Working directly with coexes of the world, right, and just putting in all of your your business information. [02:02:18] S1: Such a huge unlock for the global economy. It's, like, crazy to think of. [02:02:22] S0: We gotta tell we gotta tell consumers that don't like AI. Your favorite brands are doing perfect forecasting. [02:02:30] S1: And that means that [02:02:31] S0: you are gonna get the perfect article of clothing right before your trip to Hawaii even though you waited until three days before to order it. [02:02:39] S6: Always have the right sizes in stock. That is coming because of Kodak. That's crazy. [02:02:43] S0: This is this is this is, like, part of what, the Souffinator was talking about. Right? Like, the the one of the Eric Suvert moped up memo. He he was just talking about, like, actually, if you have, like, better advertising because of AI, it will create a like like, it will drive economic growth purely because you have more and more of these, niche businesses that might have an audience of 50,000 people in the whole world. And historically, you couldn't build that business because it would have been impossible to find that 50,000 people out of billions. Now you can. [02:03:16] S4: Mhmm.
02:03:16 · Thibault Sottiaux, Jordi Hays, Sean Frank, John Coogan
[02:03:16] S4: Mhmm. [02:03:16] S0: And then this is again an accelerant of like so much revenue is lost every day. So much purchasing activity doesn't happen because people just can't buy the stuff that they want because the brand didn't properly forecast Mhmm. And and is still kind of doing like fly by wire. [02:03:34] S6: Totally. The wrong sizes, the wrong things at the wrong time. Like, with how expensive it is to get stuff on, shipping containers and how long it takes. Mhmm. And there was a lot of companies who spent a lot of money trying to solve this. There was demand software that did billions a year in revenue. As long as you have like a system of records, like a clean data warehouse Yep. And you have your all of your sales from Shopify, Amazon, whatever else, you port all of that into a codex and it will it totally has it figured out. [02:03:58] S1: Interesting. [02:03:59] S6: And if you have to make those small tweaks like, oh, actually last year we were on a promo, this year we're not going to. [02:04:03] S1: Oh, so the multi platform thing is big here because I would have I was just about to ask you, like, should Shopify roll out a demand planning tool for Shopify merchants? But they probably Amazon has sharp elbows and won't give them all the data just via a a simple integration. [02:04:18] S6: Yeah. It all has to roll up into the harness. It all has to go into codec. [02:04:21] S1: And so and so you have to get into a data warehouse and then you have to point an LLM at that.
02:04:21 · John Coogan, Sean Frank, Bernt Øivind Børnich, Jordi Hays
[02:04:21] S1: And so and so you have to get into a data warehouse and then you have to point an LLM at that. [02:04:25] S6: Yeah. So like, you know, we're not like we're not like a large buyer of software. [02:04:31] S5: Yeah. [02:04:31] S6: Like, you know, we we have Shopify [02:04:33] S0: Sure. [02:04:33] S6: Data warehouse, whatever else. But as long as you have those like basic things [02:04:36] S5: Yeah. [02:04:36] S6: And you put it into a harness Yeah. It's like [02:04:38] S1: But your IT spends like yeah. Probably like less than 1% of revenue. [02:04:41] S6: Totally. [02:04:41] S1: Yeah. Yeah. Exactly. Which is which is the the good benchmark. You don't wanna be like building every system custom from scratch. [02:04:48] S6: Yeah. And people are so excited because they can vibe vibe code everything. Right? But, like, you know, judge me reviews is like $5 a month. So I'm not gonna vibe code my own reviews thing. Right? I'm just gonna do this. [02:04:57] S1: Yeah. Just pay that. Yeah. [02:04:58] S6: But but So really [02:04:59] S1: There's some review plugins that are very expensive. [02:05:01] S6: So Yeah. Bizarre Voice, horrible. Like, yeah. Yappo has a bad reputation. [02:05:05] S1: Yeah. Yeah. I've gotten I've gotten, fleeced a couple times. [02:05:10] S0: What's new in manufacturing land? Oh. You know, this You you guys were trying to develop US manufacturing, like, way before, like, American dynamism was, a category. Like, this is something that you guys have been, like, exploring and dabbling with for a long time. But what's what's the latest?
02:05:10 · Jordi Hays, Sean Frank, John Coogan
[02:05:10] S0: What's new in manufacturing land? Oh. You know, this You you guys were trying to develop US manufacturing, like, way before, like, American dynamism was, a category. Like, this is something that you guys have been, like, exploring and dabbling with for a long time. But what's what's the latest? [02:05:30] S6: Yeah. So like we actually worked with the government in like 2022 to get something called like a general exclusion order. So like we have a we can we can very easily now get people to get banned from importing, Like like if we if they value that RRP. But to do that, you have to prove that you're like a important part of the American economy. So to do that, we actually bought the the largest independent watchmaker in America. It's called like a it's called FTS five to IMP Solutions. They're in Arizona. So we own them. [02:05:57] S1: Yeah.
02:05:57 · John Coogan, Sean Frank, Jordi Hays
[02:05:57] S1: Yeah. [02:05:57] S6: So if you ever buy American made watch, I probably made it. No way. But it's a really hard business. That's crazy. Watches watches suck. Yeah. We do wallet production there. Okay. You know, we probably spent 2 or 3 or $4,000,000 like getting that whole thing set up to actually produce wallets there. But then like the Trump tariffs made it really hard to get steel because there's a huge global tariff on all non American steel. That means everybody wants American steel, so now it's really hard to get it. And we have wait for those things to work themselves out. But look, most manufacturing's already very automated. Like, you guys have spent time in China. I'm going back to the next month. Yeah. It's like they don't have that many people in factories. It is robots and assembly. And that can be done basically anywhere. [02:06:39] S1: Yeah. [02:06:40] S6: And then it's just getting the raw goods to wherever you actually wanna manufacture stuff. And with steel and batteries, we can't do that in America yet. So we we have to build a supply chain. It'll be like a ten year thing but the future is gonna be hyper local manufacturing for sure. [02:06:54] S1: I like the idea of you getting into steel manufacturing. That would be electric. You just make your own steel, fully vertically integrated. [02:07:01] S0: Is now the best time in history to start a consumer brand? [02:07:06] S6: Well, I would say probably like January 2012 when Facebook ads just rolled out. That was probably the best time. [02:07:13] S0: But now is the second best?
02:07:13 · Jordi Hays, Sean Frank, John Coogan
[02:07:13] S0: But now is the second best? [02:07:14] S6: For sure. I mean, one, it's moded from AI. Like I would hate to be trying to sell software right now. Sure. Right? And a lot of services, I'd hate to be in that business. Yeah. People are gonna buy stuff forever. Right? You have birthdays, you have Christmas. The American consumer is still incredibly strong. Yeah. We really just had the best q two of all time and that's with a war in Iran, like in Oh, yeah. [02:07:36] S1: And inflation and all sorts of stuff. [02:07:38] S6: Yeah. And like it all actually like looking at [02:07:39] S1: Consumer confidence is so low, even though consumer spending is is holding, you you you there's always nervousness about will there be a pullback. [02:07:48] S6: Yeah. There's been nervousness for like six years. Yeah. But I'm telling you, the Ukraine war in 2022 Yeah. There was a noticeable decrease in ecommerce activity. Really? And right now, it's not happening. Things are actually ripping. So I think it's a great time. [02:07:59] S1: Think Total vibe session. Yeah. Total disconnect between what people say in the Pew research and then what people actually do. [02:08:05] S6: Dude, if I had my Shopify notifications on, it would just be chiming all day right now. I think people are yeah. It's it's definitely a vibe session. Mhmm. So it's a great time to be selling stuff.