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.
02:08:05 · Sean Frank, John Coogan, Bernt Øivind Børnich
[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. [02:08:15] S1: That's great. What are you thinking on the creative side? Are you Higgs field maxing with, like, all these workflows to generate endless AI videos? Are you seeing progress in AI images? What what's working? We just talked to the souffinator about the this study that showed that when AI is clockable, it underperforms. But when it's not identifiable as AI, if it's just a product image and it just looks indistinguishable from CGI or a photo, it over performs sometimes. [02:08:46] S6: Oh, dude. Pull up my Facebook ads library and it is tons and tons of AI generated static ads. [02:08:52] S1: Okay. [02:08:52] S6: Right? [02:08:52] S1: Static. [02:08:53] S6: Yeah. Because the the statics are actually like, you can build like ad factories, like totally automated. Yeah. So, you know, you take a Hicks field, you use an MCP, you bring it into like your harness of choice like a codex. [02:09:02] S1: Yep. [02:09:03] S6: And you can generate 10,000 static ads [02:09:05] S5: Yeah. If you [02:09:06] S6: wanted to. Right? And we just have that running twenty four seven. [02:09:08] S1: Yeah. [02:09:09] S6: They get pumped into a Facebook ads library to test it. [02:09:11] S1: Yeah.
02:09:11 · John Coogan, Sean Frank, Eric Seufert
[02:09:11] S1: Yeah. [02:09:12] S6: And then the winners go to a different ads library to like a different ad account to actually scale those up. Yep. So the static stuff is totally solved. Yeah. And I would hate to be trying to do ads without it right now. Yeah. Yeah. Right? I actually built a spreadsheet yesterday or like a presentation slide by hand and I felt like I was a caveman. It's like that's like we're working with like the ads of like the password were Video, we still do a lot of it. It's mostly just as like cut scenes and like a hypercut. [02:09:37] S2: Sure. [02:09:37] S6: So like we want to have motion or somebody talking or whatever. We'll do a lot of that. [02:09:41] S1: Yep. [02:09:41] S6: But it went viral yesterday, the the Seinfeld fully AI episodes. That is really really good. It's getting very close to actually being indistinguishable. [02:09:50] S1: I thought it looked really good. I thought the editing pacing was wildly Yeah. [02:09:54] S6: I agree with [02:09:54] S1: I thought there was like the gaps in the humor, like the pacing is so key to that. It was like but from a fidelity perspective, it looked indistinguishable from the show. [02:10:03] S6: Yeah. So it's like it's very inhuman in like the the way they talk or whatever, but like that's gonna be fixed. Like that's coming in two more model updates, I'm sure. And then and then it's like, yeah, all video will be fixed.