DTC792: Reframing Your Value Proposition

Good morning,

Here’s what you’ll find in today’s DTC:

🛑 Raising Prices to Offset Tariffs?
Do this before customers feel the pinch.

📦 Daily Tariff Update
The latest news and recap from last week.

🤖 AI Supply Chain Solutions
Learn how Cavela cuts sourcing costs by 40%.

🔥 LeBron Is Mattel’s New Kenbassador
A bold new era for Ken begins.

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You’re reading this newsletter along with new subscribers from: L.L. Bean, LOCO Scooters, and Olivarez Honey Bees. 👋

✨ Keep Your Business Healthy With This Webinar’s Keys To Scale Acquisition

With steep competition and rising ad costs, Health and Beauty marketers may be feeling a bit… unwell. 😅

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You’ll learn:

• 📱 How top brands diversify their marketing mix
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• 🌟 ROAS glow-ups and ways to retain high LTV customers

Transform data complexity into profitable growth with Triple Whale, the agent-powered intelligence platform that powers faster, more confident decisions.

Analyze performance across every channel and get clear, actionable recommendations to maximize ROI.

It’s like a wellness retreat for your business.

🛑 Make Sure To Do This Before Raising Prices!

Is your brand thinking about raising prices to offset tariff-related COGS increases?

Makes sense—but don’t think you’re off the hook.

The Pilothouse team shares that this decision may create a domino effect many brands won’t see coming.

Prices will increase across the board as your brand, your competitor brands, and your entire market feel the brunt of tariffs.

Suddenly, your category is positioned differently in the customer’s mind.

Conversion rates decline, consumer confidence is shaky, and prices are up.

That friction adds up fast.

Ad algorithms lose traction. Lower CVR means fewer conversions per impression.

That high-performing UGC ad you’ve been leaning on? It might not carry the same weight in this new environment.

CPMs rise—sometimes unpredictably. Deep-pocketed competitors with aggressive revenue goals will likely ramp up spend to maintain volume.

That means your business is now bidding against bigger wallets for the same shrinking pool of high-intent customers. 😬

The result? Fewer ideal buyers. More expensive clicks. A CAC that starts to creep.

So what's the solution?

Before doing anything else, fix your value proposition.

If your brand is going to raise prices, your customer experience and conversion environment must evolve with it.

The best brands don’t just increase prices—they increase perceived value at every touchpoint.

Build more value into the product experience. Bundle. Upsell. Add guarantees and loyalty perks.

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Here are four ways to improve your value proposition.

1️⃣ Use storytelling. People aren’t buying a product, they’re subscribing to an experience.

👉 Reframe the offer. A higher price needs a stronger story with clear problem and solution framing, plus lots of social proof. Position your product as an investment.

2️⃣ Clarify your messaging. Too many brands overcomplicate their offer. Make your value prop unmistakably clear—up front.

👉 Highlight benefits, reduce distractions, and front-load “aha” moments early in the scroll.

If someone has to ask themselves, “what exactly is this?” at any point in their journey, they’re gone.

3️⃣ Boost trust signals. You’re not just selling a product—you’re selling confidence.

👉 Now is the time to amplify reviews, UGC, testimonials, awards, and media mentions.

4️⃣ Eliminate micro-frictions. Site speed, mobile UX, checkout flow, support visibility—it all matters more now. At a higher price point, every click and scroll should feel effortless.

👉 Layer in small, intentional, conversion-focused upgrades that make the purchase decision easier at checkout.

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Raising prices isn’t just a financial decision, it’s a brand decision.

If you don’t evolve your value proposition alongside it, your conversions, customer trust, and growth will all take a hit.

Lead with value, clarity, and confidence, and your customers will follow—even at a higher price point.

💥 Growing Fast, Failing Hard, And Scaling Smart—Learn From Seven-Figure Ecommerce Founder Jordan Welch

👉 Ready to hear exactly what it takes to grow a successful ecommerce business today?

Watch Omnisend’s podcast with YouTuber Jordan Welch. He shares the unfiltered story of how he went from a broke teenager to a seven-figure ecom founder.

👏 From finding winning products to scaling smart with email, SMS, and TikTok, he’s sharing it all.

Want to know how Jordan Welch scaled his first Shopify store to $100K/month? (Hint: Maybe Omnisend helped with it!) 🚀

Find out now!

📦 ICYMI, All The Major Tariff News From Last Week

Whether it’s a minor tweak or a major shift, we’ll keep you posted on the latest tariff changes—so you’re always in the know.

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April 11, 2025 update:

• China Responds to U.S. Tariff Hikes
  • After Trump raised China’s tariffs to 145%, China slapped a 125% tariff on U.S. goods, up from 84%, last Friday.
• Trump Acknowledges ‘Transition Costs’ as Reason for 90-Day Pause
  • The president admits that his 90-day pause on tariffs last Wednesday was due to ‘transition costs.’
  • After a brief rally, the stock market slumped at the end of last week due to escalating trade war tensions.
  • Gold prices hit an all-time high as investors look for safe-haven assets during economic uncertainty.

In this episode of the DTC Podcast, we chat with Anthony Sardain, CEO and founder of Cavela, an AI startup that helps DTC brands drastically cut sourcing costs and navigate the new era of global tariffs.

Anthony explains how AI agents are changing the sourcing game by cutting costs, finding better suppliers, and helping brands navigate tariffs.

The result? Brands save up to 40% on costs while reducing sourcing work by 95%.

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In this podcast, we cover:

• AI Innovations In The Sourcing Industry: Learn how automated sourcing can diversify your supply chain and mitigate risks.
• How AI agents make sourcing faster and cheaper: We dive into Cavela’s massive supplier network (over 200,000 suppliers across 40 countries), automated product briefing, and real-time quote comparison tools.
• Cut costs even with rising tariffs: Avoid countries that just got hit with new import duties and pivot sourcing elsewhere.

If you’re wondering how to optimize margins without hiring a full procurement team—this is your playbook.

‍👉 You can listen to the full episode with Anthony here.

P.S. Tune in to the episode for an exclusive Cavela x DTC offer. 👀

🔥 PRODUCT LAUNCH

Mattel just launched a new Ken doll modeled after basketball star LeBron James.

The historic move makes James the first pro male athlete to be a ‘Kenbassador.’

The doll will come with various outfits and accessories that embody the four-time NBA champion’s ‘signature elevated streetwear style.’

Starting today, the toy will be available on Mattel.com and major retailers like Target, Walmart, and Amazon.

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⚡ QUICK HITS

💲 Did you know using segmentation can increase your revenue up to 760%? Dotdigital’s guide breaks down 10 segmentation hacks to personalize and perfect your customer experience. Grab your copy now. *

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📅 EVENTS

SEO Spring Training - A two-day conference which includes breakout sessions of researched, strategic actionable plans from experts who have worked their way to the top and have turned their businesses into something bigger.

🗓️ May 1-4, 📍 Chandler, AZ 💰 $1,197 - $2,897

Digital Marketers Australia - This event focuses on providing practical skills and knowledge in various areas of digital marketing. Topics covered frequently include SEO, social media marketing, paid advertising, and email marketing.

🗓️ May 5-6, 📍 Broadbeach QLD, Australia 💰 Free - $2,750

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💸 MERGERS & ACQUISITIONS

• Prada acquires fashion rival Versace for nearly $1.4 billion.
• Incident.io raises $62 million at a $400 million valuation.
• Zozo acquires fashion marketplace Lyst for $154 million.

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📰 NEWS

• China responds to Trump’s tariffs with a 125% tariff on U.S. goods.
• BeReal launches an advertising platform in the U.S. led by a former TikTok executive.
• OpenAI countersues Musk over a legal dispute about ChatGPT’s business model.

📥 Got a B2B Biz?

Join dozens of B2B companies finding demand-gen success through our niche community of 150k brand leaders and founders this year. Talk to our team to learn more.

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Have you heard our latest podcasts?

• ☠️ TWBERP 27: Drive Email Revenue Without Killing Your Brand
• 🏆 How Tito’s Built America’s #1 Vodka Brand Without Celebrities or Flavors
• 💻 AKNF 494: Why 2025 is the Year of Post-Click Optimization
• 📧 TWBERP 26: Building the Continuation Flow: A Lifecycle Email Strategy for Large Catalog DTC Brands
• 👜 Scaling a Luxury Resale Empire with Luxe Du Jour
• ⚡ AKNF 492: How To Win on Amazon in 2025: Rising Tariffs and AI

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Don’t forget to rate the DTC Podcast on Apple (⭐️⭐️⭐️⭐️⭐️)

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DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.

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