Episode Details

Most ecommerce brands head into Q4 carrying too much inventory and not enough cash, and those two problems are directly connected. In this episode, Richard Gaffin sits down with Anmar Anmar Abdul Jawad, Director of Profit Engineering at CTC, to walk through the Cashmas in July framework, a four-step process for liquidating slow-moving inventory in Q3 so your brand has the capital and focus it needs to win in Q4.

What we cover:

• Why brands fall into either an execution gap or a strategy gap with inventory

• The real cost of holding inventory, including storage fees and opportunity cost on cash

• How cash constraints force brands to pull back spend and miss cohort value

• The four-step liquidation process: SKU identification, financial modeling, operating plan, and asset execution

• Why sequencing discounts correctly depends on your brand's historical discount behavior

• How CTC's portfolio-wide data gives brands an edge on ad angles and creative strategy

• Why adding a third party for liquidation adds capacity instead of displacing your evergreen business

Key insight: Brands that are cash-constrained in Q3 have to reduce new customer acquisition spend precisely when efficient CAC opportunities are available. Liquidating inventory early funds the cohorts that drive your Q4 contribution margin.

Ready to run Cashmas in July for your brand? https://commonthreadco.com/pages/cashmas-in-july

Show Notes:

• Go to http://outersignal.com/thread to get 50% off your first two months
• Explore the Prophit Engine: https://commonthreadco.com/pages/prophit-engine
• The Ecommerce Playbook mailbag is open — email us at podcast@commonthreadco.com to ask us any questions you might have