{"id":1532263,"date":"2024-01-12T09:53:21","date_gmt":"2024-01-12T14:53:21","guid":{"rendered":"https:\/\/www.practicalecommerce.com\/?p=1532263"},"modified":"2024-01-12T10:00:21","modified_gmt":"2024-01-12T15:00:21","slug":"simple-modern-ceo-on-competitive-markets","status":"publish","type":"post","link":"https:\/\/www.practicalecommerce.com\/simple-modern-ceo-on-competitive-markets","title":{"rendered":"Simple Modern CEO on Competitive Markets"},"content":{"rendered":"<p>Mike Beckham sees the benefits of competitive markets. Simple Modern, a company he co-founded in 2015, sells insulated drinkware, competing against Yeti and other large providers. He says markets are competitive because many consumers value those products.<\/p>\n<p>He told me, &#8220;Capturing a small percentage of a competitive market can make you insanely successful.&#8221;<\/p>\n<p>Beckham and I recently spoke. We addressed his ecommerce journey, Amazon, physical-store selling, and more.<\/p>\n<p>The audio of our entire conversation is embedded below. The transcript is edited for length and clarity.<\/p>\n<div id=\"buzzsprout-player-14291035\"><\/div>\n\t\t\t\t <script src=\"https:\/\/www.buzzsprout.com\/1995667\/14291035.js?container_id=buzzsprout-player-14291035&amp;player=small\" type=\"text\/javascript\" charset=\"utf-8\"><\/script>\n<p><strong>Eric Bandholz: <\/strong>Tell us about your journey.<\/p>\n<p style=\"padding-left: 30px;\"><b>Mike Beckham: <\/b>I grew up in Oklahoma and received a finance degree. I went into a nonprofit ministry job after college. I thought I&#8217;d work it for one year, but one year turned into 10. When I turned 30, around 2009, my brother approached me with a business idea. That business [QuiBids, a retail auction site] got big and quickly hit a million dollars in revenue. The company had many highs and lows, but I gained experience and learned much about ecommerce.<\/p>\n<p style=\"padding-left: 30px;\">Around 2014, we realized competing against Amazon was an uphill battle. We began looking at companies to buy on that marketplace. The more we looked, the more we thought, &#8220;We can do this. We have the skillset.&#8221; I helped my brother build the company \u2014 the Beckham Hotel Collection, selling mostly pillows \u2014 on Amazon. We have close to 300,000 reviews. It&#8217;s been the bestselling pillow for years.<\/p>\n<p style=\"padding-left: 30px;\">In mid-2015, a group of guys I&#8217;d worked with approached me about starting a side project. We had no idea what we wanted to do or sell. We just knew we wanted to sell on Amazon as our first channel and to have a culture and commitment to generosity. We decided to sell insulated drinkware. We bootstrapped the company and called it Simple Modern. I put my life savings in, and we have grown rapidly. We now sell in many places, including our own ecommerce site, major retailers, and Amazon.<\/p>\n<p><strong>Bandholz:<\/strong> Why Amazon?<\/p>\n<p style=\"padding-left: 30px;\"><strong>Beckham:<\/strong> We had several years <a href=\"https:\/\/www.practicalecommerce.com\/amazon-consultant-on-competition-black-hat-sellers\">competing<\/a> against Amazon [with QuiBids], spending a lot of money driving people to our website. I don&#8217;t know of any consumer retail brand that spent more between 2010 and 2014 on <a href=\"https:\/\/www.practicalecommerce.com\/ecom-exec-marketing-attribution-is-a-waste\">direct response advertising<\/a> than we did. We learned the trials and challenges of driving traffic daily and gaining awareness, especially when competing against Amazon.<\/p>\n<p style=\"padding-left: 30px;\">With Simple Modern, our posture was <a href=\"https:\/\/www.practicalecommerce.com\/how-ai-tools-improve-amazon-listings\">letting Amazon<\/a> do the heavy lifting. We would optimize for their system because we&#8217;ve built websites and understand algorithms.<\/p>\n<p><strong>Bandholz:\u00a0<\/strong>Insulated drinkware is hyper competitive.<\/p>\n<p style=\"padding-left: 30px;\"><strong>Beckham: <\/strong>Yes. When we launched, Yeti was crushing it. Hydro Flask, Corkcicle, and S&#8217;well were there as well. But they all focused on brick-and-mortar retail and higher prices. We focused on a premium insulated water bottle at an affordable price, available online. Many of those competitors had built their business models around physical distribution. We built ours around digital.<\/p>\n<p style=\"padding-left: 30px;\">We sold multiple sizes, SKUs, and colors. Those became a competitive advantage with more selection, better pricing, and the same quality as the leading brands. Competition is a two-sided coin. Most entrepreneurs see only the downsides. But highly competitive markets exist because many folks want to buy that product or service. Capturing a small percentage of a competitive market can make you insanely successful.<\/p>\n<p style=\"padding-left: 30px;\">I teach entrepreneurship at the University of Oklahoma. Students almost always aim for something with little competition. I always tell them that no competition occurs because their idea is unique, which is unlikely, or something about that market makes it toxic.<\/p>\n<p style=\"padding-left: 30px;\">To be sure, you have a higher chance of succeeding in a small market. Simple Modern wasn&#8217;t my first rodeo. I&#8217;ve learned the benefits of starting and focusing in a niche. As you build operational skills, challenge yourself to larger, more competitive markets.<\/p>\n<p style=\"padding-left: 30px;\">When we launched Simple Modern, a full-frontal assault against Yeti would&#8217;ve been disastrous. There&#8217;s no way we would&#8217;ve won. But we&#8217;ve carved out market share in many ways. Yeti has not focused on colors. The average guy has a black Tumbler. When your market&#8217;s big, there&#8217;s room for many winners.<\/p>\n<p style=\"padding-left: 30px;\">We <a href=\"https:\/\/www.practicalecommerce.com\/insights-from-organic-search-competitors\">have competitors<\/a> that are better at some things than us. But there are things we&#8217;re better at. You need a sense of humility and accuracy and to take stock of what you can do at an exceptional level. Do you have something that the market&#8217;s going to reward you for? We&#8217;ve been successful at parlaying digital success into physical retail placement. We&#8217;ve built Simple Modern around that.<\/p>\n<p><b>Bandholz: <\/b>Where can people follow you and support you?<\/p>\n<p style=\"padding-left: 30px;\"><strong>Beckham: <\/strong>The website is <a href=\"https:\/\/www.simplemodern.com\">SimpleModern.com<\/a>. Check out my <a href=\"https:\/\/www.mikebeckhamblog.com\/podcast\">podcast<\/a>. Follow me on <a href=\"https:\/\/twitter.com\/mikebeckhamsm\">Twitter<\/a> and <a href=\"https:\/\/www.linkedin.com\/in\/mikebeckhamsm\/\">LinkedIn<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Per Mike Beckham, lots of competitors mean lots of potential customers.<\/p>\n","protected":false},"author":718,"featured_media":1532265,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_wp_rev_ctl_limit":""},"categories":[13092],"tags":[30006],"class_list":["post-1532263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-amazon-marketplaces","tag-podcasts",""],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.2 (Yoast SEO v25.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Simple Modern CEO on Competitive Markets - Practical Ecommerce<\/title>\n<meta name=\"description\" content=\"Per Mike Beckham, lots of competitors mean lots of potential customers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.practicalecommerce.com\/simple-modern-ceo-on-competitive-markets\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Simple Modern CEO on Competitive Markets\" \/>\n<meta property=\"og:description\" content=\"Per Mike Beckham, lots of competitors mean lots of potential customers.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.practicalecommerce.com\/simple-modern-ceo-on-competitive-markets\" \/>\n<meta property=\"og:site_name\" content=\"Practical Ecommerce\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/practicalecommerce\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/Bandholz\" \/>\n<meta property=\"article:published_time\" content=\"2024-01-12T14:53:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-12T15:00:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.practicalecommerce.com\/wp-content\/uploads\/2024\/01\/Mike-Beckham.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"360\" \/>\n\t<meta property=\"og:image:height\" content=\"240\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Eric Bandholz\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@bandholz\" \/>\n<meta name=\"twitter:site\" content=\"@practicalecomm\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Eric Bandholz\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/www.practicalecommerce.com\/simple-modern-ceo-on-competitive-markets#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.practicalecommerce.com\/simple-modern-ceo-on-competitive-markets\"},\"author\":{\"name\":\"Eric Bandholz\",\"@id\":\"https:\/\/www.practicalecommerce.com\/#\/schema\/person\/b9a9b25eed7ab330bf65fbc9b65c7980\"},\"headline\":\"Simple Modern CEO on Competitive Markets\",\"datePublished\":\"2024-01-12T14:53:21+00:00\",\"dateModified\":\"2024-01-12T15:00:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.practicalecommerce.com\/simple-modern-ceo-on-competitive-markets\"},\"wordCount\":778,\"publisher\":{\"@id\":\"https:\/\/www.practicalecommerce.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.practicalecommerce.com\/simple-modern-ceo-on-competitive-markets#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.practicalecommerce.com\/wp-content\/uploads\/2024\/01\/Mike-Beckham.jpg\",\"keywords\":[\"Podcast\"],\"articleSection\":[\"Amazon &amp; 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