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  • #999494
    Amy1991
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    Hello

    I am new here and this is my first post.

    I recently finished my Tafe Qualification in Business and am looking to venture straight into business.

    I like the idea of subscription box business for healthy snacks, but my friends think there are too many of such around and people may not buy into it.

    One of my friend suggested I get some advice from people in real business and hence I am here.

    I would appreciate any suggestion that you can give.

    #1219972
    Rowan@quaotic
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    There are a lot of subscription boxes around, and many revolve around snacks. That does not mean you should not try to start up your own.

    Like any online business, it takes a lot of work and time for you to see any results. Even with steady marketing it can take months to get your first sales. It is not a case of make it and they will come.
    Your product has to be unique and good value for money to appeal to people, even then it is still hard work to get those customers to find you – Google will not be interested in your site until it is well established and full of things that people want to search for – lots of information and articles is what Google likes most.

    My main worry is – can you make a good enough profit after buying the snacks wholesale and after postage, and still make it value for money?

    Just be prepared that the vast majority of online businesses do not succeed despite work, and you may have to change your tactics a few times to find what suits you best.
    There is a site that lists all the Australian subscription boxes and reviews on them which would be good for you to join once you are set up.

    I tried the subscription box idea once but didn’t have the funds or time to make a go of it. Anyway, here are some sites to check out the competition:

    https://www.subscriptionboxaustralia.com/
    https://www.cratejoy.com/box-insider/australian-subscription-boxes/
    https://boxes.mysubscriptionaddiction.com/australia

    #1219973
    Paul – FS Concierge
    Keymaster
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    Hi And Welcome to Flying Solo [USER=114657]@Amy1991[/USER] . It is great to have you!

    Thank you for joining our community and posting.

    Cheers

    #1219974
    bb1
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    Do a little research, take a look at the sites [USER=28171]@Rowan @ GardenLarder[/USER] put up, pick a similar subscription box, do a rough pricing of the items in it, and decide if you thing there is enough fat left to make a profit. Your business course should have given you some ideas on what the wholesale/retail markup is so you can get an idea of wholesale pricing.

    Don’t know a lt about this sector, but one business I knew that was doing, could only get pricing down (due to low volumes), as they also had a retail business selling the same products, so they had a good wholesale price to start with. You also need to consider delivery / postage, it is a killer.

    Do your research

    #1219975
    Amy1991
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    Thank you all for your words of wisdom. I found out that postage/courier would cost between $10-$13 max.

    And if I were to buy products at a wholesale price, I might be 25% better off then retail

    If my boxes start from $50 @ 25% markup, I might have $12.50 left over for shipping cost.

    So if I was to make up 3 boxes for subscription at $55, $75 & $95 per month, I should be able to cover my shipping cost for the first box and may be left with little $ on other 2 boxes.

    Have I missed anything?

    #1219976
    LucasArthur
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    Amy1991, post: 265505, member: 114657 wrote:
    Thank you all for your words of wisdom. I found out that postage/courier would cost between $10-$13 max.

    And if I were to buy products at a wholesale price, I might be 25% better off then retail

    If my boxes start from $50 @ 25% markup, I might have $12.50 left over for shipping cost.

    So if I was to make up 3 boxes for subscription at $55, $75 & $95 per month, I should be able to cover my shipping cost for the first box and may be left with little $ on other 2 boxes.

    Have I missed anything?

    Howdy,

    Sorry not read it all, or delving too deeply, although to answer your question ‘have i missed anything?’ i would like to contribute things like:
    Packaging
    Freight mishaps – be it lost in transit or replacement damaged items
    Obscure delivery locations that would exceed your $10-13 MAX comment
    Overheads like electricity and running around costs
    Labour (sadly not many in here do work JUST for love)

    Above is just a thought disposition, think profit, then reassess your stance to ensure you are:
    Competitive
    Unique offering
    Desired
    Profitable IF you need to employ people in your venture

    Wishing you all the success you desire

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1219977
    Amy1991
    Member
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    LucasArthur, post: 265508, member: 34537 wrote:
    Howdy,

    Sorry not read it all, or delving too deeply, although to answer your question ‘have i missed anything?’ i would like to contribute things like:
    Packaging
    Freight mishaps – be it lost in transit or replacement damaged items
    Obscure delivery locations that would exceed your $10-13 MAX comment
    Overheads like electricity and running around costs
    Labour (sadly not many in here do work JUST for love)

    Above is just a thought disposition, think profit, then reassess your stance to ensure you are:
    Competitive
    Unique offering
    Desired
    Profitable IF you need to employ people in your venture

    Wishing you all the success you desire

    Jason
    Thank You, Jason.

    I am aware that I may not make any profit in the initial phase of this project.

    And yes, I cannot afford any employee as well at this stage.

    Working from home atm and hence not factored in rental, electricity, etc.

    Yes, I calculated the cost of the box but not insurance for postage which I need to factor in this. Thank You heaps for pointing this out.

    My target is a modest 150 subscribers by the end of 1st year. However, I am told that it is NOT easy to get 150 subscribers unless I spend some money on customer acquisition activities such as PR, Editorial, Google & Facebook ads words, etc. (The marketing budget available currently is only for Organic SEO – however I intend to keep aside % of returns (if any) for such marketing activities). Some research says that it can cost anywhere from $35 up to $150 to acquire customers for such business.

    Based on some research and case study, my attitude towards this concept is:

    1. Profit or making any financial return from this project is not possible for at least next 4 to 6 quarters. Hence, I should hang on to my part-time job to pay bills while I set this up.

    2. My aim should be to offer value to customers @ a reasonable price at their doorstep.

    3. I should work on increasing brand recognization rather than increasing profit at this early stage.

    4. I do not want to accept or commit to any funding at this early stage.

    5. Should spend the first 12 months making mistakes and correcting them by converting customer feedbacks into feedforwards.

    6. Make strategic partners who can offer complementary products/services to my clients and vice versa.

    7. Customer satisfaction and staying in green (not red) should be my MANTRA

    I am sure some of you can give me a reality check & wake me up from this.

    Are there any WordPress Developers in the house to through some light on development cost?

    #1219978
    Paul – FS Concierge
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    Hi [USER=114657]@Amy1991[/USER]

    Have you done research around profiling potential customers, finding out where they hangout and wher you can reach them, what their problems are and how you can solve them?

    Starting out with a product in mind is generally the wrong way about developing a new product.

    Cheers

    #1219979
    Amy1991
    Member
    • Total posts: 23
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    Paul – FS Concierge, post: 265517, member: 78928 wrote:
    Hi [USER=114657]@Amy1991[/USER]

    Have you done research around profiling potential customers, finding out where they hangout and wher you can reach them, what their problems are and how you can solve them?

    Starting out with a product in mind is generally the wrong way about developing a new product.

    Cheers
    You are correct. I classify the product I am developing into health category (healthy nutritional and exclusive snacks which are usually organic, always vegan and comes with gluten-free and keto friendly options) – It will be naive of me to say that most of us need it and hence most people are my customers. So I am going to filter the potential customers into those who are actively looking to get fit and are curious if not more aware to try and adopt a healthy lifestyle. Such people could be hanging around with or at Gyms, Fitness clubs, sports clubs, walking groups or similar fitness groups, etc. etc.

    The product is healthy snacks + value for $ + convenience @ your doorstep

    #1219980
    Paul – FS Concierge
    Keymaster
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    Hi Amy,

    The internet is littered with product first types of businesses.

    You really need to get inside your target market’s head and work out what they can’t get/would love to get and will pay money for.

    Here is an article that directly relates to your idea and it is a cautionary tale.

    This Book is a worthwhile read – it is all about how to validate assumptions around what people want and will pay for.

    Have a look at the reviews.

    Good luck.

    #1219981
    Amy1991
    Member
    • Total posts: 23
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    Paul – FS Concierge, post: 265522, member: 78928 wrote:
    Hi Amy,

    The internet is littered with product first types of businesses.

    You really need to get inside your target market’s head and work out what they can’t get/would love to get and will pay money for.

    Here is an article that directly relates to your idea and it is a cautionary tale.

    This Book is a worthwhile read – it is all about how to validate assumptions around what people want and will pay for.

    Have a look at the reviews.

    Good luck.
    Thank You. Will have a look at them :)

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