I ask because most of the posts I read here are from service providers. And while a decent amount of the info is relatable, I’d love to hear from people who sell physical products and have to deal with manufacturing, inventory, wholesale/retail/ecom sales, etc.
As for my business, I own and game company (board games, card games). My two current titles are aimed at kids 3 and up. My next title (going into production shortly) will be same demo, then the following two titles will be aimed at the whole family (ages 8+). While my business is mostly profitable, I’m basically investing every dollar back into the company (more inventory, more titles, more marketing/sales).
I’m just 2 years into my journey (mostly part time), learning an entirely new industry, and would love to hear stories from other people selling consumer goods.
Where are you in your journey? What struggles did you encounter/are you encountering? What was the hardest part in the early years? Hardest ongoing struggles? Did you have any aha moments that helped you turn a corner? Did you ever get to a place of any real profitability? If so, how long?
I don’t have much of a network of people doing anything similar, so thanks in advance…hopefully we get a good discussion.
I’m not sure if this helps but I feel the same way so I could describe my experiences a little and maybe something could be useful.
About 10 years into my field and 5 years officially but I have been familiar with my products since I was young. I branched out from one main product type that appeals to men primarily (higher ticket item), to another related line that appeals to women as they tend to spend more money/shop more frequently (statistically)(lower ticket items) this covers more bases and allows me to cover a wider demographic.
I look at running my business as a war of attrition. Everything has been designed so that it can’t go under and if things get bad my worst case is I’m stuck with very high end inventory I could liquidate and be left with cash. I pay for everything upfront and try to hold zero debt. Do my best to have no recurring costs I’m on the hook for. Sure I need to replace packaging but I’m not signed up to some other business that bills more for this on a recurring basis, I simply buy what I need when I run out even if it costs more. Things like a web domain etc I have to pay for but again I can pay for several years at once up front and I’m set. No debts, not on the hook if a rainy day comes around.
My main concerns are finding new inventory and always buying as low as possible so I have huge margins based on market value. Buying is where I make my money not selling and this gives me a huge amount of negotiating power as I can lower my costs dramatically (and much more than the customer would expect) to make a sale. Additionally it means to liquidate I still make money or if I have problems with selling I can break even and its like returning a product at a store for full value and I can just switch it out for new inventory. It also means finding inventory and my sources are very important aspects of what I do. Its important information I must keep confidential so I can’t be bought out by someone with the same knowledge but a bigger purse.
Additionally security from theft, robbery, etc are also very important factors in what I do. I’m a target for criminals so thats stressful and I take it very seriously. Extreme secrecy, home security, surveillence, counter surveillance, large animals, and more are all at my disposal to do this. But its worth it. I also expect the worse to happen and am prepared for this with contingency plans if that happens.
In an attempt to grow the business I had difficulty hiring effective staff to work for me. I approached it by creating what would be a network of individuals who worked for me whom I would set up as I would have dreamed of being set up as a younger person. I provided everything they needed to work for me including access to inventory and purchasing power and all they needed to do was purchase inventory, log it, and make sales and receive a very well paying commission (based on the work, market rate, etc.) However I was very surprised when the individuals I hired simply didn’t lift a finger. I could monitor their usage of their work emails and Google drive and they wouldn’t log in. Wouldn’t log inventory. Would claim something purchased for the store was actually for themselves (no outright theft as they could “account” for the money, but in my eyes this could be theft) . I was really dumbfounded at the lack of or complete drop in interest, accountability, and action in people I knew well, trusted and had a proven track record in a similar activity. It was confusing to say the least but I had short contracts and it was all comission based so I was insulated and ended their contracts. I even provided very alluring bonuses and growth opportunities if they met certain goals but it was as if they did nothing. However they were knowledgeable and I took from them what I could learn and from that situation what I could and moved on. It can be hard to get through to people even when you think you communicate things clearly, sometimes it just doesn’t happen.
One thing I notice is that many competitors hemorage money to other companies providing services or different promises that would provide them with growth or sales and don’t really pay out in the end. I know its easier to pay someone to do something for you but again if you can pay them once and see how it works, for me, its better than signing up for some ongoing thing that may not work out. I would rather buy more inventory and increase my equity and thus net worth that way than some charlatan with false promises. Again I can turn around and sell these things if I have to. There are more businesses after my money than anyone else even if that means customers after my products. But with low liabilities it leaves me free to pivot and do what I want.
Another thing I have noticed is the bulk of the most successful people in my field are all old and at the end of their careers which signifies to me that many people give up. It takes a long term commitment to be successful to what I do even in the face of many many years of difficulty. Also many of these people come across as mean but often they don’t start this way. Having to constantly hear bad ideas and tell people no can make you like this. I tend to come across as very kind, generous and charming but need to often act the opposite to get what it is I want. It can beat you down and at times I feel I have done everything I can think of to keep going, the one thing I have yet to do is give up and that is what makes the difference. Success can eb and flow and if you are passionate about what you deal with and about succeeding that can be your greatest asset. The fake it till you make it mentality is very real. You have to believe in yourself to get anywhere.
Due to a lull in sales recently many of my bright ideas appear like they may have been the wrong assumptions but I still firmly believe in them and I’m willing to fail again and again. I started with one peice of inventory and can do it all over again if I must. I can create another brand and change my product line if I have to.
I sell things people want not that they necessarily need but to many people in this day and age they feel they need it anyway and I bank on that. Human nature doesn’t change so even if my products are not the top priority on the market right now, what urges people to seek me out then/now will still be the same in the future and I can adjust as necessary.
Final thing is do what works. If you open a restaurant it would seem obvious that you sell beverages. However if you hold soda in stock and no one buys it cut that from the menu. It may seem crazy to run a restaurant that doesn’t sell drinks, every other restaurant does right, but if people only come in the door for your entre and water figure that out sooner than later and stick to that. It might seem weird, people might look at you funny but you know what works from the books so plan and work according to that data and nothing else.
Goodluck, and thanks for giving me the opportunity to think about these things myself and read others comments.
Very good tips!