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So youâve got your amazing product idea, and maybe you even have a prototype. But now youâre considering larger scale manufacturing and youâre speaking with factories that are halfway around the world where English is not the native language. Youâre also talking about spending tens of thousands â or even hundreds of thousands of dollars on your production run, and itâs starting to dawn on you how much could potentially go wrong â and how much those mistakes could cost you!
One of the most important factors in the factory/designer relationship is how you communicate your product requirements. And thatâs where TECH PACKS come in.
Belinda Jacobs is a technical fashion designer from London (now based in California). She had her first job in fashion at the age of 15, stapling swatch cards together! Belinda has been designing & creating tech packs for more than a decade for household brands and independent designers alike
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Hiring decisions are some of the most crucial decisions you will make as a small business owner. A great employee can take your business to new heights and open up new opportunities for growth, while a poor hire can set you back months and thousands of dollars, causing undue stress and frustrations.
In this how-to podcast, Iâll lay out a step-by-step hiring process for small business that will help give structure to your decision making and increase your odds of bringing on a great employee.
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Julie Ellis a co-founder of Mabelâs Labels, one of Canadaâs greatest small business success stories.
Back in 2002, Julie and her three partners Julie Cole, Cynthia Esp and Tricia Mumby decided they could do better than the scribbles on masking tape that were being passed off as labels to keep track of for kids clothing and personal items. So, after much research, they brought a brand new product to market in the form of personalized waterproof name labels and tags. From its humble beginnings Mabel's Lables has grown into an award-winning, market-leading company loved by Moms and kids alike.
Mabels labels was recently sold to paper and label giant Avery Labels which lead to Julieâs exit from the business she had founded and run for nearly 15 years
Julie is now entering a new phase of her career as she shares her experience and expertise with other entrepreneurs helping them gain clarity and accelerate their success.
Mabels Labels hadn't been looking to sell the business when they were approached by Avery but quickly realized that the idea acquirer âchecked all the boxesâ and helped them address some big questions: how they would finance further growth and who of the 4 founders would ultimately lead the company.
Julie adds that whatâs best for the business may not be whatâs best for you personally and what you would do as an autonomous leader is much different than what you would do as part of a 4-person team
While selling a business is often the end goal for many entrepreneurs, the experience can be bittersweet as it was in Julieâs case. As someone who is used to giving 110%, she says it took her at least 3 months to accept the idea that she was able to take some downtime.
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Want to quickly ramp up your sales while generating extra cash to finance your next production run? Then itâs time to grow your global distribution channel.
Finding distributors for your products in foreign territories may seem like an overwhelming prospect if youâve never done it before, but itâs certainly possible. SoYoung now has distribution in 8 territories including Mexico, Australia, The Netherlands, and Korea â with more in the works. In this weekâs post, I cover the pros and cons of distribution and outline some of the best ways to find distributors in foreign markets.
What is distributionDistribution means granting the rights to sell your products in a specific region to another business entity or individual. This is typically done to cover a part of the world in which you have a limited presence and lack the internal resources or knowledge to cover the region. In essence, you are outsourcing the management of your brand in that region to a 3rd party who will handle all sales, fulfillment and management of customers in the defined area, for a defined period of time.
The pros of distributing your products Increased Sales RevenueThe most obvious benefit of growing your global distribution channel sales is that it increases your bottom line. These tend to be large bulk purchases that can instantly add zeros to your revenues. They also tend to be repeat purchases. Since the distributor has more skin in the game than your typical retailer skin, they will be more invested in growing your sales in their territory, leading to predictable increases over time.
The ability to establish your brand in new markets without an upfront costDistribution gives you access to new markets with relatively little investment. Typically your distributor in the region is assuming all the risk for launching and selling the product in that territory. This allows you to increase your overall brand presence while outsourcing most of the work involved.
While the agreement may be exclusive, typically a distribution contract includes a clause that allows you to end the agreement with a certain amount of notice and or at the end of a certain time. You may continue to maintain the relationship indefinitely, but if you plan to eventually own the region yourself, you will have already established a brand presence as a foundation for further growth.
Increased buying power and cash flowUnlike a wholesale relationship, a distributor will typically purchase your products in bulk and have them shipped directly from the factory. Usually, a distributor will pay you a deposit towards an upcoming production run that you can take to the factory to help finance production. With the net new sales that the distributor is projecting, you will also be able to increase your minimum orders which may increase your buying power with your factory, lowering your manufacturing costs or simply making a manufacturing run possible.
The cons of distributing your products Distributors require time and effort to manageWhile it is tempting to view distributors as a low maintenance sales channel, this may not be the case. All relationships require some level of administration and management. Distributors may negotiate for better pricing when they get some traction or may have issues specific to their region that you have never dealt with before. Also, if a distributor is underperforming, you may be tasked with the uncomfortable process of ending the agreement.
Negative impact on gross marginsWhile distribution is a generally a lower risk channel â since you are taking distributors orders and deposits to the factory â it is also a low-margin channel. Distributors will typically ask for a discount off of your wholesale price that can range from anywhere between 25% to 50%. Assuming you have the margins, this is the price most brands are willing to pay for guaranteed sales. However, when looking at your overall financial results, you will see a serious hit to your gross margins as a result of increased distribution sales.
Increased Legal CostsBecause of the size of upfront investment a distributor is making in your products and building his own infrastructure to sell them, distribution agreements tend to require a much higher level of legal rigor than a standard wholesale agreement. Also, in entering foreign markets, you may be required to purchase trademarks and website domains in those regions as well as actively defend them when necessary.
How to find foreign distributors Trade ShowsMany distributors attend trade shows looking for new products to represent in their home market. If you are able to attend some of the leading international trade shows in your industry, you may find yourself being approached by foreign distributors interested in your product. This is also a rare opportunity to meet face to face with people who live far away and get a better sense of whether they are a good fit for your brand.
Web ResearchAnother way to find distributors is through online research. Look for complementary brands â not direct competitors â and research who they are working within various regions. If they are doing well, they are likely attracting the most successful distributors in foreign territories. Find the distributorâs website, reach out and see if there may be a fit.
RetailersIf there is a retailer in a target region that you feel would be a good fit for your products, ask them who the best distributors are. Retailers are on the front line with consumers and make the ultimate decision whether to stock products, so they will have a good idea of the landscape and which distributors are doing well. If possible, you might consider securing an anchor retailer in a region in advance of a distributor. This will allow you to test the market and hopefully provide extra incentive to distributors by proving there is demand there.
Personal ReferencesAs you attend more trade shows and get to know the lay of the land in your industry, you will make contacts with other brands in your space. Leverage these relationships to trade industry knowledge and see who other people are having success with and how they are approaching the question of distribution. You may get some good contacts and feedback on what is working and what is not
Have them find youFinally, SoYoung receives unsolicited distribution inquiries from people who have heard of the brand and visit our website. Have a page or paragraph that speaks to potential distributors and who to contact, then have a process in place for vetting and dealing with distribution inquiries.
What makes a good distributor ExperienceNothing trumps experience when it comes to distributors. While a new company may have a lot of enthusiasm and gumption, they may be unrealistic about what it will take to launch a new brand in a new market. I would strongly suggest looking for people with a track record to work with when entering a new market.
An established networkThe biggest value of a distributor is their ability to get you into retailers that can quickly establish your presence in a new market. An established distributor will have a network of retailers that they are already working with and to whom they can sell your products along with the products they are already representing
Category ExperienceMake sure that the distributor has experience in your product category and has dealt with complementary products. There is not much value in working with the distributor who will be peddling products that compete with yours or are in a completely different category.
Passion for you productsGet a feel for what the distributor really thinks of your products. Has some detailed questions about what they think of the product and make sure that they have a good understanding of what makes your product unique and different. Are they just looking for a quick sale or are they truly passionate about the products? Do they believe in the brand vision to the point where they will weather adversity to ensure the products are successful in their market.
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Over the last seven years, Joseph Hanson has built and sold four e-commerce based companies and is currently a managing partner to three businesses that help sellers succeed on Amazon Buy Box Experts, Prosper Show, and Marketplace University.
It was Josephâs experience as an Amazon expert that put him on my radar, So Iâm excited to get his insights on what for SoYoung is of one of our single biggest revenue sources also the most frustarting and confusin channels and platforms that we deal with.
Critical issues for brands Brand equity: Brand equity on amazon comes through Search Reviews Long term history and traction on the channel
2) Managing counterfits and knockoffs
3) Having transparency or understanding how profitable their SKUs are and how each product is performing can give you a big competetive advantage.
If your product is good and desirable, itâs going to be sold on amazonIf you want to control the way your products are displayed on amazon you need to either
Invest the time required in really owning your Amazin presence Develop an exclusive relationship with an expereince 3rd party seller55% of consumers start a product search on Amazon, so you need to be there
At the end of the day price is going to be the biggest determining factor in where people choose to purchase their products. If theyâre prime members, that will be a huge incentive for them to purchase directly from amazon
How amazon pricing actually worksAmazon prices reactively and you canât set a MAP with amazon. If youâre having MAP pricing issues on Amazon, it tends to be because you have distribution problems, selling to grey market people who are then not honoring map, forcing Amazon to do the same.
Key to controlling your Amazon channel is having airtight distribution and reseller agreements in price.
The prosper showJames founded the Prosper show to address the needs of Amazon sellers and help them with an educational based show with a level of transparency that discourages self promotion in favour of real objective education on how to best leverage Amazon.
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If your products have a proven audience and you are ready to start driving serious traffic to your site, the 2 biggest games in town are Google and Facebook. In assessing Google vs Facebook advertising for consumer product brands, Iâm going to share my experience in marketing our line of lifestyle bags. Other products and businesses may experience very different results
How and why we use Google and Facebook advertisingWe primarily rely on Google and Facebook for top-of-funnel activities. In other words, this is where we first lure a potential customer to visit our site. To align with this goal, we set up all of our campaigns to prioritize click-throughs to our products.
For a full explanation of the marketing funnel and some examples of other techniques we use see the post:How to increase website traffic and conversions
Some other contextWe do not have a good way to track the ultimate effectiveness of various types of traffic, since we assume that a first time visitor will make several more visits before actually purchasing a product. So, by the end of the sales funnel people may have come through one channel, been retargeted by another and then Googled our brand name to make their actual purchase.
We also use a service called Criteo for retargetting, which does offer better tracking of purchase activity. However the majority of our ânewâ traffic comes through Facebook and Google. I will not be covering Criteo here but may in a future post.
Google Advertising for Consumer Product BrandsIâll start with Google because they are the incumbent, and for many years have dominated the online ad space.
The Pros of Google Advertising Search IntentGoogleâs unassailable advantage is that it owns the worldâs most popular search engine, giving it the ability to target people as they seek a product just like yours. Someone who enters a search query tends to be a much more motivated buyer than one who happens to stumble upon an ad the youâve served. Because of this, some businesses can build a very valuable stream of traffic off of just a few key search terms.
ReachGoogleâs advertising products have the ability to reach 90+% of the sites on the internet.
Accurate analyticsBecause it is free and extremely powerful, Google analytics has become the defacto standard for tracking your online traffic and performance. Googleâs ad products integrate seamlessly with Google Analytics to provide a single dashboard for assessing your campaigns, though you will probably end up spending a significant amount of time in the Adwords dashboard also.
Variety of productsGoogleâs wide variety of products can get a bit confusing, especially as they continue to evolve under new names and with enhanced features. Iâll just cover the main concepts/products that would be relevant to indie consumer product brands.
Adwords/Text Based search campaigns
This is Googleâs âclassicâ product: campaigns that serve up a text based ad alongside organic search results. This approach can be extremely effective if you are selling a niche product that does not have a lot of competition for keywords.Google Shopping/Image-based search campaigns
Like AdWords, this is an ad with a product image that is served in response to a specific search query, where you control the keywords. This is best for lifestyle and fashion products, where a visual image can be a key differentiator. Since you will only pay for click-throughs to your site, it can be more cost-effective if you have a product that will only appeal to a certain segment of the audience for that keyword. For instance âLeather tote bagâ â will only attract buyers who respond to your preview image in the search results.Video
You can use video both as pre-roll to a requested youtube video and as a banner ads. We have tested video on youtube but did not see a lot of click-throughs. I think the issue is that people are interested in seeing the selected video â not yours â so they are unlikely to leave the site unless you have an unusually novel product or video ad. I think this channel would be best for established consumer product brands, who want to reinforce their brand image without needing to drive website clicks.Remarketing
Support
Remarketing, also called retargeting, is a key component of any online marketing campaign. Once youâve paid to get someone to your site the first time, remarketing places a cookie in the visitors browser allowing you to continue to serve ads across numerous websites. Google has a product that can automaticaly serve ads for the specific products that a visitor has view. It can be a little complicated to set up, but if you are using Shopify, there is an app that makes it fairly seamless.Google does offer phone support and will even assigned an account person to help you optimize campaigns. My experience with their support has been mixed however (see conclusion below). The in result for me was spending a lot more money to achieve essentially the same results â despite the best of the ad words team.
The Cons of Google Advertising ExpensiveIâve found Google to be significantly more expensive than other platforms, however, we are in an extremely competitive category. Terms like âbackpackâ and lunchbox are simply too expensive and generic to be effective for us. This will likely be true for many lifestyle products that are differentiated primarily on the bases of style or design.
Search marketing can be very valuable to a brand targeting more niche/less competitive terms. If you fall into this category, you can use google Adwords to get a better understanding of which search terms are most valuable to you and double down on those to reach the most valuable traffic.
ComplexPart of the reason google has become more proactive whit their customer support is that their interface has become monumentally complex as theyâve layered in more products and features. (apparently, a redesign is in the works) While the AdWords is learnable with some coaching and dedication. Many people who don;t see results end up wondering if google simply ineffective for their products- or don;t know how to run them right.
ConclusionI did fall into the camp who was wondering if there was something I could do to achieve better results, so when Google called and offered to help me build optimized campaigns, I jumped at their offer. Unfortunately. The campaigns Google built were a complete dud and Googleâs account team came off as a bunch eager sales beavers who, while they understood the interface, did not show a good understanding of marketing. They also overspent on our assigned budget and offered poor account management to address the issue.
Facebook Advertising for Consumer Product BrandsFacebookâs advertising platform has come very far in a short period of time and continues to evolve at a rapid pace. For anyone looking at advertising online, Facebook deserves a serious look.
The Pros of Facebook Advertising Ease of useCompared to google, the facebook ads interface is surprisingly simple. This is largely because facebook advertising is built around audience demographics, which are a predefined set of attributes, rather than keywords, which are potentially endless.
Facebookâs ad interface also allows you to reach other platforms such as Instagram and third party sites. You can easily upload videos or create ads with multiple images. Facebookâs mobile app for advertisers is surprisingly good and allows you to make quick edits to your campaigns on the fly.
Demographic targetingIf you have a clear idea of your audience characteristics, as we do, facebook offers powerful tools to target them. For instance, I can target women age 27 â 45 with kids between the ages of 3 and 10 who have a university degree, enjoy shopping online and appreciate fashion.
Facebook also has a feature that allows you to upload the email addresses of past purchasers called lookalike audiences. This, in turn, will scan Facebookâs database for the unifying characteristics of your audience and look for other potential users that will match with them. Iâve used this feature and, while it sounds cool, it has not delivered a lower cost per click.
InexpensiveFor us at least, facebook traffic is much less expensive than Googleâs. According to facebook, our cost per click is a low as $.35 â but in reality, only about half those clicks translate into website visits, at least according to Google analytics. However, even at twice the cost, a click from a Facebook ad (some of which may appear on sites beyond facebook) is still less than half the price of a Google ad.
The Cons of Facebook Advertising Limited ad formatsFacebook only allows you to upload images in sizes that fit its platformâs strict format. Also, your image cannot have more than 20% of its area covered with text or your ad will not be approved. Headlines and text must confirm to facebookâs standard format.
Since our products sell primarily on visual appeal Iâve found that our lifestyle images do well on facebook. I havenât had much issue with the limitations, whose intention is to keep ad quality high and non-spammy. Depending on
Inaccurate analyticsWhat Facebook calls traffic and what Google calls traffic are not even close. I have more trust for Google analytics then what Facebook cause a click to our side. Essentially we see a large proportion â like 50% or more â of clicks unaccounted for, leaving me feeling a little bit skeptical of Facebookâs reporting.
Pixel integrationFacebook tracking code â or âpixelâ â seems spotty and mostly useless in terms of tracking convrsions. However, we are using the old version of the pixel which has since been updated. Iâm in the product process of migrating to the new pixel and may update this post if and when it is up and running
No SupportThere is absolutely no way to contact Facebook by phone. Any issue you might have will require submitting an email through a standard form, to which you may or may not receive a reply. I did receive a call back from a Facebook person at one point after sending an email inquiry and she extended an offer to call her anytime I had a question â I have often a regretted not noting her number.
ConclusionIn the battle of Facebook vs Google advertising, Facebook has proven a more cost effective way to drive new traffic for our business. While there is no definitive across the board answer as to which is right for your brand, my impression is the Facebook is better suited to brands like ours, who are able to arouse interest with compelling lifestyle images or a catchy and novel value proposition.
If you have a very strong content strategy and are publishing regularly around your products, you might also find that Facebook is a good way to build relationships by promoting your content â this is not something we have invested much in, but I have seen other brands very successful with this approach
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Budget for 5 videos: Professional Voiceovers: $200 We hired a premium voiceover artist. There were others out there that were much less expensive that probably would have done a comparable job. Background Music: $50 â through premiumbeat.com Equipment and Software: Sony A6000 Camera: Aprox $600 â shoots great stills and video, and includes autofocus in video mode Amazon Tripod: $30 Final Cut X Video Editing Software: $300. You could easily use iMovie instead, free if you own a Mac. There are plenty of windows video software options, many for less than $100. The process we used to create our product videos One: Write your Script
The first task is creating the script that will form the voiceover of your video. You should cover all the distinguishing features of the products and your brand. If possible you should aim to keep your video less than 60 seconds in length as attention spans on the web are short! This works out to about 100 â 150 words.
As youâre crafting the script, focus on demonstrable benefits and facts. Avoid superlatives, (âamazingâ âincredibleâ, premiereâ) as they tend to undermine credibility when coming from the brand or manufacturer. Be conscious of how the script will flow by picturing the accompanying shots. Order the descriptions of features appropriately to any scene you might shoot.
Two: Record your VoiceoverI would suggest checking out a service like https://www.fiverr.com, where you can preview a number of voiceover artists and choose the one you feel is best suited to your brand. A pro will generally cost more than $5 but will still be a relative bargain.
They should provide you with a fully edited, professionally recorded file which can be inserted directly into your video.
Three: Plan your ShootThere are three tasks associated with the planning phases
List of Shots
You should be able to make a list of shots based on the video script, since you are essentially just shooting a quick demonstration of each of the productâs features. Location Scout
You may already have a setting in mind, but if you donât, scout out a few potential locations and make sure they have everything you need to support your shoot, including appropriate space, backgrounds and light (natural light is best). Note where you might place the camera in each location and do a general plan of your shots. List of Props, People, and Wardrobe (if applicable)
For Soyoung this meant deciding what items we would show being put into the bags in order to demonstrate their carrying capacity. There were some shots of people wearing the products also but we were able to shoot these on the tail end of a photo shoot. Four: Shoot your ClipsIf you want to elevate your video to the next level, I would strongly suggest shooting each major scene from at least two angles. For instance, we shot Catherine packing each bag from the side and the top, which allowed us to cut the shot in the middle of a movement, giving the video a more professional look. You will need to be aware of consistency between the two shots by rehearse the series of movements being performed.
Lighting is the other thing you will have to check. If you can find a space with natural light that is ideal. If not, you may want to bring a floodlight that can be pointed at the shot. If using natural light you will again have to keep an eye on consistency. If the light changes you may have to reshoot previous scenes.
Finally, review all of your shots on a computer before you wind up the shoot to insure you have the shots and quality you need. Itâs a lot easier to redo a scene.
Five: Create your EditThis is potentially the most time-intensive part of the process. However, if youâve planned your shoot well it should be fairly straightforward. Once you get the hang of it, editing is a lot of fun, so consider this a great opportunity to learn a cool new skill.
If you are on a mac, iMovie is perfectly adequate for editing your video and is bundled free with your system software. If you are on a PC there are a number of inexpensive options available. Here is a list of video editing applications under $100 http://www.tomsguide.com/us/best-video-editing-software,review-2167.html
I wonât get into the basics of using video editing software as there are many tutorials out there, including this one for imovie https://www.youtube.com/watch?v=GKu5p4e4CbY )
However I will give you some tips on the general workflow we used specifically for editing a product video:
Start by importing the voiceover recording, and use this to define your timeline. This will provide the guide for all your edits. Next import all of the clips associated with your video assemble them on the timeline so that they roughly correspond with the voiceover Tweak each of the individual shots so that they begin to form a polished edit Time each cut to fall on a the first word of the voiceover describing the specific shot, so that the image is clearly aligned with the commentary If you have some longer shots/scenes, combine 2 angles to give the video more depth. Try to match the cut to a movement within the scene to create consistencyOnce I have a rough edit, I usually will put it aside for a while and then come back with a fresh perspective before making a few final tweaks.
Six: Add Background MusicBackground music will add mood and polish to your video, tying it all together. There are a huge number of stock music providers online. Feel free to do your own web search, but the one I use most frequently iswww.premiumbeat.com . It has a great search function, allowing you to search by genre and mood. Tracks are typically about $50.
I like to test the track using the Premiumbeats.com preview player while playing my edited video in a separate window. You can adjust the volume of the track and get a pretty good idea of how the final piece will feel.
Seven: Upload the Video to your Video Hosting ServiceUploading your videos to Youtube is a no-brainer because it is the worldâs second largest search engine potentially sending new traffic to your site.
Some hints for Youtube:
Include a link to your product page in the video description to insure viewers can find you Use your main keywords in the product title, description and tags to insure your videos appear in relevant youtube search results Consider adding subtitles to your video for those watching with their volume off. Youtube makes this easy using their advanced editor. You should already have your entire script typed out, which you can upload and tweak to match the timing of the videoThe down side of embedding a Youtube video on your site is that, at the end of the video, it will prompt visitors to watch other videos on Youtubeâs platform â potentially distracting them from the sale. While we do upload our videos to YouTube, the videos on our product pages are actually hosted on a platform called www.wistia.com. It is a paid service, but there is a free tier for up to 5 videos.
Eight: Embed the Videos on your Product PagesYou can place the videos anywhere on your site, however I would suggest also having them on the product page, since that will typically be where the visitor will make their buying decision. If you are using Shopify, there is a video embed button in the editor that allows you to easily add a pop up video. However, nearly every platform allows for easy embedding of video.
ConclusionProduct videos are a valuable tool to have in your marketing arsenal. In addition to enhancing sales on your own site, product videos can be shared on many other platforms and via your retailers to help you inform new audiences about the benefits of your products. Finally, the process of creating your own product videos can be very cost effective if you are willing to take it on yourself.
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Just as Rome wasnât built in a day, we didnât put all of these strategies together over a weekend. Itâs been a slow steady, incremental layering of tactics combined with a whole lot of trial and error. A marathon rather than a sprint. However, the combined effect of having these systems in place has helped us dramatically increase eCommerce traffic and conversions, which continue to grow upon themselves. In this article, Iâll lay out a complete playbook of strategies we use to promote our online store at www.soyoung.ca and increase eCommerce traffic and conversions.
Iâve grouped the strategies to increase eCommerce traffic and conversions in terms of where they fall in the marketing and sales funnel sequence. For those unfamiliar with the concept of âthe funnelâ, top funnelactivities are designed to attract new visitors who are unfamiliar with our products to our website. Mid-funnelactivities are designed to build a relationship with the user, who is still warming up to our brand. Bottom funnel activities are intended to convince people who have an interest in our products to actually make a purchase.
Top Funnel Strategies to Increase eCommerce Traffic and ConversionsWhile SEO is the best way to get traffic, it is generally only going to deliver substantial traffic when you are selling an extremely specialized product that has very little online competition. For everything else, you will need another strategy to increase eCommerce traffic and conversions. As the purveyors of lunch boxes, backpacks and diaper bags, there was no way we could compete for these valuable keywords in organic search, so here is what we do to get new visitors to discover our products:
Paid Blog PlacementsBeing featured on the blogs of influencers is a great way to generate traffic and build instant trust in your products. While we do a fair bit of PR and get free coverage on many sites, some of the biggest hits weâve gotten have been paid placements with well established bloggers who align with our audience. While not cheap, in some cases we have seen our traffic temporarily increase by a multiple of 10 with a single mention on a blog. This can be a very effective way to drive traffic and reach a new audience.
Facebook and Google shopping adsThere are a lot of ways to do banner advertising online, however we have found that Facebook and Google Shopping are most effective for reaching people who have no awareness of our products. Facebook allows for very tight targeting allowing us to reach exactly the type of profile that we have found are most interested in our products â mainly mothers of children between the ages of 3 and 10 with some university education. The âlookalike audiencesâ feature in Facebook allows us to upload lists of our past customers so that Facebook can use its algorithm to find similar targets. Itâs been a very cost effective way to generate valuable new traffic. Google Shopping is great because, given the visual appeal of our products, prospective customers see an image of our designs in response to a specific search query.
Mid Funnel StrategiesOne of the biggest mistakes you can make is to pay for traffic to your site, then fail to capture the opportunity to continue marketing to that visitor. Rarely will people purchase a product they have just stumbled upon, so you need strategies for keeping them in the loop once theyâve visited your site and have an idea of what your brand is about.
âWin thisâ email call to actionIn order to capture email addresses, you need an opt in offer that is compelling enough for a first time visitor to fill out. While we have used coupon codes in the past, the most effective strategy weâve used is a pop up offering the potential to win a substantial prize: 5 of our products valued at over $300 to anyone who subscribes . We use a third party service called Opt-in monster to create pop-up with an âexit intentâ trigger. This is a popup that appears as soon as the userâs mouse scrolls up to the top left corner of the screen (the movement that they would make before entering a new URL or hitting the back button â thus the term âexit-intentâ). [ Try it out: go to www.soyoung.ca and spend a second on the home page. Then move your mouse up towards the back button in your browser â then see what happens next!] It is extremely effective and has multiplied our opt-in rate for newsletters. Marketing the contest to our social media followers has also been a great way to convert those followers into newsletter subscribers.
RetargetingYou may find it annoying when you see ads for a website that you recently visited following you around the web, but I can tell you from first-hand experience that is an extremely effective form of advertising. If you have spent money to bring a visitor to your site, and they donât fill out a subscriber form, you have essentially wasted your money unless you have a way to continue reaching out to them. Retargeting is great because it constantly reinforces your brand with previous visitors, but you only pay for actual clicks back to your website. This is by far the most effective way to keep non-subscribers in the loop, so that you can increase their relationship with your brand and products.
Bottom Funnel StrategiesBottom funnel strategies are designed to âseal the dealâ with visitors who have already visited your site and built a relationship with your brand, but have not yet made a purchase.
Subscriber and purchase Automation SequencesWe have two main email sequences that we send to subscribers. The first occurs as soon as they join our email list. They get a series of emails over 3 â 4 weeks including a welcome email with social media links, an email containing a list of testimonials from satisfied customers, an email with pictures of celebrities using our products, and an email with a list of our most popular products. These are very effective at getting people to come back to the site and consider purchasing our products.
The second email sequence is triggered by a purchase on our site. The buyer will receive a thank you email letting them know that we are here for them should they have any issue with the product and thanking them for the purchase. The second email encourages them to share a photo of their purchase on our Instagram account with an incentive for a discount off their next purchase. A third email requests a review of the product on our site. And finally they will also receive an email highlighting our most popular products should they choose to make another purchase.
Customized Cart abandonment SequencesFinally, we have upped our game when it comes to shopping cart abandonment. Shopify has a basic responder built into the software, but the settings are limited and it is a simple plain-text email. Recently we decided to start sending two emails to anyone who submitted all their purchase information but did not complete the sale (also known as âcart abandonmentâ). The first arrives just 10 minutes after they leave the site with a full cart, and a second email arrives the next day. Both of these emails utilize the buyerâs first name in the copy, feature appealing hero images and include a personalized message from a member of our staff encouraging them to get in touch if they have any questions.
ConclusionThis has been a gradual process so itâs easy to overlook the dramatic changes from last year. When looking at the data however, our first month of 2016 saw traffic on our US site increase by 25% over the same period last year and sales increase by nearly 70%.
If you have any questions about the 6 strategies to increase eCommerce traffic and conversions, please leave a comment and Iâll be sure to answer!
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Are you a craftsperson or an entrepreneur?
This is a personal lifestyle choice - but be clear on which you have chosen. As a craftsperson, you can be perfectly content creating handcrafted products in low volumes and selling them to a niche audience. If this describes you, you can ignore the rest of this post. You just need to cover your material and living expenses in order to continue doing what you love.
However, if you are an entrepreneur with a vision of building a scalable venture, you need to understand and adhere to established business principles, such as standard markup pricing.
Even if youâre small now, you need to plan for big.If youâre just starting out, you may not realize how much margin you will need to build into your retail price in order to build a viable, long term business. While selling solely through a website is a great first step, most brands need to explore other channels to accelerate their growth. If you get your pricing and margins wrong, youâll be in for a rude awakening when you start approaching retailers (and youâll probably end up with a greater appreciation for why so much stuff getâs manufactured overseas!)
Combining standard markup pricing with market research.If youâre basing your price strictly on a multiple of your costs -also known as Standard markup pricing youâre starting at the wrong end of the equation. I strongly suggest starting with a target retail price and working backward to see if your product will be viable. You will still need to ensure you are able to generate a sustainable profit margin - thus the need for standard markup pricing - but youâll be imposing an additional level of discipline by aligning your numbers with the reality of the marketplace.
Here is a step by step guide to using the Indie Brand Builder Margin Calculator to determine standard markup pricing:
STEP ONE:
Research your industry and competitors to determine high and low retail price thresholdsYou will need to determine how the quality, features and benefits of your product measure up against both direct and indirect competition. By direct competition, I mean any other product that has similar features and is used to solve the same problem or address the same desire of the consumer. By indirect competition, I mean products that arenât in your category but provide a similar outcome or function for the consumer (ie - a book vs. an e-reader). Make a quick spreadsheet listing each competitorâs name, product features and retail price.
STEP TWO:
Pick your target product priceAfter doing your research, you should have a reasonable idea of the general price range you expect consumers will be willing to pay - also known as the MSRP (manufacturer's suggested retail price). You will now need to choose a target price that you think represents an optimal balance between generating revenues and generating demand. At this point, the price is simply a hypothesis as you will still need to factor in manufacturing costs
Keep a laser Focus on your gross margins. Anything less than 50% - 60% and you may be headed down a slippery slope STEP THREE
Plug the numbers into the Pricing and Margins Spreadsheet Calculator Input your target retail price in on the far right to match your figure Next, plug in your target wholesale price at half of your retail price. You will now see your âretailerâ margin at 50%. Adjust the freight and duty percentage as required. By default, it is set to 20% - which is a conservatively high ratio (SoYoung's freight and duty is typically around 17% coming from China) . Before making any final decisions, you should validate this by talking to shipping and customs brokers. You can also use this estimator tool. Start playing with your manufacturing cost numbers to see what they should be to get your gross margin to 60% This will allow you to target an acceptable manufacturing cost STEP FOUR
Negotiate with your factory or suppliers.Now that you have a target cost, you can take this to your factory or use it as an internal target for producing your goods. If you are manufacturing internally, note that this number is just meant to capture your Cost of Goods: that is the cost to produce one unit of product. While it will include labor cost related to manufacturing, it should not include overhead costs associated with running your business such as administration, marketing or selling your products.
STEP FIVE
Negotiate with retailers and distributors.Your target wholesale price is just that: a target. If you are negotiating volume transactions, retailers will typically ask for a discount. When they do, you can simply plug this into your spreadsheet to see how it affects your margins. If youâve calculated for 60% margins, this will give you some room to maneuver and still make a reasonable profit. Distributors will expect at least a 20%-30% off your wholesale price - though sometimes they will be able to give you an order that can be taken directly to the factory (if applicable) and shipped straight to them, which reduces your risk and cost of carrying the products.
Why you need to target a 60% profit margin when pricing products: You will likely have other selling costs such as marketing, paying commissions to sales reps, shipping merchandise and providing samples. Larger retailers will ask for a discount off your wholesale price You need to cover all of your business overhead, including your own salary Your business needs to generate a profit in addition to your salary in order to be viable over the long term. You may have to sell a portion of your inventory at a discount or write it off completely You will need to generate enough cash flow to continue financing the business. Other Factors to ConsiderEconomies of scale
In the short term, you may be willing to settle for slightly lower than standard markup pricing margins as you build your volume up to a point where you can realize efficiencies in your manufacturing costs. Just be sure these cost projections are based on solid agreements with your suppliers, rather than wishful thinking.Business Model
What Iâve proposed here is based on a traditional wholesaling model - but the world is changing quickly. If you are committed to an online-only approach, integrating with your own retail location or going the multi-level marketing route, then these rules may not apply. Other entrepreneurs have been very successful blazing their own trail - but having more margin always allows you more flexibility if things donât go as planned. -
Mike Paton has spent most of his life learning from entrepreneurs. Today, he spends all his time giving back - as an Author, award-winning Speaker, certified EOS Implementer & the Visionary of EOS Worldwide. Specifically, Paton helps entrepreneurs clarify, simplify and achieve their vision â by mastering the simple concepts and practical tools heâll be sharing with us today.
I first met Mike Paton at a digital agency conference about three years ago where he was a featured speaker. Now I'd never heard of Mike before or the entrepreneurial operating system (EOS) that he was talking about, but one of the other agencies there had â and they were at least 10 times the size of most of the other agencies in the room, so that got my attention!
In this session we did, Paton reviewed the main concepts of his the entrepreneurial operating system, and then had us work through a series of questions known as the vision traction organizer (or VTO), which had this group of creative entrepreneurs completely engaged. By the time I was on my flight home, I was already well into Mike's book, get a grip, that I had acquired a copy of at the conference, and I was eager to begin implementing the entrepreneurial operating system EOS in my business
When I came onboard so young, which is the business I now Co-run with my wife, The first thing we did was the VTO exercise that Mike had us do at the conference. We also created an accountability chart, which Michael share more about in a moment, and implemented weekly meetings to review our scorecard.
Having had this Entrepreneurial Operating System system in place now for the past nearly 2 years, I can sincerely say that it has transformed the way we run our business. We are now proactive about solving problems and able to consistently monitor and grow the business with confidence and clarity.
6 Key Components of the Entrepreneurial Operating System (EOS)Entrepreneurs spend so much time in their optimistic futures that theyâre in danger of not tending to the foundations. This is why most business owners arenât getting everything they want from their business. This lack of fulfillment and progress exists to the extent that they have not fully implemented the 6 key components of the Entrepreneurial Operations system.
Vision
Getting everyone in the organization aligned on where youâre going and how you plan to get therePeople
Getting great people in the organization to help you achieve the visionData
running the business on facts and figures rather than opinions and egosIssues
Getting good at prioritizing and solving your issues as they arise and addressing core causes rather than just the symptomsProcess
do the most important things the right and best way, every timeTraction
In what order should you implement the tools?
Instilling discipline and accountability everywhere in the organizationThe first priority is to build the traction muscle
Accountability Chart Level 10 meeting pulse Scorecard - 5 to 15 leading indicators that are tracked on a weekly basis Rocks - 3- 7 of the company's 90 day priorities Then take on the VTO The distinction between Visionaries and IntegratorsThe Visionary Role
Visionaries are inspiring and have tons of creative ideas - but don;t like to stay grounded. They live at the 30,000 ft level of the business and don't like getting dragged into the details or having to deal with the rudimentary aspects of the business. They are great at big relationships, imagining whatâs possible and breaking through barriers.The Integrator Role
Integrators love getting into the trenches, love listening to the 20 big ideas but then settling on the one or 2 that will move the business forward. They are the ones who are In the trenches executing on the vision every day and making whatâs possible actually happen.
Know who you are
One key to the EOS system is recognizing who you are at the core, and making sure you have someone in the organization who can complement either your Visionary or Integrator approach.
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The key principle in selling wholesale to retailers is to invest time upfront in planning your approach and sales materials. This will allow you to prioritize and focus so that you can go deep into a few areas that will deliver the highest return on your time investment, rather than spreading yourself too thin and getting frustrated.
STEP ONE:
Determine your Retail Category FocusWhile itâs tempting to pursue every retail category for which your products may be eligible when selling wholesale to retailers, itâs best to focus on one at a time in order to make your efforts more efficient and targeted. You can always change things up as you learn more. This means setting up a criteria for determining the best fit for your business.
Create a list of categories you could targetDepending on your product, you may be very clear that youâre simply going to target a specific category of store. However some products will appeal to several categories. For Instance, SoYoungâs bags have been sold through gift shops, baby stores, kids gear stores and natural grocers, among others. Simply make an exhaustive list of the possibilities based on your current knowledge and best guesses.
Determine the top 1 or 2 categories that you will target.To find your category focus, I suggest using a multi-attribute model spreadsheet. This approach allows you to apply a disciplined approach to choosing your initial target category.
How to use the Spreadsheet Plug in the categories you are considering down the left hand âLEADâ column (replace the title âLead 1â etc.) Determine the 3-4 criteria you feel are most relevant to creating an optimal environment for presenting and selling your products. Criteria examples include: Price Sensitivity, Similar products, Alignment with core audience. Plug them into the Attribute row (replace the title âCriteria 1â etc) Assign a weight to each criteria as it relates to your decision. The total weights you assign amongst the various criteria should add up to 100 Rank each lead category out of 10 as it applies to the specific criteria. This will give you a total score in the far right hand column
>>Download the resource pack, including the Multi Attribute Model Spreadsheet STEP TWO:
Determine your Top Retail TargetsThe retailers that carry your products reflect strongly on what kind of brand you are, so be intentional about who you target when selling wholesale to retailers. In this step you will determine the key criteria that you will use to target specific retailers. For instance, SoYoung, while not a luxury brand, does price its products at a premium, so discount stores are not a good fit for us.
Again, focus is the key to remaining productive. Once again use the multi attribute model to determine which retailers you will focus on.
How to use the Spreadsheet Plug in the retailers you are considering down the left hand LEADS column. Determine the 3-4 criteria you feel are most relevant to creating an optimal environment for presenting and selling your products. Criteria examples include: Eco-friendliness, Urban Locations, Boutique feel etc. Plug them into the Criteria row. The total weights you assign amongst the various criteria should add up to 100 Rank each lead category out of 10 as it applies to the specific criteria. This will give you a total score in the far right hand column STEP THREE:
Determine the Specific Buyer for your CategoryThis is by far the most time-consuming aspect of the process of selling wholesale to retailers. There are companies that offer lists of specific roles that you can purchase, but theyâre expensive and I have found that often they are out of date or missing key data. To compound the issue, many buyers go out of their way to maintain a low profile online so that they are not inundated with inquiries.
Getting a name
I will generally start with a LinkedIn search of the company name and review the names of key personnel looking for anyone that is a buyer or âcategory managerâ. I will then cross reference results with a site calledData.com, which is run by Salesforce. If you find a relevant name and title on LinkedIn, check the side column entitled âPeople also searched forâ.Getting their email address
STEP FOUR:
Once you have a name, you can guess the targetâs email address based on another address from the same company, since most companies follow a standard structure for email addresses. Itâs not always easy to find another address however.The best resources Iâve found are press releases â since the press contact will often provide a personal email address and company blog posts. If Iâm really desperate I may use a credit up on data.com to get any email address from the company.
Build a Buyer ProfileIf it is a high-value target, such as a chainstore, I would suggest going a step further once you have determined who your exact buyer is. Check out their social media profiles â especially ones like Pinterest and Instagram where they may be sharing personal tastes. You donât want to let on that you have been browsing their personal profiles, but you may get some additional insight into their likes and preferences that you can use to your advantage in your sales pitch.
If you are determined to get your products into a specific national chain you may even want to go a step further in building an organizational map. This means building a diagram of all the people who report to that buyer or may have some influence over the decision to carry your products. You can then target each of the influencers with emails tin a multi pronged attack.
STEP FIVE:
Prepare sales materialsBuyers are constantly reviewing products and donât have a lot of time. When selling wholesale to retailers, you need to invest your time in creating a few succinct but powerful pieces that will quickly convey your productâs value and appeal. There are three main pieces you will need to prepare:
Email templatesYour initial outreach email should be short and to the point. Provide an introductory paragraph that points to the sales sheet, which you will attach, and a brief list of bullet points about the productâs selling points. Iâve found that itâs best not to over sell the product at this stage. You are really just looking for their opinion as to whether they have any interest and see a fit for their retail environment.You can download the exact template we use at SoYoung at the link below.
>>Download a free email template example
Sales SheetThe sales sheet is a one page PDF that provides everything a buyer might need to make an initial decision as to whether he or she might be interested in your product(s). Keeping it to one page will insure you focus your message so that the buyer can clearly understand your product and make a quick initial assessment. Any ambiguity about what your product is or why itâs relevant will make a poor first impression and likely just cause them to ignore your products.
What your sales sheet should include:
Your logo, product name and tagline high quality photos of your product including packaging (if relevant) and in-store presentation Wholesale pricing and MSRP 4-5 Bullet points outlining major selling points>>Download a free sales sheet example
Pitch PresentationWhile you wonât always need it, you should have a more in-depth pitch presentation prepared. This can be formatted as a slideshow that can be presented either in person or remotely, once a buyer has expressed some interest. It should be short â less than 10 minutes â but fill in some of the details that you did not have space for in your sales sheets.
Your pitch presentation should include:
8-10 Slides Product Features Awards,endorsements or notable users/fans Pricing Details Press coverage Current retailers and notable sales figures Your Target Audience Company History>>Download an example of a pitch presentation
STEP SIX:
Initial OutreachAt this point you should have a good idea of who you are targeting and have all of your sales materials prepared. In some cases, your initial interactions with your target will reveal that they are not actually the buyer for your category. Ideally they will point you in the right direction, but if not you may have to go back and do some more research.
Before you begin your outreach in earnest, you should have some system in place for tracking your sales efforts. A CRM (customer relations management) system is great because it allows you to set notifications and see all past correspondence with a lead in context, so you know exactly where your progress with that person is at. We use Base CRM â but there are plenty of others out there.
If you donât have a CRM yet, you can just track your efforts in a spreadsheet. However I strongly suggest you at least add some software to your email client that allows you to track whether your email has been opened by a target, as this will allow you to better determine follow up efforts.
What to expect after sending an email.
I have received responses from buyers based on a single email when selling wholesale to retailers, however this is the exception rather than the rule. If youâve used the subject line I suggest in the provided email template, you will likely at least prick their interest. I find that about 50%-60% of my emails get opened.If you see that an email hasnât been opened a few days after sending it, I would suggest simply resending it again. If you see that an email has been opened, move on to the phone call follow-up with the buyer.
STEP SEVEN:
Phone Follow-up with the BuyerOnce you see that an email has been opened, or if youâve sent several emails that have not been opened, call the buyer. This can seem intimidating at first but, as long as you are prepared with a simple script, it is a simple and straightforward process. Your purpose here is simply to follow-up on your email until you get a response.
If you get voicemailYouâll want to keep trying until you get the buyer in person, however it doesnât hurt to leave a short voicemail drawing attention to your email and politely requesting a response. Use the provided script to insure your message is succinct and to the point. If the buyer has not yet read your email, the voicemail may be what prompts them to look for it in their inbox. At the very least, a voicemail, if heard, puts you on their radar and lets them know that you are serious about getting a response.
If you get the buyer in personAgain, have your script in hand and point them to your email. This is not the time to be doing a hard sell. Your goal is simply to get a response and gage whether there is any interest on their part. Stick to the script and, if there is a moment of awkward silence while they search for your email or ponder a response, DONâT make the mistake of filling it with your nervous chatter. Youâll likely just be giving them a reason to say no.
If you get any response OTHER than a firm âNoâAsk the buyer if you could schedule a short 10 minute meeting in which to give them a few more details about your product. If you are able meet in person that is ideal, however if the buyer is in another city or country, this may be unfeasible. I have done successful presentations over the phone with a simple screen share. Suggest a definite time and see if you can get it booked then and there.
Sometimes the buyer will request a sample at this stage, or even a small test order. This is great progress but even if they request a sample, I would still try to get a few minutes of their time to give them your full pitch.
>>Download a free phone sales followup script
STEP EIGHT:
Pitch to BuyerI have made sales without doing this step, particularly for smaller chains. However if the buyer is interested but not yet decided, this is your opportunity to make your product(s) seem like a no-brainer for him or her to at least try out.
Practice, Practice, PracticeBefore your meeting, go through your presentation as many times as you need to to insure you have it down cold. I would suggest making your slides as visual as possible rather than just a number of bullet points that youâre reading off the page. You should memorize exactly what you are going to say, while using the images as supporting material.
Plan what you want the next step to beDonât make the mistake of ending the pitch by asking what they thought. You should end by asking if they would be willing to try a test order. If they have any hesitancy, the next best outcome is offer to see if they will review a sample. It may also be that they are interested but they donât know how to work the products in yet or the timing is off. In that case, ask if you can follow up with them.
STEP NINE:
Follow-up to CompletionIf you get anything short of an order or test order, you should continue to follow up with the buyer every week or two. Iâll usually do 2 or three emails to every phone call follow-up. Remember that buyers are busy, so they arenât necessarily ignoring you because they donât like your product. They may be undecided or have other priorities to deal with. I have had sales that took a year or longer to come to fruition. You simply have to keep politely persisting until someone gives you a firm no or you get a first order. Again, a CRM will help you keep track of all your leads and allow you to schedule reminder tasks around follow-up activities.
If you get a No
Conclusion
Getting a No is much better than not getting a response at all. It means that the buyer has seriously considered your product. Donât miss the opportunity to get inside the buyers head to understand why they passed on your product. Maybe itâs just not a fit for their store and youâre targeting the wrong category. Maybe they have some valuable feedback on how to better position or even redesign your product. Make sure you ask why they passed on your product in a polite and endearing way â be sure not to appear defensive.Those that are most successful at selling wholesale to retailers play the long game of consistent efforts. Very rarely are you going to pick up the phone or send an email and get an immediate response. You have to slowly and methodically persist over time with follow-up after follow-up until people realize that you are not going to go away. Selling wholesale to retailers is not glamorous, and it can be intimidating to reach out to total strangers, but if you do this on a regular basis you will be ahead of 90% of the pack.
Still have some questions about selling wholesale to retailers? Leave a comment below!
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Photography
Browse any high-end magazine like a Vanity Fair or Vogue for a reminder of how much premier lifestyle brands value photography. It is one of the most important assets in your marketing arsenal and a critical factor if you want to improve your brand image
Generally, you can break your photography down into two categories (Iâll cover both):
Product photography, whose primary purpose is to provide detailed views of the product to someone who may be considering purchasing it online or through a catalog. Lifestyle photography, which is meant to associate your products with desirable people, experiences, and feelings.So letsâ explore which factors have the most impact on improving your brandâs image through photographyâŠ
LightingLighting is crucial to taking a high-quality photo. For product photography, this means bright lights that do not reflect off the product or cast any undesirable shadows.
When it comes to lifestyle photography, youâll want to ensure that you have relatively flat, even light that does not cast harsh shadows across the product or the model. If shooting outside, you may require a reflector to augment the lighting of your shots. Here are a few techniques for getting outdoor lighting right
ModelsIt seems obvious but Iâll say it anyway: attractive models make your products appear more desirable. You may not have the budget for a supermodel, however spending a little extra to hire someone with modeling experience can make a huge difference to getting great photos and improve your brand image.
Styling & LocationsThereâs nothing worse than reviewing photos that youâve just spent a lot of time and money on, and noticing that hair is out of place, or something is off with the background that makes an otherwise perfect shot unusable
If youâre doing a lifestyle shoot, you should carefully plan clothing, accessories, props and locations. Scout locations in advance to choose angles and backgrounds before models are standing around waiting. Consider having somebody at the shoot dedicated to keeping an eye on makeup, hair, upturned collars etc. It will save you a lot of grief in post-production. If you want to up your game, you could even choose a theme that will inform your location and styling choices.
ShootingWhen shooting products, youâll want to shoot as many angles and use cases as possible. Thisâll give viewers on the Internet more confidence when purchasing a product that they have not seen in person. If youâre selling clothes, you may need to consider whether you will show them on a model or off â or both.
In either case product photography works best when shot against a white or neutral background. You might consider purchasing a light box that ensures a consistent background and flat lighting, if appropriate for your products.
Design and LayoutThe main principle I apply to design and layouts is minimalism. Minimalism is not just about showing less, itâs about clarity. It is much more difficult to come up with one statement, image or design that represents your brand then simply throwing in as much as you can fit on the page â but if your goal is to improve your brand image, the effort is well worth it.
MinimalismBy surrounding your images or messages with negative space (or white space) , youâre unconsciously communicating a sense of clarity and focus that is typically associated with desirable brands.
Less is more, and taking the time to refine your message results in a premium perception. Avoid hyperbole and work hard to remove any words images or design details that are superfluous. Where appropriate, try to use a single image to convey an idea.
ConsistencyStrong brands understand their essence and do their best to communicate this in every medium. If your photos, fonts, and overall design share a common visual aesthetic it will give your brand a perceived premium value.
You should choose no more than 2 or 3 different fonts and be very intentional about their use. The style of photography and other visual assets should also be consistent across all of your materials.
Social proofMost people respond strongly to social influence. In other words, they are looking for cues and clues that whatever actions they take and believes they hold our aligned with society as a whole. In aligning your products with notable people or publications, as well as the positive sentiments of previous customers you will be improving your branding by giving it support and validation.
Press coverageSometimes the main value of press coverage is not the coverage itself, but the ability to leverage that coverage as social proof. SoYoung features the logos of major publications that have covered us on our homepage. Currently, these include the Washington Post, Martha Stewart Living, Oprah Magazine, and People Magazine. Are you impressed? Yep, thatâs how it works.
TestimonialsEven if you havenât been covered by major publications yet, you can solicit testimonials from satisfied customers to increase trust with prospective buyers. If possible, feature the full name and an image of the person â anything that increases legitimacy.
CelebrityIn todayâs celebrity-saturated culture, some opinions are worth more than others. SoYoung happens to have photos of celebrities using our products, so this is incredibly valuable in building brand credibility and improving your branding. If appropriate, you may consider gifting products to celebrities in an effort to get photographs of celebrities using your products. The photos typically take care of themselves (Most of the photos we have were found on celebrity gossip sites, which customers and retailers alerted us to)
Brand Messaging & CopyYour messaging needs to strike a balance between describing what your product is and illustrating its benefits. I am often surprised how often taglines leave me with no idea what the product actually is or how it is different. In the early stages of your brand, being able to powerfully summarize your business in one sentence is more important than having a catchy phrase.
DescriptionYour first task is to clearly describe your product in unambiguous terms. Explain what your product or brand is, who it is for and what itâs primary value is to the purchaser. Use this format to start with.
Our product/brand helps _____(who)_________ to do/feel/achieve ____(what)_________ so that they can _____(why)_______
This may end up sounding a bit generic, but it will give you a good start. Feel free to use it as a foundation for crafting something more creative:
BenefitsOnce you have created a clear description, you should develop short statements around the unique benefits to your custom. I like to choose three main benefits that focus on the emotional needs of your customer in the most aspirational terms possible. Common areas to explore are: saving time/money, convenience, freedom, attractiveness, wealth, health, and safety.
As a general rule, I like to begin all benefit statements with an action verb such as âgetâ, âachieveâ, âcreateâ, etc. These types of words help you focus on clearly communicating the transformation a buyer can hope to receive by purchasing your product.
FeaturesAt the finest level of detail, you will need to list your products features. Statistics and hard facts are the way to go here. This type of information is most appropriate on a product page, once people have a high-level affinity for your brand and products.
VideoVideo can be very effective at deepening affinity for your products and allow you to improve your brand image. You donât need a Hollywood level production to make an effective video, however, you should have some baseline quality standards â the 10-year-old camcorder in your closet is probably not going to cut it.
Fortunately, the equipment required in making a professional looking video is becoming increasingly affordable and user-friendly. Shooting video is something you can undertake yourself. However depending on your ambitions and budget, you might also consider outsourcing. There are many talented and affordable videographers who can save you a lot of time and help you get something that youâre happy with.
If you want to get deeper into producing your own video, Wistia has some great tutorials. (We also use Wistiaâs video hosting service)
Video EquipmentMost recent smartphones take decent HD video. However for superior results, consider a digital SLR or mirrorless camera with a high-quality lens that will provide some depth of field â a true professional effect. We use a Sony a6000, which costs about $600. It takes excellent video and has the added bonus of autofocus in video mode (which many digital SLRâs donât have), ensuring your subject is always in focus.
SoundOne of the biggest giveaways of an amateur video production is poor audio â usually resulting from using the built-in mic on the camera itself. For best results, youâre going to want to use either an external boom mic or a lav mic which can be attached to the person speaking. We use a $200 Bluetooth clip mic designed specifically for our camera that does away with the inconvenience of wires and delivers
LightingAs with photography, having the right lighting can make a huge difference to how your video turns out â though modern cameras are more forgiving in lower light. Still, if youâre shooting indoors you will probably want some lighting equipment to ensure the shot looks bright and crisp. The main principle is to ensure your foreground subject â especially if it is a personâs face â is well lit. Hereâs a good tutorial from Wistia on putting a simple lighting kit together.
ShootingAs with photography, youâll want to ensure you have a list of shots and a script, if relevant, before your shoot. You should also scout your locations in advance and plan your angles.
If you want to take your video production to the next level, youâll need to cover a few different perspectives and mix in what is called B-roll. This is supplemental imagery that supports the narration and gives you an elegant way to edit together a couple of different takes. Shooting from different angles and distances also helps break up the shots and add visual interest. You can see all of this demonstrated in a video we shot for SoYoungâs Charlie Bag
EditingAssuming your video is primarily for web consumption, youâll want to make it as short and focused as possible by editing it down to the essentials. Build around the narration or visual script and break up your shots, so that the viewer isnât just watching a single view of someone speaking at the camera the whole time.
In terms of audio editing, some light background music can help create an overall mood and elevate the video, particularly if itâs short. Just make sure it doesnât overpower any narration.
Finally, improve your brand image by making sure you add your logo and a call to action to the beginning and ending of the video, in case someone is watching it on a platform like Youtube rather than your website.
How to Improve your Brand Image: ConclusionThis is a high-level overview on how to improve your brand image, however, I hope it gives you some motivation and insight on where to look for the quickest wins. If youâre planning on outsourcing any of these tasks, the downloadable cheat sheet will provide you with talking points to discuss with your provider, and ensure youâve got everything covered.
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Will Leonard and his mother Victoria started the Blu Kicks brand with the simple idea of creating a better travel and vacation shoe, Inspired by the fish they encountered on a family trip to hawaii, Will and victoria began producing an ocean themed line of colourful slip ons that featured original fish artwork and cool laid back designs. The Blu Kicks collection has now grown to include loafers and chukkas that retain the casual, classic style of the original sneakers, while giving them a line of products that they can now sell year round.
I first read about Blu Kicksâ brand on the Shopify blog and I was impressed by the products, the social mission - blue kicks donate a portion of every sale to ocean related causes - and the strength of the brand they had created. The photos were great, there was a clear focus to the Blu Kicks brand and a strong narrative that immediately communicated what they were all about.
Starting out with No experience in footwear.
After starting out by handpainting shoes themselves, it took will and victoria 2-3 years to figure out how to manufacture the shoe. The Blu Kicks brand launched in 2012 with 2 designs, sold mostly to friends and family - and they quickly realized they needed to make more styles if they were going to grow the brand.
Will credits those first few years figuring out the business as really helping to define the strong DNA of the brand. Also, having a small team driven by the founders has helped. They now have guidelines and core assets that guide their creative process, such as creating outsoles featuring original artwork and donating a portion to ocean charities.
Now theyâve taken their commitment to extending the brand a step further venturing into retail with a pop-up store and a studio thatâs open to the public.
Work Dynamic with a Family
Will talked briefly about the challenges of working with family. It takes an adjustment period as you learn how to relate in new ways and not just default to your long established dynamic. Once you have more structure in the business and roles get more defined it gets easier.
Key to successfully marketing the products
Treating the products with respect by Investing in good photos and content PR outreach has been the biggest driver of sales - Bloggers/online editors Newsletters Online advertisingTry to think about the marketing from the beginning of the product development process and build it into the products themselves
How to tell a big story for a small line
Use place to drive storytelling and develop a deeper narrative Use humor and be authentic about your small size to present yourself as an underdog
Product Development Process
Targeted release dates are based on lead time with factory 8-10 months lead time Start broad around what could be a new story/material/artist/angle Try to envision the full line before engaging production partners 2-3 rounds of samples and refining ideasSales
Email outreach works now that a network has been established and more people have heard of the Blu Kicks brand Tradeshows have been successful at spreading the word Still will go door-to-door and show up in person with productBiggest Advice and Learnings
Try to start your day with easy wins to get momentum before moving on to tougher, less tangible activities like product dev and Keep moving forward, itâs natural to encounter setbacks when you are doing something new Donât over analyze, just stay in action. You may not see the results right away but they may show up when you least expect it There is no formula so trial and error is the only way to figure out whatâs going to work At some point youâve got to go for it, itâs a leap of faith On the other hand, you need to spend as much time as possible understanding how your industry works and defining your niche
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It was a rude awakening for us to realize that the more success we achieved with SoYoung, the more cash we were going to need to finance production and growth - but if youâve never raised capital before, the process can be daunting
Well fortunately the times are changing and there are some new funding platforms emerging in the consumer products space that make it much easier for small businesses to raise capital by helping to bring together angel investors and growth stage product entrepreneurs. One of the leaders in this space is San francisco-based Circleupâs crowdfunding platform . I first heard about Circleup crowdfunding platform about a year ago and I was impressed by their process and the companies that they had worked with.
Though we decided not to proceed With raising money at that time, we have stayed in touch with Circleup and are considering doing a round of financing with them in the future. I recently reconnected with Steve Vigilante from Circle up whom gave me an overview of how the platform works, and how it might benefit your business.
Access to a deep pool of Angel InvestorsOne of the main benefits of Circle Up is that it can support companies that are smaller or at an earlier stage of development than what private equity investors would typically look at, by providing access to a deep pool of Angel investors. Circleup typically works with companies whose revenues are in the $500,000 - $10,000,000 range.
CircleUp is focussed exclusively on the Consumer products spaceThe other benefit is that circle up is focussed exclusively on the consumer products space - so itâs really opening up a new market that traditionally had struggled to get access to equity funding.
The difference between Kickstarter and CircleupNow you probably heard of crowdfunding sites such as Kickstarter and Indiegogo - which at first glance May appear to be a similar concept, without the downside of giving up equity. I asked Steve to explain the difference.
Essentially Kickstarter and Indiegogo (and others) are for testing out products and getting some seed financing for an initial production run. Circleup is for companies that already have traction in the marketplace and need to raise a significant amount of money to grow their business. The average check size is much bigger as are the amount of funds raised.
SO Kickstarter may be a great way to test and finance the manufacuring for your first product, but if youâre looking for serious funding to grow your business, youâll need more than crowdfunding can provide.
The Platform is Curated - both on the investor and entrepreneur sideSo chances are youâve still got a lot of questions about who these investors are and how the application process works as we did certainly did when we first began speaking with circle up. Steve points out that there is a vigerous curation process and they are very selective about who they allow on the platform on both the entrepreneur and investor side.
Circle up accepts between 5%-10% of companies that apply in order to keep quality high. In order for someone to become an investor on the platform they must be an accredited investor, but Circleup also does additional vetting to insure investors understand the consumer products space,
ConfidentialityOk, so getting on the platform is one thing, but how does it once youâr accepted. How is confidentiality handles and do you get any say over who your investors are?
While high level info on your offer is available publically, the platform provides each entrepreneur looking to raise funds with a private deal room to which they control access. This allows you to only share confidential details about your business with investors that you pre-screen.
Strategic vs Passive InvestorsAnother concern is what role the investors may play in shaping your business. For some companies, the there may be great appeal in bringing on a strategic investor who also has industry experience that he can lend to your business as a mentor and advisor. For others you may be looking for more of a passive investor who will not meddle in the everyday aspects of the business. Itâs completely up to you as to what type of relationships you wouldlike to foster through the platform.
Supporting you through the processNo, well there is a cost that typically between 5% of your raise, the main attractions for me to Circle up is, in addition to the investors, is the fact that, as someone who's never been through the fundraising process before they offer a ton of support and resources to help you build a compelling pitch and increase your odds of success.
Now, while you will ultimately have control over how you value your company, Steve cautions that itâs very easy to become deluded by the frothiness of tech valuations and even some of the exceptional cases in the consumer space. This is the biggest impediment to being successful at getting a deal done.
So, whether youâre in a position to raise funds today, or are just thinking ahead to the time when you may may need addtional capital, I storngly suggest you check out Circlup at www.circleup.com to get a better idea of how the fundraising landscape is changing and what new options are opening up to consumer brands. Iâll be keeping you posted on SoYoungâs fundraising journey which may involve circle up at some point down the line. Iâd like to give a special thanks to Steve Vigilante for speaking with Indie brand builder.
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In this weekâs podcast I discuss how to get the most out of your trade show marketing with TIm Patterson. Tim is the head of Trade Show Guy Exhibits where he helps clients excel at trade show marketing.
Tim also runs a blog, www.tradeshowguyblog.com and has authored a book called Trade Show Success thatâs a great resource for small to medium sized businesses looking to take their trade show marketing to the next level. You can download the book for free at http://www.tradeshowsuccessbook.com/
Trade shows can be an expensive proposition for a young business, and I can tell you from experience that they have been hit and miss for us. With all the social media and other options for instant communication i asked Tim why a brand with limited resources should go to the expense and trouble of attending trade shows? Tim points out that because of the prevalence of electronic communication in business relationships, face to face meetings are more powerful than ever. Also, because buyers are there specifically to source new products, trade shows allow brands to reach markets that they never could on their own. Another benefit of doing trade shows is just the opportunity to see what's going on in the market and how you measure up to your competition
So I mentioned that not every trade show has been a great experience for us. I asked Tim how to determine what shows are going to be a good fit for you rather than a waste of time?
Tim recommends simply walking a show as an attendee and speaking with other presenters before committing to purchase a booth. Checking the showâs site for signs that your competition is attending is another good strategy for gauging a showâs fit.
SoYoung continue to attend select trade shows and part of the reason that we do is that weâve gotten a lot better at doing them - in fact tradeshows have actually lead to some amazing connections that Iâm pretty sure sure we could not have made otherwise.
Tim emphasizes that lack of proper planning is the biggest mistake people make around tradeshows - you can't just show up and expect to have a great experience.
In the end the progress weâve made mostly come down to us spending a lot more time planning and preparing in advance for the trade show experience. We now schedule weekly trade show meetings in the six to eight weeks leading up to a major event, where we discuss all the details of the show. This includes the marketing materials we need to get together, details of the marketing packages offered through the show organizers and logistical details of getting all of our items there on time.Mistakes still happen, but generally weâre able to make much better use of our time at the show.
Another aspect weâve improved is the design of our booth itself. Last year we invested a significant amount of money in upgrading our booth and we used Tim as a consultant. Tim points out that for an unknown brand it may be better to emphasize your product or tagline rather than your logo and brand. Ultimately you want to be sure that whatever messaging youâre using is attracting the right customers and disqualifying attendees who are not a fit for your brand.
Another point Tim makes is around the importance of having representatives of your brand in the booth who have been properly trained in both your key messaging and how to interact with customers in a trade show setting. If necessary, consider hiring trainers who specialize in trade show selling for your staff.
The main purpose of attending any trade show is to generate sales and leads for your business. While it may seem fairly obvious, but in the beginning we really didnât do a very good job of following up on the leads we met at trade shows, so we were wasting a huge part of the value of attending. Apparently we are not alone! In fact tim claims that studies show that 7-8 out of 10 leads is never followed up on.
I can confidently say that we are now on top of our follow up. Every lead is entered into our CRM with notes from the show. Because Iâm not typically at the show but do most of the follow up, weâve trained our staff to get as much information as possible so I know exactly what was discussed and can personalize my outreach message. I also begin following up within 48 hours of the show while the memory is fresh and we continue following up until we get a firm yes or no. But having a clearly defined process is key.
SO, if you haven;t yet attended a tradeshow but are considering them as a way to grow your sales, i hope this has helped clarify why tradeshows are important. If youâve already attended some tradeshows you probably got some nuggets that you can apply to your next exoereince. Like most things in this business, weâve increased our returns from tradshows over time as weâve attended more shows and gotten better at our process.
If youâd like to learn more about tradeshow marketing you can visits Tim Pattersonâs blog at http://www.tradeshowguyblog.com/
And again, Tim has also made his book availble for free to our podcast listeners - you can go to http://www.tradeshowsuccessbook.com/
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Sam Miller first moved to Shanghai in the early 90âs to teach at the university there. He then went on to manage the office of a major American home textiles company. He has since worked in the ceramics, gifts and furniture industries offering his experience in sourcing, product development, management and logistics. He currently works with a variety of small business to teach them how to manufacture products in China and help them secure and manage their manufacturing relationships. He blogs frequently about the topic ofhow to manufacture products in China on his website www.theeastasiaco.com
Why should you manufacture products in China?I love the idea of purchasing products that are made here in North America, and if your products and business model allow you to do that, there are some big advantages from both a branding and logistics perspective. But the reality is, most of us will not purchase products unless they also meet our price expectations - and price expectations today are largely determined by global markets.
I'm not going to get it into the political and moral implications of outsourcing your products to a country like China. But I will say that depending on your product category, and your competitive set, it may be your only choice to have your products manufactured in a cost competitive manner. I asked Sam about this and he describes how many products can no longer be manufactured cost effectively in North America because most of the infrastructure and expertise has moved overseas, where labour is much cheaper.
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Catherine Choi is the founder a president of SoYoung, a line of eco friendly bags for families which includes lunch boxes, cooler bags backpacks and diaper bags made from natural fabrics. Since starting the brand nearly 10 years ago she has grown SoYoung into a 7 figure business with products that are sold all over the world including in about 500 North American retailers. SoYoung has been featured in Oprah Magazine, Martha Stewart Living, People Magazine, and on national US cable shows like The Today Show and The View.
Catherine is also my wife and now partner in SoYoung. I joined the business full time in 2014 - after she had successfully established the brand and needed help taking the business to the next level.
But at one point Catherine was as unlikely an entrepreneur as youâll find and she is here to share her journey with us today
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So young started working with Connect CPA when we were looking for a partner to help us transition from QuickBooks to Xero - which is a cloud based accounting platform. As soon as I started talking to connect Mike, I knew we had found the right partner - he was right alongside with me in trying to understand our technology infrastructure so that we could automate the bulk of our financial processing. In addition i liked their pricing model which is based on a flat monthly fee which includes all of our accounting technology and include an unlimited amount of support - a huge change from wondering how much it would cost to pick up the phone and ask my accountant a few questions.
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In this is episode of the Indie Brand Builder podcast, I speak with Alyssa Kerbel of Mini Mioche. Alyssa shares the string of disappointments and challenges that lead to her eventual insight and decision to open her own retail location, essentially become a vertically integrated indie brand â after many people told her she was crazy to do so.
Alyssa Kerbel of Mini Mioche began her entrepreneurial journey as the founder of her own wholesale fashion sales agency. After she had her first child she spotted a lack of good quality, simple, organic infant and kids basics, so Alyssa drew upon her fashion industry background and started the childrenâs apparel brand Mini Mioche which she has grown into a 7 figure business that is sold through her two Toronto based retail locations as well as worldwide through her online store minimioche.com
Alyssa credits her impatience with allowing her to quickly change direction when she wasnât getting the results she wanted. However today she is leading a rapidly growing 7 â figure business both online and through her 2 retail locations, with plans to open more.
Another reason to love Mini Mioche is that Alyssa has taken her environmental commitment extremely seriously. All of the clothes are mad right here in Toronto at their workshop/factory. The brand is environmentally friendly, using organic cotton yarn which is dyed using non-toxic, re-usable dyes. Marketing materials and bags are printed on recycled matter so they donât ship anything in unnecessary plastic.
Alyssaâs biggest area of personal growthâDefinitely having to learn the numbers If you donât know your numbers and where your business stands, itâs probably not going to work.â
Alyssaâs advice to young entrepreneurs
âPrepare yourself for a really insane amount of work. Itâs extremely rewarding but it requires everything you have. You have to be extremely passionate about it you have to live and breathe it to make it work.â
To Learn more about Alyssa Kerbel of Mini Mioche visit www.minimioche.com
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