Anyone here sell physical products?

[kmichonanchored]

I ask because most of the posts I read here are from service providers. And while a decent amount of the info is relatable, I’d love to hear from people who sell physical products and have to deal with manufacturing, inventory, wholesale/retail/ecom sales, etc.

As for my business, I own and game company (board games, card games). My two current titles are aimed at kids 3 and up. My next title (going into production shortly) will be same demo, then the following two titles will be aimed at the whole family (ages 8+). While my business is mostly profitable, I’m basically investing every dollar back into the company (more inventory, more titles, more marketing/sales).

I’m just 2 years into my journey (mostly part time), learning an entirely new industry, and would love to hear stories from other people selling consumer goods.

Where are you in your journey? What struggles did you encounter/are you encountering? What was the hardest part in the early years? Hardest ongoing struggles? Did you have any aha moments that helped you turn a corner? Did you ever get to a place of any real profitability? If so, how long?

I don’t have much of a network of people doing anything similar, so thanks in advance…hopefully we get a good discussion.

 

[james1971]

@kmichonanchored Yeah, I sell physical products, for over 4 years now. Money is really the big issue but just in a lot of different ways, including finding good suppliers who make it a possibility to be profitable without tons of issues. Storage is another issue, which is tied to the "without tons of issues" thing I mentioned (for example, if you don't order stuff and store it somewhere and just want to do something like dropship or only order inventory when customers order it, you run the risk of the items not being in stock). I'm not profitable, but that's mainly because I also have a day job that sucks up time, energy, focus and motivation re: my business.

 

[germatria1128]

@james1971 Japanese cast iron teapots, kettles, loose teas, etc for almost 25 freaking years and I'm about to give up!!!!! I run it alone, the time requirement is extreme, I'm burned out, I hate dealing with almost all aspects of running it except for the customers (I have some incredible, lovely patrons) who are unfortunately dwindling more every year....google didn't exist when I started Jan of 2000. Amazon was a bookstore. Like 12 people knew what SEO even was, it didn't require 10,000 hours and a Phd just to rank on the 10th page of google search results. Social media? It was just a twinkle in Zuckerberg's prepubescent eye. I really miss those days because small businesses could actully make a good living. Monopolies now own everything, including the profits. I can only wish you the very best as you carve out your own space online! Cheers!

 

[kmichonanchored]

@germatria1128 I’m sorry to hear this. But 25 years is quite an accomplishment. This new landscape does take a lot of knowledge and it feels like you have to be an expert in all of it. Or weed through the scammers who are promising to make you 6 figures a month.

 

[tebbett]

@germatria1128 I see that you have incredible experience and I hope I could have a meeting with you to share with me how I could start making these kind of products. Thank you so much!

 

[kmichonanchored]

@james1971 I’m definitely finding that storage is becoming an issue. I’m in a fast growing cost of living area and renting warehouse space is extremely expensive (I haven’t found anything under $3500/month). My inventory is currently in 2 10x20 storage units. Works for now, but not ideal. I’m currently looking into 3pl warehousing, but i would like to have some inventory on hand.

What are your main sales channels? Wholesale/retail, ecom, Amazon, etc?

 

[fluffykits]

@kmichonanchored If you are only doing e-commerce you can live wherever you want. If you feel your company can be bigger and it’s worth it, maybe move somewhere cheaper? If you’re able, buy a larger piece of land with the ability to store your inventory, and live there at the same time. You can put your 3k or whatever a month of storage cost toward a mortgage instead.

 

[kmichonanchored]

@fluffykits This is definitely something I’ve thought about. Unfortunately due to family, work, etc, we aren’t in a position to move right now. But it’s definitely something I have in the back of my mind.

 

[hepayedforus]

@kmichonanchored are pizzas physical products?

 

[iyanuoluwa]

@hepayedforus I'd go hungry if they weren't

 

[palvadorsichards]

@hepayedforus Nah. Digital only.

 

[buckeye_momof4]

@palvadorsichards Presumably the digital pizzas are the ones that are low glycemic, low sodium and overall healthy?

 

[kmichonanchored]

@buckeye_momof4 Also, from what I understand, 0 calorie for those counting.

 

[ghostlight]

@kmichonanchored We make and sell private label products for distributors and retailers. Its fun, but difficult.

 

[kmichonanchored]

@ghostlight I thought I replied to you, but it ended up in regular comments…anyway, here’s what I replied with:

Wow…that does sound difficult. Does your business model involve finding clients to make the products for, and having to manage the sales channels for them?

Edit: for more context, I have a hard enough time just growing sales channels for my physical goods…the idea of trying to find clients on top of that seems exhausting.

 

[ghostlight]

@kmichonanchored Yes, its a ton of work and takes a while to get it right. Im still in the process. Sales and marketing are not the best but we’re working on that.

 

[kmichonanchored]

@ghostlight Keep up the good work!

 

[afj92]

@kmichonanchored Fairly new board game retailer here (feel free to reach out), it’s been a welcome challenge as ecom is drastically different from previous business/career. Wearing all the hats so there’s always a shortage of time.

 

[kmichonanchored]

@afj92 Aha…awesome. Thanks for commenting. It’s always great to meet others on the retail side of this industry. I’m a huge fan of this space and everyone I met has been really great. Most people seem to enjoy what they do. Far different than the industries I was in in the past.

 

[fluffykits]

@kmichonanchored I’ve been growing my business for 4 years now, sell physical things on e-commerce only store. I had a terminal velocity moment a year ago when I realized I could own the niche I was in, and my business exploded from 50K revenue a year to 400k after I took some fairly risky moves by majorly expanding using debt, and I’m looking to double again to 800k in 2024 hopefully.

I put everything I make back into the company, it costs a lot of money to manufacture my items, and unfortunately when you sell a physical thing it simply just costs money, it takes money to make money. You also need a place to store items, I’m lucky that I live on an acreage and I run my business from my home.

Struggles? Constantly stressed about competition, but at this point I am the big boy on the block so I have only myself to blame if I give up my spot. I also stress quite a bit about going too slow, so I’m always pushing myself harder and harder to grow faster and faster. If you’re not growing your dieing.. and this is what my brain thinks which causes me to grow hard.

Yes I’m profitable, I make anywhere from 100-200% on my products. On average after shipping costs, credit card fees, website costs, I make about 50% of my revenue, so 200k on the 400k this year would be considered profit. but I put every spare penny right back into the company to grow it so I never see that money, I don’t live lavishly, I drive a piece of crap car that is rusting out. I can’t bring myself to spend money on anything other than the company. This life isn’t for everyone, it’s hard, it’s mentally tough and draining, but If you can own your niche you can make the company of your dreams.

My plan after robust growth pays off is to finally rest a few months but let’s be honest, a real small business owner can’t sit still ever, so I might have to sell to relax, not sure. I also have an exit plan should I choose to sell my company in 3-5 years, I already am plugged into the manufacturing supply chain of the company I would court to sell to, to make it easy for them to acquire me.

Inventory is key, without inventory there is no growth, I also realized this before my company took off, I had been thinking a “waitlist” was a good thing to have, but anyone that joins a waitlist is a lost sale because I didn’t have enough money to replenish my inventory. So I changed that and I never go out of inventory on my items, constantly replenishing at calculated times throughout the year.

Sorry I have a lot of stuff to say if you have questions just ask. Made this Burner account to reply.