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"salman cookie" Discussed on The New School with Christine Hong

The New School with Christine Hong

09:11 min | 6 months ago

"salman cookie" Discussed on The New School with Christine Hong

"She went. Back and she did the Singapore kickstarter fulfillment. My family all helped me and my neighbors for about four days. Straight just packing kickstarter orders. Because I was going to India for my friend's wedding and I needed to get it done in a certain period of time. Yeah and so we just stayed up all night for many nights and we fulfilled the kickstarter campaign and turns out our packaging. Didn't work and all the cookies had gotten crushed in the mail. So essentially we just mail crumbs to everybody. Who ORDERED FROM US on kickstarter. Did they complain? Yeah but then we learned about PR and you know the importance of good service. And then it ended up that they were dumping the crumbs on their ice cream and in their oatmeal and stuff because they thought it was so good. Oh actually they weren't mad. Okay very supportive okay. And so is. I'm more forgiving community. You think well yes because kickstarter or you're just starting out ideas usually people don't they realized you're not some giant corporation. That's just trying to take advantage or something so we did that. And then afterwards we decided we needed to shape up when it came to production and so we went on. We figured out packaging to sell. The cookies wouldn't break. We found a place to produce our own cookies commercial kitchen instead of having to work with third party. You just Google this suffer. How do you figure it out googling but mostly asking meeting people who have been in the industry? How do you do this or you make your cookies things like that? So you're meeting other Hukou vendors. Yes other cookie vendors or just food producers and then you end up learning a lot based on what other people are doing and then it may or may not make sense for you. We wanted to do a CO packer for a long time. But they have really high minimums like this lady with fifty thousand. That was low for her production. And so but it wasn't going to be maybe wasn't gonNA make sense for us until we really ramped up. Yeah I can't quite visualize what co packer is like. The she ever on manufacturing food factory and yet can make whatever you want based on ingredients and recipe. You give her pretty much okay and then she can package it however you want to. Yes okay so you just send her design. Gotcha Okay Right. But then you have to make sure that everything's working well and the business was hard food like being. A food manufacturer in general is very hard because expires expires and your slaving away late at night in the kitchen. We did that. Yeah so many nights up trying to fulfill orders or maximize our kitchen time. 'cause you're paying and and then you go to the farmer's market and somebody walks by and they try the cookie and chewing it in your face and it's pretty good you know and you're behind things thing you better like it. Were you selling it at farmer's markets every week yeah. We did a lot of that okay. We're also saw what we sold to tech companies in bulk. Oh that's so smart for their free snacks. Yes yeah that's really smart. Actually yeah and then after that we wanted to get into retail because on our online store everybody was saying. Where can I buy these without having to pay for shipping? I want to get them at the store. The store so we went out and we tried to. Hustle are cookies into the stores and we met we met with a lot of pushback and then even when we went into the stores. It was a pain driving around the city for twenty dollars at a time to follow up on orders and keep the product on a shelf. Kes- Does you would just walk stores and be like. Hey can you buy my like Salman Cookie and tried to convince some process to walk in the store and save by my cookies. And then sometimes they'd say yes and eventually they would say yes and then they would be buying it directly from us because we didn't have a distributor yes. Local stores are like chain stores. Local to start okay. Chains typically would wanNA work with a distributor but it varies because distributors. The middlemen buy and sell a product. They can't work with a lot of the brands. That consumers are looking for so chain. Stores will work with you directly. But it's a longer process zone near I. Starting we would go just directly into the independence and say can you order these directly from me and then if you think about it. A grocery store has tend to fifty thousand individual skews products in it and they can be ordering that from ten to fifty thousand different individual sprints. Yeah because I was also wondering how could they trust you because you weren't a big name yet so how they know you would fill the orders or like the cookies are safe or or the FDA approved? I've I don't know the process. Yeah there's some paperwork sometimes about the insurance and things like that you have to have insurance. You have to be producing in a commercial kitchen but as for being able to produce. That's a risk that comes with working with smaller manufacturers. Your facility might just burn down or maybe you run out of money or there are so many different things for these small businesses that are wildcards but people will take the risk anyway because that's where the trend is all the consumers. Want okay. Well not all you know no. It's like driving the business. People get what they capitalism. Okay so you are trying to hit these stories in the cellular cookies and you said it was very frustrating. Yes because the conversation would always pretty much go. The same way where they wanted us to with a distributor because that consolidates their process And then they can receive everything in one order everything in one and it actually. It would have been good for us because we could just sell the stuff. But then we started looking into distribution and we weren't satisfied with any of the options that existed in a long term for us to grow the business in particular the national distribution system is pretty consolidated. So there are two players that are really running it for natural food and we didn't. WanNa work with them because it wasn't a very transparent process that we had heard of and we felt that it just wasn't optimized for emerging brands or brands. Want to grow fast or even a locally so we wanted to grow and be local regional and national and the path to get. There was not appealing to us. Okay so we decided that it was time to create a change because we weren't alone at all we learn about distribution from all of these other manufacturers who had gone before in. What did you not like besides a lack of transparency? Well if you're not careful. The lack of transparency can really put you out of business as a small manufacturer because you're met with a lot of unauthorized deductions or other deductions on your payments. And then there are also mandatory marketing fees and promotions and lots of things that as a small manufacturer. You wouldn't understand going into it so you don't necessarily know what to look out for you. Can't what percentage of your revenue? Am taking at the end. Oh that's a hard question. I mean they take a margin markup so they'll buy your product and then depending on where they're selling it they could mark it up anywhere from eight to thirty five percent or so but that is covering logistics costs and then beyond that you have a lot of other expenses setup fees and promotions and things like that water these figures even right. They're more like fixed expenses that you can't necessarily get around and you don't know how to accommodate those in your product price. And by the time you figure out how to do that. Your product is so expensive on the shelf. Then the consumer can't afford it. No this happens. I want to buy organic food items. And then I'm like this is like thirty dollars for bread. Economics drives consumers. Yeah so you're fresh air the manufacturers and he didn't WANNA go the top. So what did you think to do next the distributors? And it's not even just that we didn't want to go with them they wouldn't have paid attention to. Us talking to one of them for.

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