Should You Launch a Kickstarter? - Start a Business From Scratch #2
Hey welcome to start, a business from. Scratch i'm, sean, mccabe and I'm joined once again by Cameron. And Anthony, what's, up guys how's it going howdy. Welcome. Back looking. Forward to today's. Call and what we're gonna get into if if. You, recall last time you, kind of dropped a bomb on me and said by the way we're launching a Kickstarter oh my. God, whoa ok what's going on here so maybe. Maybe, we can pick it up there let me know what's new what's going on you know what you guys are working on and, you know we'll just go right into it yeah, ok, yeah I would love to delve into that actually, just. To let you know what we have planned for this week we, are planning after, this call actually to go get our DBA, either. Dallas. County or just somewhere locally, so. That we can bring that to the, bank we've chosen to work through for our small business, and, then. We. Have the. Farmers market thing coming up next month so we're just excited, to get some things in shake but. Yeah. As far as the Kickstarter, goes. We. I had a quick rough draft because I thought we were gonna shoot about a one, to one and a half minute long video. And this is me just making my own, I. Guess. Ideas. About it because I'd never dove, into like what. Makes a successful Kickstarter. So I wanted to talk to you about that but. If you wanted to hear our ideas for we can get into that otherwise, but. What else has been new. Mmm. We. Have been working. On some formulas. For for, actual business so. He's been with us we've been working on our craft. And. Is, that like you mean for drinks. Yeah. For drinks. Trying. To make the best cup we can make you. Know cuz it's, just important, to not only get the business together but be. A master, at you know what your business is yeah so we. We that's what we've been doing on our side you know a spare time just like I mean drinking coffee which is already fun but. Also just like testing, out what, does this taste good this way or that way so, forgetful. So just, anyone some context, who's jumping in here hasn't, seen the first part of our startup business from scratch series, Cameron. And Anthony have, a coffee business so. They're getting started with that you know they've got this coffee, bar it's like a mobile, coffee. Bar or, they call it a specialty. Bar, and you. Know they're also talking about running. A Kickstarter so we're gonna get into some of that today but that's a little bit of context, around what, these guys are doing so maybe can you tell me a little bit about why. Kickstarter. Why do you want to do a Kickstarter, and then maybe we can get into the to the how sure. And actually I was I'm, still wondering, why Kickstarter. And not you know GoFundMe, because, do.
We Have or should we invest into getting. Things back for, people get kick-started the, whole idea it was like yes, we'll support you but. What can we get can get a t-shirt things like that people even, one level further, from that cuz that's kind of like okay, we're gonna do a crowdfunding campaign which. Service, do we use one. Level back from that why. Crowdfunding. Okay. I. Think. Initially is maybe because, just. To, get, hmm. I'm. Say following, like a support. From. People. Or. Or. Just yeah just to kind of see who who, really believes in this I think. That was maybe the main thought that I had you. Know I had just had maybe about five, to ten people say are you guys having a Kickstarter, because they knew we were started, out just. Because they would say we'd love to support so, that's the only reason I thought. We shouldn't dive into that huh okay. So I mean like just to push back on it a little bit, why. Not make. A business and sell, stuff and see if people want to support that like if they're interested, you know I'm. Not saying it's a bad idea I'm just like pushing back on it to to see what we can get well. Obviously. In the. Practical, side of it, you. Don't have all the money in the world and. Sometimes you need a little bit of help without. Having. The risk of given. A part of your business to someone else which. Is like what we talked about a little bit about investors. That. You know when you have an investor, you have to give a little bit of your. Business to them and so, I think this is a good way to receive. Financial, help without, having, to give. Away what is ours, and. Continue. To push towards the goal so. I think, that that's a really good way in. Strategizing. For the business, okay. I think yeah I think that's pretty good so maybe you can tell me a little bit about what. They're funding, and what. The goal is and. You. Know what, they're helping you do because I know we talked a little bit about like espresso machines, that's nearly ten grand, that's that's, a lot of money up front so you know I can see how something like crowdfunding, would, help you get some, more expensive machinery like that maybe they get a little bit of a perk in response so tell me a little bit about what you have planned, yeah. So. What, we have so far to offer is, it's. Good. Its, quality, coffee but. We do want to get into more espresso drinks. Because. They can just expand, our menu from just pour overs to collude to nitro cold brew but. Your. Lattes, and cappuccinos and, Americanos. You know and, so that's. The main reason why we would, want to push forward and getting. More equipment is that it would expand, our menu and you, know generate more money for us and. For the business. So. So. I guess that's the biggest reason why is because you you, want to start. Getting more equipment, because, when, you start getting more equipment than you can move more into an actual. Store and then. From. There you know you just keep adding on to. What you want to offer, to the community so, that that was just my guess on the espresso machine is that, actually. A goal that's actually it it, actually is yeah we would, want to get an. Espresso, machine and an. And a grinder for espresso, because, right now we have a good run for, for. Small. Amounts. Of coffee for poor overs, and. And so, we need to get another one that can do that as, a hopper a bigger, hopper we can put like a full five-pound bag in and be. Able to just you know grind some espresso and, and. Use, it so that, is. Actually the main goal is is, espresso machine, a grinder. From strictly, for espresso and. And. Yeah. Maybe. I was even thinking just, some interior. Design, for we do have a storefront you, know just buying chairs buying tables and. Things like that -. Yeah. Mostly. This, press machine so what would they get as. A perk for backing, the campaign. Well. I wanted, to know if we should, we. Should invest into going, to like Mama's sauce and getting t-shirts made, or, should. We just keep it small, like, stickers. Just open, mail you a sticker I'm. Not sure, cuz, Mike he said we don't have all the money in the whole world but if.
We Would take a bit of a little bit of investment on our and maybe that would go, a long way I'm not sure. So. Typically, with a Kickstarter, campaign what, what, will work really well and what you need to keep in mind is most. Kickstarter. Campaigns fail. Most. Of them fail so, you're gonna see the examples, that don't because. You know the best price is to the top but, the ones you don't see you. Don't see for a reason, and that's why they they fail so understand. You know that game that you're getting into but the. Way that most of them work, at least the ones that do well they, are providing. Something some kind of product, something that they want to offer they, want to turn an idea into something they have a prototype they need a CNC. Machine they need a mold you know something that's very expensive. They. They want to give you this product but to make this product requires. A lot of money and it's hard for them to come up with that from, the beginning and so not just people. Typically, are, backing. The campaign, for. The purposes, of getting the product, that they can't make without the money first, so. It's, think, of it less as like, a donation. Collection. And it's more like an, investment. Beforehand. It's like a pre-purchase, and now like, it's a technicality, because they, would tell you look, it's not a pre-purchase you, are investing, you, know maybe it doesn't work like and there's a risks, and challenges, section. Where they have to tell you these, are things that could go wrong you know and so, Kickstarter. Really tries to tell the backers, hey you. Know this isn't a pre-purchase but. More. Or less that's how people see it that's how people think of it so if you. Want it to do well you don't, want to treat it like just, a donation, collection campaign, you want to treat it as. Essentially. Pre purchasing, a finished.
Result, Something that you want to make that you can't make without. This expensive. Equipment so. I. Mean, I have some thoughts there but does anything come to mind when when I put it that way. Yeah. You. Can. One. Of the things we can do is like. Is. Like a model. Like a Yeti style Cup. Where. You. Know if you if you do a certain. Donation. You get this cup and. And. With that you get like a discount, on your drink or like a free refill oh man. You can just it's like you, know our cup to you that is specifically, for like our, business. Those. Things like that or or, like a separate, t-shirt, yeah. So here's here's a thought here like I've got let me show you. This. Is my book, overlap. Which. You, know I I essentially. Invested. In producing, a run of these you know it's if quality, material, it's clothbound, it's. A you, know. It's. It's. Nice paper you know it's it's good stuff it costs, lots, of money to do this you know like five figures, and that's. Something I was ready to invest. In myself, I. Wasn't. Gonna go I wasn't gonna go to anyone and ask for the money for it but then I realized like after, thinking through it and talking with some people I was, missing, an opportunity because, like in that case I had the money I could make it happen right but. I was missing an opportunity to, go to people and allow them to be a part of. This. Project to feel, like they had something, you, know invested. In it like I I hope, this happen I believe in it I want people people, said I want to show my support like. I believe in it now like I've appreciated, the podcasts, or the shows you've done over the years like I want to invest and you, know I I realized, I was missing out on letting, people give. Back in that way and so. I did, decide to do a. Pre-order. So, it wasn't a Kickstarter, but in a way the, book did not exist, and this, was like many, many months like, it was actually the year prior to the. Book launching, that I opened a pre-order campaign and, people. Gave us money, you know thousands, of dollars that we were able to use to help, fund the print run now. What they were investing. In you, know like, I said it's a pre-order but. That's. Really, what a lot of kick starters are like in the minds of the backers they're. Thinking, of it that way even though technically it's an investment, and there are risks they're thinking of it as a pre-order, so. There's some similarities, here but, they are pre-ordering. This, product. That, I'm trying to create that I don't have the money to create oh I I, do but, like hypothetically, speaking I need, money up front to make this to, put it in your hands yes. The. Product, is the, book, now. What I also included. Were, other things like there was a there was a car and in there I signed. The book there was a letterpress bookmark. There, was a limited-edition letterpress. Print there. Was some special stuff right there was a no custom, box and all that like it felt special. It felt like they were a part of something a limited edition. The. Bookmark. Wasn't. The product the. Letterpress print, wasn't. The product, you, know the box wasn't. The product it was all a part of the experience, of, delivering. The product which, was the book right, so, yeah that's how I want you to think of this Kickstarter, I need, you to think of what is the product, that you want to deliver that, you can't deliver without money right. And now that is not the, espresso. Machine. Just. Like it is not. The. Check I write to. The book printer. Right. So. It's it's the end product. That comes as a result of having, the money to invest. In something that is expensive it's, the end result, of what that can produce that's. What people want so so, these ancillary. Things like, bookmarks. Letterpress, prints mugs. T-shirts. They're. They're secondary, right, they're secondary, around, what, the main thing is there needs to be a main thing. A core product, that, people are investing, in and then all of these are added perks you know here we're gonna we're gonna throw in a water bottle when you get the tier that has five books, we're, gonna throw in a t-shirt and a, water bottle and a print and a mug if you get the fifty shirt fifty. Book package right but, they're buying the product that comes as a result of having the thing that costs a lot of money so, in my mind, what.
That Is like. Let's, think about it what do you want what, what do you want to produce that, you can't produce without, expensive machinery. Espresso. Drinks yeah. Right and that's, what people want so. You. Know I I haven't, really thought through like how. This works can it work I'm just kind of breaking it down logically, to me the. Product is espresso. Drinks, so, it would look something like and because that's what people want right, it. Would look something like a voucher for, 20. Drinks, if you. Back us at the, hundred, dollar level or you know what whatever it is right and. In. Addition to that voucher that, you can use you know when, we open up and when we're able to do these drinks we're also going to throw in a t-shirt at this level and so then you start adding in the Onis is the little perks to, spice, it up nice. Okay. Yeah. I see I'm. That, makes a lot of sense. What. Would you think about say. We get in contact with Anthony's. Uncle in El Salvador owns. The coffee farm, which. We have relations, with right now. When. He's like hey if you guys want and we can send you the coffee roasted, we can roast you here in El Salvador and send it that way ready. For you guys what, if we that was part of our, Kickstarter. As well like, actual. Coffee beans from Salvador. I guess that's something I don't, know how people want, to get coffee in the mail but that's also so good to consider just. Because it is the espresso to you like you said which is the golden. Ticket bit I. Come. Back to like. Still. Perks yes. You, want. You. Want to create a stadium. Because. You. Want to have a baseball team and you want to have the local baseball team to play on the. Field and a, stadium for people to watch now, while they're there they may want some cotton candy they, may want some hot dogs they may you, know they may want a t-shirt but. Why did they go to the stadium why do they go to the ballpark, they're. Going there yeah. They want to they want to watch the game you. Know that's that's what they want that's what you need to sell need. To sell the thing they want and then add on the perks right so. Like what, they want. In. Theory like we're assuming they would back you right if they would ask you what they want is they. Want for, you guys to be up and running they want for you guys to have the machinery you need to make the products so. That they can consume the products, so. What they really want is to consume, the products and that's, you need to sell what they already want and then. Add on the other stuff hey maybe, as a perk, you. Give them some, beans that were roasted, you know and, you've got a story there and all that that's good but, but that's a perk right like that's if you want to grind and you, know prepare your own coffee at home and that's fine but like in theory what they want is the, end product that comes, as a result of you having the machinery so sell, that end product that they want I love. That about your ideas you. That's. Good. Okay. I had another question. Regarding. Even later this week, somewhere. In our local city that we'd like to Savas or storefront. They. Have approached us and said hey come look at this space the. One next door is a little bigger for twenty-five hundred it's being rented out this, was a little smaller but it's only 800, which. Looks, really great to us being. A start-up, and like having, to rent out 800 I. Don't. Know like we, would obviously love to be in there as soon as we can but do you think that. It would be best for us to. Save. Our money maybe save like six months worth of rent or a year's worth of rent go into this space with. Our just. Our poor overs and ice coffees, and just be, open all day to make it a little more sales than just a regular event or should, we wait until we have that espresso, machine before going into this space. Let. Me hear Anthony's, thoughts on that, cool. Yeah. I was telling Cameron, that, it. Would be awesome to. Be able to, move. Into that. Into. The best, spot. But. I would say to start off we would starve, before. We do an espresso machine before we do. Those. Type. Of drinks to do. Drip, coffee, which. Would mean we'd have to get a commercial drip, machine and, that. Was my thought that if we were to move into there that's, what we would do is we would do iced coffee pour, overs, nitro. And we would do drip coffee. Because. A lot of people come in the morning just to get a black. Drip coffee and. If we can make sales with, that that. Would help. Us you know to cover the rent and other, fees that we'll have to pay. But. I. Don't, I don't. Know which direction to take because it's like you could jump, really far forward, and go. Straight into a store or you can't go smaller and just do the just. Do the bar and just roll with the bar I mean.
You Barely started, that. Right, yeah. Like that's just going I mean you haven't even near. Like squeeze. All the juice out of that like there's a lot more capacity like, with, what we kind of started to touch on last time we're like I was, saying the different levers you can pull like, looking at prices, looking. At margins. Experimenting. With ways to sell. More you. Know like first. It's like maximize. Your profit right. Well, we might as well go into it I'll give you like a brief like overview, so. Maximize. Your profit someone's, buying a coffee think of the main thing that most people buy how. Can you get them to buy something else what. Could that be a little add-on a little, you know something, extra a second. Coffee. You. Know it's something like that so you're upselling, right you're trying to increase the, travers, transaction, value if your, coffee's $5, most. People buy one coffee your average transaction, value is $5, how. Can you get that average transaction, value up if you, were able to get the average transaction, value from five to six that's. A great way to make a lot more money next. Thing is like how, do you get those. Customers, to, buy from you again because. If they buy from you once that's, great now you need to get a new customer or you. Can get them to buy from you again so how do you get them to buy from you more, frequently, that's, another lever you can pull it's like you, know that you guys had brought up like there are there are gimmicks. For trying. To get that to happen more often like rewards. You know a card. That gets punched that kind of thing but you. Know you don't even need those gimmicks to, be mindful, of this and say, you know well, am I gonna see you tomorrow you know like things like that like become. A part of their routine right so that's where the consistency, comes in it's like you're. Doing these events you know doing them consistently, so that people can rely. On you being there expect, you to be there so, so then obviously the, next thing is. Doing. More events. Or getting more people right. So we've got increasing.
Average Transaction value. Increasing. Customer. Frequency. Then. We've got just increasing, the number, of customers, the volume, how do we get more people, well, one great way is to just do more events and sure. You can only do that so much right because you you, only have so much time in a day but, those. Are at least a few different ways that you can start to you. Know maximize. Your revenue so I feel like there's a lot of potential in just, what you're doing right now to. Make more before, you try to level up to something especially, that's going to cost you rent, mm-hmm. That's. Great that's right. Yeah. I agree with that. Yeah. As. Far as they have the the bar and I. Really. Like the idea of like experience. And how. People you know the first time walking up to the bar and. Then. Simply coming back just because of a great time that they had when. They ready you know when they were there so I like. That a lot and. This. Like, the store is great but it's just there's, a it, would be a huge step from where we are right now and. They would kind, of take you back to the drawing board because. We didn't pre, plan for that. Which. Would you know which. Would take a lot more time now, so. I think we just need to just go with what we have right now and, slowly. Work our way up to, opening. A store and. I think, it's good to kiss as, far as like the farmers market, and working, with the city it. Would just gain you, would gain more of a following, so that when you do get to store and you do have a grand opening everyone, already knows who you are and you. Know it just increases. Increases. Your. Your, popularity. As, far as it goes in the community. Totally. So, so to kind of bring in like a, we're. Basically. Going back to the Kickstarter stuff. Being in a different perspective here, have either of you guys ever. Sold. Like. A case you go around with like a case of candy you sell it for like a, sports, team or you, know school or something for a fundraiser either, of you guys ever do that knocking on the doors and stuff well. I mean our brothers did I mean I remember them doing that but yeah. I don't think I heard well. I think yeah. This. Was something I did for like sports teams and stuff just raising, money they. Would they buy candy, in bulk which is pretty cheap in bulk and we. Would literally go knock on doors and, sell. Candy and you. Know there's obviously a nice markup there but, they don't have to go to the store and get it you know it's like get a little treat and there's, a cute kid you know you want to support them so like that that worked pretty well you know but like we're going door-to-door and raising, our own money.
Just. Only. To push back a little bit just for the sake of food food for thought on the. Kickstarter idea. What. If like if we're saying that and I'm open to ideas because. Maybe I haven't thought of everything but it sounds, like if we're going with the logic of selling, the product and the, result of the. Machinery or the expensive, equipment the. Result that people want if we're going the route of selling, that and if that is the, coffee, the espresso drink then. If. We're, pretty much limited, to something. Like vouchers, like you're basically selling, the drinks before, you can make them so it would end up being something like that pre pre purchase right you know some. Form of like hey this is coming we're actually gonna make it you can buy it now we're, gonna give you a great price on it to reward your loyalty, so, you're gonna get a good deal. If. That's the case. Do. You want to go the Kickstarter route this is what you want to think about you know there's pros and cons sure, Kickstarter. People, are familiar with it they know the brand it's, designed, to help people, share it, you know it's. It's, more prone to go viral like, that very, very small chance again, most Kickstarter's, fail but like I'm just listing out the potential, pros here. Now Khan's, Kickstarter. Is gonna shave off don't. Quote me on this I want to say something like 8%, could. Be more. Somewhere around that like it's, a business, right. There they're gonna make their money so like of all the money people give you they're, gonna shave off a cut of that I. I, I can't, think of all the pros but I would, really highly encourage you to heavily. Research this like just Google this and spend a couple days thinking about this like. What. To consider before Kickstarter. Things I wish Kickstarter. You, know like, there's entire businesses. Around helping. People launch. Successful, Kickstarter's, you know cuz so, many of them are not successful there's a lot of people who have shared their experience, their stories many, of them who have even tried to do similar things so, do your research on, that like don't, go into this blind, see. What other people have done but the reason I brought up the candy idea is like, if. We're. Going with people, would essentially buy a voucher of the product that they want okay. Hey, are you are you you're starting to kind of like get my vibe here yes, yes what if, what. If. You. Pre, sold your. Own product, so. Here's the thing you come up you. Know put, on your backwards baseball cap you know you're the cute kid you're. Knocking on the door you. Give your spiel now, this doesn't have to be door-to-door this could be like people you know you could you could go like you don't have to actually knock on doors or take the concept, right like you give your spiel hey, my. Name's Cameron my, name's Anthony you. Know we're, starting this thing up this is what we've done this is what we're doing this is what we want to do this is where we want to go this is our vision this is what we would love to provide to you here, in this, local community this is what we think is missing this, is what we've heard from people like you they don't want what, you're excited about we. Want to deliver, this experience, to you now, so, you're getting them excited you're showing them your vision you're just like I like it you know good to see a young man with some ambition, right like, they're like alright okay you know what's, what's the deal here and they, say, all.
Right So what's going on you're like well here's, the thing so, we. Want to make espresso drinks do you what's, your favorite kind of coffee you know and then like, you go through practice right they say oh I like my coffee black and whatever, they say the, answer is awesome, and then you you have a response, for that right but they're like oh I get a latte, everyday you know like exactly, right, that's what we want to be able to make but it cost $10,000. So what, we're doing is we. Are essentially. Pre-selling. A voucher for this and this. Is going to be the retail price this is when we expect to, hit that goal and, you. Know yada yada yada right so you're giving them a great deal on a voucher for. Drinks, in bulk. And you, say we want to remain accountable to you so, we're, gonna be we're committed, to doing a weekly newsletter keeping. You posted on this, no, there's, there's a lot of challenges with this as well right it's like sure. They're, like how, do I know you're actually gonna follow through with this how, do I know you're not just making up some story and you want some money from me I'm never gonna see it again and I'm never gonna get my drink well, that's. Kind of the risk like. You're. Gonna have to think through this you're gonna have to think through how, you remain, accountable what can you give them now you. Know to show like in good faith hey we're gonna follow through on this like, maybe it's not just here's a voucher, for 20 espresso, drinks maybe, it's here's. A voucher for 20 espresso drinks which is valued, at this you. Know in return for your contribution. At this level but also here's. Five. Drinks. That, we already have we make available right now this is when we set up our shop this is when you can come in the value of these five drinks that we already make it's not the espresso, but, it's still really really good you tell them about that you, say the value of this is you know thirty. Dollars right alone. So. For. Your $25 contribution, you're automatically, getting $30, worth of drinks plus 30. More dollars worth of espresso drinks when we're able to do that so basically, we wanted to make this an no brainer for you so already it makes sense right now but you're gonna get something great in return, for you, know supporting, us that's, genius hey. That, makes me want to like really, get my game together on the art of selling, cuz. Here's here's the problem, like. This. Is what, you have to do. This. Hard work of grinding. Of knocking, on the doors of giving, your pitch of talking, to people and there's. This facade, of. Kickstarter's. Going viral and getting. A bunch of money right and the, reality peel, back the curtain do your research is most Kickstarter's, fail, most, crowd campaigns, don't, make it and if, you want to flip a coin you, want to you want to spin the ball around the roulette table the chances, are the, probability. Of this failing, for you statistically. Speaking is high. You're. Gonna put a lot of time into this you're gonna put a lot of effort into this and like. Again, even if you succeed someone's gonna shave off some of that money and there's you, can do your research and find out the other downsides, of Kickstarter I'm not trying to say this is bad for everyone risk courage you I just want you to really think through it right the, reality is you're going to have to do the work you're. Going what, your Kickstarter to be successful, you're, gonna need to knock on doors and tell people to go like one on one go.
Back My Kickstarter, like I'm. Gonna watch you on your phone go there, and make the donation while I'm here like that is the kind of grind the kind of hustle you're gonna have to do to, make it successful but it's really easy to, hide behind the facade of Kickstarter, and be like we're gonna launch, your Kickstarter, there, it goes there's something. Makes it to the moon like that's, just not how it works that's that's not how it's going to work but it's easy to think that way and so, when you remove that you, remove that facade and, you. See like, okay the. Alternative, if I wanted to do this if I wanted to sell the candy myself, this, is the hard work I'm gonna have to do that, helps you realize what it really is and if you have that drive and motivation. There's. Actually very little reason, not to do it yourself because no one's shaving off the money no, one's in between you and the backer so you. Know I just I want to put that out there so it's something to think about. Absolutely. I'm, gonna actually pretty excited about that, yeah. I'm actually had that thought of like do, we really even need it you know can't can't we just ask, people, and. Just. Take the infrastructure. Of what Kickstarter, does and just, bring it too, without having to go through Kickstarter. I've. Had that argument I think I think that's a, smarter. Way to do it like if but. It's only like you said if you're willing to go out there and do it yourself yeah, and get it yourself you know and tell, people about. What, we're doing that's. What I'm thinking because you you're, right about the facade of Kickstarter, and that you, launch it and then you just think there's going to be thousands, of people you've never seen right, month your, kids when. Let's. Say we had all of our crap together launched a Kickstarter, well, you still would have to tell people about that, we have a Kickstarter, so there, is already a word of mouth transaction. Going on and, my. Maze will make that just more powerful, whenever, we are showing up and, and we're already having to tell people about something, let's. Just tell mom about what we do and then you go through that way it's like what you said originally, I like, that a lot mm-hmm. Yeah, but. Also to out how. I, don't even know how you would set that up. Yeah. Well, I'm not I'm not actually talking, about necessarily. Replicating. The Kickstarter, infrastructure. There are there are ways to do that like if you haven't you know an e-commerce platform on your site there's plugins, that make it a crowdfunding. Type thing I'm, actually talking about being just much. More like gritty, than, that like, just, you. Know having, a square card reader on your phone right. And just like taking. An order taking, a payment, taking cash and, you're like whoa isn't, that gonna be like I'm gonna have to like pay, taxes, on that and report that the, answer is yes and also, with Kickstarter the answer is yes like a lot of people don't realize this yeah, you're gonna get a lot of money in you're, gonna have to report that you're gonna to pay taxes, on it so it's it's actually just the same I'm talking about, selling. Your product. One-to-one, you know, and like I have to remind myself of this too like I love. The Internet but we get spoiled, by it we think like you. Put up a page you. Know Casey. Nice that vlogs about it and now you're rich you know it's like know it. For most people it doesn't work that way but, the, Internet makes it so easy people. Think it's it's just, effortless. Right. In. Reality it's. Way, easier, than it was but, it requires, some, effort and some people just expect it to require no effort so, like it used to require this much effort now, it requires this much effort but. It's it's still effort you still have to do something so I would, not overthink. How, do I create this, infrastructure, like, it's. As simple as, going, up to a person and selling. Them, these. Words just you work well you're, selling them on you, you're. Selling them on yourself weights. And remember it's not the product it's, not actually, like I mean yes you do need to come at it from that angle but. Excuse. Me. Realize. That you're, selling them on yourself like every, word that comes out of your mouth if you, transcribe. It and a. Great salesperson said, it they, would close better, because. It's more than what you're saying it's them like, it's who they are it's how they deliver it's how you make that person feel yeah, right so I'm talking about go, to a person sell.
Them On you pitch. Them on the result and then. Take their money, okay. I mean like with their permission not. Just like out of their wallet you know but like let. Them give you cash swipe, their card on the square reader like don't worry about the infrastructure, just, like take the payment you, you are pre. Selling, a product. You. Don't even need the product to make money you. Don't even need the product to make a sale to, to transact, with someone okay. Which. Is what you did with learn. Lettering, 2.0, which is what you did with overlap. I love, that idea of. Putting. All that you are to or gonna offer out early. On and getting people excited once, again, the introductory. Price man people love that you know get people in early, reward. That loyalty hey, this is what it's going to be this is the retail, but. Because. You're getting in early we're. Gonna give it to you for this we're. Not it's only just this one time like we're never gonna you, know do. Some kind of big thing in the future where it's cheap again like this, is going to be the price but right now I want to give you you, know this many which, is this value for. This amount. That's. Really great okay. So. How, do you how do you feel at this point I. Feel. Like I. Still. Want to actually go ahead and we. Have a video guy that we're working with us prepared, to do our our whole future. Photo shoots and even, our Kickstarter. Video we got in contact with that I think. We're just gonna do a video. About, who, we are in our vision just so people can we can reference that, and. Then like I said we got our domain gifted, to us, so, we're going to get our DBA go to the bank account getting everything set up we should have a website soon we'll, put that video up on there maybe, even an e-commerce thing, or people can give if they just wants you but. Just have that website with the video of Sangha telling who you are we'll worry about what we want to do and then, man, I just, go and talk to people like you said and then have that just be able to reference, if. It's so it can cover everything, if we can't get to saying everything, and just go check out our website but, just, having that video I still, think I would love to have the video and. I'm. Loving, this idea of selling everything one on one yeah. Well. Just talking through this it just really puts it puts. All of it in perspective and. And. It, gives, me it gives me more of an understanding of how this will work. Because. I think I, did have a mindset, of like alright, once we get it done once we if we did a Kickstarter once, we have it all to let's just see, what happens yeah, you know and then continue, on to alive but, now that it's like whoa wait, you kind of have to put your work into it you know it's not it's not gonna be that easy and so, it prepares myself.
Yeah, Or going. Forward with anything that we are gonna be doing but selling, ourselves and, getting, our name out there it it even just kind of translated to even your social media like, you know you're talking with someone you're like this is that business and then, you tell them hey put your phone out and go follow those real fast you know because, that like. I've seen it before where I'm talking to somebody about it I'm like yeah we're on social media they're like oh that's cool and then you separate, and then you've never had a chance to say go, follow me yeah or you say go follow me under like yeah I'll follow you later and then you never see this I'll sell them there so it's like in, it. Is. A tool. To use for for. Many things of just, saying, hey let, me see it right now let me see you. Do it right now so. That's. The best what's going through mind is it it's changing. The way I'm seeing it which. Is good yeah, I appreciate all of that, cool. Well I loved the video idea, very. Obviously, you know we're doing this show like I'm going all-in on video I think it's huge like, people. Can see you guys right now they can see me like, we. Don't know who they are there's gonna be a number of views on this video and it's just gonna be a number you know one three to five six, you know but those are people, there. Are actual real people who are watching this who are getting to know you who are getting to know your story they're, starting to feel like they know you. What. Were you saying I just. Said hey everyone. But. You're, building a relationship here, you're letting people get to know you you, can't do that when you're hiding, you know when you're not in front of the camera when you're not showing yourself, so yeah I would, totally follow through with that video share. Your story share your enthusiasm, sell. People on you sell people on the vision, tell, them what to expect and invite, them to follow. Along be a part of the journey you know maybe, even, pre-purchase. Something yes. Okay. Yeah like that.
So. What. Were you saying you're saying to do -, yes to do Kickstarter, or no no. No I was saying. I'm. Say don't go through Kickstarter, okay but, still follow through that video and have that be able to keep referenceable, that's a word okay but and then. Yeah. Just go yeah. I'm excited about in talking on doors or just really. Talking to people and like you know you can get to and, get in the habit of telling people oh yeah we're starting up a company but. Like that's, an opportunity, to. Have them get involved, and help you out do you not just know about it and as, you guys you say that here's what I'm thinking you know just knocking on doors right people. Wanted to know what's in it for them like. Yeah it's, cool to hear a story some, you know young guys ambitious. They're, working on stuff they got a vision you know they want you to support them but like everyone, wants your money everyone's. Like I got an idea you know give me some money it's like I'm left wondering what's in it for me and that's, what every person who's gonna come to the door after they hear the doorbell, unexpectedly. That's. What they're gonna be wondering like they're gonna open the door what. Are these two like I didn't order a pizza and also, it would only take one guy like what's what's in it for me what's going on here right so, instead of just launching into hey, we got this vision bah bah bah like think. About it from their perspective what's. In it for me here's. How I'd approach it. Let's. Make this real number so so, what's, your what's just like your main, most. Popular, drink and what's the price. If, we had a. Espresso. Machine or what we have now Korean. Okay. It. Would probably honestly. It. Would be the cold brew but, especially with the weather whole crew okay. And what's the price on that that's. 425. 425. Okay. Let's. See here, times. Five would, be a little. Over $20. Six. I'm. Trying to I'm trying to find a sweet spot like trying to make. Real. Numbers here's, my goal and then we'll talk about how to present to people my. Goal is to, come up with a no-brainer, way, to. Sell. Like. A, batch. Voucher. For. Drinks you already have that in and of itself is a deal, plus. It. Includes, a, voucher an additional, voucher for let's just say two free. Drinks, with two free, espresso. Drinks, right. So. Like automatically. Because you. Want people to care and maybe, some people are nice hearted, but for the most part they, don't care about you they care about them right. Sure yeah you want to do something you want my money like okay. But like what's in it for me so how, can I buy something now if I'm, gonna get coffee if I'm gonna drive by where your your shop is set up and I'm. Gonna need my coffee anyway, and you're, selling me on how great this is I get. My coffee every single day I already spend five bucks you know if someone's. In that mindset right if they. Could get your coffee that's, gonna be awesome you know you're telling them a story you're pitching them on it and, they could get your coffee. Five. Ten. Of them or. A bulk. Price that's. Like actually, cheaper, and they end up saving money they. Will do that and for. You that's great because you can afford it cuz you've got the margins, and like hey someone gave me 20 bucks 30 bucks 50, bucks you know whatever it is right you can have tears but, immediately. They, can do that for the cold brew you already, have you, preview. You, sell them on a package. Of. Drinks, that you already have, so like there's no worry it's like we, are real we are legit we, set up a stand we sell coffee we make this available it's available now you come, here at these times on these days you. Can buy it it's actually this price but, we're gonna give that to you for, this. Deal because, it's in bulk but, plus we're. Also gonna give you a voucher for two free espresso, drinks and. Actually just on that topic the reason we're even knocking on your door is like we're. Serious about this, like we want you to know we're new in town we want to be your go-to coffee.
Guys Like we want you to come to us and you. Know here's here's a flyer like here's here's your voucher or whatever but. The reason we're doing this is we want you to know about us and we're. Trying, to get, an espresso machine and it's very expensive so that's why we're going around we're selling a bulk. Deal, on, our, existing coffee to, raise, money for getting the new equipment and when we get that new equipment which. We will because, we're driven you can see we're knocking on doors here you're, gonna get two free drinks, so already, like you, know even if you you're, this huge not wanting to wait for that already this is a great deal for you but we want to go ahead and over-deliver, and give, you some of our new drinks, when we reach that goal, okay. That's wonderful house. Pitched very well. Like. That so, you're gonna have to do the math on the numbers like, mm-hmm. Think, through it you know number, number one, what. Is what is a reasonable, price, that someone's willing, to make impulsively, you. Know what can you get it from someone you're knocking on their door what what would they impulsively, spend twenty, five thirty dollars, you. Probably won't get them to spend fifty, but, you want to find that sweet spot find. That sweet spot that's your main deal and go. Up from there okay. So, this is a mistake I made when I was making tiers is, I. Took my main thing and I crippled, it down and I made smaller versions, that, was a huge mistake, find, your sweet spot deal, I don't, know what that is but think about the number first so like what, is something someone would probably, spend on two random guys for. Drinks that they hope, are good, maybe, they'll spend let's. Say twenty-five dollars okay well. Your drinks are four, dollars so that comes out to, eight. Times four is thirty-two. So. Hmm. What. Would be the number of this under that. What. Am i blinking. Know. Maybe maybe eights good. Eight. Would, come out to thirty-two is that right well. I think if there's the 0.25. If it's 425 you come out to 34 okay, but like you, know come up with something like eight which, is like 34, dollars worth of drink for, a $25. Voucher, mm-hmm. Right and your, margins gonna cover that so you're not gonna lose money you'll actually make money but you'll, you'll get cash you know that you can use towards your thing so you sell something like that eight drinks, which. Is a $34, value for $25, let's, let's say you do that that's your sweet spot that's that's your main deal. Now, we want to add tiers on top of that so, that's the thing that people are probably gonna, do but. We're gonna add on top of that now here's. Our $50, deal and you sweeten it even more you, make it an even better deal like if 8 drinks, for $25, we, might do 20. Drinks for 50 like I don't know that might be crazy but like maybe. It crazy right 20. Drinks for, $50, this is a you. Know. $85. Value or, whatever it ends up being right, it's, a really really good deal heck add $100. Tier maybe you don't even bring it up maybe. You're like so we also have the 5000 like if let's. Say you get a YES on the, first tier. $25. Awesome. Okay cool we want to do it and just so. You know I'm not sure if you'd be interested in this but we also have a. $50. Tier which, would, actually get you 20 drinks I don't know if that's something you'd be interested in but and they say yes you know mate and if they ask like well is that the highest tier you go well actually we have $100, tier you, know sure like but make sure you add it on top that's that's the point that I wanted to get out. Okay. I say. I like that, so. To recap. Whether. You have the front of Kickstarter. Or not what's, behind a, successful, campaign is, gonna be a lot of hard work and hustle you're gonna have to do the work. I would. Sell. What you have in, bulk. Add a deal. And have, multiple tiers of that that make no-brainer. Sense of course I'm gonna do that that's an insane deal what, are you guys doing you're gonna go out of business right like give, me a no-brainer, deal and then.
Sweeten, It with the future, - espresso drinks, right. And. Talk. To the people that you know talk to the people that you don't know practice. Get, better involve. Them what's your favorite kind of coffee riff off of that weave it into the pitch and. Go from there, that's. Really great okay. I've. Got a super Jam tax I really appreciate that that, was the, time just blew by this time yeah. I loved. It you, know you can see why I like at the end of our last session when, you're like and we're doing a Kickstarter my, mind was just like oh no. Well. I'm glad because we were actually gonna shoot it that day after that you like hold off on it and I'm, so glad that we did. I'm. Just yeah I'm really happy to involve, you and have, get your input and everything that we set, our foots here so but, yeah this has been wonderful I've thoroughly enjoyed it well, I'm excited for you guys and, you, know let me know like pitch. Me on it maybe I'll buy a voucher. Absolutely. What is this like 250, you get a, three. That's. Great man well I appreciate your time today thanks for your talk absolutely. What, what do you think what do you want to get into next - you know what are you gonna be working on I was very encouraged. To hear that you guys are working. On the DBA you're going through with getting the bank account set up that. Which is what we talked about in our first session so it's it's good to see that you guys are working on that it sounds like you're gonna work on this develop, the plan develop, the page get the videos you're not. Does. That sound rise there anything else like what's, what's next. The. Domain. That. We were given so, we have to switch our emails our business, cards again, and. Work on a website. That. People can visit and we can put our story on there, and. If, we want to put a merch, on there if we get to that point yeah. So. Yeah that's it that's another that's that and I. Guess. Something, we'll be doing, actively. Is just. Pursuing. More people to have events with yeah. And we can yeah, I won't be doing a lot of like one-on-one selling. Now pitching people on Rd hid this soon same, money and I don't hate on that note when, you do the events. There's. Absolutely, no reason you can't sell those bulk vouchers, right, then and there yeah. They. Just bought a copy it's like hey, also, pitch. Yeah. That's really wonderful yeah I was thinking about setting up a like a table, to the side, mm-hm, and like wow, I'm like making, like two drinks cameras over there sitting at the table and, it's like oh go over there and and check, out what's, going on there and we'll have like a couple flashy like photos. Or something something attractive that while they're sipping on their coffee camera. Can you know explain, or I can explain like and then. We could sell it like that that's, great, here's, another one like also. This. This would make a great gift so you got a graduation, coming up you, got it you got a family member birthday, if. You buy a second, voucher, I'm. Gonna give you a free, drink coupon. Yeah. All. Right cool guys well. Yeah. I think that'll do it well we'll touch base next. Week and we'll. Go ahead and wrap it up here so if you're new to Sean west TV go ahead and hit subscribe we've, got new videos every. Single day and we'll be back with this show next. Week. You.
2018-05-24 18:40
