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 and I’m like 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 seanwes 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

2 Comments

  1. Bonnie Pipher January 28, 2019 at 12:03 am

    These guys are clueless when it comes to generating revenue, and increasing sales, i.e., how can I add onto a customer's purchase to increase revenue.

  2. thomas oliver October 24, 2019 at 2:44 am

    The real Q should I start a Kickstarter just to spread the word and get advertising about a company I already launched!

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