The Product Boss Podcast - Episode 640 Summary
Episode Title: How do I turn my creative hobby into a profitable product-based business? | Coaching Session
Host: Jacqueline Snyder
Release Date: November 21, 2024
Introduction
In Episode 640 of The Product Boss Podcast, host Jacqueline Snyder delves into a transformative coaching session with Sarah from Sparky Frames Stitchery. This episode is a masterclass for creative entrepreneurs seeking to transition their passion into a profitable business. Sarah's journey from a professor and mother of four to an aspiring product boss highlights the challenges and strategies involved in scaling a hobby into a sustainable income stream.
Meet Sarah and Her Business
[00:00 - 02:56]
Sarah introduces herself as a mother of four whose youngest child has recently started kindergarten. Balancing family life with her passion for hand embroidery, Sarah aims to grow her business to provide supplementary income, thereby avoiding the need to return to a traditional job or teaching.
Jacqueline Snyder sets the stage by sharing her extensive experience in launching and growing product-based businesses over the past 20 years. Her mission is to empower product entrepreneurs to achieve their dream life through strategic insights and practical advice.
Current Business Landscape and Goals
[03:33 - 07:10]
Sarah outlines her offerings: hand-embroidered pieces, kits, and hoops, primarily sold through local markets, workshops, and Etsy. Despite her efforts, her business remains more of a creative hobby with limited sales, prompting her desire to make it a profitable venture.
Jacqueline emphasizes the importance of setting concrete financial targets. Sarah identifies a supplementary income goal of approximately $20,000 annually, translating to roughly $1,600 to $2,000 in monthly revenue. Recognizing the seasonal nature of her sales, particularly around Christmas, Sarah seeks strategies to stabilize her income year-round.
Analyzing Products and Profit Margins
[07:10 - 09:05]
The discussion shifts to Sarah’s bestsellers: finished embroidered art pieces and DIY kits. Jacqueline notes that finished goods, while profitable, are time-consuming due to their handmade nature. She prompts Sarah to consider whether customers value the artistry and time invested, which justifies higher pricing.
Notable Quote:
Jacqueline Snyder [07:10]: “It’s important to determine if your customers value the hand-stitched aspect versus machine stitching, especially when scaling.”
Sarah acknowledges the higher costs and profit margins associated with finished products, hesitating between focusing on high-end art pieces or expanding her kit offerings.
Repositioning for Profitability
[09:05 - 16:32]
Jacqueline guides Sarah to reposition her business by leaning into faith-based designs with a modern twist. This niche strategy aims to differentiate Sarah in a crowded market, targeting customers who resonate with inspirational and faith-oriented embroidery.
Notable Quote:
Jacqueline Snyder [15:49]: “By crafting your brand and products around your ideal customer’s values and traits, you directly address their pain points, attracting the right eyes.”
Sarah resonates with this vision, recognizing how integrating her personal values—such as encouraging creativity over screen time for her children—can enhance her brand identity and appeal to like-minded customers.
Expanding Sales Channels and Strategies
[16:32 - 29:35]
The conversation transitions to expanding sales channels beyond local markets and Etsy. Jacqueline introduces the concept of wholesale, suggesting Sarah approach local gift shops and faith-based retailers. This strategy promises higher order volumes and more significant revenue chunks compared to individual sales.
Notable Quote:
Jacqueline Snyder [28:33]: “Multiplying your revenue requires multiplying your sales channels so you don’t put all your eggs in one basket.”
Sarah expresses interest in wholesale, particularly with local shops in Richmond, Virginia, and acknowledges her limited experience with platforms like Amazon. Jacqueline encourages keeping options open and leveraging her teaching background to boost online sales through Instagram and Facebook.
Pricing Strategies and Increasing Average Order Value
[34:52 - 37:05]
Jacqueline helps Sarah calculate the number of kits needed to reach her $20,000 annual goal. With an average order value of $35, Sarah would need to sell approximately 11 kits per week. To make this goal more attainable, Jacqueline suggests increasing the average order value by offering bundled deals, such as "2 for $60," thereby reducing the number of sales needed each week.
Notable Quote:
Jacqueline Snyder [36:51]: “If you can raise your average order value, you can make less sales while still reaching your revenue goals.”
Sarah acknowledges the potential of bundled kits and considers implementing tiered pricing to enhance profitability.
Implementing and Tracking Progress
[37:05 - 40:08]
Jacqueline advises Sarah to leverage her existing inventory and position her products as ideal holiday gifts. By creating attractive packaging and promotional materials, Sarah can appeal to early holiday shoppers. Additionally, Jacqueline emphasizes the importance of capturing recurring sales through email lists and loyalty programs, ensuring sustained revenue beyond one-time purchases.
Sarah appreciates the actionable insights and expresses enthusiasm about implementing the discussed strategies to enhance her business’s profitability and scalability.
Conclusion and Call to Action
[40:08 - End]
Jacqueline wraps up the coaching session by reiterating the key strategies:
- Repositioning Products: Focus on faith-based DIY kits to carve out a unique niche.
- Expanding Sales Channels: Embrace wholesale opportunities with local and faith-based retailers.
- Optimizing Pricing Strategies: Increase average order value through bundles and promotions.
- Leveraging Marketing Platforms: Utilize Instagram and Facebook to drive traffic and sales.
Final Words from Jacqueline Snyder:
“If Sarah can do this, so can you. Keep making, keep dreaming, keep listening, and you will achieve your product boss goals.”
She also promotes the Product Boss Academy, encouraging listeners to join for comprehensive support in scaling their product-based businesses.
Key Takeaways
- Set Concrete Goals: Define clear financial targets to transition from hobby to business.
- Niche Positioning: Align products with specific values and customer segments to stand out.
- Diversify Sales Channels: Utilize wholesale and online platforms to expand reach and revenue.
- Optimize Pricing: Implement bundling and tiered pricing to increase average order values.
- Leverage Personal Strengths: Utilize teaching skills and personal passions to enhance product offerings and customer engagement.
Notable Quotes
- Jacqueline Snyder [07:10]: “It’s important to determine if your customers value the hand-stitched aspect versus machine stitching, especially when scaling.”
- Jacqueline Snyder [15:49]: “By crafting your brand and products around your ideal customer’s values and traits, you directly address their pain points, attracting the right eyes.”
- Jacqueline Snyder [28:33]: “Multiplying your revenue requires multiplying your sales channels so you don’t put all your eggs in one basket.”
- Jacqueline Snyder [36:51]: “If you can raise your average order value, you can make less sales while still reaching your revenue goals.”
- Jacqueline Snyder [37:05]: “These are great gifts for people who want to do something creative and meaningful this holiday season.”
Connect with Sarah Sparky Frames Stitchery:
- Instagram: @made-by-day
- Etsy: madebyday.rva
For those aspiring to transform their creative hobbies into profitable businesses, this episode offers invaluable insights and actionable strategies. Subscribe to The Product Boss Podcast for more empowering episodes tailored to product entrepreneurs.