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From DTC CPG to retail (with Jarod Steffes, CEO of Muddy Bites)

From DTC CPG to retail (with Jarod Steffes, CEO of Muddy Bites)

FromDTC POD: How The Best Brands Are Built


From DTC CPG to retail (with Jarod Steffes, CEO of Muddy Bites)

FromDTC POD: How The Best Brands Are Built

ratings:
Length:
39 minutes
Released:
Jan 12, 2022
Format:
Podcast episode

Description

Key Takeaways3:35 - Starting with KickstarterJarod and his partners knew they could have gone through the formal fundraising process, but wanted to get market validation first.“Having some startup cash to kind of get going, especially when you're talking about a CPG brand, it definitely helps a lot for a lot of levers. For us, sure, we could've gone out and raised money. But you know, that's like a 3-6, maybe 9-month process to go get a full round of fundraising. And we just don't want to do that. We just want to make sure the idea was worth it to other people. And so for us, Tyler, my co-founder, he started in his mom's kitchen just making samples, making things, making sure that it was a good product and so on and so forth. And for us Kickstarter was this channel where we could put up a campaign. And for those that don't know, Kickstarter, if you don't hit your goal within the 30, 60 whatever day campaign you want to do, you just don't get the money. So for us, it was like, okay, let's put it on Kickstarter. If it does really good, great. We'll get the money. And if it doesn't okay, then we'll go back to the drawing board.”9:49 - A viral launchAll of Muddy Bite’s original sales were completely organic, and they sold out of product before it was even produced. This meant manufacturing was the biggest blocker.“We launched on Shopify and really from day one, I think day one we launched, we did like 25k in sales. And that was really just kind of all organic. And really from there for the next four to six months, it was like every single bag was sold before it was ever produced. We never really did Facebook ads, because it just organically every bag was sold before it's produced. And so it really was kind of this process of manufacturing. How do we increase the manufacturing? How do we speed up the manufacturing? And so it was really kind of a different kind of journey so to say, because most brands it’s like, how do I go out and market this better? How do I get more customers? And it really for us, it was kind of flipped.”10:58 - Keeping customer transparencyIn the midst of constantly selling out of product, Jarod and his team made sure to keep customers in the loop so they knew what was happening.“There were some points where we maybe had 2,000 orders in the hole. And for us to catch up on those that take maybe two to three weeks. And so number one, we had full transparency with customers. The message was, Hey, we got all these orders. We can't keep up. You guys are amazing. We just need some time, please be patient. And we were really transparent with that for two to three years as we kind of got into better manufacturing for our process. And really because of that, we built a really strong foundation for customers that have followed us from day one.”11:33 - Making a small facility workMuddy Bites upgraded to a new facility…but it was still too small. They made it work as long as possible by creating night shifts and staffing with local college students.“Going from like 400 to 2,000 (square feet in facility space) was a fairly smooth process, because it was kind of that transition from Kickstarter to Shopify. But after we kind of gotten our 2,000 square foot facility and really kind of got going, we had boxes up to the ceiling and we had 30 plus employees in there. And it was jam-packed within a small facility to where after six months, whatever it was like, we needed a bigger space, but we were locked in this longer contract. And managing cash flow was super tight. So we just created a day shift and a night shift. And this was in Ames, Iowa. So we found college student. it was really easy for us to find college students that are willing to come in and work for that. So it was really kind of good for us just being in Ames because of that, finding know easy workers, so to say. But we quickly outgrew that space.”15:28 - Launching retail in the midwestIt turns out that midwest retail chains have great volume. Starting there quick
Released:
Jan 12, 2022
Format:
Podcast episode

Titles in the series (100)

DTC POD is a podcast about all things direct to consumer. We cover everything for starting, growing, and optimizing eCommerce stores and DTC (or D2C) brands. We talk with founders, marketers, platforms, creators and marketing & growth agencies to cover topics like brand building, social media, influencer marketing, website conversion, paid media, Facebook ads, consumer trends, email marketing, and more. If you work in B2C marketing or for an eCommerce store or DTC brand, this podcast is for you.