Chapters

Summary

Kyle runs a monthly coffee subscription in Perth. (Originally known as One Coffee Snob, renewed as Perk Coffee Subscriptions.) They have two main sales funnels. The first one is people who are searching for gifts. The other is for people who want coffee for themselves.

Before starting his subscription service, Kyle was interested in owning his business. His idea of a coffee subscription box came from his own needs. He wanted to try different roasters, but he couldn’t find a product that delivered. Kyle found this hole in the market and decided to fill it himself.

The team did some research before starting his business. They looked into the coffee industry in Australia. They did a cost analysis of imports and shipping. Kyle also mentioned that they did a bit of keyword research for marketing.

Simon asked why Kyle took the subscription approach. Kyle had also enjoyed subscription services in the past. He also found that a subscription model helps with sales and cost forecasting. It provides a more concrete estimate of your revenue. Therefore, it gives you more flexibility in your marketing spending.

It was also because of the popularity of direct-to-consumer (D2C). Subscription boxes are a great way to deliver an excellent experience. Kyle and his team will have direct control over the boxes’ features. It helps to create consistency in their quality too. Simon also agreed that people buy subscriptions for the experience.

His focus on providing a memorable experience had paid off. Kyle’s business had many returning customers for his gift subscription. Many of them are also long-term subscribers, averaging around 12 months. He thought they were also successful in telling people their brand message. People understand their movement in the coffee industry.

Simon asked Kyle about the challenges in running a subscription service. Kyle answered that learning about marketing was a challenge for him. He raised Facebook, Instagram and Google Ads as the biggest challenge. In digital advertising, you need to see the results over time. Kyle prefers hands-on and making frequent adjustments. Therefore, it was hard for him to get used to this system.

The next topic was the popularity of subscription boxes. Kyle considered that its convenience was behind its popularity. He explained with his coffee subscription as an example. People can try out different specialty coffees from one product (box). They won’t have to search by themselves as they will be chosen and delivered automatically. Kyle also said that was the main selling point for his subscription box.

Simon then asked for tips on starting a subscription box service. Kyle gave three tips. The first one was to do a tonne of market research. Figure out whether your product and business plan are viable. Know your products and your customer’s needs to provide a wonderful experience.

The second tip was to build an audience. Having a fan base helped Kyle’s business reach out to other people. The fans would comment or post about the positive features of their subscription box. Their friends would see it and take interest. Having an audience will also help with getting feedback.

The last tip was to keep on improving. Even if you have the best product in the world, you must stay innovative. Otherwise, people will overtake you with their products. Therefore, remember to improve and test your products with your customers.

This episode ended with Kyle’s call to action. If you have a business idea, don’t get too caught up in the pre-planning. You can always start and learn along the way. Kyle encouraged the audience to just proceed with their business idea. After all, many successful businesses exist because they started at some point.