r/startups•
lxmorj

I run a monthly-stuff-in-a-box company, but I think it's hit its limit.

Hi. I run PaleoPax. The business has two components with a third under development. In order:

The subscription business is simple: I box up and send 5 new products each month. People like this because the paleo diet is tough to snack on due to lack of availability. I do the hard work of finding fun and different snacks, and send them to my subscribers. Hopefully each month, everyone likes at least one product enough to buy it again, and overtime paleo snacking gets easier and easier for them.

I don't believe I can scale the subscription business over 500 users, as most of the products I send are from mom-and-pop sized businesses. They can't produce the volume I'd need, and even if they can they lose they ability to give me free products or huge discounts anywhere above 500 units. This cuts into my profit, which is what we're here for.

I'm not going to be buying any yachts, but the subscriptions alone pay my bills, and let me not have a 9-5. I can continue as is with this, sacrificing some mind-share I could devote to other projects, but keeping me housed and fed.

The drop shipping business is treading water. I sold a few thousand dollars of merchandise my first month, but it has dropped since then. I am not an email marketer. I don't like doing it, and I'm worried I'll drive away subscribers by becoming too salesy. (Honestly, if anyone wants to try their hand at it, I'm very comfortable paying a solid percentage of the increase in sales. That said, don't message me about that unless you really have your shit together as I don't want to do any hand holding. If you can kick ass, maybe we'll do something.)

CrossFit distribution was tested in my local gym. Some stuff sold, but it is a hassle for the trainers to handle cash etc. I'm not sure I can get enough gyms involved to make it work. Buying product through me is significantly easier than getting wholesale accounts, but the question remains whether the value-add for the gym owners is worth the hassle. The value is two fold: small profits, and happy gym members.

That's my entire business.

Anyone think I should try to grow the subscription business regardless of the previously-mentioned constraints and/or have a clever way to circumvent the problem?

Anyone want to help out with the store?

General comments on the CrossFit distribution revenue stream?

Edit: I don't sell my monthly boxes through the Crossfit Gyms. I intermediate between the producers and gyms, making it easy for the gym owners to buy from dozens of producers at slightly-marked-up-from-wholesale prices, all on my site with one credit card. I already have relationships from the monthly box with the producers. Leveraging those lead me to the online store as a second revenue stream, and further leveraging them could result in me making a commission on individual products sold in gyms.

Edit 2: New to posting. Is there a way to see who downvoted you or why? All this talk about blogspam and shitty posts, I thought this would be pretty valuable content to throw up here. Not terribly concerned, just curious...

Posted Jun 24, 2012, 2:05 AM UTC · edited

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