From Lurking to Doing (Private Label)

[undertheradar]

Hi guys,

I have been lurking here for about 2 years. Have always had that "entrepreneurial" spirit and by that I guess it means I get a rush from making a buck out of "nothing", just as much as I hate working for a boss. My mindset has already shifted away from making a buck to creating value. Here's a quick timeline on where I'm at.

12/31/16 - Partying with friends, having a good time. Same old shit.

1/1/17 - When asked about my New Year's resolution, I shrugged it off. Resolutions are BS. Example: gym membership spike. Or is it BS? That's when I realized all I have been doing is action faking and procrastination. I "woke up". Why not NOW? I stopped watching TV. Podcasts instead of music. Mindful of how I spent every minute of my day.

1/5/17 - Asked a mutual friend I normally don't hang with to have a beer. He runs an online course biz generating 7 figures a year (I later found out). This was a first for me.. asking someone out of my inner-circle to hang out, equally notable.. someone (way) more successful than me. It was the most valuable conversation I had perhaps ever.

1/7/17 - Started to read TMF and Think and Grow Rich.

1/23/17 - Upon browsing Meetup.com, saw an E-Commerce group I was interested in. Turns out the organizer was a mutual friend from High School that I was never close with. He's doing 100k in revenue a month selling health supplements on Amazon. Hung out with him, another valuable hang out.

1/26/17 - Thinking about everyday life, I uncovered a need in a HUGE market. Upon research, found out there are 4 competitors that solve this need. 2 dominating the whole market. I believe there is room for me to enter. I will add value, differentiate myself, market better, and write better copy.

1/26/17 - Scoured Alibaba for suppliers, turns out one of the suppliers that responded to me is a manufacturer for 1 of the 2 main players... interesting.

2/2/17 - Logo complete, social media and website started.

2/3/17 - CAD files halfway complete. Communicating with supplier to ensure everything is square before having my mold created. 2K... ouch. And I need 2 of them! I guess it's an entry-barrier. haha

That's it for now. Stay tuned

 

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[Walter Hay]

Before you get in too deep, I recommend that you read this thread:
24 Year Old Makes $345,000 in 2 Months..
I posted something (Post#36) a few minutes ago, that I think you might find helpful.

Walter Hay
EDIT. Are you sure the supplier you refer to is a manufacturer, or is it a trader?

 

[undertheradar]

Hi Walter thanks for the reference.

As for manufacturer vs. trader, I guess I don't know with 100% certainty.
Naively, just from basing off their Alibaba profile: 8 years doing business, labeled as a manufacturer on Alibaba (check mark verified)

This is my first rodeo... what else should I be looking for?

Edit:

2/5/17 - CAD files complete and "looks perfect" with the "manufacturer".
They want $600 for sample mold and $2000 for production mold. I am trying to somehow proceed directly to a production mold. I want to ensure my design fits perfectly to spec.

 

[Walter Hay]

Hi Walter thanks for the reference.

As for manufacturer vs. trader, I guess I don't know with 100% certainty.
Naively, just from basing off their Alibaba profile: 8 years doing business, labeled as a manufacturer on Alibaba (check mark verified)

This is my first rodeo... what else should I be looking for?

Edit:

2/5/17 - CAD files complete and "looks perfect" with the "manufacturer".
They want $600 for sample mold and $2000 for production mold. I am trying to somehow proceed directly to a production mold. I want to ensure my design fits perfectly to spec.

I assume the 8 years is how long they have been a Gold Supplier. Being there for that long is not an ironclad guarantee. Approximately 25% of all Alibaba listings go out of business every year. The name and the gold badge will often be sold to another business that could have been started yesterday.

Lesson #1 Don't believe what the suppliers say on any B2B site. Just because they say they are a manufacturer doesn't mean they are.

If you are in fact dealing with a trader, you could get the runaround while they hunt for a manufacturer who can and will do what you want. The price quoted for the molds might be OK, but I would need to know a lot more about your product before I could confirm. During the time I ran my importing business I had hundreds of molds made, and prior to that I used to supply products to molders, so I know something about that subject.

The verified sign you refer to means almost nothing, just that the business exists, and were occupying premises at that address on the day that Alibaba visited. They might be genuine and they might be manufacturers. If you like to send me the details I will check them out for you. I've done this for possibly 100 or so Fastlane members. It only takes me a few minutes. (No charge - I just like to help.)

It could help you to have a look at my AMA:
Sharing my lifetime experience in export/import. Product sourcing specialist.

Walter

 

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[undertheradar]

Thanks Walter, I appreciate it. I will send you a PM shortly.

 

[undertheradar]

3 weeks later, here's where I'm at.

Social media sites built, no content yet. Godaddy domain purchased and Shopify created with some pictures to represent the brand. My CAD and logo are complete, and approved by manufacturer.

Wired 4k over to China on 2/23 to purchase mold. Prior to daily communication with my contact, I did not hear back for 5 days after sending over the cash. This was a f*cked up roller-coaster ride. Finally heard back today from my contact and the funds were received. She just missed my email. OK. Gonna be 4 weeks to get the mold made, in the mean time I will be working on packaging, marketing materials, site, amazon, and social media. I owe a lot to @Walter Hay 's guidance.

 

[undertheradar]

Excuse my title as this thread would more appropriately be considered OEM and not private label.

 

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[undertheradar]

1 month since my last post. My molds are finally complete. I am pretty excited

Now comes the "sample" process which I hope to have in-hand within 3 weeks. I quote "sample" because I am expecting (and hoping) for nothing but perfection. It's not like the mold can be altered at this point and I am 5k invested. Assuming the samples check out, I can start to take product photos and get the Amazon listing and Shopify 1 step closer to launch. It will also be awesome to use and promote my product first hand in the real world! First purchase order will be placed immediately if samples are good. Planning on 3000 units for initial PO. To date, my social media does not yet have content: Facebook, Instagram, and Pinterest. I am brainstorming strategies for pre-launch.

Thankful for this platform and enormous value within. I hope I can provide even a fraction of value others have generously shared as I'm just a 9-5'er making some moves "on the side"

 

[SwissTuxedo]

Following this thread very closely. Good job so far !!!!!!

 

[GuitarManDan]

Awesome stuff man! Looking forward to seeing the updates you make. I'm currently just lurking on here as well too, I'm still working a slowlane job and busting my a$$ after work / weekends to read and learn as much as possible before I take the leap.

 

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[KSR]

Seems like you have a pretty solid plan in place. How do you plan on Marketing your product?

 

[undertheradar]

Seems like you have a pretty solid plan in place. How do you plan on Marketing your product?

Hey KSR, I plan on "learning by doing" by driving Facebook ads to my Shopify, hopefully converting, and simultaneously building an email list. With Amazon I am relying (naively) on Amazon traffic and the value that my product provides, hoping that it will sell itself. Anyone with experience in Facebook ads, I would be grateful for any input.

 

[undertheradar]

Great News.

This morning I received photos of my first sample units. It's surreal seeing my design progress from 3D CAD to a real life tangible product.
Most importantly, the quality is excellent. This is a relief. I am happy except for one of the colors which I will correct. Thanks for following.

 

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[undertheradar]

Received samples last week, it's been neat using my product in the real world. Friends, family, strangers are interested but I don't want to spark too much interest as I don't want to make sales for my competitors if customers want to shop now. Quality and fitment up to my standards. Colors turned out nicely. Will be filing LLC formation paperwork tonight. Took product photos on my own using a DSLR and white cube / light set up I got on Amazon for $40. Photos turned out great, and now in the process of getting touched up. Should be putting in first Purchase Order in next 2-3 days with 30% payment down. Shopify and Amazon listing will start to come alive with finished product photos. Once manufacturing begins and I have an estimated completion date, I can start to coordinate with my freight forwarder/logistics company to take over the shipment and deliver to me.

Question: Is using my home address as my LLC's registered agent definitely a NO? If so, any services you guys recommend for a RA in CA?

 

[Scot]

Question: Is using my home address as my LLC's registered agent definitely a NO? If so, any services you guys recommend for a RA in CA?

Depends, do you want a crazy customer showing up at your house? Or do you want competitors knowing where you live?

Spend $20 get a PO box or go to the UPS store. Besides, you'll need a mailing address for when you do email marketing (CANSPAM laws) might as well do it now.

 

[undertheradar]

Depends, do you want a crazy customer showing up at your house? Or do you want competitors knowing where you live?

Spend $20 get a PO box or go to the UPS store. Besides, you'll need a mailing address for when you do email marketing (CANSPAM laws) might as well do it now.

Thanks for breaking that down so simply.

Great, since I live in the state I am forming my LLC (CA), I don't see a reason to pay for a Registered Agent Service when I can just purchase a mailbox with street address at my local UPS? (PO Box not allowed for CA LLC). Unless I'm missing something? Thanks, I will go this route.

 

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[Scot]

Thanks for breaking that down so simply.

Great, since I live in the state I am forming my LLC (CA), I don't see a reason to pay for a Registered Agent Service when I can just purchase a mailbox with street address at my local UPS? (PO Box not allowed for CA LLC). Unless I'm missing something? Thanks, I will go this route.

Keep in mind, I don't know anything about California business regulations. However in my state of Florida, you can simply just get a PO Box and use that as your address. You should not need a registered agent.

 

[InspireHD]

A PO Box can also serve as a street address.

Don't write it down as:
Business, LLC
PO Box 123
City, CA ZIP

Write it down as:
Business, LLC
42 Main St. #123 (whatever your post office's address is)
City, CA ZIP

This is how I use my PO Box as my street address. I also use legalzoom as my registered agent, but they are overpriced and don't recommend using them for anything.

Also, advice given to me was to not use a UPS Store. From what I was told, they are independently owned and so they could go out of business at any time. You don't really want to deal with that headache if something happens to them. The post office should given you an opportunity to pick from several different locations so you can choose rental costs based on locations. The closest two post offices to me were charging $120 a year for a small box. A post office that is .2 miles further away was renting for $60 with 1 month free. It's near my grocery store so whenever I feel like checking it out, which isn't often since I don't get any mail there as of right now, I can just swing by after I'm done shopping.

With all of that said, I don't live in California so I can't give you specific advice.

 

[Walter Hay]

Question: Is using my home address as my LLC's registered agent definitely a NO? If so, any services you guys recommend for a RA in CA?

You don't need a registered agent if you are registering in your home state.

You might like to consider the possible advantages of registering your LLC in another state. CA has a high rate of Sales Tax. I'm no expert on the tax system, so I suggest you consult your accountant.

Walter

 

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[undertheradar]

Product photos are almost complete. Paid for 1st batch of inventory today via wire transfer - $5k for 3000 units.

Landing cost per unit - $2.20
Amazon Fees per unit sold - $6
+ ads and other fees
Retail for $17.99

50% profit margin - $9 net profit per unit sold.

 

[undertheradar]

1 month since my last update.

First batch of inventory production is complete! It's surreal seeing my product in all those boxes... this will fill up my whole garage. Product will be loaded on the boat in the next 2-3 days and will take 4 weeks to travel across the Pacific. In the meantime I will perfect my Amazon listing and learn more on paid ads. (Amazon PPC, Facebook Ads, Instagram Ads/Influencers, Youtube Ads/influencers)

**If anyone has tips on Facebook ads, I would be grateful for any advice. What do you guys think about this model?
Facebook Ads > Email capture and Amazon Discount Code > Amazon Listing

I bought my domain, but have temporarily closed my Shopify store. I want to focus on Amazon first.

Oh, I also put in my 3 week notice today at the slowlane.

 

[DanVasiljevs]

Hey dude, with Facebook ads - the key to success is not to just throw the product in their face and hope they go and sign up for the email list and buy it. It's to make the offer so unbelievably ridiculous that they're FORCED to buy. The most difficult part is to figure out that offer, how you're going to do it without bankrupting yourself - at least to get the ball rolling first.

 

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[undertheradar]

Hey dude, with Facebook ads - the key to success is not to just throw the product in their face and hope they go and sign up for the email list and buy it. It's to make the offer so unbelievably ridiculous that they're FORCED to buy. The most difficult part is to figure out that offer, how you're going to do it without bankrupting yourself - at least to get the ball rolling first.

Thanks for the tip.

It's time to be creative on how to make my offer more ridiculous, besides just cutting into my profit margin. Although, worst case scenario I could break even, but increase my Amazon Ranking/Conversion and increase brand awareness on Facebook/Instagram.

 

[DanVasiljevs]

Thanks for the tip.

It's time to be creative on how to make my offer more ridiculous, besides just cutting into my profit margin. Although, worst case scenario I could break even, but increase my Amazon Ranking/Conversion and increase brand awareness on Facebook/Instagram.

I would only dive deep into Facebook ads after getting 25 reviews on the product and dominating PPC keywords. You can lose a lot of money doing FB ads, or make a lot - make sure to have a large FB ad budget in case.

Sent from my ONEPLUS A3000 using Tapatalk

 

[SquatchMan]

Wow good job. It's always refreshing to see people taking action, especially after reading the dropshipping thread with the kid waking up at 4PM everyday.

**If anyone has tips on Facebook ads, I would be grateful for any advice. What do you guys think about this model?
Facebook Ads > Email capture and Amazon Discount Code > Amazon Listing

I bought my domain, but have temporarily closed my Shopify store. I want to focus on Amazon first.

Oh, I also put in my 3 week notice today at the slowlane.

That model sounds decent. I'll emphasize that you must give a value providing offer, which someone already mentioned.

Here are some threads that might help you. I recommend reading all these threads in their entirety. The OP's drop lots of breadcrumbs.

This thread focuses on funnels,ACV, and tons of other stuff. Great thread:

GOLD - Jason's How to Build Wealth & Golden Nuggets

This thread about branding a product is on the Inside, also has good email marketing tips. He has a similar marketing strategy. If you ever become an INSIDERS (and I recommend it), then check it out:

https://www.thefastlaneforum.com/co...duct-centered-business-progress-thread.53204/

This thread is about importing and FB ads -> Shopify. And also gives a good lesson on setting up a sellable business, which yours probably is:

Progress Thread - From Affiliate Marketing To Importing And Ecommerce

 

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[DanVasiljevs]

Wow good job. It's always refreshing to see people taking action, especially after reading the dropshipping thread with the kid waking up at 4PM everyday.



That model sounds decent. I'll emphasize that you must give a value providing offer, which someone already mentioned.

Here are some threads that might help you. I recommend reading all these threads in their entirety. The OP's drop lots of breadcrumbs.

This thread focuses on funnels,ACV, and tons of other stuff. Great thread:

GOLD - Jason's How to Build Wealth & Golden Nuggets

This thread about branding a product is on the Inside, also has good email marketing tips. He has a similar marketing strategy. If you ever become an INSIDERS (and I recommend it), then check it out:

https://www.thefastlaneforum.com/co...duct-centered-business-progress-thread.53204/

This thread is about importing and FB ads -> Shopify. And also gives a good lesson on setting up a sellable business, which yours probably is:

Progress Thread - From Affiliate Marketing To Importing And Ecommerce

Haha dude you gotta send me that thread with the kid waking up at 4pm... That's hilarious

Sent from my ONEPLUS A3000 using Tapatalk

 

[undertheradar]

1st batch of inventory is floating across the Pacific as I type this. The QTY is enough that I would be thrilled to turn it in less than 2 months. ETA to my home in 14 days. It's surreal to see progress now compared to 5 months ago when this was just an idea.

Tomorrow is my last day at the slowlane. I will be live on Amazon / Shopify in 3 weeks or less.

In the meantime, I will focus heavily on promoting my brand on Instagram / Facebook and increasing my following by taking high-quality lifestyle pictures of my product used in the real world.

 

[undertheradar]

As of yesterday, I am live on Shopify and Amazon. I got my first organic sale yesterday on Shopify! 3 sales today on Amazon, but 1 of the 3 is a family member.

I took a stab at Facebook ads trying to draw customers to my Shopify but so far no luck. Much to learn.

I am trying to get 15-20 reviews on Amazon and will then push the PPC. I would appreciate any and all tips on Facebook Ads and Amazon PPC.

Also, let me know if you guys have any questions, I will do my best as I'm still a beginner.

 

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[undertheradar]

Averaging 4-5 sales a day. First wave of Instagram influence about to unveil. Have not started PPC yet.

 

[RavenBae]

Averaging 4-5 sales a day. First wave of Instagram influence about to unveil. Have not started PPC yet.

I will be all over this thread, I have been interested in this exact same process that you are going through at the moment for the last few months.
Let us know how things are going!