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Starting an online candy business

AussiePyramid

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Oct 7, 2017
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Hey guys,

Even with the whole health craze, it seems that the purchase of candy has been relatively inelastic. People are still buying it. I've had the idea of starting an online store, selling candy (potentially subscription model) to people. The idea was motivated by my little brother who wanted authentic tasty candy which you just didn't get in stores. So i figured the convenience of having it shipped to your house would be worthwhile to the die hard 'sweet tooth' customer base. Model would be buy from wholesale, package it nicely and sell to customers. Would there be much margin you guys think?

Any thought on this business model? Would appreciate all the advice/suggestions you have to offer!
Thanks
 

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MythOfSisyphus

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It's impossible to say without doing the legwork. Find the kind of candy you want to stock, talk to wholesalers about how much they charge for whatever quantity is within your initial budget (including shipping) and then do the math.

It also helps to look around for other businesses doing the same thing. Are there established businesses using this model that you can compete with? Can you improve upon what they're doing and add more value to customers than they can?
 
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AussiePyramid

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Oct 7, 2017
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It's impossible to say without doing the legwork. Find the kind of candy you want to stock, talk to wholesalers about how much they charge for whatever quantity is within your initial budget (including shipping) and then do the math.

It also helps to look around for other businesses doing the same thing. Are there established businesses using this model that you can compete with? Can you improve upon what they're doing and add more value to customers than they can?
Hey thanks so much for your reply.

I'll try and get in contact with a few businesses and see what the margins are like. How would you go about doing market research to see what the particular customer likes? I don't want to invest money and time into the whole business only to realise that a market doesn't exist for my product if you know what I mean. Did you have any suggestions on that?
 

MythOfSisyphus

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Hey thanks so much for your reply.

I'll try and get in contact with a few businesses and see what the margins are like. How would you go about doing market research to see what the particular customer likes? I don't want to invest money and time into the whole business only to realise that a market doesn't exist for my product if you know what I mean. Did you have any suggestions on that?
If you have the budget for it you can run facebook ad campaigns to gauge interest. See if you can collect emails for your potential subscription service.

Also, you wouldn't necessarily have to find interest in the exact type of candy you're intending to sell. You can look around to see if similar things are being sold successfully elsewhere.

A quick google search reveals that there are already several candy subscription services around. Check the competition and see where you can add more value to customers than they can.
 

GoGetter24

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I don't want to invest money and time into the whole business only to realise that a market doesn't exist for my product if you know what I mean. Did you have any suggestions on that?
Make a simple (but delicious looking) landing page / funnel advertising your service, buy some ad traffic to it, and see who clicks all the way through to the buy button (which will just say "we're not quite ready yet, give us your email and we'll get back to you when the service is ready").
 
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AussiePyramid

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Oct 7, 2017
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If you have the budget for it you can run facebook ad campaigns to gauge interest. See if you can collect emails for your potential subscription service.

Also, you wouldn't necessarily have to find interest in the exact type of candy you're intending to sell. You can look around to see if similar things are being sold successfully elsewhere.

A quick google search reveals that there are already several candy subscription services around. Check the competition and see where you can add more value to customers than they can.
Makes sense. Just out of curiousity, when you did your search which websites came up? Just want to know if the same ones come up when I search or whether it fluctuates. Thanks
 
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AussiePyramid

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Oct 7, 2017
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Make a simple (but delicious looking) landing page / funnel advertising your service, buy some ad traffic to it, and see who clicks all the way through to the buy button (which will just say "we're not quite ready yet, give us your email and we'll get back to you when the service is ready").
Yeah I think is what I'll have to do. Thanks for the suggestion!
 

amp0193

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You know what I bet there’s a growing market for?

Candy made without shit ingredients.

Every brand name candy on the shelf is mostly high fructose corn syrup.

Have you heard of Surf Sweets? Best tasting gummy candies I’ve ever had in my life. We get a bag every time we make it over to the natural grocery store. They use cane sugar, and other good stuff. You can taste the difference.

My wife’s on some “mom group buy” Facebook group, and they do bulk buys of surf sweets.
 

Ika

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There could be a huge demand for candy targeted to people with a dietary restriction.
Could be as broad as 'vegan chocolate', or as specific as 'gluten free cookies'.

Take a look at @Scot 's Insider Thread. Some people can't eat certain ingredients. If you manage to replicate their favorite candy without using that specific ingredient, those people will become raving customers!
 

kahring88

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You know what I bet there’s a growing market for?

Candy made without sh*t ingredients.

Every brand name candy on the shelf is mostly high fructose corn syrup.

Have you heard of Surf Sweets? Best tasting gummy candies I’ve ever had in my life. We get a bag every time we make it over to the natural grocery store. They use cane sugar, and other good stuff. You can taste the difference.

My wife’s on some “mom group buy” Facebook group, and they do bulk buys of surf sweets.
I agree with this. I have been cutting out candy and all high fructose corn syrup items from my diet. Stuff is straight up trash.
 

minivanman

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A candy store is about the only business I've wanted to do but never have. I have the perfect location but I haven't priced the land. For those in my area, there is a Babe's Chicken in Arlington with a very small piece of land for sale in front between the main road. That would be so perfect! You've seen what Babe's has done for Roanoke!

Almost anything can be done if you try hard enough. Don't think of what YOU would buy, think of what the most customers will buy.

My buddy owns a candy store in Omaha but I don't know if he does much online stuff. He caters a lot to businesses and parties. There is another candy store in Omaha that we LOVE!!! They have all the old style packaged candy like we used to get when we were kids. If you are ever in Omaha you should check it out. The have a little soda fountain from way back in the day and the other side of the building is an antique store. Home | Omaha Nebraska | Omaha Nostalgia

Oh yeah, they also have a little movie theater in there too. It's a fun time!

Add-on.... this might be something fun for you to do as well. Some how weave this in to your subscription. Home | Omaha Nebraska | Omaha Nostalgia
 

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SazzleB

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As a vegan, I have to visit 3 different supermarkets to get vegan chocolate and sweets so I think going down the route of candy for those with specific diets is a good one. Maybe it be worth going to some food fairs and see what sells and what people gravitate too? Always good to chat to people and see what they want :) Good Luck!
 

Fpm9

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I agree with amp0193, more and more people are avoiding chemicals and spend a bit more $$ for organic food.

I don't know much about candies, but I guess there is already many competitors. Is there some "niches" whithin this industry ?
 

MJ DeMarco

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Like the idea, and sugar is addictive as heroin, so you got that in your corner.

Not sure I'd like doing it though because part of me would know I'd be contributing to obesity, diabetes, etc.

You know what I bet there’s a growing market for?

Candy made without sh*t ingredients.
Excellent idea.
 
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AussiePyramid

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Oct 7, 2017
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Australia
Like the idea, and sugar is addictive as heroin, so you got that in your corner.

Not sure I'd like doing it though because part of me would know I'd be contributing to obesity, diabetes, etc.



Excellent idea.
Hey MJ, thanks heaps for your input. I think i'm going to attempt the candy subscription box focusing on traditional candy, if its successful I'll expand to more niched area to target particular diets and hopefully in the future make candy without shitty ingredients so I feel less bad haha.

I'm still 20 years old and in university so will start slow and work my way up.
Thanks for your input!
 

Hyrum

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So i figured the convenience of having it shipped to your house would be worthwhile to the die hard 'sweet tooth' customer base.
If a die-hard 'sweet tooth' customer wants some candy, they're not going to want to wait a month for their subscription box to show up. They will just go to the store and buy it. Subscription boxes are about discovery, not convenience.
 

Ocelot

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Apr 13, 2018
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As a vegan, I have to visit 3 different supermarkets to get vegan chocolate and sweets so I think going down the route of candy for those with specific diets is a good one. Maybe it be worth going to some food fairs and see what sells and what people gravitate too? Always good to chat to people and see what they want :) Good Luck!
I'm vegan too and I've noticed that you can't get vegan white chocolate anywhere.

I think there'd be a good gap there, for white chocolate made with real vanilla and high quality ingredients but without the milk.

Could also sell those soft giant white chocolate chip cookies. If you found a way to market them as reduced sugar or reduced oil and vegan, they would sell like mad.

People in the vegan market are also willing to pay way over the odds for ethical products and will happily order online/wait for deliver if it means they can enjoy a treat guilt free.

The whole "animal free" market is crying out for new products and it's only growing. A lot of people who eat normal diets are starting to avoid dairy these days for health reasons which is just more people to sell to.
 

NadiaZ

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Hey guys,

Even with the whole health craze, it seems that the purchase of candy has been relatively inelastic. People are still buying it. I've had the idea of starting an online store, selling candy (potentially subscription model) to people. The idea was motivated by my little brother who wanted authentic tasty candy which you just didn't get in stores. So i figured the convenience of having it shipped to your house would be worthwhile to the die hard 'sweet tooth' customer base. Model would be buy from wholesale, package it nicely and sell to customers. Would there be much margin you guys think?

Any thought on this business model? Would appreciate all the advice/suggestions you have to offer!
Thanks
Know tons of people who break out after eating chocolate and dairy. I can't eat much chocolate for that reason.

If you could make a chocolate that was dairy free and didn't taste terrible, I would buy your stuff and I bet other people would to.
 

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