Restock Models, Launch Strategies and Growth Tactics for Your Product Business with Rachel Allene and Mia Graves of Honeybee Clay
Episode 509: Show Notes
Today, we have two of our good friends and product-based business gurus on the show. First up is Rachel Allene, who Abagail met years ago at a creative entrepreneur conference. They have stayed friends, and Abagail has watched her hand calligraphy business grow into what it is today. She makes all kinds of products that are not necessarily handmade but rather, hand-lettered. We're comparing and contrasting that with our other guest, Emylee's friend, Mia Graves. We are so excited to hear from her because we love the way her marketing and business brain works. She has two different business models because she makes polymer clay earrings and also sells cutters for polymer clay makers.
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In this episode, we are breaking down a deliberate sellout, restock model strategy and the mentality behind it, why it works, why it's hard sometimes, who it's right for, and the pros and cons both for you as the maker and for the customer. We hear about the journeys Rachel and Mia have been on and the slight tweaks they have made to their selling mechanisms, strategies, and marketing in order to please more people and not go absolutely insane. This roundtable discussion will give you some really great insights into the product world. You have asked for more product-focused content, and this information is coming from two very smart women.
Rachel and Mia's Selling Models
In the handmade space particularly, maker-educators push other makers not to use a sellout model because it's harder and supposedly unsustainable. Some makers have gone so far as to say that if you are always selling out, you don't have a real business. However, if this is the model that resonates with you and makes sense for your business, then go for it! In Rachel's business, she does not make products herself but hand-letters the designs that are put onto them. This means she can produce a lot more than Emylee and Mia, who hand-make their offerings. Her start was initially slow, and then when she had her boom, it led to a sellout model organically, which she then ran with. Prior to this, she didn't have a real strategy and would just put things in her shop when she felt like it. Mia has two different markets within her business. One where she sells earrings and used home goods and another where she sells to people who make polymer clay earrings. She has two different selling models because this is what works for her. Like Rachel, she didn't have a clear strategy at the beginning, until her husband surprised her with a website. Since then, she has largely used a sellout model, trying out some other models here and there. With her other brand, she has kept an equal mix, even using the no sellout restocks model. She has seen how both models work in two different types of businesses, one made by her hands and the other with 3D printers.
Getting the Timing of Your Launches Right
Seasons affect launches, and we hear how Rachel schedules her product releases with the holidays. She also realized people wanted non-holiday products throughout the year and responded accordingly. For a long time, Rachel went with the sellout model only but her customers were growing frustrated, so she has since started stocking certain products permanently. Rachel points out the importance of business owners teaching their customers what to expect from you. Customers cannot simply wait around because the reality is that some products will sell out and won't be restocked. By setting these expectations, Rachel's customers take action quickly so they can secure the items they want. She talks about how she creates a feeling of scarcity, even with products she stocks year-round. By letting them sell out and then having her customers sign up for a restock, Rachel reminds her followers that they need to be decisive. It also gives her insights into the products she should have more of. As Mia points out, there are two types of shoppers: those who get there immediately at launch time and those who like to shop in a leisurely manner. It is important to try to cater to both types of shoppers in a way that makes sense for you.
Figuring Out Which Products to Restock
Deciding what to restock is not easy. Rachel does an annual survey asking her customers about their favorite products. She also does frequent Instagram polls to check in with her audience and see what they like. Because Rachel has made market research such a central pillar of her business, she has a fairly solid idea of what products she should stock more of. That being said, she is still always surprised at which products sell and which don't. She does smaller restocks now, where the risk is not as high if the products don't sell out, but still creates a feeling of scarcity. When she had her boom in 2017, she started doing pre-orders out of necessity, but then it became part of her strategy. She doesn't like all of her products to be on pre-order because she understands her customers’ frustration, but at the same time, it's part of the game.
Mystery and Subscription Boxes
Mystery boxes and subscription boxes are a great addition to your business. Mia has only done one mystery box, but it changed her business completely. Not only did it spike her growth, but it also sparked her creative energy in a way she had never experienced. Because there was less pressure, she was able to express herself in a way she had never been able to do before. Rachel started her mystery box because she wanted to get rid of products. Since then, her customers have become obsessed with mystery boxes. Her product bundles are a good way to move inventory. She is thinking about adding a subscription box to her business but because her products are not handmade, it is hard for her to gauge how much she has to order. Mia weighs in and shares why subscription boxes are her biggest fear. She is so afraid that she will run out of ideas that she has never even bothered to try one out.
Finding Space for All You Wares
Product businesses require a lot of space. You will be surprised just how much of your life they take up. Rachel bought a house with a studio in the garden that she turned into a warehouse for her business. Mia, who lives in an apartment, moved out of her master bedroom so that she could have a studio and extra storage. While it has been good to be able to work from home, Mia struggles with having a work-life balance because of the fact that her studio is in her home. Rachel, on the other hand, works on her computer most of the time and has her team do her packaging which has also helped her not overwork herself. The fact that she has to leave her house and walk across the garden to her workspace also helps her to maintain a balance.
Quote This
You are the teacher of your customers, so it's your responsibility to teach them what to expect of you and what their action needs to be.
—Rachel Allene
Highlights
Rachel and Mia's Selling Models. [0:05:47.1]
Getting the Timing of Your Launches Right. [0:12:32.1]
Figuring Out Which Products to Restock. [0:20:30.1]
Mystery and Subscription Boxes. [0:33:09.1]
Finding Space for All You Wares. [0:42:47.1]
#TalkStrategyToMe [0:47:10.6]
You are responsible for teaching your customers about the selling model you have. If you need to have small restock to create a feeling of scarcity, then do it!
Talk about the sellout model constantly to your customers if it's something that you are using in your business.
Use Instagram countdowns before a restock to create some serious hype.
Think about ways to create scarcity with your products because it’s how you get a cult following.
ON TODAY’S SHOW
Mia Graves
Honey Bee Clay
Website | Instagram | Facebook
Mia Graves is originally from a tiny town in North Alabama but transplanted to Louisville, Kentucky to finish up her degree in Politics, Philosophy, and Economics. She's married to the sweetest man named Bailey and together they own Honeybee Clay! Honeybee Clay is a small business specializing in handmade jewelry and 3D printed clay cutters. She started her business in January 2020 and has worked her tail off to make it the business that it is today in order to give her talking dog, Gus, really good treats.
Rachel Allene
Website | Instagram | Facebook
Rachel Allene decided to quit her day job and start a business. Most people would make a decision to start a business, get the basics figured out and then decide to quit their day job. She wasn’t so traditional. Her first day at home she began researching how to start a creative business, how to grow it, and what she needed to do in order to make her business legal.
She started from ground zero. And ever since that day, her business has taken unexpected twists and turns and the ride has been anything but boring. She's shifted and changed a lot of things since the beginning, but the passion and drive has always been the same.
KEY TOPICS
Product-Based Business, Sellouts, Restock Models, Scarcity, Exclusivity, Selling Strategy, Mystery Boxes, Subscription Boxes, Hype
