Podchaser Logo
Home
Advice Line with Gary Erickson of Clif Bar

Advice Line with Gary Erickson of Clif Bar

Released Thursday, 9th May 2024
Good episode? Give it some love!
Advice Line with Gary Erickson of Clif Bar

Advice Line with Gary Erickson of Clif Bar

Advice Line with Gary Erickson of Clif Bar

Advice Line with Gary Erickson of Clif Bar

Thursday, 9th May 2024
Good episode? Give it some love!
Rate Episode

Episode Transcript

Transcripts are displayed as originally observed. Some content, including advertisements may have changed.

Use Ctrl + F to search

0:00

Wondery Plus subscribers can listen to

0:02

how I built this early and

0:04

ad-free right now. Join Wondery Plus

0:06

in the Wondery app or on

0:08

Apple Podcasts. Audible is

0:11

the home of storytelling from

0:13

audiobooks across every genre to

0:15

all your favorite podcasts and

0:17

exclusive Audible originals. As

0:19

an Audible member, you can choose one title

0:21

a month to keep from their entire catalog.

0:24

Audible is the destination for

0:26

thrilling audiobooks with highly anticipated

0:28

new releases and next-listen recommendations

0:31

to peak your curiosity and sense

0:33

of mystery. Best-selling titles

0:35

like First Lie Wins or the

0:38

upcoming Stephen King novel, you like

0:40

it darker. New members

0:42

can try Audible free for 30 days. Visit

0:45

audible.com/built or text built

0:48

to 500-500. That's

0:51

audible.com/built or text built

0:53

to 500-500. You

0:58

only get one chance to go public

1:00

and the stakes are high. Deloitte's free

1:03

IPO readiness tool will help you grade

1:05

your current state of readiness. Less

1:07

than 10% of companies using

1:09

Deloitte's free tool discover they're ready

1:11

for an IPO. While the

1:14

IPO market can be unpredictable, your

1:16

company's readiness plan doesn't have to

1:18

be. Don't miss your IPO window.

1:20

Being ready starts with getting ready.

1:22

With Deloitte's free and easy-to-use

1:25

IPO self-assess tool, you can

1:27

gauge your IPO readiness and

1:29

receive tailored insights on nine

1:31

areas of focus in less than 30 minutes.

1:34

Visit deloitte.com/US slash HIBT and

1:36

launch your IPO journey today.

1:39

So we've talked a lot

1:41

on how I built this

1:43

about AI. And

1:45

today AI is no longer a

1:47

plaything. It's a business imperative. Your

1:50

team spends half their time writing

1:52

and one confusing email can turn

1:54

into 12 confused replies

1:56

in a meeting to get back on

1:58

the same page. Grammarly is

2:01

a trusted AI writing partner that saves

2:03

your company from miscommunication and all the

2:05

wasted time and money that goes with

2:07

it. I have really

2:09

found Grammarly to be super helpful

2:11

to save time with generative AI

2:13

prompts. It's also super easy to

2:15

stay organized because Grammarly works great

2:17

with other programs that I already

2:19

use. Grammarly works everywhere

2:22

you work and integrates seamlessly across 500,000

2:24

apps and websites. No

2:28

cutting, no pasting, no context switching.

2:31

When every word your team writes

2:33

is clear, concise, and on-brand, everything

2:36

gets better. Join 70,000 teams

2:39

who trust Grammarly to work faster

2:41

and hit their goals while keeping

2:43

their data secure. Learn

2:46

more at grammarly.com. Hello

2:51

and welcome to the Advice Line on how

2:53

I built this lab. I'm Guy Roz. This

2:56

is the place where we help try

2:58

to solve your business challenges. Each

3:01

week, I'm joined by a legendary founder, a

3:03

former guest on the show who will attempt

3:05

with me to help you.

3:08

And if you're building something and you need advice,

3:10

give us a call and you just might be

3:12

the next guest on the show. Our

3:14

number is 1-800-433-1298. Send

3:19

us a one-minute message that tells us

3:21

about your business and the issues or

3:23

questions that you'd like help with. You

3:26

can also send us a voice memo

3:28

at hibt at id.wundery.com and make sure

3:30

to tell us how to reach you.

3:32

And also, don't forget to sign up

3:34

for my newsletter. It's full of insights

3:36

and ideas from the world's greatest

3:39

entrepreneurs. You can sign up for

3:41

free at guyroz.com. And

3:43

we'll put all this info in the podcast description.

3:46

Alright, let's get to it. Nice

3:49

to meet this week, one of our very first

3:51

guests on the show, Gary Erickson,

3:54

Founder of: Cliff Bar. Gary Erickson, welcome

3:56

back to the show. It's so awesome

3:59

to have you. The back and take your guy.

4:02

I'm scary when you are on the

4:04

show you and your partner kid or

4:06

still the owners of Clif Bar at

4:09

the time. Ah, those your employees also

4:11

owned a significant chunk aren't in. And

4:13

twenty twenty two after thirty years you

4:15

sold. It wasn't and and I know

4:18

that in that time has that over

4:20

this thirty years did gas field the

4:22

tons of acquisition operas need to find

4:25

some of them off. And

4:27

in fact, ah, I think that listeners

4:29

who remember. Who Hurts Represent Remember. Quite

4:32

emotional moment in our conversation when you talked

4:34

about walking away the first time you had

4:36

knocked acquisition offer and you to come up

4:39

with a money to buy out your first

4:41

partner. Yeah. I still

4:43

have. Known as

4:45

nightmares. Of what if

4:48

I would have sold the company in

4:50

two thousand? Yeah, that was

4:52

after only eight years in business, which

4:54

is a long time, but I can't

4:57

even describe the exponential. Growth.

4:59

And on. Good.

5:02

Things we were able to pull off

5:04

over the next one. twenty two years.

5:06

Yeah. and if we would have sold

5:08

it, yeah, I probably I'd be fine.

5:10

I'm happy anyway. I'm happy living in

5:12

a garage like Ice they do demonstrates.

5:15

I did I do know which I

5:17

said what's your bikes as I which

5:19

I did before I met my wife

5:21

and I guess. I'm

5:24

just so thankful that dumb weed but

5:27

we. We escaped that moment and went

5:29

with the gut reaction in the heart

5:31

and both of us decided this is

5:33

what we're gonna do and we did

5:35

a for twenty two more years and

5:37

you turned it into one of the

5:39

biggest energy bar brands on earth. One

5:41

of the things that I I love

5:43

about how you started Clif Bar with

5:45

with the initial you focused on a

5:47

community of people that you were a

5:49

part of which in your case of

5:52

cyclists, you're an avid cyclist. You go,

5:54

I know, you do these loans

5:56

cycling ships are europe and italy

5:58

multiple times a year You

6:00

started by getting the product into their

6:03

hands, into cyclists' hands. Was

6:05

that critical, do you think, to Cliff

6:07

Bar's eventual success? It

6:10

was the path to success, for

6:12

sure. Many ways to say

6:14

that, but that's how I feel right

6:16

now. I think the

6:18

two sports that I was deeply

6:20

involved in were, well, three, actually.

6:24

Cycling, I did some triathlons before

6:26

that, and then I climbed

6:28

since... At that

6:30

point, I was about into 20 years of climbing. So

6:33

I went to each of those groups and would

6:35

just pass out bars. I knew

6:38

I had Tiger by the Tail

6:40

when I was able to

6:42

go to multiple, either climbing crags or

6:44

bike races, and just literally hand out

6:46

the bars out of my car, and

6:49

for free. So

6:51

I take this, and their reaction sold it to me,

6:53

and then from there on, it was just, as

6:55

I say, hang on to the reins from

6:58

year one to...we never did not grow for 30

7:00

years. And

7:03

what started out with a

7:05

small group of people, cyclists,

7:07

triathletes, climbers, eventually became a

7:10

mass consumer product with

7:12

moms and kids and people on the go

7:15

and people going to the gym and people

7:17

just getting some energy. But it

7:20

really...it's interesting, because so...I think

7:23

a lot of really great products start that way. They

7:25

find a small, narrow

7:28

group of people who

7:31

love it, and then from

7:34

there, that group helps to grow it

7:36

out into something bigger. You

7:38

have to have that foundation first, and then from there

7:40

you go out. If you're going to try to go

7:42

mass market, you

7:44

have to have so much funding to be able to do

7:46

that, and chances are it's not going to work, because you've

7:48

got to build that base. Yeah. Well,

7:50

Gary, so you ready to take a call? Yes,

7:53

let's go. All right, let's go. First caller on

7:55

the line, I think it's James. James, are you

7:57

there? I am here. James,

8:00

introduce yourself. Tell us the name of your

8:02

businesses and where you live. I'm

8:05

calling in from LA, Los Angeles,

8:07

actually from the Tech Stars Accelerator

8:09

Program Podcast Studio. I'm

8:12

representing Stope Plastics and

8:14

Opolis Optics. We transform

8:16

ocean waste plastic into

8:18

sustainable performance plastic. And

8:21

we're making everything from adventure gear to

8:23

luxury hard goods. And tell

8:25

me what your question is for us. Yeah,

8:28

sure. How did you cut through the noise

8:30

when building Cliffs Bar and effectively

8:33

communicate your product's unique benefits in

8:35

a way that resonated with consumers

8:37

and made them choose your product

8:39

over the competition? All

8:41

right. We're going to get to your question

8:43

and to Gary's answers in a moment. But

8:45

if you don't mind, indulge me. I have

8:47

some questions for you first. So

8:50

you – so your company is called

8:52

Stoked Plastics. And

8:54

you basically use recycled plastics to

8:57

make things like sunglasses and ski

8:59

goggles. Is that right? Yeah.

9:02

So our specific or unique niche

9:04

is that we use water bottles,

9:06

ocean bound and ocean found. Okay.

9:09

So just to be clear, you've got Stoked

9:11

Plastics, which is the technology company that makes

9:13

this recycled material. And

9:15

then you create a separate

9:18

brand called Opolis, which makes

9:21

sunglasses and ski goggles

9:23

using the Stoked Plastics

9:25

technology. Correct. And we

9:27

started off making, you know,

9:29

sunglasses and goggles. But now

9:31

we're doing prototypes for buckles

9:33

and trims and coolers

9:35

and really anything that uses

9:38

a high density of our

9:40

pet or PET in manufacturing.

9:43

Yeah. And now I'm understanding a little bit more.

9:45

So when you look 10 years from now, is

9:49

Stoked Plastics the material supplier

9:51

of this great plastic that

9:53

you're providing? Is that going to be 98%

9:56

of the business? And Opolis is there

9:58

as a kind of – grounding thing

10:00

or signature or you know the other way around. So

10:03

Opolis Optics at this point is almost

10:05

our proof of concept for stoke plastic

10:08

about the capabilities that we have through

10:10

our IP but essentially we

10:12

would love to replace all virgin pet

10:15

with with our our stoke plastic

10:17

IP for us and we want

10:19

companies and brands to be able

10:22

to use our stoke plastic in

10:24

their manufacturing and I have our

10:26

icon right there so when consumers

10:28

are shopping they know that it's

10:30

affiliated with sustainability, circularity and performance.

10:33

It's a really interesting idea

10:36

because it's your vertically integrated business

10:39

from the get-go. I mean you you manufacture

10:41

your own material and then you make your

10:43

own products and essentially what you're saying is

10:45

by showing how it can be used in

10:47

your products the hope is that other

10:50

brands will just buy stoked plastics.

10:52

You will continue to make sunglasses

10:54

and ski goggles but

10:56

really it's stoked it's the plastic material

10:58

that you'd like everyone

11:00

to use. Yeah that's the impact

11:03

that's the change that we want to

11:05

kind of motivate. When we

11:07

first came up with the IP you guys

11:09

no one wanted to touch us. I was

11:11

a former US government contractor we didn't really

11:13

have a foot in the door

11:15

in the outdoor industry so we're like look no

11:18

one's gonna buy it let's go

11:20

create our own product and see

11:22

how it resonates within the outdoor

11:24

space and beyond. Put

11:27

on my finance hat cost

11:31

of goods a pound of a

11:33

pound of your stoke plastic versus

11:36

your same use for same

11:39

sunglasses or whatever. Sure that's a great

11:41

question and one we get a lot so yeah

11:44

comparative to the our pet that you can

11:47

currently buy on the market ours

11:49

is about 10% more

11:51

than that but

11:54

because of our high recyclability grade

11:56

you know and economies of scale

11:58

we can hit ESG talk a

12:00

lot quicker for companies that are trying to

12:02

meet those targets. Yeah. Here's

12:05

an off the cuff idea. Thinking

12:08

about that idea. I'll get my pen and paper.

12:12

So I think in

12:14

food, organic is stoked

12:16

plastics. Like look, it's going

12:19

to be a hard time sometimes to convince the

12:21

CFO of company to buy. But if you could

12:23

build this to be like the

12:25

organic of plastic, then... That's where

12:28

you can justify the price point.

12:30

Yeah, you've got to justify the price

12:32

point. No, I like that spin on

12:34

just using organic because that

12:37

makes people feel good and they know they're

12:39

paying more money. Yeah, it's a certification. Oh,

12:41

yeah, of course. James,

12:46

just like curiosity, how have sales been so far?

12:48

Well, I'll just say this. So

12:51

we've got enough sales where funds

12:53

and investors are interested in us.

12:57

I can't make a livelihood off

12:59

of it. Not yet, yeah. Not

13:01

yet. But after four years of

13:03

spending a lot of money, and this kind of

13:05

goes into my question to Gary, on

13:07

educating the marketplace on the difference

13:09

between what we're putting in our

13:12

sunglasses and goggles and what others

13:14

are not. And

13:16

that is just, as you guys know,

13:18

it's just been this huge PR and

13:21

marketing effort that is time intensive and

13:23

expensive. So your question

13:25

was about breaking through, right? And

13:28

your question for Gary is, why should somebody

13:30

to Clif Bar versus a competitor snack, you

13:32

know, which you're trying to figure out

13:34

how do we get people to get educated on what

13:37

we're offering? Gary, where do you... Where would

13:39

you even start? No, boy. This

13:41

tough one has changed over the last 30

13:43

years. It's changed so much. I'll

13:47

start with our story. In 1992, it

13:51

was really only Power Bar, and

13:53

a few bars had come out during

13:55

that time, but they were kind of like they

13:58

took the Power Bar ingredients and they added... You

14:00

know a little more vanilla or they you know a

14:02

little more peanut butter or something. We

14:04

created a completely different product Okay, and

14:06

you're you're you're kind of

14:09

like that. You're kind of not like you're

14:11

you're there's so many sunglass companies I don't

14:14

have to tell you and There's

14:16

some beautiful designs out there and all these companies But

14:18

you know, what is the difference and we had this

14:20

radically did we had to educate people that it is

14:22

an energy bar It just tastes better And

14:25

so we sampled a lot which was that

14:28

was instant sale But you can't

14:30

get to everybody so we did some print ads and

14:32

we did a print ad called It's your body you

14:34

decide and it was

14:36

going directly after power bar And in five days

14:38

we had a lawsuit against things sued you guys,

14:40

but that lawsuit actually was a Blessing

14:43

in disguise right Gary because it got you

14:45

all this attention You

14:48

took the words out of my story. Yeah Sorry,

14:52

no, I'm glad you did because it's so

14:54

it's people don't realize that sometimes It

14:57

might be what you want and you know, so

14:59

I and I think people are afraid to attack competition

15:01

So, you know my question back to you would

15:03

be like do you pick the number

15:05

one? competitor that you can grab or

15:07

do you do them all together and You

15:12

know, do you go after them and

15:14

create a super aggressive Campaign

15:17

that gets you PR because back then

15:19

there was no PR as per

15:21

se but it was usually oh in

15:23

in a retail magazine I wrote a trade magazine,

15:25

you know cliff bar gets sued by a

15:27

power bar We're like, thank you and guys

15:29

right like then all these bike shops are like,

15:31

well, let's just try it I mean

15:34

gosh and they did we had

15:36

700 accounts in like months and

15:38

our goal sounds very aggressive,

15:40

but we're our goal is to put them out of business and

15:43

For the first 10 to 15 years

15:45

our people were like we are going

15:48

to just go after their market share

15:50

Everywhere we could and so that's

15:53

how you tell people you're different You've got

15:55

to show the difference between what everybody's doing

15:57

and you're not doing and that you can't

15:59

be better Nashville or shy about it. You got it. That's

16:02

my opinion. Yeah, you know, it's

16:04

kind of cool It's like you could have you

16:06

could basically take a competitor sunglasses and just show

16:08

a pile of plastic and say this

16:11

becomes this Yeah, right Here

16:16

took the design right out of my head our

16:18

heads we're looking for some marketing guy all

16:21

my 800 numbers and Gary

16:25

how important is Like

16:28

athlete influencer association

16:30

with with with brand voice brand identity

16:32

It was it was in our mix

16:35

always and we still have you know

16:37

World-class athletes with clip bar stickers on

16:39

their helmets and like ski racing You

16:42

know, you're you're in the skiing because

16:44

I saw your goggles, you know Bryce

16:47

Bennett who won a World Cup race this

16:49

year he gets in the start line You

16:51

see this big red sticker and then he

16:53

crosses the finish line and he wins and

16:55

he literally points to the clip bar Sticker

16:57

on his helmet like holy crap that is

16:59

worth so much It

17:02

doesn't get better than that and so I a hundred

17:04

percent without having to go on and

17:06

on about it Yes, we we've always

17:08

had athletes from day one Endorsing

17:11

our product and they're super legit They're not

17:13

just celebrities who you know look good and

17:16

you know, they they could choose anything with

17:18

these people used our product for

17:20

function and for quality and

17:22

for and believing in our story I

17:25

think that's a key point Gary is that There

17:28

will be some consumers who are attracted

17:30

to to the the story and the

17:32

recycled aspect of it

17:34

But I think most people are gonna want about

17:36

the function they're gonna want to know why this

17:38

is better And I think this that

17:40

having an athlete having

17:42

a you know I think like an Alex

17:45

Honnold or an outdoor person, you know somebody

17:47

or a Michaela Schiff and wearing the Guggs

17:49

ski goggles I'm not you know, they're probably

17:51

already But

17:53

but but you think about you think about the shoe

17:55

brand on right which were worth it I tell that

17:58

story in the show. I mean that Roger Federer supercharge

18:00

that brand because all of a

18:02

sudden Roger Federer is wearing ons and people are

18:04

like what is that Roger Federer they must be

18:06

amazing people need

18:09

to understand because the majority

18:11

people are gonna buy it because they look good

18:13

and they're functional not because they're recycled yeah

18:16

and I promise to do this I'm

18:18

gonna get some but I'm paying retail buddy

18:20

I'm going online and I think that's my

18:22

my gig I pay retail that's fine with

18:24

me that's fine with me

18:26

hey Gary Erickson wearing opolis it's that's

18:28

a big deal that's a huge a

18:30

lot of people are gonna be like

18:32

what is Gary wearing okay I just

18:34

resigned from the World Cup so I

18:36

don't think up there

18:38

with how I built this and Gary

18:40

Erickson wearing our eyewear that would be

18:43

cool James thank you so much for

18:45

calling in good luck we're gonna be following

18:47

your progress and and we'll catch

18:49

up with you maybe you'll be back on the show I

18:52

hope so you guys guy I've been listening to

18:54

you for four years you've got me through a

18:56

lot of ups and downs and Gary you've gotten

18:58

me through a lot of hikes snowboard

19:01

trips surf trips through your

19:03

bars I really appreciate the time and thoughts James

19:05

thanks a lot and I hope we get to

19:07

catch up more I'd like to you know catch

19:10

up one-on-one if we can someday just to check

19:12

it out I'd love that thank you guys all right

19:14

take care Gary

19:17

I mean this is a complex business but I

19:19

think the idea of producing the

19:21

material and turning into a

19:23

products is a kind of a cool idea it's

19:25

super innovative I mean he's gone from zero

19:28

to vertically integrating his business like

19:31

right away yeah there

19:34

there are a lot of ingredients

19:36

and materials out there that

19:39

are like what he's doing but they're more purely

19:41

functional like a better plastic or

19:43

a better kevlar

19:46

for example or carbon fiber

19:48

you know radically changed

19:50

the bike industry but there's

19:52

no patent on carbon fiber and

19:54

everybody's doing carbon fiber there's so

19:56

I think he's got the advantage if they

19:58

get the IP on that And it's

20:02

got to be functional, and it looks like it

20:04

is very functional. At

20:06

the same time, it's got that property that, you

20:08

know, it's where everything is moving towards more sustainable.

20:11

Yeah, totally. Gary,

20:13

we're going to take a quick

20:15

break, but when we come back,

20:17

a co-op of artisans competing with

20:19

giants like Etsy, stay with

20:22

us. I'm Guy Roz, and you're listening to the Advice Line

20:24

right here on How I Built This Lab. On

20:36

How I Built This, we dive into stories

20:39

behind some of the world's most successful and

20:41

innovative companies. Everyone measures success

20:43

in different ways, but one thing's for

20:45

sure, you can't do it alone. Our

20:48

sponsor, Atlassian, knows this better

20:50

than anyone. Their team has

20:52

a suite of software tools

20:54

like Jira, Loom, and Confluence

20:56

that power teamwork for millions

20:58

of companies worldwide, like Canva.

21:01

Canva, the world's fastest-growing design platform,

21:03

is on a mission to empower

21:05

the world to design. The company

21:07

has grown from launch in 2013 to over 4,500 employees

21:10

with more than 175 million people and over 95% of

21:12

the Fortune 500 now using Canva to unlock their creativity

21:14

and achieve their goals at work. Such

21:25

exponential growth means Canva has had

21:27

to rapidly scale their internal processes

21:29

and ways of working to keep

21:31

up with demand. Atlassian

21:33

products are helping them navigate

21:35

that formidable challenge. They

21:37

use Jira to power their

21:40

engineering sprints, internal recruitment workflow,

21:42

and inventory management. Jira

21:44

service management is used for team

21:46

decisions to produce the best results

21:48

for your customers. And the best

21:50

part? With Atlassian intelligence in your

21:53

corner, you can trust

21:55

that your work is protected and

21:57

kept confidential. This isn't just a

21:59

small step. It's a giant leap in

22:01

accelerating work. Atlassian AI

22:03

powered software like Jira and

22:05

Confluence help teams accomplish what

22:07

would otherwise be impossible alone

22:10

because individually we're great, but together

22:12

we're so much better. Learn

22:15

how Atlassian AI can

22:18

help power high performing

22:20

teams at atlassian.com. That's

22:23

a-t-l-a-s-s-i-a-n.com. Atlassian.

22:25

So we've talked a lot on how I

22:27

built this about AI. And today

22:29

AI is no longer a

22:32

plaything. It's a business imperative. Your

22:34

team spends half their time writing

22:36

and one confusing email can turn

22:38

into 12 confused replies

22:40

and a meeting to get back on

22:43

the same page. Grammarly is

22:45

a trusted AI writing partner that saves

22:47

your company from miscommunication and all the

22:49

wasted time and money that goes with

22:51

it. I really found

22:53

Grammarly to be super helpful to

22:55

save time with generative AI prompts.

22:58

It's also super easy to stay

23:00

organized because Grammarly works great with

23:02

other programs that I already use.

23:04

Grammarly works everywhere you work

23:07

and integrate seamlessly across 500,000

23:10

apps and websites. No cutting,

23:12

no pasting, no context switching.

23:14

When every word your team

23:16

writes is clear, concise, and

23:18

on brand, everything gets

23:21

better. Join 70,000 teams

23:23

who trust Grammarly to work faster

23:26

and hit their goals while keeping

23:28

their data secure. Learn

23:30

more at grammarly.com. This

23:34

episode is sponsored by Squarespace.

23:37

Squarespace is the all in one

23:39

website platform for building your brand,

23:42

engaging your customers and growing your

23:44

business online. So if

23:46

you're running a business like the founders

23:48

on this show, then you'll love some

23:50

of Squarespace's features. Choose from

23:52

professionally curated layout and styling

23:54

options to build a unique

23:56

website that's optimized for every

23:58

device. And with integrated SEO

24:01

tools, your website will show up

24:03

more often to more people. No

24:06

matter what you sell, Squarespace has the

24:08

tools you need to run your business

24:10

online, including lots of

24:12

payment options for customers at checkout

24:14

as well as easy client invoicing.

24:17

And Squarespace has tons of analytics so

24:19

you know where all your site visits

24:21

and sales are coming from. So

24:24

check out squarespace.com for a free

24:26

trial and when you're ready to

24:28

launch, go to squarespace.com slash

24:31

built to save 10% of

24:34

your first purchase of a website or domain.

24:46

Hey, welcome back to the advice line here

24:48

on how I built this lab. I'm Guy

24:50

Roz and I'm with Gary Erickson. Gary,

24:54

market share is obviously super

24:56

important, right? Especially in a crowded

24:58

space and as more and more

25:01

competitors started to get into the

25:03

energy bar space, how

25:05

were you able to fend off the competition and

25:07

stay ahead? Like what were some of

25:10

the strategies that worked? I

25:12

would argue that we were built through Graphspace marketing.

25:15

You know, we did some print ads

25:17

at the beginning, which did put

25:19

us on the map. But Kit

25:22

and I would fly all over the country and

25:25

be cutting up bars and thousands of

25:27

pieces of bars just at these marathons.

25:29

It was so hard. And

25:32

then we started hiring people to do that for us.

25:34

We had a team of 25 people around the country

25:36

and then they had local people that they would hire

25:38

for the weekend events. And I

25:40

really think that's what put us on the map. But our

25:42

product was inexpensive enough where

25:44

we could actually give out whole bars and

25:46

they could experience that. And then the next thing you know, they're buying 12,

25:49

24 and hundreds. We

25:52

built a lot of loyal, I mean, we

25:54

have such loyalty with a

25:56

small group of people that buy the majority of

25:58

our product. Okay,

26:01

Listen on a call and. We. Like know what

26:03

he say no one I guess salary

26:06

is on the line. Hello! Valerie

26:08

Hello hello welcome to the show

26:10

On Please introduce yourself Toaster for

26:12

your first last name. What the

26:14

name, your businesses and where you

26:16

live. My. Name is Valerie

26:18

Thankless and I'm representing artisans

26:20

cooperatives and I'm calling from

26:22

the beautiful North Oregon coast.

26:24

Nice. Oh it's is a beautiful place

26:27

a case of and butcher person. So.

26:29

We have almost no funds that

26:31

strong bottom up community ownership. How

26:33

do we break into a market

26:35

space that is filled with giants

26:37

like at sea. And Amazon moved to

26:39

the Giants. Okay we've we've would certainly

26:42

told this he story on the show.

26:44

First of all tell us a little

26:46

bit about about your business about Artisans

26:48

Cooperative. What is it would you do.

26:51

Yeah. Artisans Cooperatives is a co

26:53

op alternative. The At see. What?

26:55

We're growing an online handmade

26:58

marketplace for crafters, makers, and

27:00

artists. Owned. And managed by the

27:02

people who love it. As a cooperate

27:04

of Leon business for I'm looking at the

27:06

website now and so a First of all,

27:08

What? What's the problem with Etsy? Why did

27:11

you Because it seems like you aren't really

27:13

is is competing with Se. But. What

27:15

What prompted you to to start

27:18

this? Well. I.

27:20

It's easier for me to answer

27:22

in some ways from a personal

27:24

point of view because I'm one

27:26

half of the leather crafting business,

27:28

a small husband and wife leather

27:30

grafting business that we started on

27:32

Etsy in two thousand and Nine.

27:34

So we'd no se very well

27:36

and we're still on Etsy and

27:38

they are a great option to

27:40

has in your portfolio as a

27:42

small artist or maker. And but

27:44

over the years they've changed a

27:46

lot. You know, starting in I

27:48

think Twenty Twelve. But. he started

27:51

growing much bigger twenty sustained the

27:53

went to and i pl and

27:55

sellers started becoming i would say

27:57

the product as much as he

27:59

often the way that Etsy is making

28:01

revenue. So this all really

28:03

got started when they increased their fees

28:05

a second time by 30% in 2022.

28:08

And they announced that fee increase in

28:10

the same week that they announced

28:14

record profits. And that

28:16

was just something that struck a lot of

28:19

small makers and artists who rely on this

28:21

income kind of struck a nerve. And

28:25

so it kind of spontaneously organized

28:27

into a protest online through media,

28:29

which I got involved,

28:32

it was called the Etsy strike. And

28:34

thousands of shops took their

28:36

listings off of the site for a week

28:38

and protest. And it actually

28:41

caught some pretty good mainstream attention, but

28:43

didn't change the fact that the fees

28:45

were going up again. It's at the

28:47

point where a sales commission might vary

28:49

anywhere from 10% to

28:51

40% per sale. And you won't

28:53

really know what that is until the sale happens. And

28:57

how do you how do you differ from

28:59

Etsy? Like you're charged presumably you're charging much

29:01

lower fees to your sellers? Not

29:04

necessarily. No, the

29:06

big difference is that we're owned

29:08

and operated or owned by the

29:10

members themselves. So a cooperative is

29:13

a member owned business that's organized

29:15

on a principle of one member one vote.

29:19

So we have a multi

29:21

stakeholder cooperative, which means that the

29:23

artisans themselves can be owners of

29:25

the business and the shoppers or

29:27

any general supporter can become an owner

29:30

of the business, which means they get

29:32

governance rights, they get a vote, and they get

29:34

to have a say in how things are run. And

29:36

they get financial rights so that when we have

29:38

profits, the dividends are just so good to cut among

29:41

the people. Yeah. How many artisans do

29:43

you now have involved? We

29:45

have a little over 300 members now.

29:47

Yeah. And we have about I

29:49

think 200 shops on our marketplace. Okay,

29:53

so Valerie, you brought

29:55

us this question about you've got say

29:57

almost no funds to but you've got a strong

30:00

bottom-up community, how

30:02

do you break into a marketplace

30:04

kind of dominated by Amazon,

30:07

Etsy, eBay, and other massive

30:09

retailers? Gary, you want to take

30:11

the first crack at this one? Oh

30:13

man, this is a tough one. Well, you've got

30:16

a real targeted competitor. You would

30:18

call Etsy a competitor, is that correct? Yes,

30:21

although we're not necessarily trying to replace Etsy.

30:23

If we could get the 1% of artisans

30:26

who are looking for

30:28

alternatives and the consumers who

30:30

are looking for ethical options,

30:33

I think that's a great starting

30:35

place. So the

30:37

answer is yes, you're a competitor. You

30:40

just don't want to say it. So

30:43

yeah, we used to say that at the beginning when

30:45

we at Clifffire, like if we could just get 10%

30:47

of their business or

30:50

20% of their business, I'll be set for

30:52

life, and that would be like, we'd be

30:54

revenue of a million dollars and

30:57

little did we know that we far surpassed

30:59

that. So yeah, you could target that. Don't be

31:02

shy about that. Is

31:05

there a place where you would feel

31:07

like if we got here, then we've

31:10

got momentum and we're able

31:12

to sustain our business for the long

31:14

haul? Like how far are you from

31:16

there right now? That's a great

31:19

question. I think that's one

31:21

of the special challenges we have in trying to build

31:23

a marketplace is that we're in a bit of a

31:25

chicken or an egg situation. We need enough

31:28

artisans to provide good consumer choice for the

31:30

shoppers who are coming on so they have

31:33

things to sort through and define what they're

31:35

looking for, but we need enough customers to

31:37

make it worthwhile for artisans to want to

31:39

sign up. And so I hope that we're

31:42

growing both in step with each other in

31:44

a balanced way. We're

31:47

not there yet. We just started. We

31:49

launched our beta marketplace with existing tech

31:52

in October of this year,

31:54

so six months ago. And I

31:56

would say we're probably, you know,

31:59

at least... half

32:01

of where I'd want to be. So we'd

32:04

start feeling like we were getting there. And

32:07

I think about, you know, it's really interesting because

32:09

we've done a whole series on the show recently

32:11

about content creators and the business

32:13

of content creation. And you know, ten years

32:15

ago was in order to

32:18

reach mass scale in media, you had to

32:20

be on CNN or, you know, be at

32:22

a major media organization today. You could be

32:24

some dude with a YouTube channel and reach

32:26

50 million subscribers, right? And so what's interesting

32:28

about how social media platforms work now is

32:31

that they want to attract

32:33

all these creators, right? So for

32:35

a long time it was YouTube where they were

32:37

trying to get onto because YouTube paid the most. And

32:40

then they went to TikTok. And now a

32:42

lot of people are migrating to Snapchat. Now

32:44

they all use all of them, but these

32:46

different platforms offer different incentives. And now it's

32:49

getting me to my question for you, which

32:51

is, is there a world where

32:53

you could offer an incentive that

32:55

is so good, you know,

32:57

like no fees for the first

32:59

year or something

33:02

radical where that kind

33:04

of message spreads among crafters?

33:06

Because there are craft fairs

33:09

all over the country. Crafters

33:11

talk to each other. You guys have a Discord channel, I

33:14

see. Is there some kind

33:16

of incentive that you are

33:18

able to offer to bring this critical

33:21

mass in? That's a

33:23

really good question. I absolutely

33:26

think that we could come up with

33:28

such an offer if we

33:30

could find the right audience and the right

33:32

moment to share it. But

33:34

I do think one of the things we've had a

33:36

challenge with being on a platform is that we don't

33:38

have a lot of ways to connect with other artisans

33:41

other than at like craft fairs and things like that

33:43

because places like Etsy control

33:46

the narrative and control their forums. Yeah,

33:48

but you... Right, that's right.

33:50

And for you to control the narrative, you've got

33:52

to give your members the tools

33:54

and make it easy for them, right? I mean,

33:56

you've got 300 members. Each

33:59

of those members... members is on social media.

34:01

I mean, they may not have hundreds

34:03

of thousands of followers, but they might

34:05

have hundreds or thousands on

34:08

their social media. And I wonder

34:10

whether you can leverage

34:12

your community in a better way

34:14

to have them promote what you're doing. I

34:17

think our members are not only committed, they're

34:20

literally invested. They're co-op

34:22

member owners. They've invested in this company

34:24

and we're all equal owners

34:26

of it together. It

34:28

brings up an interesting point that I hadn't

34:30

fully thought through, which is that artisans have

34:34

people who are just starting their careers, people

34:36

who are doing it just for fun, and

34:38

then people like me and

34:40

my partner who do this full-time for

34:42

a living. Everybody comes

34:44

with a different set of

34:47

skills and a different background.

34:49

Using everybody's strengths where they are

34:51

makes a lot of sense. Valerie,

34:55

once people come onto your site for

34:58

the first time and maybe they buy something, do

35:01

you got them? Do

35:03

they come back? They're like, wow,

35:05

I never thought this existed. This

35:07

is really different. I think

35:09

we've had repeat customers

35:13

already. In our six months of operating,

35:16

I think one of the ways that

35:18

we try to encourage that is through

35:20

email campaigns and trying to make people

35:22

aware of the variety of things on

35:24

our platform, everything from wooden coasters

35:26

to hand-woven silk shawls. There

35:29

is such a wide variety

35:31

of products and that's the

35:33

treasure hunt of it. One

35:38

of the things that I've noticed, I'm

35:40

going to give you some feedback on

35:42

this. I know the site's early. It's

35:44

still in beta form, but there's too

35:46

much stuff. There's join the member for

35:48

Artisans Handmade. There's all these drop-down things.

35:51

What I think Etsy does well and what

35:53

I think you could do really well is

35:55

they just have pictures of different categories. You

35:57

have some of that, but Gary, I know

35:59

Gary, is a cyclist? And

36:01

is there a world where you've got like people

36:04

who love cycling or you know, you've

36:06

got clothing and accessories, arts and crafts, but

36:08

could you break that down even further like

36:11

beanies or games

36:13

instead of like personal care and

36:15

leisure like domino lovers? I

36:17

mean, you don't have to get like

36:20

super, super like micro niche, but you

36:22

could get kind of niche. And you

36:25

know, I understand you guys don't have

36:27

massive budgets, but you're working with artists.

36:29

I mean, I know you give a

36:31

lot of time in your group to really

36:33

kind of think a bit more

36:36

intentionally about the design of the website to make

36:38

it a little to make it pop a little

36:40

bit more. You know what I mean, Gary? I

36:43

like that a lot. And I like also that

36:45

you're, you're trying

36:47

to move toward something that

36:49

Etsy isn't doing on their website

36:51

or with their product line or

36:53

whatever is available. I mean,

36:56

you know, there, okay, you could go to

36:58

if you want to differentiate, you know, it

37:00

could be your headline, you know, you may

37:02

not find this on Etsy. Yeah,

37:05

you may not you want me, you may not want to

37:07

say you won't find this because maybe you

37:09

will. But you could say you may not find this

37:11

on Etsy that would give them like, well, there maybe

37:13

there's other stuff on here, I won't find an Etsy.

37:16

And because you've got to create that

37:18

you can't be an Etsy with better

37:21

values. Yeah, you got to be

37:23

at sea with a different product. I'm

37:25

telling you, I agree. I'm just spitballing here. But

37:27

maybe think of a different way of categorizing what

37:30

you offer. And you focus

37:32

on the things that people love, or might,

37:34

you know, be attracted to. So here's a

37:36

question that follows that, I

37:38

hope perfectly is,

37:40

how many people come to this and

37:43

buy a gift versus buying

37:45

something for themselves? That's

37:48

a great question. I would say, so

37:51

far, more purchases have

37:54

been personal. And yet that

37:56

contradicts my own experience with my own

37:58

business that we need. you make these

38:00

niche things that are perfect for that one

38:02

person, you know, more a

38:05

higher percentage of them is gifts. I

38:07

also know that Etsy is pushing gifts

38:09

hard right now. Okay, that's that was

38:11

their Super Bowl Ed. Is

38:13

that right? Yes. But

38:16

Gary, your gifts is the way to

38:19

go. It's the way I mean, if you put away, you

38:21

might find something for yourself to you know, like you're going

38:23

for like, I go to wherever wherever

38:25

and buy a gift for my family

38:27

or my wife or something. And then I ended

38:29

up like, this looks I think I want to

38:31

get this for myself. Yeah, I mean, there's

38:34

a lady here who's making knit

38:36

beanies with like an octopus on

38:38

it. I'm seeing that I'm seeing the

38:41

chicken and the lemon. I mean, there's

38:43

like, octopus. There's lots of people have

38:45

octopuses or for example, I'm on

38:47

the same base, the yellow one, right?

38:49

Yeah, yeah. I'm looking for gifts. I'm

38:51

looking for a gift for somebody. And

38:54

I don't even know where to begin.

38:56

You could have a revolving top gifts.

38:59

Top sold gifts. Yeah. And if you just had

39:01

like a headline of like, first thing

39:03

is top 50 gifts. And because if I'm looking

39:06

for a gift, I wouldn't know where to start

39:08

here. Yeah. And I would like to be

39:10

led to something and I

39:12

might come back here and be buying gifts

39:14

all the time. Yeah, because I'm always searching

39:16

for a gift for my friends and family.

39:18

Valerie, I think there's I think I think we're

39:20

on to something. I think we might

39:23

be on to something. You have

39:25

given me so many great ideas and feedback

39:27

and direction. And I absolutely

39:29

love Gary's point to that

39:31

gifts are a great add on and a great

39:33

way to increase our per order amount. Not

39:36

look for yourself and also think about other

39:39

gifts to add on, you know, and and

39:41

back to the back to trying to get

39:43

that message out is wherever

39:45

you get if you could just say a gift

39:47

you may not find on Etsy. Yeah.

39:50

Yeah. Try that. Try that.

39:52

And you know, it's not going out of business. There'll be

39:54

fine. And we love it. Don't worry, by the way, I

39:57

have a show big fans to So

40:00

no, no, no shade as a

40:02

Salary Franklin Artisans Cooperative. Thanks for

40:04

calling and good luck will be

40:07

watching. Awesome! I was delighted to

40:09

be here. Thank you! So. Much while the best

40:11

story. Great job! Gary.

40:14

I'm gets You are. A. Chicken

40:16

Head. A The thing which one

40:18

are know that are the lemon to

40:20

the lemon on the size and knit

40:22

hat. I think that I think you

40:24

live with it or cycling through through

40:26

Italy on your racing bike. With that

40:28

we have to put it over the

40:30

helmets. I can get it over the

40:32

home for over the helmet. Yes are

40:34

A were good. Another quick break. Gary

40:36

only come back and inventors Fluffy.craigs idea.

40:38

Stay with us and Guy Rise and

40:40

you're listening to the vice line here

40:42

Idol to slap. Our

40:53

friends at Korean provide wealth management

40:56

services centered around you and you

40:58

know what Koreans goal is to

41:01

exceed your expectations and simplify your

41:03

life. Korean can help high achievers

41:05

just like you, preserve your wealth

41:08

and provide for the people, causes

41:10

and communities you care about Korean

41:12

as extensive knowledge across the full

41:15

spectrum of planning, investing, lending and

41:17

money management. Their one of the

41:20

largest integrated see only Us registered

41:22

investment advisors. And they have

41:24

deeply experience teams in twenty

41:26

three strategic locations. Teams that

41:28

put the collective power of

41:31

their expertise into building you

41:33

the custom wealth. Investment and

41:35

family offer solutions that can

41:37

help you reach your a

41:39

holistic financial goals no matter

41:41

how complex they may be.

41:43

Real wealth requires real solutions.

41:45

For more information, speak with

41:47

his advisor today at koreans.com

41:49

that koreans.com see for Smart

41:51

Energy is a proud sponsor.

41:53

of how i built this it's

41:55

harder to focus than ever these

41:57

days thankfully see for his room

42:00

We invented the energy drink

42:02

game with C4 Smart Energy,

42:04

the only energy drink clinically

42:06

proven to provide enhanced mental

42:08

focus. Containing 200

42:11

mg of natural caffeine, a blend

42:13

of vitamins, and zero sugar, it

42:16

was formulated to support your well-being

42:18

and help you feel your best,

42:20

all while enhancing mental focus. They

42:22

taste great and they really work,

42:25

especially after hours of interviews when

42:27

I'm mentally exhausted and I need

42:29

a boost to help me get my focus back.

42:32

From your brain to your body,

42:34

C4 Smart Energy does it all

42:37

and tastes amazing. Find

42:39

Smart Energy at your local target in

42:41

the check lane cooler and where you

42:43

find energy drinks. C4

42:45

Smart Energy. Stay focused. Hello

42:56

and welcome back to the Advice Line here

42:59

on How I Built This Lab. I'm Guy

43:01

Roz. Gary, what do you say? Should we

43:03

go ahead and bring in our last caller?

43:05

Let's go. All right. Hello,

43:08

Elsie. Are you there?

43:10

Can you hear me? Yes, we can.

43:12

Hello, Elsie. Hi. Please

43:14

tell us your name, what your company's called,

43:16

their business, and where you live. Hi,

43:19

Guy. Hi, Gary. Hi,

43:21

Elsie. I'm in

43:24

Denver, Colorado, and

43:27

I started my company in Lily Brush

43:29

14 years ago after I invented

43:33

a pet hair clean-up tool

43:35

that's faster than... I

43:38

started my company in Lily

43:40

Brush 14 years ago after

43:43

I invented a pet hair clean-up

43:45

tool that's faster

43:47

than vacuuming and

43:49

better than sticky rollers

43:52

without creating single-use waste.

43:55

I've since invented four more

43:57

pet hair clean-up products. And

44:00

now we have this incredible

44:02

core group of pet parents

44:04

and professional cleaners who love

44:06

our products. But I'm

44:09

still struggling with

44:11

how to scale up our marketing

44:14

so more people can find us.

44:18

Right. Okay. So before we... So

44:20

you're looking to figure out how to scale

44:22

up to get more people to find you, how

44:24

to do it efficiently. Before

44:27

we get there, let me ask you a couple questions. So a daily brush is...

44:29

So this is a pet hair

44:32

remover for furniture

44:35

and whatever pet hair. I have a beloved pet. I've

44:37

got two cats and a dog. So this is a

44:39

big problem in my house. I have a lot of

44:41

pet hair. I have a

44:43

one cat that is particularly bushy hair. Morty,

44:47

he's a great cat, but he sheds everywhere.

44:52

How is it different than, I don't

44:54

know, roller or other pet brush

44:56

removers? Oh,

44:59

let me count the way. Please tell

45:01

us. Yes. Count them

45:03

out loud. Okay, I will. So

45:06

if you have pets that

45:08

have that very heavy undercoat,

45:11

that soft fluffy stuff that

45:13

sheds all year long, we

45:16

make these fantastic bristled

45:19

products that you

45:22

just brush back and forth across

45:24

the hair. It picks it all

45:26

up. There's

45:28

no sticky roller waste. There's

45:32

no peeling. And it's

45:34

faster than vacuuming. And you just pull the hair

45:36

out and you just toss it in the... It

45:40

stays right on top of the

45:42

bristles. And you just... I

45:44

like to tell people, take the hair

45:46

outside because birds like to use it

45:49

for nests. Wow, that's cool.

45:51

It's like you're recycling like our... like

45:53

gems and plastics. You can go and

45:55

nest for a bird and then your

45:57

cat can go and eat the bird.

46:00

Oh dear. No. How

46:03

did you... Tell me how you started this business

46:05

because I see you started in 2010. What

46:08

were you... I mean, did you

46:10

have a different job? Or are you doing something different in your life

46:12

at that point? I was. It's

46:16

kind of one of those

46:18

crazy stories. Yeah. But I used

46:20

to be a painter. I

46:22

was a portrait and still life artist.

46:26

And in 2009,

46:28

I was a

46:32

single mom and I shoveled

46:34

a driveway full of snow.

46:38

And it caused my widow

46:40

maker artery to dissect

46:45

at the family dinner table. So...

46:48

Wow. After

46:50

I was very

46:52

lucky to wake up the next

46:55

morning. But I

46:58

went to reach for a

47:00

water glass and

47:02

my hands were shaking.

47:05

They were like nervous

47:07

parakeets. I'm sure you can hear

47:09

it in my voice. I have

47:11

now a pretty

47:14

prominent tremor. And

47:16

so I knew

47:19

that morning

47:22

that my painting career

47:24

was over. Wow.

47:26

So, you know,

47:28

I've never looked back.

47:30

I just knew I had to

47:32

find a new career. I

47:35

mean, it's an amazing story because you

47:37

have this, of course, near-death

47:39

experience with the heart attack and

47:42

it completely changes your trajectory. I mean,

47:44

you're a painter. You need still hands,

47:46

but you develop a

47:48

tremor and you have to pivot.

47:51

But it's like it's so... I

47:53

mean, it's one of those weird things.

47:55

It's like that happened and

47:58

that as a result of that. you

48:00

started this thing, right?

48:03

Like this, none of this would have

48:05

happened without that horrible tragedy, but it's

48:07

an amazing kind of turn of

48:09

events. I

48:11

just, that's how

48:13

my life has always been. I've had

48:15

a lot of faith and just followed

48:20

lead. If something happens, you

48:22

just keep going through it.

48:26

I love your website. It's really clear.

48:28

It pops. I like the logo, Lily

48:30

brush, the red, it pops. How did

48:32

you invent this thing? So

48:36

I had to go to rehab for

48:39

my heart and I always

48:41

wear this polar fleece jacket.

48:44

And this little dog, Lily, used

48:46

to enjoy sitting on the couch

48:48

with me. She's an Australian

48:50

Shepherd. She's a very

48:52

fluffy dog. So I'd go to

48:54

rehab with all the other 80 year

48:57

olds. And I was only

48:59

48 when it happened. So

49:02

I'd go and I'd be covered

49:04

in pet hair and it

49:06

was embarrassing. But I looked

49:09

to see if there

49:13

was anything that would take care of

49:15

the pet hair and all they had

49:18

was sticky roller. And I

49:21

hate single

49:23

use products. So,

49:26

but I wasn't allowed to lift

49:28

it back. And so I took the

49:31

sticky roller home and

49:33

I would carry it with me and

49:35

rolled my fleece. And I

49:37

just thought there's got to be a better

49:40

way. And then one day I

49:42

was scrubbing

49:44

around the fixtures in

49:46

my kitchen and Lily

49:49

happened to jump onto the couch in

49:51

front of me and she had muddy

49:53

paws. So I went over with a

49:56

toothbrush and I

49:58

went to wipe the mud off

50:00

of that, off of

50:03

the couch. And I

50:05

noticed that her hair stuck to

50:07

the bristles. And I

50:09

was like, oh, I just

50:11

it was like, oh, so

50:13

I ran upstairs. I

50:15

have two sons. I

50:18

took both their toothbrushes, cut the

50:20

heads off of them. And

50:22

I found this little palm

50:24

sized block of wood in the

50:26

garage. And I super glued these

50:28

three toothbrush heads onto

50:30

mine as well. And

50:35

my kids came home and they found

50:37

me cleaning the whole house with this

50:40

little block of wood with toothbrush heads

50:42

on it. And I'm sure

50:44

they thought I had a stroke. So Elsie, a

50:46

guy has a question. I know this is in

50:48

your head right now, guy. Did

50:50

you keep that prototype? Of

50:53

course. That you've got a that's a

50:55

that's a Smithsonian

50:57

Museum piece. That

51:00

is so awesome.

51:02

Yeah. So Elsie

51:04

obviously is coming with question of how,

51:08

how can she scale this? How can she get the word

51:10

out? How can she grow this thing? She's been doing it

51:12

for since 2010. Yeah.

51:14

Gary, what's your take? I

51:19

need I've got a lot. This is I

51:21

mean, I just got it. I'm so inspired by the story.

51:23

All of it. So

51:26

it's awareness and trial. Now,

51:29

how do you do trial? Question

51:33

do you are you in like Petco or

51:35

any of the you know, pet mart or

51:38

any of those retailers? So

51:40

we're in this.

51:42

I'm very proud of this. We're

51:44

in a container store. That

51:47

was our first big company.

51:49

And it took me a

51:51

long time to get there. We

51:54

are we kill it on

51:56

Amazon, even though after

51:59

like the first year, Alibaba

52:03

just started pumping out

52:06

copies, but cheap copies of

52:08

our products. And

52:11

the thing I hate about the

52:14

products that these guys are

52:16

making that are copying ours is

52:19

that they only last

52:21

for a week or two. I

52:24

built our products to last for

52:27

really a lifetime

52:29

of your pet. I

52:31

mean that's the competitive advantage. Gary makes

52:33

me think of an episode

52:36

we did on TRX Straps with Randy

52:38

Hetrick several years ago because that

52:40

happened right away. All of a sudden,

52:42

all these copycats and they were poor

52:45

quality, but he spent

52:47

and still spends a lot of money suing them.

52:50

And I know you don't have those kinds

52:52

of resources and time, and it's a pain.

52:55

But I feel like a simple fix

52:57

is to emphasize what you

52:59

just said, the original and best, because

53:05

I feel like that is the brand is your

53:08

advantage here. It's

53:14

a tough one, Guy, because

53:17

when I first started talking

53:20

to buyers, they used to kind

53:22

of laugh at me because they

53:24

were like, why would you

53:26

make something that lasts for years and

53:29

years? We don't

53:31

want that. We want the repurchase.

53:33

But the fact that these

53:35

things last so long has

53:37

been kind of one of

53:39

our problems. I wonder whether I think

53:43

about partnerships, right? And

53:47

increasingly, you're seeing collaborations with brands

53:49

and certainly in apparel. Adidas and

53:51

Gucci or Liquid Death does, that's

53:53

not apparel, but they're doing partnerships

53:56

with different kinds of brands like

53:58

Grooming, Men's Grooming, for example. I

54:00

wonder if there's a way for

54:02

you to partner with a

54:06

product that is associated with

54:08

cleaning cars or carpets, something

54:12

like that where they get

54:14

it with that product. I

54:19

think about that too. Like

54:22

a different vacuum, like

54:24

a Bissell or something

54:26

like that. Such

54:30

a great point, guys. Yeah, especially

54:32

a product like Bissell or a

54:34

brand like that that's probably a little

54:36

easier to get to the right person

54:38

there. It's not an Adidas where there's a

54:40

bazillion people pitching them. I don't think a

54:42

lot of people are pitching Bissell for collaboration.

54:44

It could be kind of cool.

54:49

This to me seems like, you know how

54:51

Slim Jim is at the

54:53

checkout counter of every convenience store?

54:56

Like that's basically how

54:59

Slim Jim and now 5-hour Energy is there

55:01

too. I see this as a

55:03

product that's at the checkout of every car wash.

55:07

That would be ideal. I

55:10

do go to the car wash trade

55:13

show. The

55:16

first year I went, I

55:18

thought I'd made a terrible

55:20

mistake because I had

55:22

this little 10-foot booth. I'm

55:25

in this hall with all

55:27

these spinning brushes, bright

55:29

lights. I sort

55:31

of timidly went and started

55:33

doing demos. The

55:35

next thing I knew, my

55:38

booth was three people deep,

55:40

just mobbed for

55:42

three days. When

55:46

Gary talks about

55:50

going and giving away

55:52

product at bike

55:55

events, that resonates

55:57

with me.

56:00

Because I knew I'd

56:02

hit something, but we're

56:06

still just a little tiny

56:08

brand. We're still, you know,

56:10

they talk on Shark Tank,

56:12

they talk about the cockroach

56:14

that people can stomp

56:17

on. We're still that

56:20

little guy. And

56:22

it makes me nervous. It's

56:25

14 years and, you know,

56:27

we're trying so

56:29

hard and we're

56:31

still that little guy. First

56:35

off, don't give up. Okay. I'm an

56:37

effort. Because I think you've got, you

56:39

have something here. I wouldn't even, I'm

56:43

embarrassed that I didn't know your brand before

56:45

this because we've had, you've,

56:47

I've got these sort of sayings about innovation.

56:50

You've solved a problem, Cliff Bart to me

56:52

solved a problem with a better taste

56:54

and energy bar and,

56:56

you know, you're in, it's inventive. It's

56:59

totally original. I mean, how can

57:01

you get more original than using toothbrushes to

57:03

make the first product? And

57:05

it's, it's transformative. You

57:07

know, you're, it's for people that

57:09

have this issue. We, everybody

57:12

that has a dog and a cat pretty

57:14

much has this issue and we all

57:16

want to solve it, but we just are lazy and

57:18

we just, you know, and it's hard and you try

57:20

to vacuum, vacuum doesn't work. And the roly thing doesn't

57:22

work. So there's that. I feel

57:24

like it's a matter of

57:26

time in some ways. This is the kind

57:29

of product that if you could get it

57:31

into the hands of a

57:33

couple of the celebrities who just

57:36

have, you know, who post with their pet all

57:38

the time. Like I think, I don't know if

57:40

Chrissy Teigen has pets, but I just think of

57:42

something like that, you know, like Chrissy Teigen, who's

57:44

like associated with like cooking and a

57:46

beautiful house and like, you just imagine her like,

57:49

Oh my God, this, like, you know, here I

57:51

am brushing this

57:53

off with this thing. I think to get

57:55

to some of those really high end ones,

57:57

you've got to incentivize them. got

58:00

to say something like, look, we're

58:02

trying to scale this and,

58:04

you know, we'd love to partner with you in some

58:06

way. I don't know what that would look like. But to

58:09

me, it's just a matter of like getting it into

58:12

getting it to a place where somebody

58:14

like that, who's a real

58:16

like lifestyle influencer, gets

58:19

people excited about it. Because as Gary

58:21

said, it's a great product. It's just

58:23

a matter of getting it getting

58:26

in front of the right eyeballs. Question,

58:28

how many people are with you in your company?

58:33

There are four of us. Four

58:36

people is pretty lean. Yeah.

58:41

So I love guys idea of

58:43

the retail thing, like at the counter. I

58:46

mean, we've all bought stuff that when we're in

58:48

a store like I never I mean, what's

58:50

that? Oh, okay, I'll buy that. And

58:52

you may have to bring on a sales person that

58:55

you've never thought of needing before

58:57

that can go to the car

59:00

washes and the Walgreens and

59:02

the you know, and Fridays, whatever. Yeah.

59:05

You know, we bootstrapped it.

59:07

So it's been slow growth. Yeah.

59:10

So we've got money in the

59:12

bank. That's awesome. So

59:15

I just, I just have

59:17

to figure out who

59:20

to hire. I'm really into

59:22

giving people a shot. You

59:25

know, show me what you

59:27

got. And, and do your

59:29

best. And let's see. So I get,

59:31

you know, marketing people from

59:34

University of Denver. And

59:37

it was cool, you

59:39

know, two or three years watching

59:41

someone develop. I

59:43

think it's time that we go

59:46

and we find someone who really knows

59:48

what the heck they're doing.

59:51

And we do, we

59:53

do have money to do

59:55

that. I just honestly,

59:58

I I've done this

1:00:00

whole thing. I've flown by the seat of

1:00:03

my pants this whole time.

1:00:05

It's super impressive. And

1:00:08

for the record, I think if

1:00:10

you can do it self-funded, then

1:00:13

you control your destiny. Kit

1:00:15

and I never took a dime

1:00:18

from anybody over our 30 years of

1:00:20

running Cookbar. We never brought on an

1:00:22

equity partner. Yeah. Elsie,

1:00:25

we're gonna be following you and Lily

1:00:28

Brush. And good luck.

1:00:30

Thank you for calling in. I think you've

1:00:33

got something there. And I think in about

1:00:36

six months time from now, if we check in on you

1:00:38

again, you will have hired somebody to

1:00:40

take the load off and hopefully to start

1:00:42

to really do some of that business

1:00:45

expansion that you're not able to do because of the

1:00:47

other stuff you have to focus on. I

1:00:50

hope so. And

1:00:52

Guy and Gary, thank you so

1:00:54

much. I just, you

1:00:56

guys are my heroes.

1:01:00

I'll take it. Well, you're so welcome.

1:01:02

So cool. And thank you. And we're

1:01:04

just starting to roll. So just keep

1:01:06

this momentum going with other people and

1:01:08

keep this conversation going with other people

1:01:11

that can support what we've talked about and

1:01:14

help you take it up a notch or two or

1:01:17

more. Thank you, Elsie. Thanks,

1:01:19

Elsie. All right. Great

1:01:22

job. So I'm ordering one tonight. You're gonna be

1:01:24

saddled with all these products after today, Gary.

1:01:26

I'm solving all kinds of problems today. I'm

1:01:28

gonna get new sunglasses, goggles. What's

1:01:31

all these packages coming to our house? I know.

1:01:34

We're getting ski goggles and I got

1:01:36

a brush and now I've got all

1:01:38

this like these craps. What's going on?

1:01:40

Well, you know, I have, like

1:01:43

all of our friends have animals. I'm probably gonna

1:01:45

order a dozen of these and then pass them

1:01:47

around and then tell them to, see, that's the

1:01:49

other way to do it. You know, this is

1:01:51

a word of mouth product. It's a word of mouth

1:01:53

product. And you could have a brush in

1:01:56

every vehicle you've got, in

1:01:59

every... You know, room you've got,

1:02:01

they're just sitting there because then you don't

1:02:03

have to go, where's that brush? They're

1:02:06

everywhere. Okay, all right. Gary,

1:02:08

thank you so much for coming back on the show.

1:02:10

It's awesome to have you. I'm honored, thank you so

1:02:12

much. Guys, if you have not

1:02:15

heard his story, go back, way back in our

1:02:17

podcast queue, back to like 2016, early 2017, look

1:02:20

for Gary Erickson Cliff Bar. It's

1:02:22

an amazing story. I

1:02:24

still reference it all the time when I talk to people and

1:02:27

give them advice, so check it out. Thank

1:02:29

you everybody for listening to the show this week.

1:02:31

If you are working on a business and you

1:02:33

would like to be on this show, please send

1:02:35

us a one minute message that tells us about

1:02:37

your business and the issues or questions or problems

1:02:40

that you would like help with. And

1:02:42

please make sure to tell us how to reach you. You

1:02:44

can send us that voice memo at

1:02:46

hibtid.wondry.com or you can call

1:02:49

us 1-800-433-1298 and

1:02:53

leave a message there and we'll put all of this in

1:02:56

the podcast description on your smartphone. Thanks

1:02:59

again, we will see you back here next time. This

1:03:02

episode was produced by Sam Paulson with music composed

1:03:04

by Ramtine Arablui. It

1:03:06

was edited by John Isabella and our audio engineer

1:03:08

was James Willits. Our

1:03:11

production staff also includes Alex Chung, Carla

1:03:14

Estevez, Casey Herman, Chris Messini, Elaine

1:03:17

Potes, Jacey Howard, Kerry Thompson, Malia

1:03:19

Agudelo, Neva Grant and

1:03:21

Catherine Seifer. I'm Guy Raz and you've

1:03:23

been listening to The Advice Line here

1:03:25

on How I Built This Lab. If

1:03:29

you like how I built this, you can listen early and ad free right now by

1:03:33

joining Wondry Plus in the Wondry app or

1:03:36

on Apple Podcasts. Prime members

1:03:38

can listen ad free on Amazon Music. Before

1:03:41

you go, tell us about yourself by filling

1:03:43

out a short survey at wondry.com/survey. Support

1:03:48

for this podcast and the following episodes are

1:03:50

made possible by the members of the Wondery

1:03:53

team. We appreciate your support. We hope to

1:03:55

see you again soon. Support

1:03:57

for this podcast and the following message come

1:03:59

from Cory. Corrient provides wealth

1:04:01

management services centered around you. They

1:04:03

focus on exceeding your expectations and

1:04:05

simplifying your life. Corrient has been

1:04:08

helping high achievers just like you

1:04:10

enjoy their lives more fully, preserve

1:04:12

their wealth, and provide for the

1:04:14

people, causes, and communities they care

1:04:16

about. As one of the largest

1:04:19

integrated fee-only registered investment advisors in

1:04:21

the U.S., Corrient has deeply experienced

1:04:23

teams in 23 strategic

1:04:25

locations. Corrient has extensive knowledge

1:04:27

spanning the full spectrum of

1:04:30

planning, investing, lending, and money

1:04:32

management disciplines. Leverage Corrient's exclusive

1:04:34

network of experts to craft

1:04:36

custom solutions designed to help

1:04:38

you reach your financial goals,

1:04:40

no matter how complex they

1:04:42

may be. Real wealth requires

1:04:45

real solutions. For more information,

1:04:47

connect with a wealth advisor

1:04:49

today at corrient.com. That's

1:04:52

C-O-R-I-E-N-T.

Unlock more with Podchaser Pro

  • Audience Insights
  • Contact Information
  • Demographics
  • Charts
  • Sponsor History
  • and More!
Pro Features