080 – Energy Marshmallows? Yes and More! with Amy of Marshmallow MBA
Marshmallow MBA was born over a bottle of wine when a friend asked why Amy wasn’t selling her handmade holiday confections.
After some kitchen burns and several more bottles of wine, Amy launched her business in February 2016 with her college roommate from Penn State.
They invite you to forget everything you think you know about marshmallows. There are more than 75 flavors available for shipping nationwide.
Products include traditional marshmallows in gourmet flavors, “craft”-mallows based on cocktail and liquor flavors, GamersEdge energy marshmallows, and AthletesEdge recovery marshmallows.
Amy may be the only person who left a consulting career for candy making. Now she’s paying back her MBA loans one dozen marshmallows at a time.
Business Inspiration
A grandmother’s influence and love of sweets and baking paved the way. [6:06]
The life changing conversation over a bottle of wine. [8:13]
Enter … Sandra’s opinion and a partnership was born [9:04]
Candle Flickering Moments
Acquiring a social media posting mindset is a challenge [24:43]
Turning an under-performing festival into a business building opportunity [26:01]
Business Building Insights
The first actions to take when setting up a business [10:29]
Suggestions on finding a commercial kitchen [14:18]
All about product development and narrowing in on flavors [17:01]
The all important pricing analysis [19:53]
Tips on product labeling [22:21]
Fear is a Liar! [28:25]
Identifying and entering into two surprising and new consumer markets [30:16]
Success Trait
Amy leverages her ability to talk to anybody [33:53]
Productivity/Lifestyle Tool
Quicken – Budgeting software is the easiest way to manage your money.
Trello – Keep track of everything from big picture to minute details.
Valuable Book
Screw It Let’s Do It: Lessons In Life by Sir Richard Branson
15 Handpicked Unique Suppliers for Handmade Businesses 2015-2016 by Renae Christine
Contact Links
If you found value in this podcast, make sure to subscribe and leave a review in Apple Podcasts or Google Podcasts. That helps us spread the word to more makers just like you. Thanks! Sue
Transcript
Gift biz unwrapped,
Speaker:episode 80.
Speaker:I want this to be a silver bullet.
Speaker:I want this to change my life.
Speaker:Hi, this is John Lee,
Speaker:Dumas of entrepreneur on fire,
Speaker:and you're listening to gifted biz unwrapped.
Speaker:And now it's time to like Welcome to gift bears on
Speaker:wrapped your source for industry specific insights and advice to develop
Speaker:and grow your business.
Speaker:And now here's your host,
Speaker:Sue Mona height.
Speaker:Hi there.
Speaker:I'm Sue and welcome to the gift biz unwrapped podcast.
Speaker:Whether you own a brick and mortar shop sell online or
Speaker:are just getting started,
Speaker:you'll discover new insight to gain traction and to grow your
Speaker:business. And today I have joining us Amy trout,
Speaker:hues of marshmallow MBA.
Speaker:Marshmallow MBA was born over a bottle of wine when a
Speaker:friend asked her why she wasn't selling her holiday handmade confections
Speaker:after some kitchen burns and several more bottles of wine.
Speaker:Amy launched her business in February of 2016 with her college
Speaker:roommate from Penn state.
Speaker:So for those of you who are listening to the podcast
Speaker:live, that was just earlier this year.
Speaker:Amy invites you to forget everything you think you know about
Speaker:marshmallows. Marshmallow MBA offers more than 75 flavors and are available
Speaker:for shipping.
Speaker:Nationwide products include traditional marshmallows in gourmet flavors,
Speaker:craft marshmallows based on cocktail and liquor flavors,
Speaker:gamers, edge,
Speaker:energy, marshmallows,
Speaker:and athletic edge recovery marshmallows.
Speaker:Amy May very well be the only person who left a
Speaker:consulting career for candy making.
Speaker:Now she's paying back her MBA loans,
Speaker:one dozen marshmallows at a time.
Speaker:Oh my gosh.
Speaker:Between them wine and the marshmallows,
Speaker:Amy, you are a girl after my own heart and welcome
Speaker:to the show.
Speaker:Thanks so much for having me Sue and we get that
Speaker:response a lot with the wine and marshmallows.
Speaker:So it's a good combo.
Speaker:Okay. So Amy,
Speaker:I like to start off our conversations by having you describe
Speaker:yourself in a little bit of a creative way.
Speaker:And that is by having you tell us what your ideal
Speaker:motivational candle would look like.
Speaker:So if you would let us know what the color and
Speaker:the quote would be on your motivational candle.
Speaker:Well, when you asked me this in the original interview,
Speaker:prep, that the first thing that struck me as being colorblind,
Speaker:my candle is probably going to be gray.
Speaker:I'm good with that reminds me of a lot of things,
Speaker:but Sandra,
Speaker:my business partner is in charge of all of our color
Speaker:combinations for a very,
Speaker:very good reason.
Speaker:As In get contested with the colors then does she she's
Speaker:Really, if she tells me no,
Speaker:these two don't go together or this color does not look
Speaker:appetizing, I'm like,
Speaker:okay. And that's the trust that comes from a 30 year
Speaker:friendship. My motivational quote actually comes from the priest at my
Speaker:church. I started going back about five years ago and the
Speaker:second sermon I ever heard from him,
Speaker:the theme of the sermon was what would you do if
Speaker:you knew you couldn't fail?
Speaker:And that really hit me like a ton of bricks,
Speaker:because I was at a point where I was really questioning
Speaker:a lot of things that were happening.
Speaker:You know,
Speaker:I think you hit 40 and you start asking questions.
Speaker:You weren't asking earlier,
Speaker:you know,
Speaker:not midlife crisis necessarily,
Speaker:but certainly,
Speaker:Hey, what else can I do?
Speaker:Is this all there is Reba McEntire has that song.
Speaker:Is there life out there?
Speaker:And I think it's a legitimate question,
Speaker:but asking it,
Speaker:framing it in the words,
Speaker:what would you do if you knew you couldn't fail,
Speaker:makes it so much more actionable.
Speaker:It eliminates Those possibility brackets.
Speaker:Somehow we fit ourselves into these little brackets and we can
Speaker:only look at the space in between and your quote,
Speaker:kind of reminding you,
Speaker:you're pulling away those brackets.
Speaker:And literally if you go against that mindset,
Speaker:anything is achievable.
Speaker:What would that be for you?
Speaker:Where is your passion?
Speaker:Right? So where my passion lies even was lying five years
Speaker:ago, I knew I was burned out doing the same thing
Speaker:every day as a government consultant,
Speaker:I took a leap of faith and went to business school.
Speaker:I am math phobic.
Speaker:So when friends and family found out I was going to
Speaker:business school,
Speaker:their first reaction was,
Speaker:are you kidding?
Speaker:Which is very supportive.
Speaker:And you know,
Speaker:they also asked us the question,
Speaker:our first residency of business school,
Speaker:what do you want this degree to be for you?
Speaker:And I remember very clearly saying,
Speaker:I want this to be a silver bullet.
Speaker:I want this to change my life.
Speaker:Lucky for me,
Speaker:I committed,
Speaker:I committed a hundred percent,
Speaker:some days more than that,
Speaker:accounting. Yeah,
Speaker:the accounting classes,
Speaker:but got through them.
Speaker:And you know,
Speaker:you get back.
Speaker:What you put in.
Speaker:I say business school was one of the best decisions I've
Speaker:made as an adult.
Speaker:And it allowed me to learn so much more about myself
Speaker:and recognize opportunities that I wouldn't have seen otherwise.
Speaker:And so being able to take my interest in food,
Speaker:food has always been a type of ministry for me.
Speaker:You know,
Speaker:that's how I give back to my community.
Speaker:But taking that and looking at a candy in a different
Speaker:way, the whole thing I started,
Speaker:it sounds like from this quote,
Speaker:in terms of what could you do?
Speaker:So it opened up the possibilities of doing something different and
Speaker:doing something for yourself and not staying in a career that
Speaker:might've served you well for a long time.
Speaker:But you knew there was something else that you wanted to
Speaker:do. Absolutely.
Speaker:I'm loving what you talked about in your intro.
Speaker:So I want you to go there.
Speaker:I want to be at that table with you when you
Speaker:were talking with your friend Through,
Speaker:talk through What ha and is this the friend who's now
Speaker:your business partner?
Speaker:It is not.
Speaker:Okay. So tell us how this whole idea came about.
Speaker:So I have made handmade gifts,
Speaker:food gifts for friends and family for 20 years.
Speaker:If not,
Speaker:what about 20 years?
Speaker:Let's not date me entirely.
Speaker:Yeah. And whether it was jams,
Speaker:whether it was candy,
Speaker:cookies, bread,
Speaker:whatever it was,
Speaker:the Christmas baking and Christmas food prep for me was always
Speaker:something I did.
Speaker:It was a great gift because even for picky people,
Speaker:everybody eats a cookie.
Speaker:Now my grandmother,
Speaker:who you need to know is in a lot of ways,
Speaker:my mother,
Speaker:the joke in our family,
Speaker:which I never took as a joke is you are your
Speaker:grandmother's daughter.
Speaker:So our generations are mixed.
Speaker:My grandmother had an incredible sweet tooth.
Speaker:She always had candy around.
Speaker:She used to level off ice cream.
Speaker:No, no,
Speaker:I'm just evening it up.
Speaker:Nice. I like that strategy.
Speaker:Even as she got older,
Speaker:when she lost her appetite for other things,
Speaker:she could always eat candy.
Speaker:She could always eat sweets.
Speaker:And when I would travel to see her at the holidays,
Speaker:I would always bring an extra suitcase.
Speaker:And so,
Speaker:and then we'd put things in the freezer and we put
Speaker:things, you know,
Speaker:we vacuum seal things.
Speaker:So she had it.
Speaker:Then she and my grandfather boat,
Speaker:I lost her two years ago.
Speaker:Oh, I'm sorry to hear that.
Speaker:Thank you.
Speaker:Thank you.
Speaker:It's a,
Speaker:it's still painful,
Speaker:but she,
Speaker:marshmallows were a candy,
Speaker:white marshmallows and fudge.
Speaker:I can't make fudge.
Speaker:Fudge is one of those things.
Speaker:I hear you.
Speaker:There's all these easy ways and all these great,
Speaker:no fudge.
Speaker:And I are never going to be friends.
Speaker:If you're making fudge,
Speaker:please keep making it because it's but I'll never forget.
Speaker:The last Christmas I flew out.
Speaker:I didn't make marshmallows that year.
Speaker:And the look on her face devastated me.
Speaker:Oh, you didn't bring marshmallows.
Speaker:Yeah, No,
Speaker:I didn't.
Speaker:Oh no.
Speaker:I bet you followed up with Selma a month later.
Speaker:Or so with some yes.
Speaker:She always,
Speaker:she always got them.
Speaker:So how did the idea,
Speaker:like, let's go to this table where you're sitting with your
Speaker:friend. Was it like this revelation all of a sudden,
Speaker:or how did it happen?
Speaker:We're sitting,
Speaker:we're sitting on the couch,
Speaker:he's finishing up a box from his Hanukkah package.
Speaker:And like we said,
Speaker:we were drinking wine and Keith says to me,
Speaker:I don't know why you're not selling these things.
Speaker:You could be the marshmallow MBA.
Speaker:He even gave you the name he gave us.
Speaker:He gave,
Speaker:he gave me all of this.
Speaker:All right.
Speaker:So did you pull up a napkin and start writing the
Speaker:plan right then?
Speaker:And there You didn't.
Speaker:I looked at him and I started laughing.
Speaker:I'm like,
Speaker:Oh, ha ha.
Speaker:Isn't that funny?
Speaker:Another bottle of wine.
Speaker:Okay. If you can find somebody that'll buy these things,
Speaker:let's try it.
Speaker:Let's see what happens.
Speaker:And this was just before day.
Speaker:And he did,
Speaker:he found some folks that were interested in buying them.
Speaker:So I made them,
Speaker:we sold them.
Speaker:And then I was talking to Sandra who became my business
Speaker:partner in this.
Speaker:And she's like,
Speaker:well, how hard are they to make?
Speaker:And I said,
Speaker:well, I'm not going to tell you they're easy to make.
Speaker:But she said,
Speaker:well, show me.
Speaker:And like me at,
Speaker:at a point where we were looking for something different,
Speaker:then what was going on in our lives.
Speaker:So we went into the kitchen and we tossed up a
Speaker:batch of marshmallows.
Speaker:And she looked at me and said,
Speaker:if you do this,
Speaker:I'm in,
Speaker:Wow. I want to stop you right here for just a
Speaker:second. Amy gift biz listeners,
Speaker:listen to how this idea formed.
Speaker:It was a random moment,
Speaker:nothing to do with business.
Speaker:Amy, did I sit down and say,
Speaker:okay, I want to start a business.
Speaker:What is it going to be?
Speaker:The idea just naturally came about in her normal course of
Speaker:life. I'm going to pretend like normal is always sitting around
Speaker:with wine and marshmallows,
Speaker:but it goes,
Speaker:it goes for me,
Speaker:it works for me.
Speaker:But so I want you guys to all think about that
Speaker:too. If you're out there and you're thinking about,
Speaker:well, what kind of business do I want to do?
Speaker:Or let's say you have a product and you're looking for
Speaker:a name for a product or that kind of thing.
Speaker:Get outside of your regular business environment and be open and
Speaker:receptive to ideas because that's where the best and most creative
Speaker:ideas arise.
Speaker:All right.
Speaker:So we are now back,
Speaker:you two are getting ready and you've decided,
Speaker:she says,
Speaker:she's in and you are ready to start the business.
Speaker:What happens next?
Speaker:Next thing,
Speaker:we do register the website.
Speaker:So you grabbed your name,
Speaker:you grabbed your domain.
Speaker:We grabbed our domain name.
Speaker:Did you grab a bunch of them or did,
Speaker:was it marshmallow MBA right away?
Speaker:We had marshmallow MBA right away.
Speaker:Now we grabbed a number of extensions on that,
Speaker:but the name we grabbed right away.
Speaker:Perfect. And,
Speaker:huh, funny enough.
Speaker:Nobody else had that name.
Speaker:Lucky for me,
Speaker:people are more creative in their,
Speaker:in their naming.
Speaker:The, I think this is pretty creative.
Speaker:I got to tell you,
Speaker:so you grabbed the domain,
Speaker:grabbed The domain and then did You also go into all
Speaker:of the social media sites and get all that too?
Speaker:Right? We did.
Speaker:Sandra jumped on that right away,
Speaker:fall. Beautiful.
Speaker:Facebook, Twitter,
Speaker:Instagram, Pinterest.
Speaker:Those were the four we grabbed right away.
Speaker:Okay. So heads up everybody,
Speaker:the very first thing you do once,
Speaker:you know,
Speaker:and you're loving your name,
Speaker:go get all of them.
Speaker:The domain costs a little bit.
Speaker:You can get a domain for under $20.
Speaker:Absolutely. But you can get the year,
Speaker:right? If you're for under $20.
Speaker:Exactly. And all your other social media sites,
Speaker:just go grab them.
Speaker:If you're committed to your name,
Speaker:just do it.
Speaker:You don't even have to fill everything in right away.
Speaker:Just get it.
Speaker:Exactly. And we had placeholders set up for things and then
Speaker:we knew that we were going to be selling online.
Speaker:So the next step for us was looking at,
Speaker:well, what vehicle are we going to use for sales?
Speaker:So investigating Etsy,
Speaker:investigating Amazon,
Speaker:those were the first two that we looked at and then
Speaker:looking at the percentages that they were taking and knowing that
Speaker:we were starting very small.
Speaker:We had no clue truly going into this in terms of
Speaker:the online sales side.
Speaker:We didn't know our audience demand.
Speaker:We just knew,
Speaker:okay. You know,
Speaker:we had some folks buy in February.
Speaker:Let's see what happens going forward and we'll build.
Speaker:So we knew we wanted to limit our costs because working
Speaker:capital is precious.
Speaker:Our model was to go ahead and set up our store
Speaker:on our own website.
Speaker:So are you using a WordPress website or We're using a
Speaker:GoDaddy website?
Speaker:We're doing everything through GoDaddy and they've been very good to
Speaker:us. I use them for my other business as well.
Speaker:I was in it for a long time.
Speaker:Oh, well you have an unfair advantage.
Speaker:No, no,
Speaker:no. This is where I'm going with this.
Speaker:I was in it.
Speaker:That does not mean I am qualified to do web design
Speaker:or any of these other things.
Speaker:So thank God for templates.
Speaker:I guess my other tip trick for new business owners,
Speaker:small business owners use the templates that have been already built
Speaker:and customize them.
Speaker:You can always get more sophisticated later,
Speaker:but get something up first.
Speaker:Exactly. So we stood our website up,
Speaker:it took about a day to get the information we wanted
Speaker:minimal information out there.
Speaker:And that was here are our flavors.
Speaker:Here's how much it costs.
Speaker:Here's how you order.
Speaker:Got it.
Speaker:I have been waiting to get to this question.
Speaker:So I'm just jumping it in right here.
Speaker:The flavors.
Speaker:How, tell us,
Speaker:well, first off,
Speaker:I'd love to know how you're making.
Speaker:Are you using,
Speaker:are you in a commercial kitchen?
Speaker:You know,
Speaker:what are you doing with that?
Speaker:And then I want to get to flavor discovery with a
Speaker:friend and a roommate from college had to be a blast.
Speaker:Oh, great fun.
Speaker:But start,
Speaker:start with how,
Speaker:how what's your production setup look like?
Speaker:So our production setup,
Speaker:we are working out of commercial kitchen space in order to
Speaker:do sales,
Speaker:we do have to be working through certified kitchen space.
Speaker:So we are doing that.
Speaker:Were you,
Speaker:when you were looking for that space,
Speaker:is there any advice or suggestions from what you've just recently
Speaker:learned? Cause this is within the last six months or so
Speaker:at this point,
Speaker:in terms of finding a space,
Speaker:any advice,
Speaker:guidance there,
Speaker:Things one do not automatically go with the first link you
Speaker:find on Google for commercial kitchen space.
Speaker:We deep dove and looked at multiple resources.
Speaker:I mean,
Speaker:it, I know time is the most precious commodity when you
Speaker:own a small business when you own any business,
Speaker:but particularly in a startup situation.
Speaker:So it's often very easy to just click on that first
Speaker:link and say,
Speaker:okay, that's what I'm going to go with because it's the
Speaker:first thing I see.
Speaker:And I don't really have time to do a lot of
Speaker:research. Take the time to do the research.
Speaker:We investigated space through Craigslist.
Speaker:We investigated space through our local chamber of commerce.
Speaker:We also called the state.
Speaker:The department of agriculture has a list.
Speaker:And I think this is every state,
Speaker:but particularly in Pennsylvania,
Speaker:the Commonwealth has a list of certified kitchens and you can
Speaker:give them a zip code and they will tell you if
Speaker:they have kitchen certified space in that zip code or within
Speaker:five miles,
Speaker:10 miles,
Speaker:and they'll help you with that.
Speaker:You just have to be polite on the phone and don't
Speaker:be afraid to pick up the phone.
Speaker:Don't assume that your only resources are online.
Speaker:I think it's really easy for us to do.
Speaker:And so then did you go out and just like,
Speaker:you would look for a space,
Speaker:like a retail shop spaces.
Speaker:Did you go out and then physically walk through all the
Speaker:spaces? Exactly.
Speaker:Yeah, because we wanted to see it in some spaces,
Speaker:we're going to be better suited than others.
Speaker:We don't need demo kitchen space.
Speaker:We don't need ovens.
Speaker:Our manufacturing process requires heat and flat surfaces.
Speaker:The refrigeration of very limited.
Speaker:We do have a selection that we do that uses milk.
Speaker:It's evaporated milk,
Speaker:you know,
Speaker:so we're not dealing with a lot of the challenges that
Speaker:a Baker might have or another type of food,
Speaker:product producer.
Speaker:So that made our requirements somewhat easier.
Speaker:The other tip I might offer is if you are looking
Speaker:for kitchen space and you know,
Speaker:restaurant owners,
Speaker:don't be afraid to ask,
Speaker:what do you do with your facilities during off hours?
Speaker:Oh, what a good idea are you willing to rent out
Speaker:that space?
Speaker:Some of them will say no,
Speaker:be prepared for that.
Speaker:But what I like about this community,
Speaker:the food community,
Speaker:collaboration is not foreign and people are very willing to offer
Speaker:support. If you're willing to ask for help.
Speaker:That's something that is such a refreshing change from the environment
Speaker:I spent so much of my life in.
Speaker:Yeah. I'm not afraid to ask the question if you're not
Speaker:afraid to tell me.
Speaker:Yeah. Yeah.
Speaker:The worst video I'm going to say is no.
Speaker:And then you have,
Speaker:haven't lost ground,
Speaker:but you have huge opportunities to advance if they say yes.
Speaker:Right? Exactly.
Speaker:Okay. And so now the flavors,
Speaker:how do you do that?
Speaker:So flavors come in a lot of different ways.
Speaker:We started out thinking of traditional candy flavors and flavors that
Speaker:infused well into sugar.
Speaker:The great thing about a marshmallow is it will take just
Speaker:about any flavor you can imagine.
Speaker:Sondra definitely focuses on the non booze flavors.
Speaker:Yeah. And I tend to veer a little less family-friendly if
Speaker:that's the best way of putting it,
Speaker:but we will be inspired by,
Speaker:we bet.
Speaker:For example,
Speaker:we have an entire line that is based on teas,
Speaker:black teas,
Speaker:green teas,
Speaker:different tea,
Speaker:blends. Those all come from Sondra.
Speaker:That was all out of her great creative brain.
Speaker:So how do you do that?
Speaker:You make a batch,
Speaker:but you make sure you've written down,
Speaker:you know,
Speaker:the proportions and all of that.
Speaker:And then you taste it and make adjustments and keep writing
Speaker:and adjusting until you land it.
Speaker:Right? Yeah.
Speaker:For example,
Speaker:our bourbon marshmallow,
Speaker:which is one of our top five sellers,
Speaker:I'm a bourbon girl.
Speaker:It is my drink of choice.
Speaker:I don't care what time of year it is.
Speaker:But when we first did the bourbon marshmallows,
Speaker:perhaps I got a little heavy handed with them.
Speaker:Perhaps They weren't as firm as a marshmallow.
Speaker:Oh my bourbon.
Speaker:Marshmallow pudding.
Speaker:Yeah. That is because there are different flavor profiles depending on
Speaker:the ingredient that you're using to flavor the marshmallow.
Speaker:So like with bourbon,
Speaker:some is sweeter.
Speaker:Some is dryer,
Speaker:some as a stronger smokey taste,
Speaker:we tested it out with different brands.
Speaker:Oh, what a shame I had to buy multiple bottles of
Speaker:bourbon. We tested it out with different flavors and different brands
Speaker:to be able to see which one worked best because you're
Speaker:talking about a sugar base and that sweet can be,
Speaker:even after you beat Aaron to it,
Speaker:sweet can be a really intense flavor.
Speaker:And I would imagine you're liking bourbon a lot.
Speaker:The intense bourbon flavor may not be best for the audience,
Speaker:you know,
Speaker:when you want to extend it beyond.
Speaker:So you have to find that sweet spot too,
Speaker:in terms of how intense to the flavors be.
Speaker:Exactly. And Sandra is more sensitive to that flavor.
Speaker:So she has no problem saying to me,
Speaker:Oh no,
Speaker:that is way too boozy.
Speaker:We also do one.
Speaker:Are you said you liked wine.
Speaker:We have a box wine marshmallow,
Speaker:and we're doing that in a red version and a white
Speaker:version. Oh,
Speaker:that sounds yummy.
Speaker:I like bourbon too,
Speaker:by the way.
Speaker:Oh, good.
Speaker:Well, you know,
Speaker:make sure we have that address and we'll make sure you
Speaker:get that.
Speaker:Okay. All right.
Speaker:Let's move on and talk a little bit more about product
Speaker:development and pricing.
Speaker:How did you decide where your price was?
Speaker:We started out with a pricing model looking at competitive products
Speaker:and we compared our product to a gourmet boxed chocolate,
Speaker:a truffle type of product.
Speaker:And then as we've been modifying our products,
Speaker:pricing changes depending on,
Speaker:for example,
Speaker:an add in a,
Speaker:if we're adding a second flavor to the marshmallow,
Speaker:for example,
Speaker:if we're adding a special type of coating,
Speaker:but we stay pretty standard in our pricing between 10 and
Speaker:$15 a box.
Speaker:And we sell by the dozen,
Speaker:not by the pound selling marshmallows by the pound is really
Speaker:a losing proposition.
Speaker:Yeah. There's a lot of air in there.
Speaker:There's a lot Of air.
Speaker:That's what we say.
Speaker:Our first ingredient is air.
Speaker:And our second ingredient is sarcasm.
Speaker:I'm kind of getting that vibe here little bit.
Speaker:So you're taking into account the ingredients that you're using.
Speaker:You've marked a spot in pricing land of the truffles,
Speaker:you know,
Speaker:like a box of truffles because you're certainly a gourmet product.
Speaker:You're not going to compare yourself with a bag of marshmallows.
Speaker:Obviously. What about time in terms of the amount of production
Speaker:time it takes,
Speaker:does that,
Speaker:is that included in the equation?
Speaker:It is included.
Speaker:So it's going to be any of the raw materials.
Speaker:So the sugar,
Speaker:the gelatin and the flavorings it'll include the packaging.
Speaker:So depending on whether we're packaging in our traditional packaging,
Speaker:which is a candy box,
Speaker:a bag,
Speaker:some tissue,
Speaker:and then we'll also account for if we're doing it for
Speaker:a special event.
Speaker:So we've done a few weddings and we will package those
Speaker:products on gift trays.
Speaker:We'll package them on candy plates with different wrap,
Speaker:different ribbons,
Speaker:that'll change pricing as well.
Speaker:If we have a specific add in to the flavor,
Speaker:for example,
Speaker:our traditional bourbon,
Speaker:one of our craft mellows,
Speaker:we've priced that at $12 a box for a dozen,
Speaker:we also do a bourbon bacon,
Speaker:marshmallow, anything that's got bacon in it that automatically is at
Speaker:a premium for us.
Speaker:And that's because of the time,
Speaker:as much as it is for the additional material.
Speaker:So It's materials traditional production time,
Speaker:for sure.
Speaker:Exactly. So we have factored in the time as well as
Speaker:the packaging and the raw materials.
Speaker:Okay. So someone who's doing this,
Speaker:let's say they have a product marshmallows chocolate fudge because they
Speaker:can supply you the fudge since you don't make the fudge.
Speaker:Right. How do you start working on labeling specifically with ingredients?
Speaker:What are the rules around that Rules around that?
Speaker:And this is strictly Commonwealth of Pennsylvania rules.
Speaker:So again,
Speaker:state by state,
Speaker:please, if you're in food,
Speaker:make sure you are paying attention to your department of ag
Speaker:rules and not only in your state,
Speaker:but also in your locality.
Speaker:Sometimes there are differences depending on whether the city is licensing
Speaker:and tracking or your municipalities licensing or tracking versus what your
Speaker:state's doing,
Speaker:make sure you're reading,
Speaker:Right? So make sure you're educated and knowledgeable about what your
Speaker:local vicinity requires.
Speaker:Exactly. Exactly.
Speaker:So for us,
Speaker:because of where we are in terms of amount of goods
Speaker:sold, there are limited ingredient description requirements.
Speaker:Now we have them available upon request,
Speaker:but we are not required to list every item in specific
Speaker:detail. Oh,
Speaker:lucky you.
Speaker:Yes, very lucky.
Speaker:And I mean,
Speaker:for us,
Speaker:it's a limited list of ingredients.
Speaker:We're under five ingredients in every flavor,
Speaker:but you know,
Speaker:we listed by percentage within the product now for our energy
Speaker:marshmallows. And you mentioned those at the top.
Speaker:So our gamers edge,
Speaker:energy marshmallows,
Speaker:do you have caffeine and some additional energy products in them.
Speaker:So for those,
Speaker:we include labeling related to the caffeine.
Speaker:The other information that we will include in our labeling is
Speaker:an allergen information statement.
Speaker:Even though our product doesn't contain egg,
Speaker:even though most our products do not contain dairy,
Speaker:none of our products contain soy or nuts because they are
Speaker:handled in a facility where other products may come into contact.
Speaker:We do have a cross-contamination statement on there for folks who
Speaker:are severely,
Speaker:you know,
Speaker:who have severe allergies.
Speaker:Yeah. Cause you might assume that you're okay with marshmallows,
Speaker:but you're right.
Speaker:If you're in a commercial kitchen,
Speaker:you don't know who else is working in that space.
Speaker:And you know,
Speaker:even though it's certainly,
Speaker:health-wise just fine.
Speaker:That's really wise.
Speaker:I appreciate you bringing that up.
Speaker:Very, very important.
Speaker:Let's round this portion of the conversation out Amy,
Speaker:but any specific,
Speaker:additional advice that you can think of for someone who's looking
Speaker:at starting in some type of a consumable product,
Speaker:are there any other learnings that you've had possibly and let's
Speaker:go here?
Speaker:What about something that was really challenging for you as you
Speaker:were starting up,
Speaker:something maybe you weren't expecting or that you saw was more
Speaker:of a struggle to put in place?
Speaker:I think the struggle for us initially and continuing social media
Speaker:is a challenge for me.
Speaker:It may be a generational thing.
Speaker:I don't immediately think that if something happens,
Speaker:that is interesting enough to put on Twitter,
Speaker:I don't immediately think,
Speaker:Oh, that's a beautiful tray of marshmallows.
Speaker:That's a beautiful box of marshmallows.
Speaker:Let me snap a picture of it and put it on
Speaker:Instagram. Social media is my constant constant challenge remembering to do
Speaker:it. So marketing would be the big umbrella there.
Speaker:The other challenge for us is that our products have a
Speaker:shelf life.
Speaker:What is the shelf?
Speaker:Life, the shelf,
Speaker:life on it.
Speaker:According to all of our guidelines minimum of a month.
Speaker:Now I can tell you,
Speaker:we've never had a box of marshmallows last more last a
Speaker:month, but the shelf life on it is a month.
Speaker:You know,
Speaker:I'm going to tell people they're best eaten within two weeks
Speaker:flavors. Fate,
Speaker:not everyone's keeping them in the same situation that I'm keeping
Speaker:them in.
Speaker:I can vacuum seal when we make our batches,
Speaker:we make them cool them and vacuum seal the slabs,
Speaker:but fully 80% of our products are made to order.
Speaker:We get the order.
Speaker:We send the note back,
Speaker:we received your order and you'll receive it within three to
Speaker:five days.
Speaker:And I Think you need to do that with that kind
Speaker:of a shelf life.
Speaker:Yes, absolutely.
Speaker:Now we've had,
Speaker:I think our biggest,
Speaker:I won't call it a setback,
Speaker:but perhaps speed bump that we had recently was a festival
Speaker:that we did,
Speaker:which the anticipated number was around 45,000
Speaker:people. So we prepared for a significant amount of sales over
Speaker:a three-day period.
Speaker:And they had fewer than half that in attendance,
Speaker:fewer than half of their estimated attendance actually was at the
Speaker:event, which left us with a lot of product.
Speaker:Oh my gosh,
Speaker:what'd you do?
Speaker:We did a couple of things.
Speaker:One, we had a fire sale online and told people,
Speaker:we're offering discounts on our cases of different products.
Speaker:We also made donations.
Speaker:We donated to multiple and multiple youth groups.
Speaker:And then we are lucky enough to have colleagues in the
Speaker:community who have retail outlets,
Speaker:who were like,
Speaker:well, let me put some in the store and see how
Speaker:I can do with these.
Speaker:Let me see if I can resell them in the store.
Speaker:So we discounted and said,
Speaker:let us know what happens.
Speaker:We're open to wholesale purchases,
Speaker:you know,
Speaker:and we can price at wholesale pricing.
Speaker:If you're interested in keystoning them,
Speaker:we're certainly open to that.
Speaker:But it was,
Speaker:it was an ego blow as much as it was a
Speaker:bit of a financial setback.
Speaker:Again, going back to that idea of working capital and what
Speaker:we had invested both in actual dollars and the time value
Speaker:of dollars in preparation time.
Speaker:But you know,
Speaker:Amy, I mean,
Speaker:it's such a new business yet.
Speaker:Oh my goodness.
Speaker:I find this all the time.
Speaker:Events will over promote attendance.
Speaker:Even if they have attendees who are people who are saying,
Speaker:they're going to come.
Speaker:A lot of people last minute something comes up or,
Speaker:you know,
Speaker:they're just not coming.
Speaker:And some of that is living and learning.
Speaker:I Had a trifecta situation here of bad weather for the
Speaker:entire weekend.
Speaker:They had a storm system stall.
Speaker:And then what we're also noticing is with it being an
Speaker:election year,
Speaker:people are not necessarily saying,
Speaker:Oh, I've got all kinds of disposable income.
Speaker:Let me buy gourmet marshmallows with it.
Speaker:$12 for bourbon marshmallows.
Speaker:I would buy all day.
Speaker:But now I want you to pull up and we didn't
Speaker:talk about this.
Speaker:I wasn't recording when we talked about this a little bit
Speaker:earlier, but I want you to pull out that other quote,
Speaker:my affirmation,
Speaker:your affirmation.
Speaker:Let's talk about that right here.
Speaker:Sure. I was on a flight to the West coast,
Speaker:actually out to see my,
Speaker:my grandmother and I was in the only row on the
Speaker:plane with another woman making the same trip.
Speaker:Obviously we were on the only road that had an empty
Speaker:middle seat Love when that happens.
Speaker:Yes. And we were talking about being small business owners.
Speaker:She owned a business at the time.
Speaker:We both went to the same business school at George Washington
Speaker:university. It's amazing.
Speaker:The coincidence is that happened.
Speaker:And I have friends who say,
Speaker:there's no such thing as a coincidence.
Speaker:And she said,
Speaker:you know,
Speaker:I've been working with my small business for a long time.
Speaker:And she said the best thought that I get in my
Speaker:head every morning and the driver for me and the motivation
Speaker:for me.
Speaker:So I take this from Candace fear is a liar.
Speaker:I think we all have that voice in the back of
Speaker:our head that says to us,
Speaker:what are you thinking?
Speaker:Little girl,
Speaker:you can't do this.
Speaker:This is not something that you can make happen and be
Speaker:successful at.
Speaker:That's not a voice of reason.
Speaker:That's not a voice of support and generosity.
Speaker:It's a voice we need to quit listening to.
Speaker:Absolutely. So give biz listeners fear is a liar.
Speaker:Remember that when you're starting out,
Speaker:when you're looking at doing something and that voice inside you
Speaker:is says,
Speaker:well, how,
Speaker:why is it that you think that you can do don't
Speaker:listen, shut the door on that thinking and move forward.
Speaker:One question before we move on here,
Speaker:that I would love to know what type of feedback have
Speaker:you gotten from the retailers where you were able to place
Speaker:your product.
Speaker:We've gotten good feedback on the gamers edge,
Speaker:marshmallow, and that's our energy marshmallow.
Speaker:And essentially with that,
Speaker:we removed the carbonated water out of an energy drink and
Speaker:then played around a little bit.
Speaker:I'm a caffeine addict.
Speaker:So I like bourbon and I like caffeine.
Speaker:Okay. There are my two vices,
Speaker:but I have friends who can't drink anything carbonated.
Speaker:We were at a Comicon earlier this year and noticed a
Speaker:lot of the folks who are gamers,
Speaker:who are playing board games or online games that are in
Speaker:these tournament's play for five,
Speaker:six, eight,
Speaker:10 hours at a time.
Speaker:And they drink a lot of energy drinks.
Speaker:But if you drink an energy drink at some point in
Speaker:the middle of your eight hour game,
Speaker:you need to get up and use the facilities.
Speaker:I was exactly.
Speaker:I was just thinking that,
Speaker:Oh my gosh,
Speaker:The marshmallow,
Speaker:we take the water out.
Speaker:So the response to that has been really good.
Speaker:We have a couple of comic bookstore owners we've been talking
Speaker:to about that.
Speaker:They got good feedback.
Speaker:We use them actually as a test market group,
Speaker:people who have gaming nights at their store.
Speaker:And so they have repeat business,
Speaker:they were willing to share the product with their customers.
Speaker:And we got good feedback on that in terms of flavor,
Speaker:in terms of the actual energy boost and what the product
Speaker:did with the athlete's edge,
Speaker:marshmallow, which is essentially gamers edge minus the caffeine.
Speaker:My husband is a coach for team and training with the
Speaker:leukemia and lymphoma society and has a lot of friends who
Speaker:were runners.
Speaker:And so marshmallows for runners have been catching on.
Speaker:What we did is we've taken a Brown rice syrup,
Speaker:which is the preferred energy source of a number of performance
Speaker:athletes. We've worked that into our formula.
Speaker:So you're not just getting a straight cane sugar or a
Speaker:corn syrup boost,
Speaker:but this is a longer term complex carbohydrate boost with the
Speaker:Ragnar race that was just completed here last weekend,
Speaker:we met some friends and my sister-in-law there and this is
Speaker:a long relay race.
Speaker:Over two days with teams,
Speaker:she had friends who couldn't eat what was provided at the
Speaker:end of the race,
Speaker:just because they were exhausted.
Speaker:They were like,
Speaker:no, I can't eat pizza.
Speaker:I can't even smell it.
Speaker:I'm just so tired.
Speaker:But they were able to eat the marshmallow cause it has
Speaker:flavor, but it's not a heavy flavor.
Speaker:It's not oily.
Speaker:It's not fatty.
Speaker:It's not something that was going to mess with your stomach
Speaker:if you're tired and because there's protein in it,
Speaker:it's a great recovery tool.
Speaker:Particularly for women.
Speaker:You want the protein,
Speaker:you want a little bit of sugar after you've been in
Speaker:an athletic situation or a gym work.
Speaker:That is so interesting.
Speaker:And I love this story because you took what could be
Speaker:perceived as a failure in terms of not selling all the
Speaker:product and then turning it around and making it a positive
Speaker:because you're putting it in places where people can try it
Speaker:and just counting because you don't want,
Speaker:you know,
Speaker:you want to minimize your losses,
Speaker:but in the end it can be a huge reward because
Speaker:you're exposing your product to people who might not have seen
Speaker:it just in the normal course of how you'd been doing
Speaker:business before.
Speaker:Exactly. So turning a negative into a positive lemons into lemonade.
Speaker:However you say that,
Speaker:right. Always my strong suit,
Speaker:but we said,
Speaker:you know,
Speaker:we're not going to let this stop us.
Speaker:And again,
Speaker:to your point,
Speaker:it's a young business.
Speaker:Yeah. And you know,
Speaker:you're always going to be learning,
Speaker:adjusting, making things better.
Speaker:You don't always land it perfectly.
Speaker:The first time you celebrate the wins and then you take
Speaker:those less than wins.
Speaker:I'll just say and figure out how to make them better.
Speaker:Yeah. And if you're not learning,
Speaker:you're not earning.
Speaker:If you're not Learning,
Speaker:you're not earning love it.
Speaker:All right,
Speaker:Amy, we're going to circle now into our reflection section.
Speaker:These are just some really quick answers to some questions about
Speaker:how you have made yourself successful.
Speaker:What is one natural trait that you call upon regularly that
Speaker:has helped you with Marsh?
Speaker:I can talk to anybody and I have leveraged that in
Speaker:ways that I didn't for a long time.
Speaker:My preference is frequently not to tell my story,
Speaker:but just to do my work and let the work shine
Speaker:for itself with marshmallow MBA,
Speaker:I've been forced to tell the story and you know,
Speaker:that's okay.
Speaker:Yeah. Just like you're doing here today.
Speaker:Right? Quitting,
Speaker:quitting, you know,
Speaker:stopping, hiding my light under the bushel and just getting out
Speaker:there and talking to people and telling people about the product,
Speaker:telling people about what we're doing.
Speaker:You know,
Speaker:we've got nine products in R and D right now,
Speaker:in addition to just the traditional marshmallow.
Speaker:So we've got nowhere to go,
Speaker:but up.
Speaker:Yeah, for sure.
Speaker:Let me continue on here.
Speaker:What tool do you regularly use during your day to help
Speaker:you keep productive and in control of all that's going on
Speaker:as a developing business prayer,
Speaker:there is nothing wrong with that.
Speaker:That's for sure Both are good bookends for small business owners
Speaker:At the same time.
Speaker:Right. But I think if we're talking specific tools,
Speaker:learn Quicken,
Speaker:learn it,
Speaker:live, it,
Speaker:love it.
Speaker:Oh, that's what you're using for your accounting.
Speaker:Yep. For accounting And it's,
Speaker:you know,
Speaker:so, so that,
Speaker:why do You use that over some of the other options
Speaker:that are out There because it does interface so easily with
Speaker:so many other products import our bank account statements directly in
Speaker:PayPal interfaces really cleanly as well.
Speaker:That's how we do our invoicing for example.
Speaker:And I use Trello.
Speaker:I don't know if your listeners are familiar with Trello.
Speaker:It's an online time and task management tool.
Speaker:I make lists like a crazy woman and Trello lets me
Speaker:take the crazy lists and put them in some semblance of
Speaker:actionable order Or a book that you've read lately that you
Speaker:think our listeners could find value.
Speaker:I do read,
Speaker:that's a thing from business school.
Speaker:I learned to skim in business school.
Speaker:So I skim a lot of things.
Speaker:Probably the most recent ones.
Speaker:Well screw it.
Speaker:Let's do it.
Speaker:If you haven't read Richard Branson's book and it's short,
Speaker:it's not even 150 pages.
Speaker:Richard, Branson's one of my heroes.
Speaker:I think his life story is fascinating.
Speaker:And what he's been able to do is just amazing.
Speaker:I don't know that I could work for him,
Speaker:but I love to get a day with him.
Speaker:I think that would be great.
Speaker:So he's got a book screw it.
Speaker:Let's do it.
Speaker:That's how he signs off on any project that he funds.
Speaker:And then tactically,
Speaker:there's a really great book called 15 hand-picked unique suppliers for
Speaker:handmade businesses.
Speaker:And it's by a woman named Renee,
Speaker:Christine. She has a lot of online resources as well as
Speaker:this book,
Speaker:which I it's an E publication.
Speaker:So it's available for the Kindle.
Speaker:It was actually free on Amazon,
Speaker:about six weeks ago.
Speaker:This book,
Speaker:her 15,
Speaker:it's 15 on top of 15 on top of 15,
Speaker:on top of 15,
Speaker:there is so much in there.
Speaker:I got more out of that than I've gotten out of
Speaker:the classroom sessions.
Speaker:This is strictly on handmade businesses.
Speaker:So if you're doing crafts,
Speaker:if you are making food products,
Speaker:if you're working on Etsy,
Speaker:she's got a lot of information about that as a resource.
Speaker:And then for me,
Speaker:her packaging resources were fantastic.
Speaker:That sounds so interesting for almost the majority of our listeners
Speaker:here. So excellent.
Speaker:We'll have to check that out.
Speaker:Okay. All right.
Speaker:Gift biz listeners,
Speaker:just as you're listening to the podcast today,
Speaker:you can also pick up audio books.
Speaker:Now. I'm not sure this 15 handpicked is an audio book,
Speaker:but I bet you screw.
Speaker:It led to do it might just be Let's do it
Speaker:is an audio book.
Speaker:Okay. Well,
Speaker:I have teamed up with audible for you to be able
Speaker:to get an audio book,
Speaker:just like screw it.
Speaker:Let's do it.
Speaker:I just like saying that and you can get one for
Speaker:free on me.
Speaker:If you haven't already,
Speaker:all you need to do is go to gift biz,
Speaker:book.com and make a selection.
Speaker:Okay. Now,
Speaker:as all of you know,
Speaker:but if you're new to my podcast,
Speaker:there will be a show notes page accompanying this episode.
Speaker:It will have a lot of the information in terms of
Speaker:direct links to our conversation here.
Speaker:If you're looking for something specific that we were talking about,
Speaker:I'll also have links to Amy's website.
Speaker:So you guys can go look at these delicious,
Speaker:yummy marshmallows,
Speaker:possibly order some,
Speaker:I think I'm going to be doing that social media sites
Speaker:and also the links to these two books.
Speaker:So if you didn't capture them,
Speaker:you're out walking your dog or straightening stock in your shop,
Speaker:something like that.
Speaker:Don't worry.
Speaker:I've got you covered.
Speaker:Just go check out the show notes page.
Speaker:And that of course is at gift biz,
Speaker:unwrapped.com. And now Amy,
Speaker:I'd like to invite you to dare to dream.
Speaker:I'd like to present you with a virtual gift.
Speaker:It's a magical box containing unlimited possibilities for your future.
Speaker:So this is your dream or your goal of almost unreachable
Speaker:Heights that you would wish to obtain.
Speaker:Please accept this gift and open it in our presence.
Speaker:What is inside your box Is an email and or phone
Speaker:call. Preferably a phone call from Howard Schultz,
Speaker:the CEO of Starbucks.
Speaker:Ooh. And what is he going to be calling you about?
Speaker:He's going to call me and say,
Speaker:I've heard about marshmallow MBA.
Speaker:I'd like to try your products.
Speaker:We'd like to put them in the stores.
Speaker:All right.
Speaker:And then what are you going to say?
Speaker:Sure. Yes,
Speaker:sir. How many zeros are on that check?
Speaker:Okay. Well,
Speaker:I have to tell you one of the things I like
Speaker:about this,
Speaker:and you alluded to it a little bit earlier,
Speaker:when you were saying one of your friends thinks or says
Speaker:that there are no coincidences.
Speaker:I like to do this dare to dream question.
Speaker:Cause I feel like just verbalizing things like this,
Speaker:put it out in the environment and I love your answer,
Speaker:Amy. Cause I could so see your product in Starbucks.
Speaker:I really could.
Speaker:Can we,
Speaker:so can we,
Speaker:and we talk about it on a daily basis.
Speaker:I think about it every time I walk in and order
Speaker:a venti,
Speaker:There you go.
Speaker:Well, Starbucks is my choice too.
Speaker:I probably own half the company at this point.
Speaker:So I am right with you with that wish.
Speaker:And I want to give you that box in that present
Speaker:for sure.
Speaker:Well, I appreciate it.
Speaker:And being able to put it out in the universe,
Speaker:I mean,
Speaker:how do you make it more real than that?
Speaker:How do you,
Speaker:how do you put it on the business path?
Speaker:If you don't put it out there?
Speaker:Exactly. You're right.
Speaker:You have to define it first and then attracted in Amy.
Speaker:This has been fabulous.
Speaker:I really appreciate,
Speaker:I know you're a new business,
Speaker:but it's wonderful.
Speaker:Cause to be able to get you right in the start
Speaker:as your company is growing,
Speaker:you sharing all of the things that you have in terms
Speaker:of how to develop a product right from the start has
Speaker:been so valuable.
Speaker:I really appreciate your time.
Speaker:And may your candle always burn bright.
Speaker:Thank you so much.
Speaker:Thanks for having me.
Speaker:There's some marshmallows.
Speaker:Oh yay.
Speaker:Where are you in your business building journey,
Speaker:whether you're just starting out or already running a business and
Speaker:you want to know your set up for success.
Speaker:Find out by taking the gift biz quiz,
Speaker:access the quiz from your computer at bit dot L Y
Speaker:slash gift biz quiz or from your phone by texting gift
Speaker:biz quiz to four four two,
Speaker:two, two.
Speaker:Thanks for listening and be sure to join us for the
Speaker:next episode.
Speaker:Today's show is sponsored by the ribbon print company,
Speaker:looking for a new income source for your gift business.
Speaker:Customization is more popular now than ever grant your products of
Speaker:your logo for kinda happy birthday,
Speaker:Jessica bourbon,
Speaker:to add to a gift right at checkout,
Speaker:it's all done right in your shop or across in second
Speaker:check print company.com
Speaker:for more information after you listened to the show,
Speaker:if you like what you're hearing,
Speaker:make sure to jump over and subscribe to the show on
Speaker:iTunes. That way you'll automatically get the newest episodes when they
Speaker:go by and thank you to those.
Speaker:Who've already left a rating by subscribing rating and reviewing help
Speaker:to increase the visibility on ground.
Speaker:It's a great way to pay it forward,