Well, I came to the Big windy city with high hopes to sell a whole mess of The Original PaceWheel and set in motion the dynamo of an automatic money-maker that would drive me almost directly to being a thousandaire.
Costs for the 2-day Bank of America Shamrock Shuffle Health and Fitness Expo break down about so:
10' x 10' booth rental - $1200
Itinerant merchant license - $25
500W Electrical Power Outlet - $85
3 days of parking at Navy Pier - $39
Car Rental - $150
Meals - $150
Inventory (PaceWheels, Flyers, Brochures, etc.) - $2650
Plane Tickets - $370
Business Insurance Policy - $379
iPod for Giveaway - $52
Banners & Banner stands - $135
Oversized Display PaceWheel - $35
Custom-embroidered shirts and hats - $66
Miscellaneous supplies - $35
Car Rental Gas: $45
Total Cost: $5416
Traffic was light most of Friday, and we sold 25 wheels. I was pretty disappointed. I thought "What have I done?" PaceWheel, LLC had just broken even last month, and I was getting ready to pay myself a share of the profits when we hit a big positive round number (student loan payments started again as my Master's Degree deferment expired). But we re-invested the money we'd made into the Chicago show.
Saturday was better. We had lots more traffic, but we sold just 36 wheels directly to runners. But people were listening and asking questions that indicated they actually understood what it was for and how they would benefit from it.
At slow times, Joel (Stephanie's cousin from PA and a Triathlete) would watch the booth, and I'd go hit up Running Stores' booths. I showed the PaceWheel to the owner of one store in Naperville, IL and he said "You have inventory here? I'll take two dozen." Then he introduced me to the owner of another store and said "This guy has something to show you that you are going to carry." He took a dozen. 5 other Chicago-area running-specialty stores are looking at carrying it.
Then, a guy I'd been talking to all weekend introduced me to the head of training for WorldVision's (the Christian humanitarian organization) Chicago Marathon team. He bought a dozen to help his coaches' train their athletes. PaceWheel is now an official sponsor of Team WorldVision Chicago! The guy who introduced me also works with an Autism research foundation which is also raising money by training athletes for its team, and he wants to partner with PaceWheel and he's going to connect me with a guy who developed the PaceTat, a temporary tattoo that has Marathon mile split times for your goal. Last year he was at the expo, and he got connected with Saturn!
I also made a connection with the head of coaching for the Chicago Area Runners' Association, and he's interested in possibly ordering PaceWheels to be a giveaway for an upcoming run or series rather than or in addition to a t-shirt (how many t-shirts does one person really need?).
Lots of other contacts came out of the trip, too.
PaceWheels Sold: 109
Money Received: $1276.75 (assuming all the credit cards clear)
Deficit: $4149.25
I had hoped to sell 400 PaceWheels and that we would at least break even, but the networking will really be quite valuable.
We'll see what happens. Did I mention the guy from the Naperville store is also on the board of the Independent Running Retailers Association? They've got an annual convention he said I should go to. PLUS he asked me if he could be the exclusive vendor of the PaceWheel at the Chicago Marathon Expo! I'm excited even though I'm back in the hole.
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7 comments:
Plus you got free wif at your hotel and convention, and a valuable lesson in "It's not what you know it how you know..... And how to tell them about it" I add that last part..... patient pending.. ;) why to go Coach!
As I told you before, most businessmen fail multiple times whereas you continue to make slow, steady progress. You can't set the world afire with such a revolutionary product. Like the television or the internet, people need time and convincing to realize that they need what you are selling. You'll get there...
Glad to see you networking it up--as a proud FBLA-er, we believe in the power of the network.
Also, I have to admit I like the idea of the PaceTat quite a bit--I think I might need a GradeTat that corresponds to the rubric I am using. That would come in handy.
I agree with Matt. You're story sounds like any great inventor's beginning story. I think you have a great product and it will take time. Whether or not your bank account can hold out that long is another story. We'll keep praying!
I can feel your pain, Michael, of not reaching the goal that had in mind, but it does sound like you made some amazing connections. I think it's so encouraging that you have developed a product that experts in the running field are excited to get a hold of - I think that means you're definitely on the right "track" - I'm so punny!
From what I know most "businesses" operate in a deficit in the beginning. Start up costs to include networking usually exceed your revenues. Once a client or customer base is established things get rolling, but starting it is the hard part. I'd be surprised if these events ever become money makers in and of themselves considering all of the expenses involved. But, you almost have to consider this an advertising expense and view it as every PW sold at the event means 1 or 2 more sales from the internet via word of mouth plus the future opportunities picked up through networking.
Another challenge that might present itself is maintaining sales. Since these are relatively inexpensive you need to sell volume to make money. However, this isn't necessarily a "consumable" product like McDonald's and Starbucks. They make profit on volume too, but one person will buy a burger or cup of coffee over and over again versus one Pace Wheel that could last years. I'm not saying this to be pessimistic but to try and help you think of these types of questions before they come up. I would be looking not only for individual sales but opportunities to get involved with people/organizations/events that create ongoing sales or the widest distribution of product as possible.
So anyway, my 2 cents. I hope this works out for you and you're doing a great job so far. Even if you don't make money off of the deal you're at least helping people enjoy something healthy and positive, challenging them to improve, and in effect, coaching them. That is, you're at least making a difference in other people's lives with your PW.
I agree with you Slick about the PW not being consumable in the sense that you would sell multiples to the same customer over time, but Mike have an advantage over the restaurants mentioned. They need to sell in volume in order maintain their massive overhead costs. Mike only has to make enough PWs to keep up with his sales (and in internet sales he can even make them to order) and his overhead in that is very low. With the relatively small scope of his current goals I don't see him as being in danger of running out of customers.
You are dead on that the real challenge with be continuously expanding to the non-PW owner (since those already on-board are at best just testimonials and WOM advertising).
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