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$75,000 USD

Crafted Taste | Cocktail Kits & Monthly Subscription

www.craftedtaste.com

Appears in Food and drink , Established stores, Indiana, United States, Indianapolis, Inventory, Business and Franchises under $100,000

General description

Additional Chargify recurring revenue for past 12 months is +$73,000. This revenue is not showing on the Exchange data. Crafted Taste averages $11,500 monthly revenue.

If you have any trouble connecting via the Exchange message system, please feel free to contact me directly at kat [at] craftedtaste [dot] com.

Crafted Taste is a cocktail-of-the-month club and eCommerce store selling cocktail kits throughout the United States. Started in 2013, Crafted Taste has seniority in a national niche market, a solid conversion rate and subscriber retention rate, repeat corporate and consumer buyers, and 30-45% gross profit per kit sold.

CT’s monthly subscriptions are managed with Chargify, with the data imported into Shopify via a third-party app. Since these recurring Chargify transactions are not whitelisted on Exchange, CT’s subscription revenue is not being reflected in the Exchange revenue data. For the past 12 months, CT’s recurring revenue from Chargify is an additional $73,000. Please see the attached Stripe screenshot.

CT has recurring monthly revenue from loyal customers with low churn; some active customers have been with the subscription since early 2014. As a complement to the recurring revenue, CT has a steady stream of individual kit and gift subscription sales. Popular as gifts, our sales increase during holidays and triple during Q4.

CT sells cocktail kits featuring modern and classic cocktail recipes, curated with the non-alcohol and alcohol ingredients customers need to create the cocktails at home. CT has a flexible business model that helps avoid the major difficulties of working with alcohol - by drop-shipping alcohol separately from a variety of liquor stores that are legally setup to ship to different states, CT has the flexibility to reach a large customer base without running afoul of alcohol laws.

I’ve created a new unique cocktail kit each month over the past 4 years, which I feature to our monthly subscribers and then put up for individual sale. These cocktail kits feature a variety of bar related products but the kit curation and content is wholly unique and not sold anywhere else. Along with cocktail kits for our subscription, I’ve created a variety of classic cocktail kits for holiday sales and special collaborations with cocktail bloggers. I have over 50 unique cocktail kits from CT’s product history that could be restocked for sale or revamped for future subscription kits.

While I’ve created each cocktail kit, the product creation could easily be outsourced to an industry consultant, new hire, or through bartender cocktail contests. I have bartender and industry contacts that would be able to take over this position for a new owner. CT also has bartenders all over the world tagging us on social media, in hopes that we’ll feature their cocktails in future kits. Spirit brands will also provide unique cocktail recipes and content in exchange for featuring their spirit in a kit.

CT is simple to operate, with orders either fulfilled inexpensively by the owner or outsourced to a fulfillment company so that the business can be run remotely (both of which I’ve done over the past 5 years). Included in the sale is about $7500 in non-alcohol product inventory and $6000 in branded boxes, packaging, and printed materials. See the “Inventory” section for more information.

For the life of CT, almost all marketing has been social media, word of mouth, or press mentions. I believe an owner with more knowledge and experience with marketing and advertising could turn CT into an even more profitable business very quickly.

CT was one of the first cocktail subscription businesses to launch in 2013 and has been a leader in the market ever since. CT is well liked within the industry - bartenders, vendors, brands want to work with CT and actively approach for new collaborations and projects. We’re also regularly approached about collaborations with major media pushes including movies (e.g. Murder on the Orient Express) and TV shows.

CT has had large corporate orders for businesses like Apartments dot com, Google, and Facebook in the past. There is a lot of opportunity for a new owner to target enterprise sales which have been high volume and high profit. See the “Possible Improvements” section for a detailed analysis of CT’s opportunities.

Along with unique product creation and website design/content, I’ve put in extensive work into the store and brand by developing a flexible business model, creating unique content and social media presence, and building backend fulfillment tools such as kit creation guides, fulfillment instructions, and vendor/industry lists. See the “Work Put into Store” section for more information.

In summary, Crafted Taste is a marketing-and-PR friendly business concept that’s easy to run and has very low maintenance costs. Nearly everyone that hears about CT wants to hear more and the product often sells itself. CT is regularly contacted for media pieces with no outreach effort and is sought out to participate in collaborations and special projects. With the widespread popularity of alcohol and alcohol-related products, this business is very scalable.

Why am I selling now? Due to personal health reasons, I’ve cut my alcohol consumption and I no longer have the enthusiasm for working in the alcohol industry that I once did. I think a new owner could take the solid foundation, unique product, and brand reputation to new heights and scale CT up quickly.

Price is negotiable. Purchase of inventory is negotiable.

Financials and traffic

Additional Chargify recurring revenue for past 12 months is +$73,000. This revenue is not showing on the Exchange data. Crafted Taste averages $11,500 monthly revenue.

Crafted Taste’s monthly subscriptions are managed with Chargify, with the data imported into Shopify via a third-party app. Since these recurring Chargify transactions are not whitelisted on Exchange, CT’s subscription revenue is not being reflected in the Exchange revenue data. For the past 12 months, CT’s recurring revenue from Chargify is an additional $73,000. Please see the attached Stripe screenshot.

Average profit/month

$3,000 USD

Average overall profit margin

30%

Average number of sales/month

70

Value of inventory

$13,500 USD

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Business Expenses

Subscription costs reflect Chargify plan charges, Shopify web apps, communication services like Grasshopper, web chat, and mailchimp, and business software like Zapier, Adobe, and Quickbooks.

I am not currently doing any paid advertising. In the past, I’ve done PPC on Google, Facebook, Instagram, Twitter and remarketing with Adroll. I was consistently doing PPC on Google up until September 2017. In Q4 2017, I did paid advertising on Instagram and Facebook, to drive additional traffic for holiday sales. In 2018, I’ve tried new avenues of non-PPC advertising with influencer marketing on Instagram, a giveaway promotion on a daytime TV talk show (TheReal), and driving audience attention on Pinterest.

Expense item

Cost

Shopify plan

$179.00/month

Subscriptions (ie. Mailchimp, apps)

$700.00/month

Advertising (ie. Adwords, Facebook ads, etc.)

$1.00/month

Inventory warehouse

$925.00/month

Domain

$2.00/month

Inventory

CT has about $7500 in product inventory and $6000 in branded boxes, packaging, and printed materials.

Crafted Taste holds non-alcohol inventory and drop ships alcohol direct to customers. By working with liquor stores to ship alcohol direct to our customers, CT avoids the complex legal aspects of stocking and shipping alcohol inventory. We have solid long time relationships with a number of liquor store partners around the US, as well as requests for collaborations with all sizes of liquor brands.

CT doesn’t rebrand products like some competitors. Instead we keep all vendor products in their original packaging, which allows the vendor more visibility. This assures us fantastic relationships with a wide variety of vendors. We get constant requests from vendors that want to be featured in our kits. For promotional deals, vendors will provide products for free or cheap because it means national exposure for them.

I currently rent an office and small warehouse space for $925 a month, however this is not essential for running the business. For the first year of business, I used my garage space for inventory storage and fulfillment. From 2015-2017, I outsourced fulfillment and inventory storage with a fulfillment company (3PL). After a series of mistakes and decline in quality from the 3PL, I took back control of inventory and fulfilled orders myself in mid 2017- currently.

Since I used a fulfillment company for 2 years, the processes are already in place and a new owner could quickly transition to outsourcing fulfillment.

Located in Indianapolis

Willing to ship inventory

Willing to transfer relationships with suppliers

What’s included in the sale

  • Physical inventory
  • Logo and branding assets
  • Social media accounts
  • Personal support after sale
  • Domain
  • Product photos

Social Media

Facebook

craftedtaste

Instagram

craftedtaste

Pinterest

craftedtaste

Twitter

craftedtaste

Newsletter list

1,200 subscribers

Social media followers

15,300 people

Q & A

Why should someone buy this store?

Crafted Taste is a marketing-and-PR friendly business concept that’s easy to run and has very low maintenance costs. Nearly everyone that hears about CT wants to hear more and the product often sells itself. CT is regularly contacted for media pieces with no outreach effort and is sought out to participate in collaborations and special projects. With the widespread popularity and variety of alcohol and alcohol-related products, this business is very scalable.

How can the future owner improve the business?

Enterprise sales - I’ve worked with major corporations on gifts, such as Apartments dot com, Google and Facebook, as well as smaller local businesses such as Lake City Bank. These businesses found me and wanted to work with CT; after the initial orders, I didn’t have the sales experience to keep them ordering more for different projects. Corporate gift orders are high volume and high profit; with a focus on enterprise sales, this could grow CT quickly.

Alcohol brand partnerships - Over the years, I’ve been approached by major spirit companies to feature and collaborate with specific brands: Pernod Ricard (Absolut), Diageo (Tanqueray), (Rémy Cointreau) Cointreau. I’ve already locked in a July/August partnership with Sazerac for Buffalo Trace and Wheatley Vodka, in which we’ll feature their product and work with brand ambassadors to create the kits, receiving marketing and promotion from their brand ambassadors. Both large and small alcohol businesses want to work with CT and there are opportunities to leverage this into greater visibility, something I was working on by selecting the right partners (such as Sazerac).

Promotional partnerships from TV and movie studios - I’m currently in talks with Allied Marketing on behalf of Amazon Studios, to create a special kit tied into the release of Life Itself (2018). In the past, I was approached by teams with Murder on the Orient Express (2017) and Darkest Hour (2017) for similar promotions but wasn’t able to make it work due to insufficient operating capital for their ideas.

Requests for international shipping - I’ve received frequent requests to ship to Canada, Australia, and Europe. Due to CT’s flexible business model, there is nothing stopping international expansion. I just hadn’t figured out the best way to do it yet.

Expand product offering to a “Classics Course” - I’ve laid out a 6 month program centered around classic cocktails and growing a customer’s home bar. I envisioned this as a counterpoint to the monthly subscription, which features modern cocktails and variations on classics. The “Classics Course” would instead be a way for cocktail beginners to learn the basics and grow their bar with the bottles needed to make most classic cocktails. It’s a set 6 months, every new sign-up would receive the same first box, allowing for less content creation after the initial launch. I’ve finished the program outline but haven’t launched the product.

Switch the monthly subscription to quarterly - some customers have requested quarterly kits and one of the main reasons for customer churn is having too much alcohol/product. By reducing to quarterly, the per kit profit margin would increase significantly, as you’re able to save monthly costs on shipping.

Interest from product vendors and brands that want to be featured in kits - opportunities for product discounts or special promotions.

Interest from social media influencers that want to review kits or work with CT.

App / mobile ordering - there is an opportunity to be a thought leader in the cocktail industry, especially by expanding to cocktail recipe curation and home bar inventory with a mobile app.

In store sales - cocktail kits sold in liquor stores with liquor stores adding in the alcohol and Mixer Only kits (non-alcohol) sold in boutique retail locations.

Expand sales to individual vendor products - CT currently only sells our bundled cocktail kits but could easily expand out to sell a wide variety of bar products individually either alone or as add-ons.

Home bar maintenance/subscription - CT could become the source for replenishing common home bar items (e.g. simple syrup, specialty ingredients from CT kits) to garner additional recurring revenue.

Event targeted products - CT promotes kits around popular holidays like Cinco de Mayo (Margarita) and Kentucky Derby (Mint Julep) but there is opportunity to launch more kits around additional events typically associated with alcohol like New Years Eve, Wedding Showers, Bachelor/ette Parties, Housewarming, etc.

What work have you put into the store?

Unique product creation - I’ve created a new unique cocktail kit each month over the past 4 years, which I feature to our monthly subscribers and then put up for individual sale. These cocktail kits feature a variety of bar related products but the kit curation and content is wholly unique and not sold anywhere else. Along with cocktail kits for our subscription, I’ve created a variety of classic cocktail kits for holiday sales and special collaborations with cocktail bloggers. I have over 50 unique cocktail kits from CT’s product history that could be restocked for sale or revamped for future subscription kits.

Bartender and industry relationships - Developed a network of industry contacts that would be able develop new cocktail kits and cocktail recipes for a new owner. CT has bartenders all over the world tagging us on social media, in hopes that we’ll feature their cocktails in future kits. Spirit brands will also provide unique cocktail recipes and content in exchange for featuring their spirit in a kit.

Product tools - cocktail kit creation guidelines and cost tracking, product ingredient spreadsheets, vendor lists, packing instructions, fulfillment instructions.

Automation - built tools to automate as many processes as possible such as fulfillment and inventory management.

Inventory system - built a comprehensive inventory management system on the Unleashed web platform.

Website and product copy - I designed the website on top of paid Shopify mobile and desktop themes. I update the website with new products, copy, and content on a monthly basis.

Unique content - email marketing, social media presence, blog content, press interviews.

Partner and vendor relationships - Developed a network of liquor store partners and product vendor relationships that are all eager to work with CT.

Flexible business model - Developed a system to avoid legal difficulties with the ability to reach as many customers as possible and future potential to expand internationally.

How many hours does it take to run this business per week?

30 hours

$75,000 USD

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