BMB: B2B, DTC? WTH (what the heck) does it all mean?? In the second of our Business Model Basics (BMB) convos we talk sales channels and how Maggie’s 100% referral-based staging business compares with Rich’s retail and consulting business. Rich has a hot-take moment explaining the coffee beverage known as a “flat white” and Maggie shares what she does when $5 goes missing.
PART 2 OF A SERIES
We’d love to hear your feedback! Email us at housecoffeepodcast@gmail(.)com. Special thanks as always to the amazing TJ McMaster for producing and editing our show! Shoutout to Grizzly Beats for our intro music, “Cafe.”
Transcript
Intro:
Hey, you’re drinking house coffee – unfiltered conversations brewed at the intersection of real estate life and coffee shop service. We’re Maggie and Rich – local business owners and friends sharing stories and welcoming you to pull up a chair with us. The door’s always open. Let us pour you a cup.
Rich:
What are you listen to
Maggie:
Oh right into it? I am
Rich:
Saying that all day
Maggie:
Sweet. Okay, well. First of all, welcome to episode 29
Rich:
You can’t
Maggie:
And
Rich:
I
Maggie:
Wanted to
Rich:
Just can’t you just can’t not say that
Maggie:
I can’t not say it. I have been listening to Taylor Swift’s version of 1989
Rich:
The best version. All right.
Maggie:
Oh my gosh, the best album
Rich:
The only version
Maggie:
Well, maybe not the best album. I actually can’t decide because I’ve pretty much my The album I listened to the most is folklore and I just resonate with every single song on on that album
Rich:
The newer one.
Maggie:
It’s nearly where you were excited
Rich:
Was. It was after we started podcast
Maggie:
I think no it was came out during covid.
Rich:
Okay. All right, and I’m gonna pretend like I’m a Swifty out here.
Maggie:
It’s cool. It’s cool. but anyway Taylor Swift is re-recording all of her albums.
Rich:
I do know that
Maggie:
Not all them just the ones that she doesn’t own the rights and music too.
Rich:
Okay.
Maggie:
She has shaken up the music industry so much so that music Executives and record labels now have a contingency or a clause in a new artist contract saying they can never re-record their own version of their songs.
Rich:
Shout out
Maggie:
Because of this.
Rich:
Wow. isn’t that we’re just
Maggie:
I saw like a video about it basically like Which
Rich:
I know she kind of got lucky probably
Maggie:
She got the current you. Well, yeah, but also Taylor. rights every single one of her songs, so she for her not to own them is actually a crime but the fact that she was able to re-record them all and make her own version is just brilliant and also the fact that she’s able to do that and make her own version and it’s causing record labels and Executives to put Clauses and amend contracts with recording artists that they can’t re-record their music in the future is just bananas.
Rich:
Truly, yeah something of a history maker probably.
Maggie:
Yeah, absolutely. So and that album came out, what is it like a couple weeks ago? And I just been I just been listening to it. It’s a really good album. It was the album when it was released. That was her first pop album. And it was like all pop. Yeah, whereas like some of her songs before were like there were like country versions and pop versions on the same like on the same radio station different radio stations. Yeah from the Same album
Rich:
Interesting
Maggie:
Like but now this is just this was her when it debut. It was like her pop only and like Shake It Off is on this album got it style is on this album.
Rich:
I have to give a listen. Yeah
Maggie:
When
Rich:
Taylor’s version of that like 10 minute one.
Maggie:
Oh, yeah,
Rich:
It’s not too loud all too. Well. Yeah, when that came out Candice was all over it. She was like singing it. Yeah, we were kind of vibing so that that is probably like the moment I started to become. More invested or interested in her story. She’s been around we kind of grow up with her,
Maggie:
You know
Rich:
In a sense but like that was Her I don’t know nothing against her has never got into it, but that was the moment where I was like, okay, this maybe is something to revisit. So
Maggie:
Yeah,
Rich:
Not that I’ve gotten. you know that I’ve gone beyond that very much, but but it’s enough of an of an interest.
Maggie:
Yes
Rich:
A point of interest that like that could draw me and now another new record drop could also be something I could check out for sure.
Maggie:
I And The Lyricist person like yeah, that’s really like, I will love a song for its lyrics.
Rich:
Yes. I am as well the sound of our friends.
Maggie:
Yes, so Anything like she’s just such a creative writer. Yeah
Rich:
And
Maggie:
Storytelling of Storytelling. Yeah, and I I just she has one over the hearts of many people and myself included. She’s very very
Rich:
Like totally yes total package because you got music that’s like a good song. It’s a good song craft, but the but if but if it’s also good lyrics at the same time, it’s just it’s it’s everything
Maggie:
And she writes her own songs and she writes her own music. Yeah,
Rich:
That’s amazing.
Maggie:
Well with collaborations from other artists, but I just yeah,
Rich:
That’s true. There is really it’s that’s the kind of people that I get invested in. So like Death Cab for Cutie for me was always just someone yeah some of the best poetry set to music like I Love lyric blew my mind, please.
Maggie:
The glove compartment isn’t accurately named I was I couldn’t stop thinking about that lyric for like months.
Rich:
It’s the song title and registration. Yeah for Cutie from their 2003 albums transatlanticism.
Maggie:
Yes. Sorry. Keep going.
Rich:
Oh, that’s you’re right. That’s that’s a perfect example of the kind of lyricism you get from those guys where it’s like every there they’re not just saying random words or stringing random words together every line is like a paragraph. It’s part of this craft are the story, you know. That’s interestingly the struggle with what I’ve been listening to lately. Which is more which is the sampling album that I talked about
Maggie:
I listen to that song today.
Rich:
Which one?
Maggie:
The one you mentioned last week
Rich:
Which song I might
Maggie:
All too old not too young. With their newest release.
Rich:
Oh that song or album
Maggie:
Song.
Rich:
Saw the Elvis called. One More Time
Maggie:
One More Time
Rich:
Song is called one more time one more time. Sorry title track.
Maggie:
Yes, that’s the song. I listen to.
Rich:
Were you were you in a blink at all growing up?
Maggie:
I had a friend in high school.
Rich:
Okay,
Maggie:
Who was into blank and she was? kind of like a she was into like skater boys and like punk rock and everything and like she introduced me to eqx weqx the radio station. And so I just wasn’t allowed to listen to Blink because of my upbringing and like when we were in high school streaming just wasn’t an option. So like you could only listen to Blink if you had their CDs, you know what I mean?
Rich:
You know, I had this.
Maggie:
Yeah, and you had their CDs. I was a Reliant K fan. Yeah Five Iron Frenzy
Rich:
Super style. You were into the style. Yeah, but the yeah, okay. All right. Well, okay. So anyway the points is that I’ve been surprised at how much this record is like sticky like I’m enjoying it. I’m spinning at the whole other weeks who has talked but my struggle is still listening to it. Yes, my struggle with it is the lyrics.
Maggie:
Okay, and
Rich:
This is not blinks. Strongest lyric writing. Okay, I think they’re strong as lyrics first of all, I think they come from Mark more than Tom. Okay. Sorry Tom second. I think that their self-title album from 2003 hmm was the The Pinnacle of their songwriting and there have been some good ones since then because they’ve put all music with a different lead singer besides Tom for a little while. But like yeah this just I am okay with lyrics aren’t super strong, but they gotta at least like you gotta at least still have good grammar. And good like sentence structure. And even that is something that too often for me blink leaves to be desired. And that’s that’s one of those things where I’m willing to make an exception sometimes but if if that’s your style and your music’s not that cool, I’m not gonna get into you know what I mean? And then for other bands if you’re if your music is not if your lyrics aren’t there and your music’s just generic or boring? You know, there’s plenty of artists. Who who Craft like grammatically correct sentences, but aren’t really telling a story or doing
Maggie:
Jason Mraz
Rich:
Interesting, honestly. Hey Jason Rose.
Maggie:
It’s I’m leaving right now. This podcast is over. Goodbye.
Rich:
I don’t know like I don’t know
Maggie:
Even listen to you
Rich:
Know, I mean, maybe I’ll give it to give a chance but
Maggie:
You should listen if you’re going to listen to Jason Mraz listen to Mr. A to Z.
Rich:
It’s all about the one ahead. I think I’ve heard that one. straight to Z That’s like a popular one. Word play is what the song he’s all those guys like trying to hard for me on the song already. You know, I mean, he’s just like exactly he’s going too far
Maggie:
Fighting words.
Rich:
All right. Well anyway,
Maggie:
You must feel the same way about John Mayer then
Rich:
Maybe I I maybe I got into him or heard him when I was young enough to where like He’s got the music side too, though. He’s actually like As good at guitar playing as Jesus already, so it’s not just so he there’s more to him. You know, I don’t know. I don’t know Jason Mraz is all about he’s just like a guy out there is writing songs like
Maggie:
Okay because you probably are only familiar with his hit songs probably here on the radio, but I don’t want to get I will say. Jason Mraz like we can move on from this topic after I say this one little thing.
Rich:
But yeah,
Maggie:
Jason Mraz I when like when I heard one of his songs after I had come back from a trip overseas, I was listening to Jason Mraz and it was one of those songs that like I was sobbing crying.
Rich:
Wow. It
Maggie:
Was like it was just I just had a moment with one of the songs and
Rich:
Well, that’s why your song is called Sunshine song. All right, so that’s just it up.
Maggie:
Yes. He’s
Rich:
Got one more chance.
Maggie:
Yeah,
Rich:
Wisconsin better knock it out of the park. Dude.
Maggie:
All of his live albums are really good, too.
Rich:
Yeah. Mm-hmm cool. So yeah, that’s I just continue
Maggie:
Listening to Blink-182. Wow, both Nostalgia bands.
Rich:
No
Maggie:
For us happens for both of us.
Rich:
What can I say?
Maggie:
Yeah, I
Rich:
Did put on the latest best friend energy today in the car.
Maggie:
Okay,
Rich:
Check it out because it was true crime there. They had a guest on. Who is big in the True Crime podcast World? She’s got a whole media company now Ashley something actually something. Okay podcast is but yeah, cool. Sometimes I like to just let something else.
Maggie:
Yeah,
Rich:
Totally different getting the mix to break it up, you know.
Maggie:
Totally.
Rich:
All right. Well
Maggie:
Since we’re talking about business and money with our continuing our conversation today with the business model canvas. Do we have time for a quick story about a hard lesson?
Rich:
We’re always here for stories.
Maggie:
I know I haven’t told
Rich:
You. I’d rather hears stories than Dude, I’d just grab our whole scripts just here a good story.
Maggie:
Okay, cool. I’m really glad that you feel this way because this
Rich:
But only if there’s a lesson
Maggie:
There’s a lesson
Rich:
Completely related to what we were going to talk, you know, please
Maggie:
So if This whole like parenting thing is new to me as you know, just because and if you’re just tuning in I
Rich:
Usually had a kid.
Maggie:
I recently had a kid. He’s 12 years old and he’s been in my care. for with me and Brandon and That’s really all I’ve shared in terms of like the background. So you’re not really missing anything having to do with that but it’s been an adjustment and it’s just honestly been such a joy. He’s a really good kid. and adjusting to living with us at our house has been A challenge one of the challenges is we have two dogs Rosie and Bruce their Standard Poodles and they’re very very well trained. Very good dogs. But they have this one quality that they like to shred and eat paper.
Rich:
Oh boy,
Maggie:
And you just have to be aware not to leave like paper on the ground or anything that they can within like reach or they’ll Bruce will take it down and shred it and then Rosie will eat it. It’s like a team effort.
Rich:
Yeah Dynamics. We love it.
Maggie:
So We’ve told our child at home that to keep his door closed because anything that’s important in his bedroom Rosie or Bruce will eat and happened first. It happened with his music his sheet music and they got a hold of that and we thought that that might be a good lesson but then he left a $5 bill on the ground and some someone found it one of the dogs found it brought it down stairs, and I I saw it and it was just the shredded five dollar bills on our floor and I was able to save the pieces and I collected it and and I explained to him when he got home from school what happened and wouldn’t you know, he leaves his door shut now and so that’s that’s one part of the story. That’s not the lesson the let this is the second second part of the story is We taped the $5 bill back together and went to the bank yesterday to exchange it. So. In in case this happens to you dear listener If you shred any money as long as one of the cereal numbers on the bill is still legible and half of the other cereal number is legible. You can bring it to the bank and exchange it for a fully pieced together dollar bill or 20 whatever whatever bill it is. You just they just have to have the serial numbers. So luckily the serial numbers were still sort of intact, even though it was sort of taped together until like five pieces. So
Rich:
It’s approach
Maggie:
Was very yeah Pro tipped didn’t know that so we exchange the shredded taped five dollar bill got a brand new crisp five dollar bill was so happy. So excited. Now when you go to the bank they have right now, they had these like this candy dish full of lollipops and
Rich:
Talking First National. I know you are. No
Maggie:
I’m talking another local bank, so On our way out. He grabbed a lollipop which was fine. I wasn’t gonna say anything but and we’re walking out to the car and when we get to my car, I I see him toss the lollipop up in the air and like catch it with his other hand. And I get into the car we sit down and he goes. Where’s my five dollars? What happened? And I was like, I don’t know. I just saw it in your hand. I don’t know where it went and he’s like I think I dropped it and so he went back into the bank and he looked for it wasn’t in the bank. It was very windy day yesterday. And the sad part of the story. Is that it blew away. We don’t know where it went. I tore apart my car when I got home. I you you know, I tore apart my car because I I wanted so badly for that to be in my car but it wasn’t every surface every Edge every crease of my car. I tore it apart. It’s not in there it definitely blew away. But I walked before we left the bank parking lot. I went inside and I asked them like have you seen it? Like he checked his pockets like a million times. They’re like, no, it’s not here. We didn’t see it. But if it turns out we’ll let you know and I almost almost with Drew five dollars from my account so I could go back outside and pretend I found it inside. Yeah, but I didn’t because I felt like this was an opportunity for for him to learn a lesson about being careful
Rich:
With
Maggie:
Their money, even though it was so hard for me to not want to like put it back in his hand like first he left it on the floor and it got shredded and then we we had a chance to redeem ourselves and then we went to the bank and we got it exchanged. And then right after he got it back it it he he’s like tossed it away and like it was just a really I think it was it was a really hard lesson to learn and and Brandon and I were talking about it because I explained the story to him last night and he’s like Maggie better for him to learn it with five dollars then like a thousand dollars. Or heard even more, you know,
Rich:
Yeah.
Maggie:
So it felt good have Brandon like he’s like, it’s good. You should you did the right thing. You didn’t you shouldn’t have gotten replaced it but I think that would be a hard lesson to learn. Sorry to like go. I know we’re meant to talk about something different today. But
Rich:
That’s a good story. You’re learning hard parenting lessons here life lessons, you know, that’s that’s good to hear. But yeah, no doubt. That’s got to break. Someone’s heart. Sometimes
Maggie:
It broke my heart.
Rich:
Yeah, well, that’s good, right? That’s kind of house.
Maggie:
And I knew it. I knew it broke his heart, too.
Rich:
Yeah
Maggie:
Twice
Rich:
Like that’s the heart. That’s how you learn. You know what I mean? It’s the pain of a thing that really satisfies it sometimes for us.
Maggie:
Mm-hmm.
Rich:
That’s honestly that story speaks to me because you know, I’ve learned I’ve learned a lot of those money lessons the hard way as well in the last five years with story because you know, I haven’t been the best money manager and that’s yeah, that’s something you gotta know or as I said last time your circumstances have to allow enough time. For correcting those things right? If they if you do it wrong,
Maggie:
Right
Rich:
Just doesn’t always work out that way. So Yes better. Learn that with five than 500.
Maggie:
Yeah, for sure for sure. Yeah.
Rich:
Well, good job.
Maggie:
Oh, that was that was tough. Um,
Rich:
Go ahead.
Maggie:
No. I was just going to say like speaking of money and businesses. Going back to the business model. Canvas.
Rich:
Yeah, which is
Maggie:
The business Channel
Rich:
Exactly a video that we are using as a reference we’ve Got we saw last week. I don’t know if you watch this since then
Maggie:
I have not watched it since then but I’ve listened
Rich:
How does
Maggie:
I’ve listened to last week’s episode several times since then so okay. Yeah cool. I’m familiar.
Rich:
So with our conversation from our talk about business models. both In general and also as it relates to our particular businesses and we’re using the framework given by this video that we found on YouTube that has over two million two million views called. You just said
Maggie:
It the business model canvas.
Rich:
Yes. Yes from the business channel. So recommend that because it’s nine minute video that’s very concise and I think comprehensive to the components of a business model. And we won’t go through all those components. because we did last time but we are talking about points three four and five today, which are a channels AKA like
Maggie:
To get customers
Rich:
Well channels of like how your product is getting sales channels
Maggie:
Sales channel is
Rich:
The full term sales channels. We’re talking about customer relationships and we’re talking about revenue streams, which is like a Channel of money into your business. So products out sales channels and then revenue streams money in and then customer relationships in the middle as we were talking last week. we Really just went through points one and two. The you know, the the what problem are you solving this point number one, and then you’re talking about your market and who you’re trying to sell your stuff to?
Maggie:
Why
Rich:
Are they gonna buy from you? That’s kind of like points one and two we went through all that Loosely with again relating to our businesses. the things that the I didn’t say this in these words last time but I had this thought as I was listening back. These nine things they’re not linear. Per se so there are these nine components. But they they go hand in hand in so many ways that complete like to make a complete structure of a business, but they’re not like linear. In a way, so they a lot of them bleed into one another and I think the three things we’re talking about today sales channels. Customer relationships revenue streams. They all really go they’re closely linked. They’re all almost talking about the same things the covering the same ground even as you break them into these categories. So that’s what we’re going to try to focus on today. And see what stories come up along the way and then the last four components will try to wrap up with next time. so yeah. Yeah any thoughts real quick, is that sound right?
Maggie:
Um when you say sales channels, yeah, it’s interesting because we have two very different business models. Mine is well. You you deliver Goods not deliver. I don’t know how you would describe it like you are a Goods type of business like food restaurant
Rich:
Hard. Yeah, we’re giving you hard stuff. Yeah, I know. It’s right
Maggie:
Go. So. Yeah, okay. My business
Rich:
Is
Maggie:
A service.
Rich:
Right. It’s a good service based versus like
Maggie:
Yeah, I
Rich:
Don’t know good space. There’s probably technical terms for these things that
Maggie:
Well, it’s like I don’t sell a physical product with staging I sell. Of
Rich:
Your time and your skills. Yeah. Yeah and result.
Maggie:
Yes,
Rich:
And the people like if anything you’re a rental company. Yeah, like they’re not keeping products as a result
Maggie:
Right for me.
Rich:
Not at this time, but I have a business proposition for you.
Maggie:
So it’s interesting when you talk about sales Channel, when and you say how to get stuff to people products out.
Rich:
Right?
Maggie:
Like for me personally my business. I am not getting products to people to keep I I have inventory, but I own my inventory and I don’t sell my inventory. I sell the service is attached to my inventory.
Rich:
Yeah. Right. Exactly. Perfect. That’s a great point. So there’s there’s such a rain. There’s a range of of business models as we’ve been saying there’s a range of of channels probably even within one business model, so How are you getting? You products. How are you getting your service? So your your product in other words is? your service of coming to someone’s house and making That environments curating an environment so that they can sell. That’s house ultimately. I like that. I mean trying to just put it
Maggie:
Rating an environment.
Rich:
You can have that for free.
Maggie:
Thanks.
Rich:
So
Maggie:
Ultimately the goal is to sell a product the house.
Rich:
Yes,
Maggie:
But it’s a big. it’s just it’s interesting because a house is a good, right, or because this is a very interesting way of
Rich:
Like thinking about it because I wanted to do this because it’s like this stuff we take for granted, but when you really start to think about and break it down and this is what I was saying from the beginning people take their the fact that they have a business model for granted, but it’s the people who craft their business models. and construct some things sustainable that really succeed
Maggie:
Because most people only Buy a house once or twice
Rich:
Sure. Whereas I’ve never bought a house.
Maggie:
Whereas I would argue most people by coffee or tea. on a weekly basis maybe daily basis.
Rich:
Yeah, well you would hope. I would hope
Maggie:
Yeah,
Rich:
Okay this just in. Quick Google off quick Google for you, four types of sales channels. I figured there was probably like some technical terms. Honestly, probably in all these categories. There’s like technical terms and like industry jargon that you could like if you look if you listen to Marketplace right on NPR you’re gonna hear a lot of the same kinds of terms that get thrown around because they’re they’re economics terms and Here we go. Sales channel strategy from brightpearl.com. Just your quick Google search for types of sales channels. We got retail. wholesale direct to consumer B2B which is business to business. So rather than DTC direct to Consumer, you got B to B so businesses to businesses, which Wholesale might be a component of that too, but
Maggie:
I would so I would probably be a B2B or the welcome home. Co is probably B2B.
Rich:
I don’t know
Maggie:
Business to business right
Rich:
Well in what sense is your is your buyer Or if you’re marketing your if you’re marketing staging in what sense is your your seller a business? They’re more higher more than average person.
Maggie:
But agents are the one who are agents are the ones who are hiring me.
Rich:
Okay, I see more commonly.
Maggie:
Yeah more commonly relaxed
Rich:
Could be so yes, this is interesting because you might have crossover there. You might actually have both depending on who you’re working for. So in your case, if you’re constructing a business model, you might look at what does it mean to be beat to be and what characteristics of that type of sales channel? Can I borrow versus DTC How can I also, utilize those characteristics because again if these are technical terms that have Meeting imbued in them you’re going to be able to look at these as Concepts and sort of mind them for strategies if you will business strategies that work in your context and according to your model. Whereas I’m very much a retail operation I have products that I’m selling DTC direct to Consumer, but I think I think B2B indeed in DTC those. probably Those are going to relate both through like storefronts, but especially online. I think those are going to be things that are gonna be Okay, take a viewer. Remember how I talked about? Yeah, I listen to the how I built this fiori thing last week. So they I think they started out with we’re trying so wholesale. We’re trying to go B to B, right there are business creating this product trying to sell it to storefronts. So they were making like surf wear and and yoga wear at the beginning and they were trying to like sell it’s a business is borch. Actually. I don’t even know if his viory or one of his earlier. iterations of clothing companies and he was trying to sell to like board shops and whatever in California and that’s different than having an online presence where now you’re marketing to you know, any Facebook user or whomever and you’re trying to get people to come on your website and buy directly from you. Those are different approaches. That’s like the DTC versus B2B. So this is again one of those things where there’s there can be bleed bleed in and crossover. For me, I don’t sell anything online. I’m not a coffee roaster. I don’t even have merch you know, like on our webs. There’s nothing you can buy from us on a website. So we’re very much a retail operation with all of the
Maggie:
Would you ever consider selling retail? Yeah,
Rich:
But it comes down to Building out a business model that’s gonna accommodate
Maggie:
And having is our
Rich:
Need a way to get the inventory now full disclosure. I do have an online. merch I have a part. I have a I have a portal set up and this is on our website. So technically you could buy merch products on our website. We have sweatshirts and t-shirts and beanies and a mug and some things that are available online. But it’s Dropship. It’s a Dropship business model where it’s through a company called printful and when you go on there you order that shirt the money goes into my account and comes out of my account. but the
Maggie:
Distribution
Rich:
Things are done on demand. Yes, they handle the printing of the product at that time and they ship it out with our name on it and it’s our merch that we designed and that’s a very common business model for people who are trying to do. That’s like that’s common more these days people trying to make their own clothing companies and just have like a passive income kind of thing companies. I don’t know if you know null void. They’re a local like clothing company kind of alternative. Edgy stuff
Maggie:
And a great thing to promote for the holiday season is like buy a story.
Rich:
Yeah.
Maggie:
I don’t know if it was worth.
Rich:
You make that much. Yeah, I mean so technically that’s a sales channel for us as well. We have that online portal. It’s always there I but it’s never we never march it. You know, it’s it’s out there. It’s on our website. It’s on our as you know, our Instagram, but Even when we first put it out there it wasn’t it didn’t really take. I don’t know if it’s cost or or what. So but the point is like that’s an option. That’s an option so you don’t have but you don’t also have Merch online or anything like
Maggie:
No,
Rich:
So as a sales Channel. How are you getting? Like or do you have do you have a book now kind of thing on her website? No have a standard. Like is it on your Instagram? No Linkin bio. So, how are you getting your
Maggie:
It’s a hundred percent as a hundred percent referral
Rich:
100% lead referrals. Yes.
Maggie:
Okay,
Rich:
Cool with us. That’s a way, you know, you get people
Maggie:
Yeah
Rich:
Milk Word of Mouth.
Maggie:
Yeah, and and I am not against having a book now or a way to promote it on my Instagram. It’s just that the inventory I have right now doesn’t support
Rich:
True.
Maggie:
Huge amount of like customer bases because I think I’m I mentioned this maybe casually in the last episode but I have furniture and five houses right now and I’m completely tapped out of furniture. My inventory is expensive to Hold and expensive to procure if you want good quality stuff and I had to break down and buy a bunch of stuff at Target a couple weeks ago again. I mentioned this like
Rich:
I didn’t necessity he didn’t we didn’t talk about it on the pot.
Maggie:
Okay. yeah it like it wore out a piece of my soul having to do that because I needed to it was the demand was there and I had to I did a very like I did an expensive Target run so that I could fulfill an order for a staging job and while it’s I don’t make that my practice but I’ve never had five houses staged at the same time before so it’s a good problem to have. In fact, maybe we can talk about this in a future episode. Welcome home code just purchased a massive storage shed. That’s going to be delivered to my house at the end of this month.
Rich:
Wow. for
Maggie:
My inventory and it’s just you know, we debated Brandon and I were talking about like we have a storage problem right now and Do I buy another trailer? Do I rent a store at unit? Do we you know? By a sprinter van do it. Like we literally hashed out all the options and The solution that we came up with that we thought would be the best investment would be a storage shed. That’s kind of prefabbed. Like, you know, it’s also something that Brandon doesn’t have to build we just have to like
Rich:
Yeah
Maggie:
Order it they take care of putting the slab down and they just basically drop and and roll. Yeah, so
Rich:
I’m gonna shaking
Maggie:
Moving and shaking so that’s going to be a solution here. You heard it here first. My solution to the inventory problem. Well the storage problem I have. For now,
Rich:
Yeah for
Maggie:
Until future notice
Rich:
Business decisions. That’s cool. I mean that’s convenient to have it right there. It’s your base operations. Yeah, you have a storage unit for storage because we also have a storage problem right now. It’s like half books and you know, it’s it’s in Glenville. So it’s like on the way to my house and it’s kind of like a location wise. It’s good quality of the storage unit. Not great, but It but it’s but that’s my that’s our move. It was cheaper than like,
Maggie:
Yeah.
Rich:
It’s it’s a cheaper option that works but having something on premise would be even handier.
Maggie:
I even considered
Rich:
The space for that though because we’re renting
Maggie:
Yeah. For a brief moment like a few days. I was even considering buying like a vacant piece of land just to like build something onto like that was literally like in the car I was messaging another age and I know about like What it what it would look like we were talking to the town about like can we build on this?
Rich:
I feel it comes back around to that. Let me know because I gotta get storage shed out there.
Maggie:
Okay? but I’ll run from you like ultimately the convenience of having that at my house is so worth it because it just will save me time and everything from
Rich:
Yeah makes all going places
Maggie:
So
Rich:
Good.
Maggie:
For me that has nothing really to do with my sales Channel, but it it definitely has to do with how I get stuff to people.
Rich:
Yep.
Maggie:
And provide that service. Yeah.
Rich:
So, I mean there’s there’s gonna be a slew of things and it’s got to be something that works for you. The key is you got to have a way of getting people to you. And right now with your limited inventory, you’ve got referral based business works for you because you can’t have people booking you out or You know, that’s just that’s not where your business is yet. Your you would have to have a situation where? you have You have to either concede to all right, well. my values tell me that I need to just be making money right now. So I’m going to go stock up on. Target or whatever new products inventory, like you’re not at that point. This doesn’t feel super need based, you know as much as it like you’re not out here trying to profit. at the expense of your values
Maggie:
Right,
Rich:
You are maintaining values and letting them guide you and I trust still operating a profitable business, but it’s like enough for your needs and lifestyle in. in partnership with your real estate business, so that’s great. It would be a different model to say okay. I am going to just get all this. Fine stuff but new and and just pile up this inventory so I can make more of these sales, but that’s that’s a different model. It’s a different way of looking at How to make money either way the key is you’re making money and and you’re making it work for you and you’re staying true to your values which I know for you is a huge thing
Maggie:
Huge thing. Yes
Rich:
Broke your heart to get to that Target
Maggie:
Dead. It really did.
Rich:
Sorry. I happened to you
Maggie:
And Joe still reminds me because he likes to make fun of me for Things like that. Yeah
Rich:
Classic. So, I don’t know how much more there is to say about sales channels. You’ve got one. It’s basically lead-based stuff. You got people calling your phone sending emails, right? I don’t know if it’s through your website or whatever people who who need your services know how to generally find you and that’s how you’re making those sales through
Maggie:
Calm. I’m trying to remain low key. People keep finding me. That’s
Rich:
Right.
Maggie:
I’m not complaining. I I love what I do. I really truly do
Rich:
That’s awesome. That’s awesome. It’s manageable. And that’s another key because your business model is not one where you you know have all these employees that’s into your your strategy right? It’s you so tired or more or less. Yeah, you’re
Maggie:
Me and Joe.
Rich:
Yeah. Yeah. Well and Brandon antagonally an
Maggie:
Employee have to account Brandon because Brandon moves my trailer totally couldn’t do without Brandon,
Rich:
So Yeah. Awesome, and my sales channel is primarily our retail storefront. Which has been? Just a story our presence and Scotia for the four going on five years. We tried a second retail store Front it didn’t pan out. over time Right. Now we have our name on the operation of viscer Ferry, but technically the sales don’t go to storied in any way what happens there is stored is paid by viscer ferry. for a number of things including my presence my like My direction kind of a Consulting it’s more of a Consulting situation. So story is making money. So this is a different kind of Revenue stream. This is the only place I have this going on. It’s almost like a Consulting element to to my business model, but it also includes some rental fees like our espresso machine is on the bar there and like my expertise comes with
Maggie:
You ever get that three group going again. Yes.
Rich:
Call me dude. It’s awesome.
Maggie:
Okay.
Rich:
Sorry if I didn’t follow up on that, but that’s that’s going and
Maggie:
Calming.
Rich:
It really is rocking and but I had to do like it was it was my work on that. It was getting the parts. It was changing them out, you know, so that all kind of comes with that package deal so stories we could bring in money for that. But not as a retail product going out that’s more of a service. Thing and like trading my time and expertise for for that experience. So that’s another little side hustle. We got going on in a sense. And then that like I said, there is the clothing Channel out there, but that’s not currently going anywhere. So yeah, and it was looking for a nice little sweatshirt or beanie for that hit up that story coffee. Calm slash merch
Maggie:
Shout out. I also noticed that in your business model. I was talking to Abby today.
Rich:
Yeah
Maggie:
That story and Your yours like goods are like multi-step. Like there are multiple aside from just like a cup of coffee every drink that you prepare for somebody has multiple steps.
Rich:
Yeah.
Maggie:
So like you also have to think about like not just do I have coffee or do I have tea or do I have tapioca you have like you have to think about like the different types of milk options that you have you have to think about the different. um tapioca or popping pearls or The other what’s the other thing called like the jelly in those in the drinks?
Rich:
You
Maggie:
Have to think about the different types of tea and you make all your teas. So you have that whole process and then when it comes to your specialty drinks like Lattes or cappuccinos, not americanos because that is not
Rich:
Oh you do. Yeah. Oh, what’s the Russo hot water
Maggie:
Flat white? There’s something that you like don’t make
Rich:
I’m prickly about the flat way.
Maggie:
Okay,
Rich:
We don’t really do a flat way because it’s a tradition. Listen the Prototype out there and listenerland. This is a flat white is a European slash. Actually. It’s just well, it’s kind of debated whether it originated in Australia or New Zealand, it goes back and forth kind of a fun thing in the industry but point is a flat white. All right Starbucks. Now what they got for you? Okay, here’s a flower ways. It’s a double shot. No. Okay. So this is why is the problem? All right. People got it.
Maggie:
All right,
Rich:
Never bring up coffee things like this. The flower all right in a lot of European countries, they’re gonna pull they’re gonna pull a shot. With a spouted portafilter. Okay, we use naked or bottomless, which means you get you see this on Instagram. You just the one stream that comes down and you get to like watch the espresso come out the spouted poor filters gonna have two things that come down and you’re not gonna see the espresso except for it’s gonna come out in two streams. And typically it’s come out into two cups. So what a flat White’s getting you is you’re doing a restretto shot AKA. It’s gonna be like a little let’s give me a stronger more intense shot that comes out and it’s going through in a spouter filter is going into two cups, and they’re just gonna use the one cup of shot. I’m pretty sure I’m pretty sure I got this, right. Traditional flat way. Okay and so they’re giving you like a straw supposed a stronger espresso flavor, but be a little less because it’s they’re only isn’t how like half of the shot but it’s it’s more intense because the restretto so you got that. That’s your that’s your Coffee Baseline and then the milk it’s all about the milk texture and the volume. It’s a smaller drink smaller than a cappuccinos like six ounces. Okay, and it’s steamed real thin so it’s gonna be like not quite even like a latte definitely not like a cappuccino shouldn’t be on shouldn’t be foamy. It’s gonna be like a thinner almost more like liquid going on in there. And then it’s just kind of the thinnest like skim coat of like a microphone kind of latte texture now technically should have a rosetta As far as the art goes that’s according to my Australian friend who owns Village coffee and goods in Kingston. But yeah, so that’s the skinny on on a flat way. All right, and you definitely are not getting that from Starbucks and actually frankly no coffee shop around here is pulling a restro shots. At least not the way they probably should be and I so if you ask me for a fly away, I’m giving you like I’m giving you basically a small latte with a thin texture, but you’re getting that full double shot and Yeah, that’s the best I can do for you.
Maggie:
All right, that
Rich:
People had to know I’m sorry. They
Maggie:
Hadn’t I’m so glad that I
Rich:
Know I don’t have your hot take all that stuff.
Maggie:
And and if I wish our audience could like see the passion in your face while you were talking and the movements of your hands as you were like mimicking all these steps and we do we do film these episodes. They’re not available anywhere right now, but they will be but rest assured when this video is available. I really think someone we should have like charge people to watch it because just seeing rich and reenact this right now
Rich:
Like at least get that
Maggie:
Your gold
Rich:
Which really get that clip down. I can put it on the story. Yeah
Maggie:
So good.
Rich:
Give the dish on the flat
Maggie:
One. Totally.
Rich:
I’m glad you asked you didn’t
Maggie:
I didn’t ask but basically there are multiple steps. to What you offer that was what my point why not withstanding? Yeah,
Rich:
I mean you heard about there’s definitely not one how to reinvent the recipe on making a restretto if I wanted to serve
Maggie:
It exactly
Rich:
Got time for that. But yeah, I mean, it’s hard enough out here just doing the normal amount of steps.
Maggie:
Right, so That’s my point.
Rich:
Yeah is
Maggie:
Like you’re not just a you’re not just like pull something off the shelf unless it’s a used book,
Rich:
Right?
Maggie:
Kind of a place in terms of your your you know business.
Rich:
Yeah
Maggie:
Product sale channel. So
Rich:
I don’t know. I mean, I don’t know if there’s another point to be made from that that you would make as far as why you’re highlighting that but that gets into the the reason comparing the differences in our business. Yeah, okay and that an intricacies of story exactly and it’s the intricacies like that around a business that make it. Easier or more difficult to replicate right they take a franchise model for instance businesses that franchise are they’re cookie cutter. It’s not it’s it’s what you’re selling and this is the whole this is the whole Vision behind the book of the e-myth what you’re selling is. totally what you are selling is the the whole structure you’re selling a package business that you need merely to plug people into everything is thought about down to like how much? Of like I don’t know. You okay? You see all this come out in the movie the founder interview the founder. I found out pretty sure I found on Netflix is the story of Ray Kroc and how he took over McDonald’s. And turn it into from from one. One well-oiled machine and blew it up.
Maggie:
The franchise
Rich:
Is a behemoth. That is yeah and made it a franchise working with the original Founders, but the story highlights that original store and why Ray Kroc was so interested in it was because he saw it was this model. That was just down everything was like so precise and timed and and was he saw easily replicable. And you know, it’s he went back and forth to the owners about how to do that. But that is one of the original versions of that but the key is every piece of equipment would have to be the same every you know place would need to look a certain way too. It comes down to branding and and this is why every Duncan has everyone’s wearing the same stuff, you know, you see this in a franchise model, but the reason it works is Everything’s the same every time or at least it should be it’s supposed to be. Funny enough what ends up happening these franchises is they’re all in small towns. And so they end up with this kind of like small business Vibe where like yeah equipment’s broken and stuff never getting fixed and there’s not enough people working. So you end up with these franchises that have these small Biz problems as I like to call it. Like I’ll talk to people who work at Subway, you know in Scotia and they’ll tell me oh, you know, this thing is not working or you know this person and called out or whatever and it’s just like you get the it’s funny because you get small business Vibes even if he’s what we’re supposed to be cookie cutter. Well Machine, Corporate
Maggie:
My best friend Amy, and I Thanks call Subway subnets.
Rich:
Don’t wanna know why
Maggie:
Well Amy used to work at Subway and she like it’s it is kind of an inside joke, but when we when we talk about our days because she worked at Subway and I worked at the ice cream shop and they were too enjoying they were adjoining building
Rich:
That’s amazing and
Maggie:
We were just like a terror to you to work for but she called it subnauts.
Rich:
Yeah. Okay, that’s funny. Um, So for yeah, and so many directions to go with all that kind of stuff. We’re talking about sales channels so far and that’s you know, I think we’re here. I think we’re pretty much. good on that you’re I guess the last question would be in real estate. What are sales channels? In real estate, I don’t know that
Maggie:
Yeah be
Rich:
Too that’s kind of probably got a range of them. I mean, yeah, you’re not selling houses online. Are you Zillow? No,
Maggie:
But I use social media and I use the internet to sell houses. To attract buyers, but are you talking about like how I obtain clients?
Rich:
Well, that’s actually So, okay. Let’s leave off on that because customer relationships is the next thing and that really is the question of how are you going to get clients? How are you going to get customers? To buy your service your product to enter your physical retail space and take things off the shelf and exchange money. Like, how are you going to get new people? How are you going to? Retain those customers and make them repeat clients and develop that so are you going to get keep and grow?
Maggie:
I’m glad you brought that up because actually in the real estate industry. On the New York state agency disclosure that I am required to share with each person. I have substant contact with I am supposed to differentiate between a customer and a client. They’re not the same thing. In my business sure. because a client for me is who I have a fiduciary responsibility to if I am hired and I have an agreement with the owner of a property the seller they are my client. And the person who purchases the house is the customer.
Rich:
Wow, okay. Yeah. Yes that so I’m I mean, I’m not a seller’s agent.
Maggie:
Yeah
Rich:
In that context
Maggie:
And then if you’re a buyer’s agent your client is the The buyer that is your client. And they are the customer of who they are purchasing from.
Rich:
Sure. Yeah, logically that makes sense. Yeah, that’s it’s almost intuitive to
Maggie:
It took me a long time.
Rich:
They will put it out there like that. But
Maggie:
Mm-hmm
Rich:
One of the subtle things you wouldn’t think about maybe but that’s a good point. A client is someone who has employed you more,
Maggie:
Correct?
Rich:
And a customer is a potential. Prospect yes of Someone becoming a client client language doesn’t really work in like the coffee shop World.
Maggie:
Mm-hmm.
Rich:
You know, like you
Maggie:
Call it a guest.
Rich:
Yeah, we would say right someone who’s who’s our our someone who is our customer we’re gonna call them guests and that wraps up a lot of things into it, but a client is almost someone you could see is a long it’s almost a long-term relationship right like a law is like a lawyer. Does lawyer language? That’s your good your client? So when you’re representing and you’re you’re representing either a seller or a buyer and context so I wonder if it has to do that long-term like it’s a relational
Maggie:
Word.
Rich:
Clients I don’t know what the opposite the word for of that is like yeah your word what your word is. Clients the person who possesses a client. I don’t know what that person is called.
Maggie:
Maybe it’s just possesses the client. Oh,
Rich:
Right, like a realtor.
Maggie:
Yeah has
Rich:
Clients a lawyer has clients. Yeah. I don’t know. There’s a more categorical word for that person fiduciary. I know.
Maggie:
Yeah, I know what you mean. You know, what’s that word? Does anyone know that word? Yeah,
Rich:
Not a big not a big deal at all. Just just an observation. Whereas yeah, I don’t have I mean you could maybe you could say Fisher Ferry or like Louise’s is a client of mine, but we wouldn’t use that language. Yeah. Because it’s kind of formal. I don’t know. I’m not sure that quite fits in but if I had more of a Consulting business what I have, yeah, I guess I would have clients in
Maggie:
That case
Rich:
If that was more of a business. I was pursuing how to a bunch of people in that type of relationship. It’s a type of relationship. It’s a relational word. Customers that gives the sense of more like a one-time. Yeah, even if it’s repeat transactionals transactional one time kind of thing
Maggie:
And
Rich:
Guest is just a nicer way of thinking about the people who are your customers.
Maggie:
Hmm,
Rich:
Maybe it invites more thoughtfulness about that relationship. So the question is always like how are we going to get these people, you know in a retail environment like mine. It’s it’s limiting. It’s pretty limiting because I just have that one place. I have to get people to come to my business. That’s the struggle. Yeah in Scotia. There’s only so many people in the Schenectady area. Like there’s only so many people they only want to travel so far
Maggie:
Rich, what would you do if all of the sudden? like you were like flooded with customers, what would you do?
Rich:
I would have to make some changes. Do you mean like on what like a like one day?
Maggie:
No, like what if all the sudden
Rich:
My prayers answered
Maggie:
Here? Well House Coffee podcast blows up.
Rich:
Yeah.
Maggie:
You know, it’s happening but and they’re like Oh my gosh, we need to go to story coffee right now and all the sudden like we have like this reach and then it’s it’s just becomes like are you prepared? For the busyness that you are so Desiring.
Rich:
No, absolutely not. Our systems would not be able to handle that currently, but we would be able to quickly pivot. To the beginning handling that it would first of all require more staff, but the thing with staff in my business model currently is that there’s not enough Revenue coming in my Revenue stream. Is it trick? It’s a trickle
Maggie:
And
Rich:
So we can’t really sustain the amount of people. to like do the work necessary to accommodate a lot of business and I just it’s almost a chicken egg question.
Maggie:
I was literally
Rich:
Thought I if you asked my consent my consultant he would say he would say sales precede Staffing so he would say you don’t hire until you need to hire don’t hire in anticipation or in Hope of more people because I went through that. In fact, that’s the reason I started thinking about business models and what a business model does for you because I had a conversation with him at the tail end of our Labor Day closure where we were thinking kind of remodeling but I was also thinking like do we need a different model where we have more staff? What if what if we came out with this marketing thing where we were like? All right people we know wait times are a big concerning a story. And so we’re going to guarantee that your wait time is gonna be cut in half because we’re gonna have dedicated two people on bar and one of the kitchen moving forward. What if we made this promise like we will never be understaffed right big promise what but this was the model I was playing with what if we brought in more staff in hopes that the guarantee of faster service would bring more people in. well That only works if more people actually come in right?
Maggie:
It’s
Rich:
A big faith move. But he would say that’s not the way he would say you need a different model altogether. You need a model where you the people you currently the sales you currently have. Obviously, we always want to generate more sales. If we can’t figure out ways to bring in more sales increase those revenue streams. but he would say sales precede. the Staffing and so if you’re consistently take a month, right if you if you look back at yourselves over a month and you see that your hourly sales. They’re just not there. Don’t bring in another person. Change your model get rid of some. thing that you people aren’t looking for people aren’t asking for you know, so we ended up doing we ended up cutting hours. Rather than keep ourselves up until 4:30. We’ve reduced it to two o’clock, right because what people are people are asking for Those those are low volume hours meaning like our model says we should have all we have all these hours open, but but ultimately people weren’t looking for those hours and we know because they’re they’re there but they’re the sale stop it too, but people are there till 4:30, you know what I mean? So people are asking yes. So people are it’s an it’s a different kind of need but it’s not one. That’s profitable. It’s yeah, we had to change that model. If we were suddenly flooded with people like on a consistent basis, well, yeah. Okay. Now there’s there’s the revenues there we can back it up with with staff. We can adjust the system have more inventory, you know. Follow the money. Yes, and that’s the hard part about doing a small business is like you’re always wrestling with those those tensions. You want to always give a good product and like great service, but you have to do what you can afford. And the revenue has to the revenues never been there to suggest that we should have if
Maggie:
You build it they will come.
Rich:
No,
Maggie:
I’m just kidding.
Rich:
I wish I wish but but we don’t have that. That luxury we told ourselves at the beginning though. If you build it, they will come, you know, we we started out we were like, all right, we’ll travel you start out generous and you try to give people what you can but if they don’t respond to that or if a pandemic happens and everyone’s spending behavior and social behavior changes then You got to change something else.
Maggie:
Well, I have to go I have to go pick up my kid.
Rich:
You’re here.
Maggie:
I’m sorry to cut you
Rich:
Off. That’s right. That’s I knew we were getting close to that. Yeah there so.
Maggie:
This has been a much more interesting conversation than I was expecting and I’m really glad that we are making this a series because there’s just so much. There’s just so much we could talk about and we have two other things that I know we we anticipated talking about and my story probably
Rich:
Well eat up some of that time. It’s a good point, but
Maggie:
I I’m really looking forward to like continuing this conversation.
Rich:
Same I think there’s again I think business models are taken for granted. Yeah, there’s there’s a lot more to them. They’re both like more nuanced. And more yeah broad than people I think appreciate definitely that I’ve appreciated. So this is a chance to like study it a little bit.
Maggie:
Yeah, please send us your feedback or questions at House Coffee podcast at gmail.com. And you know, if you love this podcast, it would just mean the world to us if you would leave us a review And because it would help us grow and bring more content and maybe help pay TJ one of these days TJ. We love you. But yes, please leave us a review. It’s super important for the growth of our podcast.
Rich:
Thank
Maggie:
You.
Rich:
Thank you.
Maggie:
Later.
Rich:
Here