- Companies that sell DIY
kits have seen an increase in sales as customers search for new activities to do at home. - Business Insider spoke with the founders of two kit companies who shared their strategies for success.
- Entrepreneurs should consider adjusting the tone of marketing messages to meet customers where they are — amidst a time of global uncertainty and need for connection.
- Business owners should also think about adding new offerings based on the season or cultural movements.
After the pandemic pets were adopted and complicated cooking projects were completed, individuals stuck at home sought new ways to entertain themselves and loved ones during the coronavirus.
Companies that sell do-it-yourself kits for goods like beer, kombucha, and cheese saw an increase in sales after lockdowns were issued across the US in spring, founders told Business Insider.
The Kombucha Shop, a DIY kit that sells the necessary tools and ingredients for customers to make their own kombucha, saw a massive uptick in sales since mid-March. The company booked about $300,000 in sales in April, compared to $75,000 in the same month a year earlier. "I felt like everyone in the country was either making sourdough bread or brewing," said Kate Field, who founded the company in 2013.
The Kombucha Shop's regular kits sell for $45 and a deluxe version goes for $75. Field sold her company to entrepreneur Habib Bakshi in June, hoping that his expertise with digital advertising would help grow the business. She plans to remain involved with the company for the near future, she added.
Husband-and-wife duo Stephen Valand and Erica Shea — cofounders of the 11-year-old beer-making kit Brooklyn Brew Shop — experienced a similar boost in sales. Brooklyn Beer Kit booked about $2 million in revenue last year and is up about 250% this year, Valand said. The couple's other brand FarmSteady, which sells kits for homemade cheese, pickles, and hot sauces, closed 2019 with about $500,000 in sales is up 425%, he added.
Prices for most of Brooklyn Brew Kit's products hover at around $48, while a majority of FarmSteady's kits fall just under $40.
The founders shared three tips for entrepreneurs who may be considering a pivot to kits in light of the pandemic.
Experiment and map out your kit
For entrepreneurs interested in making their own kits, start by considering how you can improve products already on the market. While Field had experience brewing her own kombucha, she tested kits from other companies to learn what worked and what didn't. Those experiments informed her final product.
Shea and Valland took a different route: They designed custom pots and strainers so brewing would be more accessible to at-home customers. They also assessed what their clients might already have in their pantries and included the specialized parts that would be hard to find.
Either way, the key to a successful kit is knowing the potential customer, what they need, and how to make the process complete, the founders said.
Match marketing to your customers
Before the pandemic, Field kept The Kombucha Shop's message light and cute. However, when crisis hit, she changed the business' marketing to reflect the devastation of the pandemic.
"We focused on the positive and that this was something productive you could do with your time," Field said. "We also marketed it as an activity you could do with your family that isn't binge-watching Hulu."
Shea and Valand also changed their marketing tactics for Brooklyn Brew Shop. The duo sell their beer-making kits to mom-and-pop shops across the country, but when the pandemic forced many of their outlets to close temporarily, the cofounders helped those entrepreneurs develop e-commerce strategies.
Shea and Valand sent the shops emails with tips on how to sell through Instagram. They also started doing virtual brewing classes where participants could ask questions and connect with other enthusiasts.
Communicate about supply chain difficulties and canceled orders
At the start of the pandemic, Field posted a letter on her company's website that outlined how shipping dates and procedures would change for customers. She also ordered her supplies months in advance, anticipating that some goods might go out of stock during the pandemic. Field described this
Shea and Valand faced a different problem: Sales were up, but some of their larger retail partners weren't paying them back for wholesale orders. What's more, the couple feared those companies might go bankrupt like several other major firms. Protecting Brooklyn Brew Kit meant standing up to big retailers, changing the way they processed orders, and introducing new payment systems. "We needed to be stricter with some of our larger customers and not let ourselves get pushed around because we're smaller," Valand said.
Refresh kit offerings according to the times
During the pandemic, Shea and Valand have introduced seasonal flavors and new styles of beers. The first was a milkshake IPA — a hazy brew that has lactose in it — and the second was called "Black is Beautiful." The beer was made from a collaboration of hundreds of breweries and was sold to spotlight racism and "raise donations for causes dedicated to supporting equality and inclusion," according to the company's website.
Brooklyn Brew Kit vowed to donate half of its total sales from kits and mixes to the nonprofit civil rights advocacy organization Color of Change. So far, it's given a few thousands of dollars, Valand said. "We want our products to bridge divides," he added. "Making beer should be something that brings people together."