Advice Line with Seth Berkowitz of Insomnia Cookies
from How I Built This with Guy Raz ·
39m 33s
Seth Berkowitz, founder of Insomnia Cookies, shares key insights on sustainable business growth through deep customer connection. He advocates for "earning growth" by prioritizing community love and cultural relevance over rapid expansion, emphasizing that the business model—based on late-night, off-hours, and collegiate roots—requires hands-on control. In a call with Kaindo Matene, Seth recommends focusing on top-selling, heritage-rooted products and building direct-to-consumer awareness through in-person experiences rather than broad digital ads. For Tara Gilman’s sauna hat brand, he stresses the importance of real-world engagement—like in-studio use and events—to bridge the education gap and build brand authenticity. Carol Desden’s case reveals a critical insight: end users and buyers are often separate, requiring marketing that resonates with both the emotional motivations of the buyer and the lifestyle of the end user. Across these examples, the overarching lesson is that success comes from simplicity, authenticity, and experiential connection—centered on the core customer and built through real-world interactions. Each business learns that sustainable growth stems not from scale, but from deep cultural resonance and trust.
Hello, and welcome to the advice line on how I built this lab. I'm Guy Raz. This is the place
where we help try to solve your business challenges. Each week, I'm joined by a legendary
founder, a former guest on the show, who will help me try to help you. And if you're building
something and you need advice, give us a call and you just might be the next guest on the show.
Our number is 1-800-433-1298. Leave us a one minute message that tells us about your business
and the issues or questions that you'd like help with. All right, let's get to it. Joining me this
week is Seth Berkowitz. He's the founder and CEO of Insomnia Cookies. Seth, welcome back to the
show. It's great to be back. It's great to have you back. You were first on the show, I think in
2024. And of course, if any of you listening have not heard that story, we'll put a link to it in
the show notes. Great episode.
You got the idea for Insomnia Cookies while you were in college. And you had a craving for like a
late night treat. And the only options were pizza and Chinese food. And you basically started this
business delivering fresh cookies from your dorm room to customers. And eventually, you built a
brick and mortar and the rest is history. Insomnia Cookies is a national chain. When you were last
on the show in 2024, you had, I think you had about 300 locations of the stores. And today,
you've got. closer, I think to 400. And the goal is to get to 1800. Is that the number?
That's right. Yeah, we're gonna finish the year with roughly 393 bakeries around the world. And
that's our major aspiration, right? We want to open up 1800 bakeries and really be a global chain.
And what's the 1800 number? Where's that come from?
Honestly, data dive, right? We're looking at as the business scaled from city to college,
to suburbs, to train stations and stadiums. That's what we ended up targeting.
Based on what we thought could be the US output, and then so far, what the international opportunity
looks like. So that's our goal. One of the things that is interesting,
I think you own and operate the stores, right? Insomnia owns and operates all your bakeries.
We have four licensing arrangements, an airport and three stadiums, but we operate 390 bakeries
around the world. So basically, you're not a franchise business, right?
No, certainly not.
But of course, franchising. could get you to 1800 a lot faster, right?
And you know that.
It could, of course.
Tell me the thinking behind resisting that model.
I mean, some of it is just how the system was built.
You know, it's a late night delivery collegiate business.
Right.
These are three things that are,
it's highly seasonal, operates off hours,
and it's multi-channel.
It's hard.
You know, a lot of businesses have become this way,
but historically that wasn't something
that people ultimately wanted to do.
And we had to kind of bootstrap it
and build from the ground up.
And that's just how I've always operated it.
And as a business that believes so deeply in innovation,
having the ability to think of something new,
bring it into the store, test it and deploy it,
and then roll it out without not a crazy amount of complexity
or pushback is pretty special.
And we think it's the way that we stay relevant
nearly 25 years since our founding.
And you have, of course,
control over the quality of the product.
Certainly.
I mean, for me, I guess it's fine.
It's where I should start,
but it's not just top of mind, it's the core, right?
It's the only thing that ultimately matters.
And so we hold that deeply in our hearts.
Yeah.
You know, when you were on the show,
we talked about some of the near-death experiences,
including the very first one.
You expanded, I think, to Wisconsin, to Madison,
and you just shut that down.
And basically you had to start over.
And now you are expanding, you know,
probably faster than ever.
What, like, as a CEO, right,
what warning signs would sort of make you slam on the brakes?
Even if, you know, the company was like,
let's go, let's go.
Given what you know about what happened in the past,
is there anything that you would say,
you know, maybe we should slow down?
I mean, this is my philosophy.
Lots of people don't subscribe to this one,
but I believe you earn growth.
I think you earn the right,
I think you earn the right,
to grow.
Consumer love gives you license, right?
We tried to open, I'd say at this point,
far too many stores in a couple of markets
at the pace that we went,
and the aperture wasn't as wide as we thought.
And had we watched the brand awareness metrics
in every geography incredibly closely,
we could have seen pieces of that.
And so you have to earn the love.
And if it's there,
then you have license to go as fast as you want.
Some people think grow and see how it all,
you know, how it all plays.
And sometimes it works.
And some of the most magical stories for business,
it really does work.
It's just not how I think, right?
I like being in the weeds.
I like watching the business grow.
I like seeing the community really love what we're doing
and then feeling comfortable with it.
So I never grow, grow, grow.
I always make sure you've earned that growth.
Seth, when you, I mean,
there's so many great moments
when you were on the show for the first time
and told the story of insomnia.
I remember, you know, the Syracuse store,
and like all the, it was, it was a college brand, right?
I mean, the idea was expand to college towns
and it was a really smart strategy.
I imagine that's not your core customer anymore.
It's not the college student, late night college student.
I mean, it's, it's interesting.
They definitely are center of the bullseye
because 250 of the 400 bakeries are college.
So, you know, it's a regenerative community
and it's, that part's incredible.
And that's kind of how our growth narrative has worked, right?
We've gone from college to cities
because we've been growing.
We were following our insomniacs
and many of them left cities and they moved to suburbs
and we're following along.
So it's become this life cycle brand in our minds.
It starts in college.
It works its way as I just described.
And then hopefully, you know,
if we get to enough scale in suburbs, right,
we can start with our children
and then it all goes around and around.
So like that, that is the hope.
That is earning the growth that I was describing before.
Yeah.
Well, I mean, again,
if anyone listening is a college student
and you are trying to figure out what to do,
with your life,
listen to Seth's story.
I mean, you started this business in college
in your dorm room
and it's just, it turned into this,
a huge national chain.
It's an amazing story.
Are you ready to take our first call?
Absolutely. Let's do it.
All right, let's do it.
Welcome to the advice line.
Hello, caller.
Please tell us your name,
where you're calling from
and just a quick line about your business.
Yes. Hi.
Hi, Seth. Hi, Guy.
Hi.
My name is Kaindo Matene
and I'm calling,
I'm calling from just outside of New York City.
My brand is called Kaindo
and it's a luxury special occasion wear fashion brand
rooted in my Congolese heritage
and my African upbringing
and it's handcrafted by female artisans in Africa
to empower the artisan as well as the wearer
with bold and colorful special occasion wear.
Awesome.
Well, thanks for calling in, Kaindo.
So, all right.
So, Kaindo, this is you.
You are Kaindo.
This is the brand
and it's basically it's like luxury dresses,
formal wear, all those things.
Yeah.
So, we started broadly
but now we're doing a pivot
to focus on special occasion wear.
So, like mother of the bride,
women going to weddings,
even bridesmaids.
So, any woman who's looking for something unique
and colorful and bold
to wear to a special occasion.
And you mentioned that it's rooted in your heritage.
Did you say Congolese heritage?
Yes, correct.
So, tell me about that.
How does that like inform the designs or the patterns?
Yeah, absolutely.
So, I design all of the patterns and prints
and I like to say I want to bring a little bit of Africa
to the world.
So, I was born and lived across six different African countries.
So, it's very colorful
and I also like educating people about Africa
because when I came here as a college student,
you know,
people had these crazy ideas about the African continent.
So, I talk about through my colors,
through my prints,
about different tribes,
different countries
and I bring a bit of that to America.
Awesome.
And when did you start your business?
Yeah, I started in 2017.
And tell me a little bit about
how the business is doing right now.
Yeah.
So, it started off really well.
2020 in the middle of the year.
Yeah, in the middle of the pandemic.
That was when I really started to see growth.
And I think it was because there was a lot of focus
placed on Black-owned businesses.
So, you know, my biggest year was in 2023.
I did 268K.
But literally after that,
I lost all of my wholesale business.
So, I was selling to Anthropologie, Rent the Runway,
Nuuly, Shopbop and lost all of the wholesale business.
So, last year I did 50K and I nearly closed my business.
So, I'm in the process of kind of rebuilding and pivoting
to focus solely on special occasion wear.
And now your sales are entirely direct-to-consumer
through your website?
And dropship.
So, I do dropship with Nordstrom and Bloomingdale's.
Got it. Okay.
Before we dive in further, what's your question for us?
Yeah. So, after losing a lot of that business and pivoting
to focus on special occasion wear,
I need to figure out how to find and grow my customers
base with limited time as well as limited money. I'm a solo founder and I feel like I need to run
ads, but I'm not sure if running meta ads, Google ads is the right way of focusing on other customer
acquisition strategies. All right. So trying to figure out where to put your focus. I want to
bring Seth Berkowitz in. Seth, she's got this brand and now she's trying to figure out where
to focus her energy as she rebuilds. And presumably, Kehindo, you're looking to focus
on direct-to-consumer or wholesale or both? Both.
Okay. Got it. All right. Seth? All right. Well, Kehindo, it's great to meet you.
So I was looking on the website briefly. So talk to me about the community that you're particularly
like, is this a, you believe you're going after, because if you say I want to go after meta and
Google, 300 million people in the US alone, right? It's so hard to break through in the
industry. That's so vague.
And the meta Google, it's so appealing because I can turn it on, create content, go. But also,
it's unclear to understand how the data is exactly working. Is there, could you activate locally? Can
you feature maybe some of the artisans that are making the product? Try to do something that is
much core to your promise and your original founding than trying to go wider now.
Yeah. And that's like right on the money because I've been doing pop-ups. I just had
one last weekend in West Village. So I'm trying to do more of those in-person events where women
can try on my pieces, touch and feel the fabric and where I can tell the story about my brand.
So that is literally the route that I'm going and maybe even doing trunk shows in bridal stores or
things like that to connect directly with the customer.
What about like influencers in,
you know, the bridal space and the event space? Is there a connection you can make there? Because
their audience and their amplification can be much larger than you're going to get from whatever
the cost of acquisition might be on Google and meta.
Yeah. So in the past, I've dealt with influencers, but it wasn't successful. But to your point,
I think if I narrow the search and narrow the focus and deal with like special events,
yeah, that could absolutely work.
Kendo, I have a question for you.
Which, do you know which three or four products have generated the most revenue?
Yeah, absolutely. So it's the Cleopatra dress, Hadiza dress, the Ada tunic and the Egypt pants.
So I even named my pieces after African themes.
I love that. Okay. So you know that. And do you know who is buying those pieces and for which
occasions?
Yes. And that's why I narrowed to focus on special occasion wear. So I would,
you know, people would tag me on social when they were either a mother of the bride wearing
the Cleopatra dress or attending a wedding wearing the Cleopatra dress.
Yeah. I mean, I think that's really where your opening is, right? It's what are your
three to five bestselling pieces? Who bought them? If you can find out or if you can start
to collect that information, what was the event? So to me, it's like the question is,
where should you focus your energy? You asked, I think you were wondering, like, should it be
meta ads or Google ads? And I think your energy should be focused on really honing in on the three
to five pieces that are your bestsellers and build out from there. It's also an opportunity once you
collect that data. And once you've got, you know, these, these proven pieces, that's what you could
take to wholesalers when you go back, as you said, at one time, you were at Anthropologie and
newly and in a few other places. I'm not saying go back to those retailers right away. But you
want to be able to have data with what you are selling, right, you want to show sell through
rates and return rates and reviews. And, and that will enable you to go to 10, maybe 20 boutiques,
smaller boutiques, because that's a great opportunity to be in these smaller boutiques. But I would
really, again, that's where I would focus your energy on really honing in on those three to five pieces and, and then
think about how to build that out and market those.
Yeah, that absolutely makes sense. Because on my websites, you know, there's like sweaters,
cardigans, coats. So, you know, with this pivot, like, I'm only starting with, you know,
five to 10 styles of my bestsellers that have worked. And I think also the other issue I had
was I was growing with these large retailers. And I wasn't focusing, to your point on the smaller
boutiques. So that's my focus. I'm going to absolutely focus on smaller boutiques.
Seth, any, any thoughts, any additional thoughts?
I mean, I was just, you know, I mentioned it quickly. But like, I think there's a way to
differentiate your website that really highlights the designers. There's something about it shouldn't
feel generic in any way, it should feel mission based oriented with why you started the business
in the first place. And I think there's some opportunity there.
Yeah, I agree.
Thank you so much.
Yeah, the brand is called Cajindo, Cajindo Martín. Thanks for calling in. Good luck.
Thank you. I appreciate it.
Thank you. Seth, I know that apparel is not your space. But it's also like,
you've probably, maybe the best analogy, but you've probably introduced, you know,
cookies or brownies or other treats that just didn't work. And it was not a good use of your
energy to be selling those. I mean, I sold frozen yogurt, I sold cupcakes. I mean, I did everything,
right? Like, ultimately, what one was reducing the SKUs down to the core. And then once that became
incredibly well known, then you add platforms around it. So simply, I found for me simplicity,
be great at something simple, and repeat, repeat, repeat. I think your advice was very wise.
We're going to take a quick break. But when we come back, another caller, another question,
and another round of advice. I'm Guy Raz. Stick around. You're listening to The Advice Line
on How I Built This Lab.
Welcome back to The Advice Line on How I Built This Lab. I'm Guy Raz. And today I'm taking calls
with Insomnia Cookies founder and CEO Seth Berkowitz. And Seth, what do you say? You ready
for our next call? Let's go. All right. I'm Seth Berkowitz, founder of
Insomnia Cookies. Tell us your name. What's your name? I'm Guy Raz. And today I'm taking calls with
Insomnia Cookies. Tell us your name, where you're calling from, and just a little bit about your
business, please. Sure. Hi, Guy. Hi, Seth. I'm Tara Gilman, calling in from San Diego. And my
business is Sauna Societe. And we are a premium sauna hat company designed to elevate the ritual
of sauna. I found that I wanted to bring a product that was traditionally purely functional
and create a more stylish, elevated product for the modern sauna-going
user. Got it. Okay, Tara, thanks for calling in. So Sauna Societe, with an accent, right? Very fancy,
yes. And you make hats for the sauna. Okay, explain. Tell me, explain, please.
I would absolutely love to. And it's interesting because there's quite an education gap in why
even wear a sauna hat in the first place, though it's catching on quite quickly. So sauna hats
have been around for hundreds of years in Finnish culture, the Banyan Russian culture,
so basically what a sauna hat does, it protects your hair from high heats, from damage, from drying
out. It also makes for a more comfortable sauna session. The purpose, if you could stay in the
sauna for at least 15, 20 minutes, that's when the good stuff happens. So the sauna hat actually
absorbs a lot of the heat, and it allows you to stay in the sauna longer without your heart
pounding and you need to quickly exit. Wow, I love that.
I've been in saunas, I can't tell you how many times, and now I just did an image search. I have
never seen somebody in a sauna hat in the sauna. That is kind of amazing. And they look like, I
mean, yours don't, I'm looking at your website, but they generally look like elf, or what do they
call it, like gnome hats, kind of? Yes, exactly. So part of the design is kind of traditional.
They should be a little bit roomier because you want the hat, you don't want it skin tight,
you want the heat.
To have somewhere to go. So the design, it is kind of a little funky.
So it looks a little like a pith helmet, like that shape, right? But this is a thing,
sauna hats, just to go back to this, that it's designed to protect your hair,
but also to keep you in there longer? Yeah, so it sounds counterintuitive,
right? That's like, wait, how can I wear a wool hat on my head and be cooler and stay in
there longer? It's one of those things, you just got to try it. And it's a game changer. You will
not go back. Absolutely not go back. And was there, how did you come up with this idea? How
did you get started? Yeah. So I have been a sauna user at a local wellness club. And about maybe
two years ago, I started going maybe four times a week for 20 minutes at a time. And
I went to my hairdresser about maybe six months into that protocol. And she
said, Tara, what have you been doing to your hair? It's damaged. It's dry. Like definitely
not flat ironing my hair more. So, oh my God, the sauna. She said, that's it. So I said, okay. Like
I've seen one person in my life wear a sauna hat. So I go on Amazon, go to look for a sauna hat.
And one hat was truly like uglier than I barely could press a button to buy a hat because they
were so ugly. So I ultimately said to myself, what if I could just design a hat that was more
aesthetically pleasing for the masses, especially as more people are getting home saunas, infrared
saunas, and all these bathing sauna cultures. And you are selling them on your website now
only? It's direct to consumer or are you selling them in shops?
Yeah. Right now I'm working on, we're close to a co-branded hat at a local
store.
That is luxury right here in San Diego. I'm working on other hotel luxury spas and
other sauna chains that are popping up. All right, cool. And so you've just, I think you
just launched a few months ago. So probably, I'm assuming most of your sales are coming through
the website or through boutiques? Yeah, actually most of my sales have
been coming in person. So I've been wearing my hat almost every time I wear my hat. It's the
best conversation I've had. It's the
conversation starter. How do I get your hat? Oh, you know, here it is. So I've been selling a ton
that way. A few wellness fairs that I've been a vendor at and a few influencer posts have converted,
not a ton. And I just, we're in the Emmys gift bag. So we'll see how that translates. So just
kind of like throwing darts, honestly, marketing wise, but I haven't found the direct to consumer
in person, A plus. The harder is just like ads, websites, et cetera. Okay. Yeah. So my question right now is I'm wrestling with kind of
what marketing channels deserve my focus, kind of as Seth said earlier, to earn my growth and
really how to become synonymous with a sauna ritual. So I know Insomnia certainly didn't invent
the cookie.
And I certainly didn't invent hats. I'm really looking to build a brand that becomes synonymous
with this sauna culture that I certainly don't own. So that's really where I'm at right now.
All right, great. Seth, I want to bring you in. Seth Berkowitz, please say hello to Tara Gilman.
Are you a sauna user? Occasionally. I mean, the hairpiece is irrelevant to me,
but I understand the use case for most. The first thing that comes to mind is the education,
the education gap. So it took a few minutes here for you to explain it to us. And I'll tell you,
people used to say to me, who needs a late night cookie? That's not a thing. And as you said it,
creating that ritual requires a ton of hard work. So not to ask questions, back to a question,
how are you feeling about the margin on the product? The margin's fantastic. It's about 85%.
Okay. So giving this away is not that complex? Not at all.
I'm mindful of trying to go to the masses to go to, to go to, I mean, social, certainly influencer,
you know, you can do all those things, but you described it like wearing it in the sauna.
That's what sells it.
Right. The single easiest way. Cause like you might see it online and then
no one can talk to you and get the answers you just gave us. Like I'm, I don't, I don't need it,
but I'm sold that others should use this hat. I think seeing it live is critical. Seeing somebody
break down what, I don't know if it's stigma, but just seems like something that they need to be
educated on live.
Would be pretty good.
Yeah. I think you're, it sounds like this is where you are focusing your energy is that your main
channel really is in studios and spas and clubs and, and resorts, right. Where there already is
a sauna culture. I think that look, social is tricky. The customer acquisition costs are very
high and they get, they get higher and higher. And I imagine you don't have an unlimited budget
to just throw at social. Um, it,
it may be worth experimenting with a little bit, but I ultimately, I think that it it's about
getting it in as many places as you can locally and getting as much data as you can from those
places. Like, like what are customers saying? Like you may have maybe have like a little QR
code on the, on the hat that people can click for some kind of incentive just to give you feedback.
And so, and I imagine by the way, that this is not going to be the only thing you want to sell.
Right?
Correct. This is the entry point. And ultimately I would love to make my brand Sauna Societe
synonymous with the whole ritual of that modern sauna goer. So yes.
Like what else, what other things do people, I mean, towels, right?
Yeah. Towels, um, robes, swimwear, sauna safe clothing. So that's, you know, a big new,
new kind of category, but yeah, I mean, I really want to build the brand, prove out the hats. And
so, and with respect to feedback, truly anyone who's worn my hat has, I've only gotten positive
feedback and people love it and want to gift to other people. And I think the more I can
have people see it and use it, hopefully that just will continue to build.
I'm thinking about like at a spa.
They're probably not going to spend, I thought it was $60 or so in the hat every time they go.
Is there a way to make that more accessible on a more of a B2B landscape basis? Like you can
lower price point, right? That's where my head went initially, but it's,
is there a $10 version of this one day that is more, and I know it like kind of brings your
brand down. So that's not quite as interesting, but if you can get a hundred of them into a spa
easier than getting, you know, one to a person you have to educate.
Oh, I have a thought I kind of want to build on.
Sorry to jump in. What if you could get a lot of these hotel resorts, they have corporate events,
they'll have three day, you know, events where they get a hundred people or more. I wonder if
you could somehow connect with, you know, some of these folks at the hotels and say, look,
we want to, you know, for the gift bags or whatever that, that the welcome bags,
we want to include this. That could be an interesting sort of way in as well.
I love that.
I love that. And I think that that just gets more people wearing the hat and corporate gifting is,
is another kind of strategy that I'm looking into right now as we approach the holidays,
because it's a unique gift for companies.
I jumped in there, Seth. Yeah.
I mean, I think it's a little bit of a slight shift from where my mind was going,
but I think the concept is the same, which is sounds like seeing it, feeling it, wearing it
is key to, to, uh, to really bridging the education.
Gap. So any way you can do that cheaply, uh, and accelerate the business makes sense to me as well.
Tara, thank you for calling in Tara Gilman. Uh, your brand, her brand is called Sana Society.
Hey, good luck. Thank you so much. Bye guys.
Take care.
Uh, yeah, I, I actually love the saunas. There's, uh, there's a cool one in the Bay area. You,
you basically use the sauna and then you jump into the San Francisco Bay to cool.
Really?
That's your plunge. That's a cool plunge. Yeah.
Oh, that's awesome.
It's right on.
That's my dog. It's super, super cool. Yeah. But now there's hats to protect our heads.
Okay. Next up after the break, another caller with another business challenge.
I'm Guy Raz and we're answering your business questions right here on the advice line on how
I built this.
Welcome back to the advice line right here on how I built this lab. I'm Guy Raz. And my guest today is Seth Berkowitz. He's the founder of the bakery chain insomnia cookies, and we are taking your calls. All right, Seth, let's bring in our final caller. Uh, welcome to the advice line. You're on with Seth Berkowitz, founder of insomnia cookies. Please tell us your name, where you're calling from, and just one or two sentences about your business.
Um, hi, Seth. Hi, Guy. Thanks so much for having me. I'm Carol Deshawn and I'm in Houston. I'm the founder of the brand called Desden.
And we're officially licensed for 90 universities and growing. And, um, we create clear stadium bags and game day accessories. Um, I always say I designed for the female fan that wants to show her team spirit without sacrificing her style.
Awesome. Welcome to the show, Carol. So, so this is a, okay, you make bags, they're collegiate, so they're with college logos on them and they're designed specifically to bring into, bring them into stadiums?
Yes. So, and actually we have a full line.
We have a full line of totes and bags. Um, but our core products are the clear purses. In 2013, um, the NFL had instituted a clear bag policy for most all football stadiums. And so people, you know, we kind of had the right bag at the right time. I knew when NFL had gone that way that it was probably coming with college on college campuses. And so I went ahead and designed one and we were at market at the time when it was announced. And so the buyers were sort of in a frenzy to find a clear purse.
Um, so we make them cute. It's like a purse that you would want to carry, not because you have to carry it. Um, so we have several different designs in the clear purses. I usually read
design every year I come up with a new one and then sort of the accessories add on from there
bag straps and charms scarves and things like that and tell me a little bit I mean you've got
licenses obviously I'm assuming right from right all these universities how does how how does the
business do give me a sense of your your sales your annual sales so our sales we've actually
this year we're having a great year we've grown every year I mean we started in 2007 we're
actually going to be in our 20th year coming up and it was just sort of a slow growing we started
with a handful of licenses and some different designs I drew the designs we print them we
actually I've always been focused on wholesale from the beginning last year we were at 1.4
million to end or 1475 and this year we've already our fiscal year starts in February
and we are over 2 million so we're on track to do about I think two and a half by the end of January
and you meant you produce the bags yourself or are they made in
in overseas and and and brought here right both the clear purses are made overseas we do we make
all of our canvas totes and duffels in-house in Houston and then we print the bag straps we make
the scarves we do all of that in-house so it's kind of a combination all right so before we dive
in further what's your question for us so my question is you know after years of focusing
on wholesale and now we've been growing our direct consumer business we've discovered that the person
that's buying our product isn't the same person that's using it many of the people that are buying
our product are their moms and the grandmothers that are buying it for the daughters and
granddaughters and so as we decide where to focus our next stage of growth how should we market a
brand when the buyer and end user are two different people with different motivations
got it okay Seth I wonder I want to bring you in here say hello to Carol
the brand is called Desden the clear purses bags for game day for the stadiums it's a great
combination yeah I mean this is my like this is my bread and butter so Carol it's a pleasure to
meet you thank you same so college I know this place a little bit so you mentioned you're curious
how you think about what appeals feels to be a split consumer end user and buyer I would say
this is how I think about it with insomnia the consumer is the end user regardless of who paid
for it always right they're carrying around the brand it's
social currency for them if they love it and if they love it they're going to tell their friends
who are going to tell their parents to buy it from you so for me the center of the bullseye is the
student it is always a student you have to make sure they think it's relevant culturally relevant
socially appropriate for them something that stands out something that they will take a
picture of and post on social media I'm curious so do you have marketing teams that go to tailgates
do you set up tents at the games are you how out there are you all
we do a little bit of that we actually we started an ambassador program probably about eight years
ago and that's been really great for us so we have girls on different college campuses where we send
them our product and they'll go out on game day and take pictures and share it and you know post
and then we do I mean I'm doing I'm actually doing a pop-up in Austin this weekend for the
University of Texas game so we can do that a little bit but that might be something that we
should look more into as far as getting I mean it's a great way to get content and I think it's
a great way to get content for social media and things like that and that social media is how we've really grown the direct to consumer brand over the past few years which has taken off it's also such a distinctive I mean you have a clear bag right so you have the brand of the college being represented simultaneously but like what if every bag was mandated to have an insomnia cookie in it right like there's something where you can also be featuring yes that is a joke but you can be featuring somebody else's product which is an opportunity to elevate like partnership opportunities are endless
with a clear bag and then if you feel like all right I want to just get this cultural relevance up a little bit with the college student make sure for them it feels like something that they're excited to share put something in there that they really care about and all of a sudden things start to move like there's that clear piece is really interesting to me and that I think is really so to me it's like it could be a collaboration with another brand where you know you're working together and you both incentivize to promote each other and and the other thing I mean there
you know there are QR codes again QR codes are tricky but if there's a way to sort of say scan this and to win you know 10% off or a chance to win a trip to the college football championship game or something and then you can start to collect information about who's buying it you know and and you know because you want to be able to reach them during graduation or whatever it might be but if you can get something in the bag that then allows you to do that then that's a great way to do that.
allows you to learn more about the person who's using it then you can start to figure out how to you know at a market to them.
I love that that's I've never thought about that that's a great idea you know there's a lot of teams where to get tickets you have to line up and like live outside for two days or I don't do it's like a it's unlike ridiculous amount of time an opportunity to partner with with them at that moment right it's so many ways to market this it's so fun.
Yeah.
And as far as growth from here.
I guess my question is you know I've always focused on the wholesale and so then recently have moved more into direct and that has been, you know, we've got great margins being that we're the manufacturer, and that's been really instrumental to growing our business is growing the direct to consumer, but from there.
Would you suggest adding more licenses or moving into different licensing or what would, what do you think the best path.
Well, you would know the data on, I assume each license right I mean is there is it balanced is there a certain level of, I don't know sports success in a given campus that's better than, than in the others, because a lot I mean carrying 90 licenses is a lot.
Right, right.
From my standpoint, that seems like a lot to manage at your current scale.
No, but maybe, but maybe pick a team or two in some other sport and see, see how it goes.
Yeah, agreed, agreed.
The brand is called Deadline.
I'm going to go ahead and ask the next question.
I'm going to go ahead and ask the next question.
Podcast Summary
Key Points:
Seth Berkowitz emphasizes that businesses should "earn growth" by building deep consumer loyalty before expanding rapidly, rather than pursuing scale at all costs.
Insomnia Cookies maintains full ownership and control over its stores and product quality, rejecting franchising due to the business’s unique late-night, off-hours, and seasonal nature.
The brand’s growth strategy follows a lifecycle from college campuses to suburbs and eventually to family life, creating a self-reinforcing community-based brand.
For Kaindo Matene, Seth advises focusing on top-performing products (e.g., Cleopatra dress) and building direct-to-consumer awareness through in-person events and targeted customer insights.
Tara Gilman’s sauna hat brand should prioritize real-world experiences—like in-studio use and events—to educate consumers and build cultural relevance, rather than relying on high-cost digital ads.
Carol Desden highlights a key consumer insight
Success in niche markets depends on cultural relevance, storytelling, and experiential touchpoints—such as pop-ups, ambassador programs, or QR codes—that connect with core users.
The advice across cases centers on simplicity, product excellence, and deep customer understanding as foundational principles for sustainable growth.
Summary:
Seth Berkowitz, founder of Insomnia Cookies, shares key insights on sustainable business growth through deep customer connection. He advocates for "earning growth" by prioritizing community love and cultural relevance over rapid expansion, emphasizing that the business model—based on late-night, off-hours, and collegiate roots—requires hands-on control. In a call with Kaindo Matene, Seth recommends focusing on top-selling, heritage-rooted products and building direct-to-consumer awareness through in-person experiences rather than broad digital ads.
For Tara Gilman’s sauna hat brand, he stresses the importance of real-world engagement—like in-studio use and events—to bridge the education gap and build brand authenticity. Carol Desden’s case reveals a critical insight: end users and buyers are often separate, requiring marketing that resonates with both the emotional motivations of the buyer and the lifestyle of the end user. Across these examples, the overarching lesson is that success comes from simplicity, authenticity, and experiential connection—centered on the core customer and built through real-world interactions.
Each business learns that sustainable growth stems not from scale, but from deep cultural resonance and trust.
FAQs
The goal is to open 1,800 bakeries globally, with a current target of reaching 393 locations by the end of the year, driven by data on US and international growth opportunities.
The business was built around late-night, off-hours, and seasonal college-focused operations that are difficult to replicate through franchising. Ownership allows full control over product quality and innovation.
He believes in 'earning growth' by ensuring strong consumer love and brand awareness in each market before expanding. He prioritizes building community trust over rapid scaling.
The core customer began as college students, but the brand has evolved to serve a broader audience, including suburban residents and families, as the business grows through life cycles in different communities.
Focus on top-performing products, host in-person events like pop-ups or trunk shows, and build relationships with local boutiques. This creates deeper customer connections and avoids high-cost digital advertising.
Prioritize in-person experiences at spas, wellness events, and resorts where sauna culture already exists. Seeing and feeling the product firsthand helps educate customers and drives word-of-mouth growth.
Chat with AI
Loading...
Pro features
Go deeper with this episode
Unlock creator-grade tools that turn any transcript into show notes and subtitle files.