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The Best First Side Hustle Anyone Can Start - Ep. #294

37m 17s

The Best First Side Hustle Anyone Can Start - Ep. #294

The transcript discusses the profitability of farmer's markets, both as a vendor and as a host. The narrator shares how his wife organized a kids' farmer's market at a shopping center, which cost almost nothing to run due to the venue providing free advertising and space, and generated significant revenue through booth fees. He emphasizes that hosting such events can yield $20,000 or more per market, especially by leveraging existing foot traffic. The main interview features Michael McCoy, co-founder of Preppa Pizza, who started selling pizza dough kits at farmer's markets. He sold $60,000 in a summer, working under 20 hours a week, with high profit margins. After transitioning online, his sales exploded, reaching over $160,000 in a best month and $3-4 million in total sales. Key strategies included sampling pizza at markets to attract customers, offering a masterclass and support to add value, and using Facebook ads effectively. He advises that selling products like kits or ingredients is easier than selling prepared food due to lower regulatory hurdles. Other profitable market items include baked goods, pickles, and fresh pasta. The narrator concludes by planning to launch his own powdered drink mix at a local market, applying the same principles of sampling and direct customer feedback.

Transcription

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English
Speaker 1I started going farmer's market after farmer's market. And over the course of a summer, I sold $60,000 for the product, working part-time, under 20 hours a week.
Speaker 2Your first three months, you did $20,000 a month, working 20 hours a week, give or take? Yeah, yeah. Holy crap.
Speaker 1In the beginning, we didn't really know how good this was going to do. So we just started it out of our basement.
Speaker 2You don't need a team there. You're making a couple hundred bucks an hour of profit for the time spent in the market. That's an amazing living. But you can only scale farmer's market so much, so you start going online. What does your first three months of online sales look like?
Speaker 1When we went online in the beginning, we did, in less than 30 days, what we did in four months. Our best month so far, we did over $160,000.
Speaker 2Holy cow.
Speaker 1Basically, over the past couple of years, just online sales are low, a little north of $3 or $4 million. And we've kind of just scratched the surface of the marketplace.
Speaker 2What other farmer's market items, products, services did you see around you that seemed to be extra popular, extra profitable? I met this guy who sold pizza dough mix at his local farmer's market. He made $60,000 in a summer, mostly profit, working 20 hours a week out of his basement. No restaurant, no food truck, started the business with next to nothing. Basically, every market, he walked home empty. His best day pulled in $3,000 in four hours. So we're going to interview this guy. But before I get there, I'm going to start this episode today by breaking down how you can start your own farmer's market. Because guess what? I just did this with my wife. We're doing this right now. And it's actually really profitable. So I'm going to cover that first. Then I'm going to interview Michael about his pizza kit business. At the end of that interview, we're going to talk about other farmer's market side hustles that are printing money, homemade pasta, all kinds of stuff. And then he's going to give us more farmer's market hacks that you can apply to any business. And my favorite hack is a branded bag trick that sold his product before customers ever reached. His table enjoy. Okay, so let's talk farmer's markets. Now, I haven't spoken about this publicly yet, but it's a pretty cool story. So my wife and a friend launched their second kids farmer's market here in the Dallas Fort Worth area about a month ago. They did their first last year and it was a big success. Their first one last year had 50 booths and it took them a couple of months to sell all the booths. This one took him about a week to sell twice as many booths, 100. And it was a huge success. And it just got me thinking more and more about farmer's markets, not just from the perspective of a vendor. But it just got me thinking more and more about farmer's markets, not just from the perspective of a vendor. But it just got me thinking more and more about farmer's markets, not just from the perspective of a vendor. At a market, but from the perspective of the person who owns the market. So I know a farmer's market is like the least sexy business out there, but the unsexy businesses are the best. They're the most profitable ones. They're the ones that people are sleeping on. So hear me out for a few minutes and then I'll get into my interview with Michael. Let me try to convince you to start a farmer's market. I'll tell you exactly how ours broke down. So let me be very clear. My wife and her friend slash business partner did like 95% of the work here. I vibe coded an app for the judges so that they could score the booths on three different age categories. And several different factors. That's what I did. And then I showed up and filmed content. They did all the work. But I had a cool inside look into how it works and how much money it could make if the one that we didn't just do were a non-profit. We're doing this to help kids become entrepreneurs and not to be rich. But plenty of people could do this to get rich. And it costs almost nothing to start. The magic is in the overhead or the lack thereof. We had almost zero overhead. Now, typically, your biggest overhead is going to be your lease or your rent or your land. Or like, where are you going to put this market? All these people to set up 10 by 10 tents, six-foot plastic folding tables and chairs. Where are you going to do this? Well, you could do it like near City Hall like I do here in my small town. But what my wife and her friend did is they went to a popular outdoor walkable shopping area here in the Dallas-Fort Worth area. It's been here for about 15 years. It's got all the typicals. Cheesecake Factory, Grimaldi's Pizzeria, Burger Place, Frozen Yogurt, grocery store, you name it. It's nice. It's cool. But these guys are in the business of occupancy. They want as close to 100% occupancy as possible. And they also have apartments. It's a mixed-use complex. So they need things to be bustling. They need things to appear busy. And so it's in their best interest to host a farmer's market. And so I think it was my wife called the marketing manager or emailed them or whatever. And they were thrilled to be a part of this. They said, yeah, let's set a date a few months in the future. Let's rope off some parking spaces for you. And we'll help you advertise it. We'll put it up on our electronic billboard that like 100,000 people drive by every day. That's nice. Not an exaggeration. It's right on the freeway. We'll send an email out to our list. Like we will advertise this market for you and we won't charge you for it. And we're going to give you gift cards to our shopping center, to all the businesses here, to give to the judges just to say thanks for helping participate. So we did it last year. It was a huge success. And then we did it this year and it was a mega success. And I basically played zero role in marketing it either to the vendors or to the people that showed up. I posted about it on Instagram the morning of. I have no idea if it drove any traffic. But it was way too short notice to make a difference. So I don't want anyone to think that you have to have an audience to do this. It was packed. And it's perfect because people are already coming to that shopping center. Most of the people at the market probably had no idea there was even a market there that day. They just went there to buy some Lululemon leggings or whatever and then saw a bunch of kids selling cool stuff. And so they started shopping. But a lot of people did know there was a market. So they came there and then they might have bought some Lululemon leggings as well, which the shopping center would be thrilled about. And then you have all the friends and family. You have these. Seven to 17-year-old kids with a booth and their parents are posting about it on Facebook and Instagram and everywhere to friends and family and extended family. And they're showing up and driving business to the shopping center and to the other kids as well. So it's this beautiful win-win all the way around. Now, here's what we did wrong. We provided tables and chairs. Never again. Ever, ever, ever again. What you need to provide is just a space on the ground. Hey, here's a map. You take a laminated piece of paper with a number on it. You take a sandbag. You throw. A piece of paper on the ground. You throw the sandbag on it so it doesn't blow away. And then you tell people the day before the week before you are booth number six and then around eight a.m. All the vendors show up an hour before it starts. They set up, they set up their tent. We set out the tables and chairs beforehand, which is a big pain. And I won't get into it, but we're not going to do that again. And that was basically our only overhead. That was our only cost. And then they have an hour to set up or two hours or whatever they want or need. And then people start showing up at nine and it lasts until twelve one, two o'clock in the afternoon. That's how it works. A lot of these kids made hundreds of dollars in profit. I think a few made over a thousand and then some kids made less than a hundred. It just didn't go well. And the kids that typically didn't do well were the ones that sold really, really cheap knickknacks, you know, like 3D printed objects or crafts or stuff that people buy to be nice, but they don't really need. And it's also the stuff that takes forever for these kids to make. Side note, I don't recommend you sell that stuff. The kids that did well sold higher ticket stuff. And in this case, higher ticket is like twenty to fifty dollars. My daughter sold thirty five dollar custom hats. She had an 80 percent margin. And she made hundreds of dollars of profit in a few hours. Her overhead was a seventy dollar hat pressing machine and some like four dollar blank hats she bought on Amazon and some patches and stuff like that. Great business. So I think there's even more opportunity to do this for adults. And you could charge a lot more on booth fees as well. And this concept of doing it at an outdoor shopping market, that's not really a thing. Now, I know Tractor Supply, they have markets on Saturdays and it's genius because it brings people to the Tractor Supply and Tractor Supply. Usually aren't like in as good of a location as a Wal-Mart. They're usually kind of off the beaten path in more rural areas. And so it's a great way for Tractor Supply to market to the community, to let people know that they're there and then also to have a high sales day on that Saturday because people are showing up, buy hot chocolate, then they go in and buy a bunch of chickens or whatever. So Tractor Supply is kind of pioneering this along with my wife and her business partner. But at the end of this, the shopping center went up to my wife. Remember, this is the second time they did it and said, this was amazing. How soon can we do this again? And they don't even have results yet. It's not like they signed a bunch of 10 year leases on the spot. Like, you know, commercial real estate doesn't work that way, but they just want bustling activity and that's what they got. So here's how the unit economics break down. First of all, this shopping center is not massive. I would say it's midsize for DFW, certainly on the lower end of midsize, but it could fit at least 200 booths. And these booths are on sidewalks and in parking spaces. And they also have a parking garage, so they have plenty of parking. That's not an issue. A booth fee, realistically, at an average market is 50 to 100 bucks. And remember, you don't need to provide anything. They bring their tent, their tables and their chairs and their supplies and their equipment. And if they need electricity, they just plug up to an outlet and, you know, the shopping center covers that. So 200 stall market, $100 a piece. That's $20,000 for five or six hours of work on a Saturday. Plus, of course, like some prep work beforehand, some marketing. But in the case of my wife, like they have a Facebook page with like $300. Followers Instagram page with something tiny, like they didn't have a big audience. They're just piggybacking on an existing audience of the shopping center. That's why it works. So you do one of these every weekend. Put 10 grand profit in your pocket, 40 grand a month. I think that's possible. Or just be a vendor at these things or show up to one of these and see which booths are consistently busy and then copy that concept at the same market or at a different market. I really, really love the branded bag idea that you're about to hear in this interview. You've heard of Justin's. Nut butter, multi hundred million dollar brand sold in thousands of grocery stores that started at a farmer's market takes bake shop. I think that's a billion dollar business. Farmer's market, Burt's Bees, green goo sprouts markets that started as a farmer's market. I am actually going to finally launch my powder drink mix business that I've been talking about for years called Busy Juice at my local farmer's market. That's two minutes down the road from me on May 9th, and I'm going to document that whole process, buying the bag, sealing the bags, buying the ingredients, mixing it in my kitchen, the regulatory. I'm gonna have a live stream set up. at the tent all day. I'm going to bring samples of drinks. People are going to taste it. I'm going to sell it for 30 bucks a bag. It's got like 70% profit margins. I'm going to eat my own dog food or drink my own powder drink mix in this case. So be looking for that video in late May or June. These markets are just an amazing place to get immediate real-time feedback from strangers on your product. It doesn't have to be food. It could be cutting boards. It could be anything, beef jerky. I guess that's food, but go find what works. In the case of this guy I'm about to interview, he had no precedent for a pizza mix making a thousand or $2,000 in four hours at a farmer's market. That wasn't a thing. He didn't go copy anyone else. He just blazed his own trail. And now he's got a multimillion dollar business on his hand a couple of years later. Go start a farmer's market or go be a vendor at a farmer's market or go support your local farmer's market as a consumer and check out this interview and please share with a friend. Oh, and if you're here for the first time, please hit follow or subscribe on Apple Podcasts or Spotify or wherever. It would really go a long way. Thank you. Well, why don't you start by telling us who you are and what you do?
Speaker 1So my name is Michael McCoy and I'm co-founder of Preppa Pizza, where we sell a pizza dough making kit to people who want to make better pizza at home. That's basically what I did for more than a decade. It's kind of nerded out, bought every bit of equipment, tried all kinds of brands. Like in the very beginning, I created a fake pizzeria so I could contact every vendor and get like flour you wouldn't buy anywhere else on Amazon or in any kind of specialty. So I could find, you know, kind of what I was looking for. Realistically, it was, you know, I always try with food at home. It's like, how can I emulate a restaurant that I love? And so I, you know, would start with, you know, okay, well, what brands of flour are they using? What kind of techniques are they doing? What types of other ingredients are incorporated with this? And how can I, you know, almost exactly mimic it, you know, to the point where now we've created this.
Speaker 2Gotcha. What was it? What background did you have that led you to start this business?
Speaker 1So I, for lack of a better word, I've reinvented myself in business about five different times. I had been doing a lot of business in the past that I wasn't really passionate about. None of the things that I did were really anything that I loved. For a while there, I was kind of in a rut, wasn't really happy, you know, family wasn't really happy with what I was doing anyways in business. And so we kind of like sat down one night and it's just, like, okay, well, what's something that I could do that I really love and I'm passionate about and that I could really like, you know, sink into? And, you know, the first thing that came to mind was like, we should start a pizzeria because, you know, I'd been making pizza at home for, you know, more than a decade. I've been nerding out on it just like you did. And realistically, you know, it was my passion. It was my love, you know, for a really long time. And everybody else loved it too. Like, you know, we'd always have pizza parties and things like that. And everybody would say, you know, I'm going to make pizza. I'm going to make pizza. I'm going to make pizza. I'm going to wow, you should really open a pizzeria. You should really open a pizzeria. And so one day I turned to my wife and said, would you like me to open a pizzeria? And she said, no, because we both worked in the restaurant industry before. She's like, you'll be there night and day. Like, I don't want you to open up a pizzeria. So I sat and I thought, and I was like, well, kind of come from a direct response marketing background and, you know, had basically have all kinds of background with restaurant training as well as, you know, online training and things like that. So I thought, well, how can I marry all of that together? And that's where kind of our pizza dough making kit kind of was born where basically I provide you with the best quality ingredients and also training and support. So that way you can execute because that's the biggest problem with most people. Most people have a challenge in getting to the finish line. And so then they go back, they revert backwards and go to the grocery store and, you know, buy what's pre-made kind of easiest. And, but once you get past the point, just like you did, once you get back past the point of making something really good, you're like, wow, this can be amazing at home. And that's kind of the biggest hurdle that I think most home cooks have with making pizza.
Speaker 2It's funny. Cause you had that, you said the comment where you're so good at making pizza, you should open a pizzeria. Like I swear every failed restaurant that ever failed was because someone had that same experience over and over and over. They were good at making X, Y, or Z food. And all their food was good. And they were good at making pizza. And they were good at making pizza. You should open a restaurant. What those people don't realize is that opening a restaurant is nothing like being a good cook. Like being a good cook is like 20% of it. You still have to run a dang business, you know? And so then they open this restaurant and they're there till midnight every night. And then it fails because a business is much different than just cooking in your kitchen. So what did that first month look like? How did you start your business?
Speaker 1So basically in the beginning, we didn't really know how good this was going to do. So we realistically kind of just started it out. I would measure, me and my wife would spend evenings in the basement, like measuring out ingredients and building these kits. And, you know, we pre-ordered all of these different bags and stuff like that, that we could then load everything with, with like normal gram scales in our basement on tables and stuff like that. And then we had a sealing machine and we would build these and we'd build, you know, typically like a hundred at a time. And then I would go out to farmer's markets. Cause I knew that that was kind of like the fastest way that you could go and present some type of food related product and see if there was a market for it without realistically low end investment. Weren't really spending any money online or anything like that. And I started going to farmer's markets and then I started to go to three or four farmer's markets a week. And every single time I'd go, you know, I'd show up, I'd have a little pizza oven, my table set up and, you know, 30 to 40 of these. And every single time I'd walk home without them and people would buy them. And I wasn't the cheapest product at the farmer's market. You know, we charged $30 for our kit, $29.97 online. And realistically to a consumer for pizza dough, I mean, that's probably the biggest comment we get online. Oh, that's really expensive, but it's not just about, you know, the ingredients inside of the bag. It's about the training, the support that you get, you know, the actual level of commitment to making sure you pass the finish line and enjoy your experience. That's what we're really selling is at any rate, I started going farmer's market after farmer's market. And basically over the course of a summer, you know, I sold roughly $60,000 for the product kind of your first summer part working part-time. Like, I mean, typically the farmer's market is like a couple hours and I was maybe like three to four a week. So I mean, under 20 hours a week that I was working on this project selling $60,000 for the stuff. So it wasn't that at all.
Speaker 2So your first three months, you did 20,000 a month working 20 hours a week, give or take. Yeah. Holy crap. What was your profit on that 60,000?
Speaker 1So in the beginning, it was pretty much all, you know, for the most part profit because the margins on the actual product. So I would say if you factored in our time, we spent a lot of time making everything. So it wasn't, you know, like realistically the showing up to the market and everything like that. And in the end result of selling that part was, you know, kind of a limited amount of time, the backend time, which was, you know, us being our own in-house manufacturing facility. That was probably the majority I would say of the works. But as far as, you know, ingredients are, they're not inexpensive, but they're not expensive. But then we also were buying in bulk so I could lower my costs and things like that. But then we were manufacturing in-house. So technically we, you know, literally in-house manufacturing in basement. Yeah. Manufacturing at home. Um, and then, you know, we just kind of grew from there. And so then when I took it online, um, basically we kind of knew we had something, didn't really know how well it would do online. Um, and I was a little bit new to, you know, like Facebook advertising and I kind of hired agencies out, took everything over on my own and now we've been pretty much exploded.
Speaker 2Okay. So I want you to grade my pizza recipe and then I'm going to guess your margins. My pizza, flour, one kilogram, thousand grams. That's going to, that's going to set me back. And I don't buy in bulk. It's going to set me back like eight bucks or something. Right. Six bucks, something like six to eight bucks. Then I'm going to put in 700 grams of water and then I'm going to put in like six grams of yeast and 25 grams of salt. That sounds about right. So if I were selling that, it looks like you're 30 bucks for six pizzas worth. And so that's like, I'm guessing, I don't know, is that like a pound and a half? Is that right? Um, so the package itself weighs, two pounds. Okay. Two pounds. Okay. Um, so I'm guessing you've got like 80% margin on that
Speaker 1product as far as the actual ingredients and things like that. I'd say that's, that's probably pretty close. Gross margin. Yeah. Yeah. I mean, I will say that our good friend Zuckerberg gets
Speaker 2the majority of our money. Sure. Yeah. We'll go in, we'll go into the e-comm side, but now I'm thinking for like, I'm still thinking on the farmer's market side. So first summer, are you doing like one farmer's market?
Speaker 1Every Saturday or are they more often than that? So there are ones that you can do like throughout the week. So I did a Wednesday, Thursday and two Saturday markets. And that was the four that, that I did it in a week. Okay. So I had my wife go to one and I went to another one on Saturday, but realistically in a lot of towns, there are ones that you can do, you know, essentially Wednesday through Saturday, typically there's a market in some place or some town close to you. It just depends on what town it is. So, but realistically,
Speaker 2someone could easily get three in by themselves so you guys were doing like call it like 12 to 16 markets a month that first summer right i hear it okay so call it 48 markets you're doing like 1200 to 1500 in sales per market on average and i'm sure some are like 400 and some are 2000 is that accurate yeah it just depends on the day yeah and then markets are what four to six hours
Speaker 1so typically the ones around here about two to three hours of the total time of the actual market itself so like i'd say you're probably there for maybe four and a half hours total
Speaker 2if that okay like it really wasn't that long guys tkowners.com that's my community where people are building businesses i do amas q and a's every week live you can ask me anything you want you can have accountability partners it's about a thousand people in there building starting growing businesses check out tkowners.com so you're only making pizzas for samples you're not selling pizzas just the kids
Speaker 1right right so the goal in the beginning was not to become a pizzeria but to sell you know show people showcase the product sell people on you can do this too and this is how good it can be and so that's you know so i would make it exactly the same so there'd be no difference in the dough you know and i would do minimal stuff like minimal cheese minimal toppings you know things like that but you know minimal sauce minimal cheese so they could really taste what good dough could be versus well you're just putting a ton of sauce or you're just putting
Speaker 2yeah yeah now are you putting anything else in the mix other than flour salt yeast so we add a
Speaker 1couple of helpers we provide honey as a helper like powdered honey we're going to change that in time for vegan people but basically a healthier sugar which helps the yeast activate we also provide diastatic malt powder which basically we do a two-part recipe we teach poolish which is a bread making step of making a pre-ferment before you actually finish your dough so when you've mixed more ingredients in makes it even you know basically it's in the pizza industry it helps to kind of move things along faster um and so that's that's why we chose this recipe because we're trying to you know like if i said hey man all right cool you know mix all that stuff together now let us sit in the fridge for three days yeah that's what i do i love it so and some people you know are are definitely more into like the faster time so we were trying to figure out how could we give people the right recipe but also the fastest recipe for that where we landed with this i mean
Speaker 2you've got a you've got to build it for the lowest common denominator for the everyday at home you got to make it easy simple frictionless you said the word poolish and i i heard veto that youtuber
Speaker 1i'm sure you you know him yeah yeah he's so entertaining i i know him very well i see him every year at the pizza expo oh that's awesome and we talk a good bit so he's a good friend it's
Speaker 2funny because i'm thinking back to the conversation you had with your family like what is your passion like oh it's pizza if i were to have that conversation with my family oh man it's pizza it's barbecue it's mowing the lawn it's trimming trees it's planting trees it's fruit it's horticulture i have so many passions but i will say like in the passion versus profit argument like passion is just the way to go man like you might not be able to afford starting a business that's your passion early on but as soon as you can like do a business that you are passionate about and you will have the most rewarding fulfilling life ever yeah they always say if you do what you love you never work and never work a day and it's true it's a cliche but it's so true okay so by my count you're making you know exclude the time it takes you to prep the stuff if you just look at the time spent at the market it's only you because you're offering something that's very simple you know pay here here's the qr code of venmo or whatever right you don't need a team there you're making a couple hundred bucks an hour of profit for the time spent in the market of course doesn't account for your time before then that's an amazing living but you know you can only scale farmers markets so much so you start going online what does your first three months of online sales look like so actually
Speaker 1in the very beginning and another thing too just like a sidebar is that we didn't just do farmers markets we did different food shows we did lots of golf tournaments we did neighborhood events basically anywhere that would let me show up make a little bit of pizza and had a crowd like it's kind of where you know golf tournaments was really big one like it was a super easy you know lo-fi thing to spend you know a golf round you know sitting around making pizza chatting with people and you know easily i was selling 40 or 50 of them at a golf tournament it was definitely a good place for it but when we went online in the beginning was kind of i was a little bit new to facebook marketing i hired an agency on at first we did okay but realistically we didn't really do great and it wasn't until i took things over myself and really started investing in to the marketing and understanding everything um that we went like probably our first four months of marketing basically our sales online were dismal although we did get a call from a few people and we were like oh my god we're going to do this and we're going to do this and we're going to do this and we're going to do this and we're going to do this and show that everybody knows that you go on their show and they'll maybe invest in your business did you did you go on it we haven't yet but basically they they invited us to try out for the the show and i laughed because when they called us i said well we've sold five of these online so i'm not really sure we're ready for you guys yet but i guess we'll sign up so maybe at some point we'll get on that show too but it's kind of funny at any rate so after that i was like oh my god i'm i'm not really sure we're ready for you guys yet but it's kind of funny at any rate so after that i was like oh my god i'm basically we did in less than 30 days what we did in four months in sales just by me taking out over everything and really understanding the marketing and how facebook marketing works and kind of applying the right principles and we've been just scaling from there where our best month so far we did over 160 000 in sales you know basically over the past couple of years just online sales alone and we've been just scaling from there where our best month so far we did over 160 000 in sales little north of three or four million dollars in sales and we've kind of just scratched the surface of the marketplace we're just understanding how to build this business you know as i'm sure you're aware of the e-com world it's not you know it's not just like press play and you're instant millionaire you've got to actually it's hard do a lot of things to get it you know going right and efficient and you know cost efficient based on your advertising and that's the most expensive thing but kind of like the good thing about what we're doing is that we had you know margins in place that allowed us to really kind of explode our marketing where other companies out there might only have a 10 or 15 or 20 margin yeah i mean it looks like you have
Speaker 260 active ads right now which is awesome most people don't realize that about facebook ads you have to have a way more creatives than you think and you have to rotate them much more often than you think listen i need more people like this to interview on my podcast so if you know of someone with a side hustle or a business that's unique and cool and super profitable email molly m-o-l-l-y at cofounders.com that's one word cofounders.com molly at cofounders.com tell her your story and we'll give you 100 bucks if we end up interviewing them we're like we're friends of the farmer's market my wife put on a farmer's market for kids she was in charge of it with a friend and we're vendors at a farmer's market here in town regularly we sell all kinds of stuff we're an entrepreneurial family so i'm going to one next month and i'm going to sell a powdered drink bit mix in a gusset bag like what you sell yours in it's a powdered drink mix with three ingredients that i personally drink and invented and love and so i'm going to do it a to make money b to make some content about it what tips would you have for me for selling a product that has a form factor just like yours but is a powdered drink
Speaker 1mix instead it's going to be a similar price point as well yeah i'd say uh literally set up some cameras behind you yeah and have people try it do people have issues with the cameras or the mics at all ever no never never had one issue with it or anyone like thinking something was wrong but to me it just felt like if i was too like abrasive about it then people would care if that makes sense like if i was just like okay hey can you hold this mic real quick because i'm trying to make content for my blah blah blah that people
Speaker 2just pretend like it's not there unless they say something yeah hypothetically so you did 60 grand the first summer just at farmer's markets what might you have done in sales that same summer if you had no samples you were just kind of selling them
Speaker 1on the dream you just had the product there i mean honestly i think i will say that it was 50 50 because i also tried selling without samples and more so i i would say without samples someone that had bought some equipment and failed you know so realistically it's kind of like you know a lot of people that went to farmer's markets also were the outdoor cooking crowd of people and so it was a very easy pull for our product i i would say that definitely samples help you know and in the beginning samples i would suggest for any product doesn't matter what it is like sample because that you know except obviously like eggs you can't crack an egg and then say hey you know
Speaker 2you just get to say my chickens lay the best eggs right now if in texas we have the texas cottage food law where if i were to make pizzas at this market i need a food handler's permit and it's totally different than if i sell cookies because those don't require refrigeration i don't need any licensing if i sell cookies right in your case did you need a special license to give out samples
Speaker 1or no so that's kind of interesting and we actually talked with someone in texas about reselling our product there as well. And the laws are only applied if you sell the pizza. So if I'm just giving you a sample of a pizza that I've made to test out, it doesn't apply because the exact same laws in Georgia, where, for example, if I show up to a farmer's market and I'm selling pizza to people, I am now a food truck. You're basically a restaurant. Yeah. Because of that, the law is almost identical between the two states. In most states, I found out that Pennsylvania is the only one that's really weird about it. But other than that, the majority of states, it's been something where anyone could.
Speaker 2Okay. What was your best market ever with regards to sales and what was your worst?
Speaker 1So I think my best market ever, we did close to three grand, but it was a really big, really big market. And I think that's where I'm at right now. I think that's where I'm at right now. Wow. I think that's where I'm at right now. I think that's where I'm at right now. Wow. I think that's where I'm at right now. I think that's where I'm at right now. Wow. I think that's where I'm at right now. I think that's where I'm at right now. It was kind of a big event that was all tied up together with the farmer's market as part of it. So basically, it was almost like triple the amount of people that would normally come to the farmer's market. And I would say that every farmer's market is not a great place. So you have to be a little bit picky and choosy. I would say ones that cities hold on, that are actually inside of the city I've found tend to be better than ones that are outside of the city limits. That's the one I'm doing. Yeah. Yeah. And the reason why is because I've been to ones that basically are a farmer's market, like in the traditional sense of on the side of the road that no one showed up to because it was poorly marketed, where the cities are trying to, especially smaller cities, they're trying to get people to come into their town and also do business with the other businesses in town. And farmer's markets is a great way to kind of get people around the area. To actually come in and invest in the town itself.
Speaker 2Yeah. Okay. What about these classes? Who's doing classes and what, how big is that business?
Speaker 1So every person who buys our pizza dough making kit gets our free masterclass. So basically we provide them with a course. It walks them step by step on how to make pizza dough the proper way, you know, has tons of different troubleshooting information. It's actually something we're reshooting because we also found other things that people had problems with. So it's something that's ever evolving for us. But then we also back that by providing customer support. So for example, like if you had a question and you were making dough and you needed a little bit of help, you can hop on the chat on our website and lo and behold, I'm the person answering it right now. And so I help people out every single day. You can even call our 800 number and get real answers to kind of, you know, the goal, realistically, our goal is, is to have people enjoy what they're making, be successful in their making and, you know, making it and then having a really good piece. Speaker 2 : Better than any pizza around them, which makes them want to make it more. Speaker 1 :
Speaker 2Okay. So you've got a masterclass, but that's free to anyone that purchased it just so they can learn how to better use your product. That's not like a revenue generating side of the business, but it supports your revenue. Speaker 2 : Exactly. Yeah. Speaker 1 : Okay. If someone's watching this right now and they love pizza or they love cooking and they want to monetize that somehow, what suggestions would you have for them? Would it be selling pizza at a farmer's market? Would like in the pizza space, what's like an approachable business idea or more? Speaker 2 :
Speaker 1Yeah, I mean, I would say that, you know, reselling pizza related products versus selling pizza, because for example, selling pizza, there's an initial investment, just like having a restaurant, you know, in the equipment to make the pizza as well as the licensing that you would need to sell it. Not that it's like super expensive, but sometimes, you know, not everybody has, let's just call it under $25,000. Speaker 2 : Yeah. Speaker 1 : Stowed away to, you know, start a pizza venture with. So realistically selling products like this, I think or other even equipment would be something where, you know, you can showcase equipment and how it works in certain ways. I wouldn't say like stones and steels are really hard to showcase, you know, like at a venue like that. But that would be something that easily someone could go and sell, you know, they would just require the inventory. So. Speaker 2 :
Speaker 2So when you were spending time at these markets, what other like farmer's market items, products, services, did you see around you that seemed to be extra popular, extra profitable?
Speaker 1Speaker 1 : So I would say the majority of people that seem to make the most money were someone who made baked goods. They seem to sell out of their products pretty frequently. And especially if they were good at making the baked goods, they didn't have a lot left over. So, you know, definitely, you know, I know, baking is a really big niche. And so, you know people making breads and things like that at home and being able to go and sell that at farmer's markets, those seem to do really well. And then, you know, kind of like, I would say interesting things as well. Like we had, there was a lady that sold pickles, like she made her own pickles and everything like that. There was a lady who basically kind of had multiple different farmers markets and she sold pasta. So basically fresh made pasta. She made it out of her basement and everything like that. And then, you know, had kind of like this army of girls going around the different farmer's markets selling pasta. So I think she does pretty well at it considering she has, you know, Speaker 2 : I mean, if you have an army of people that you're paying,
Speaker 2you're not going to scale something that doesn't work. Yeah. That's very interesting. What was the form factor? I imagine it wasn't dried out. Did she like make the pasta fresh and then bag it and refrigerate it? Speaker 2 :
Speaker 1It was refrigerated pasta. And so they'd show up coolers and basically, you know, interesting. And she had a following at the market because that's, that's typically what happens is like, you start to build a following of people that buy your product and then buy it over and over again. And almost like weirdly only want to buy it from the farmer's market. Like where I had to convince several people. They kept asking me, when are you going to be back at the market? And I'm like, you know, I, I gotta, gotta take, but you can buy it online. I literally will ship it to you tomorrow. And they're like, yeah, well, I don't trust the
Speaker 2internet. And I'm like, just come on. Let's let's talk. Speaker 1 : Michael, this is an incredible business. Thank you for sharing your time with us. I love your story. Where can we find you if we want to learn more or buy your pizza kits?
Speaker 1Speaker 2 : Yeah. So if you go to prepapizza.com, you can buy our pizza kit and you'll see a boatload of ads for me. If you're on Facebook or Instagram or Google. Speaker 1 : Okay. Thank you, Michael. Speaker 2 : No problem. Thank you. Speaker 1 :
Speaker 2Hey guys, if you're still listening to this, it's probably because you haven't had a chance to take your AirPods out. Speaker 2 : You're still mowing the lawn. You're still driving. What have you, if you're still here with me, I would really, really love and appreciate a five-star review on Spotify, Apple, or wherever you get your podcast. It would mean a lot. If you want to go the extra mile, share this episode with a friend that might have an interest in starting a business. It would mean a ton. Hope you have the best day of your life today. Speaker 1 :

Podcast Summary

Key Points:

  1. Farmer's markets offer low-cost, high-margin opportunities for selling products, with potential for hundreds of dollars in profit per event.
  2. Hosting a farmer's market at an existing shopping center can be highly profitable, with minimal overhead and free advertising from the venue.
  3. Michael McCoy built Preppa Pizza, a pizza dough kit business, starting at farmer's markets, earning $60,000 in a summer working under 20 hours a week.
  4. Online sales dramatically scaled the business, reaching over $160,000 in a single month and $3-4 million in total online sales over a few years.
  5. Sampling products at markets is crucial for sales, and selling kits or ingredients (like pizza dough mixes) is more accessible than selling prepared food due to lower licensing costs.
  6. Successful market items include baked goods, pickles, fresh pasta, and higher-ticket products (e.g., $20-50 items with strong margins), while cheap knickknacks often underperform.
  7. The branded bag trick and building a following at markets can boost sales, and the business model can be replicated with other products like powdered drink mixes.

Summary:

The transcript discusses the profitability of farmer's markets, both as a vendor and as a host. The narrator shares how his wife organized a kids' farmer's market at a shopping center, which cost almost nothing to run due to the venue providing free advertising and space, and generated significant revenue through booth fees. He emphasizes that hosting such events can yield $20,000 or more per market, especially by leveraging existing foot traffic.

The main interview features Michael McCoy, co-founder of Preppa Pizza, who started selling pizza dough kits at farmer's markets. He sold $60,000 in a summer, working under 20 hours a week, with high profit margins. After transitioning online, his sales exploded, reaching over $160,000 in a best month and $3-4 million in total sales. Key strategies included sampling pizza at markets to attract customers, offering a masterclass and support to add value, and using Facebook ads effectively. He advises that selling products like kits or ingredients is easier than selling prepared food due to lower regulatory hurdles. Other profitable market items include baked goods, pickles, and fresh pasta. The narrator concludes by planning to launch his own powdered drink mix at a local market, applying the same principles of sampling and direct customer feedback.

FAQs

Michael McCoy sold $60,000 worth of pizza kits over a summer, working under 20 hours a week, with high profit margins. His best market day brought in nearly $3,000.

Start small with low investment, like making kits in your basement, and test your product at multiple markets. Provide samples to attract customers, as this was crucial for Michael's success.

The gross margin is around 80%, as the ingredients are inexpensive, especially when bought in bulk. Most costs come from marketing, not the product itself.

Once you prove demand at markets, take the product online using Facebook ads. Michael initially struggled with an agency but saw success after managing ads himself, reaching over $160,000 in a month.

Baked goods, homemade pickles, and fresh pasta are highly profitable. A pasta seller even hired a team to sell at multiple markets, indicating strong demand.

In most states, giving away samples doesn't require a license if you're not selling the prepared food. However, selling pizza directly would classify you as a food truck, except in states like Pennsylvania with stricter rules.

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