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My Subscription Addiction
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How Do You Start a Subscription Box Company? Get All Your Questions Answered!

Liz Cadman
ByLiz CadmanNov 8, 2013 | 19 comments

My Subscription Addiction Upcoming Q&A Post - Questions Needed!

UPDATE: All of your questions have been answered in this post: Starting a Subscription Box Company - Your Questions Answered!

I'm wrapping up my post covering all the questions about My Subscription Addiction and myself, and in the mean time I have another Q&A post to share with you. (Thank you for submitting all your questions! There were more questions than I anticipated (which is awesome) and t's taken me longer than I wanted it to answer all of them - but I promise a thorough answer post soon!)

Moving on to the next Q&A opportunity: It's time to ask any subscription box question you ever wanted to ask the founder of a subscription box company!

yumvelope

Sam Gold, the founder of Yumvelope, has volunteered to answer any questions you may have about Yumvelope and subscription box companies in general. Sam is up for answering any and all questions - so don't hold back! Just leave any questions you have in the comments below.

Some of my questions:

  • How do you select which products will go into a monthly box?
  • Do you pay for the products in a box?
  • How big is your team?
  • How do you start a subscription box company?
  • What's the biggest surprise you've encountered since starting Yumvelope?

What are you curious to learn more about?

Posted in Blog
Liz Cadman
Liz Cadman
Liz is the founder of My Subscription Addiction. She's been hooked on subscription boxes since 2011 thanks to Birchbox, and she now subscribes to over 100 boxes. Her favorites include POPSUGAR Must Have, FabFitFun, and any box that features natural beauty products!

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19 comments

Kkspears

Guys, She ins’t going to answer your question.. she is in this to SELL you her BOOK.. you want to know anything.. then she well tell you to BUY her book. she is all empty promises and BS.. do your own homework.. the answers are actually out there….

I have been doing alot of work and have found out alot of information on my own.. good luck to you all.. look at the types of boxes you want to produce… how flooded is the market.. how many boxes are already there.. is there anything missing that everyone seems to go NUTS for when it does come out occasionally? THINK carefully before you act on your decisions.. and best of luck.. if she doesn’t strike my email kkspears at g mail at dot com

have a wonderful day

K

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Liz Cadman

Seems like there’s some confusion (or maybe I’m not the person you’re referring to?). I don’t have a book – or anything else I’m selling. But we did a follow up post answering all the questions here: https://www.mysubscriptionaddiction.com/2013/11/how-to-start-a-subscription-box-company.html

I hope that helps!

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Stacy Parker

I’m seeing tons of questions but zero answers. Is there a link to get to the answers that I’m missing? There are some really great questions on here!

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Liz Cadman

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April

All of the questions above are fabulous! Will the answers be posted for everyone to see? I have a few of my own:

1. Should copyrights and trademarks be in place before launching your site?

2. How do we go about finding suppliers? My thought is I see something that will go great in one of my boxes at a retail store. How do I circumvent the retail store and go straight to the supplier? Are items less expensive this way? How do the logistics of that work?

3. When should we consider using a fulfillment center? Is there a certain sales volume? What are the logistics of using them?

4. Can you outline the logistics, step-by-step, of how an order is fulfilled once it’s made on our website? Should we order the contents of the boxes as they come in? I’m concerned that without knowing how many online orders we’ll have, we won’t know how much to order in advance. However, I’m concerned that if we wait to order supplies once the orders are made, it will take too long to receive the items from the suppliers, then still have to box and ship them.

5. How are shipments typically handled? Starting out, do we literally take our boxes to the post office ourselves? What about once sales volume starts increasing?

6. I see all the time that a business will guarantee their box has a $25 value, but it will only cost $25. How is the profit made?

7. What kind of start up costs should we expect (types of costs and estimated amounts)?

8. How far in advance should we plan the contents of our boxes?

9. What is a reasonable profit/ROI?

10. What mistakes did you make? How did you fix them? What would you have done differently?

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Meg

Where are the answers to all these great questions???? I really want to know?! Please!

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Liz Cadman

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J

Hi, just like Kristen, am wondering what the status is? Thx for this!

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Liz Cadman

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Kristen

Have these questions been answered?? I’m curios to see the answers!!?? This concept is so neat!

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Liz Cadman

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Anna

I’m curious how far ahead of time the the box selections are finalized. For example, are the boxes already planned for August, September, etc when the July boxes go out? How many products are sampled (that’s got to be the best part!) before the final decisions are made for what will go in each month’s box and what are some of the reasons a product might be rejected?

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Erin

Besides all of the other questions listed above, I’ve always wondered if you need a permit or license to ship food through the mail in these boxes. Also, do you pre-purchase what you are going to include in the box, or prep the vendors you have lined up and then notify them of the # of pieces you will need for that particular month?

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Kaitlin

How important do you feel stellar customer service is for companies – especially with a subscription box company?

I’m a sucker for good customer service (having experienced such poor customer service in the past). Even if a company is selling a mediocre product, I’ll likely consider it if they have awesome customer service.

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Farah

What are some of the challenges and pitfalls that people don’t account for when starting their service?

What is the one thing that you wish you had known, or done differently when you first started in the business?

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vikeejeah

When requesting sponsorship from companies, what is the best way to go about this? Must one have a written request or is a face to face proposal better?

How many sponsors are recommended before revealing your company to the public?

How long does it generally take to create a subscription box company from concept to public release?

What are the steps to effectively advertising your company aside from social media?

Does one need the backing of investors, or is it really possible to start a subscription box company from one’s own pocket?

What are the licensing and other legal paperwork one must anticipate when starting a subscription box company?

What are the key points one must address in a business proposal for a subscription box company?

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Selena

1. Do you think its necessary to hire a professional or expert if your products are beneficial to health? Such as Nutritionist.
2. What is the amount of boxes expected to be produced the first year?
3. Is a warehouse necessary for production? Some use a rented apartment to compile their boxes.
4. What social medias are a must to use as promotion if any?
5. Do you really need to hire a graphic designer for logo and web designer for website?
6. In advertising, do you promote the companies used? Is there an agreement made where the companies whose samples you supply get free advertising? Do you offer them a deal such as a link to their websites or do you offer a place where their product can be purchased?
7. Paper costs, is it better to have less paper with few coupons or does it matter?
8. How long did it actually take to get company fully operational? What to expect?
9. Is it important to have consumer input readily available for them? Such as a questionnaire, suggestions, complaints etc.
10. Shipping costs it an important factor since postal rates increase all the time?
11. What is an ideal percentage of profit to have in order for a great investment in regards to sample companies? I see a lot of sample companies that will sell a box for $35 a month and have $75 worth of products in box. Is this a risky tool for a company to promise or should this instance be varied over time?

I’m sorry for the abundance of questions, I’ve been contemplating this for some time. Thank you for offering the information and providing this blog!

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Alicia

How did you feel when your idea for the box first started to take off?
How do you feel about Yumvelope as it is now?

Was starting Yumvelope difficult or was it easier than you thought it would be?

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Selena

Do you need to have an expert on hand to validate your items. Like if your samples are healthy, do you need a Nutritional expert on hand for questions or promotional reasons?

What percentage do you calculate as a ideal profit?

There are some sample companies that work out of a rented apartment. Should a warehouse location be invested?

Along with startup costs, what other costs should be considered?

In terms of advertising, do you promise to promote the companies you are using in sample boxes…such as having a website that links to their products for the consumer or do you just offer the consumer information about the product with their information so the consumer can choose to check them out? Logos of companies placement.

When you first started what was your projected amount of boxes to produce your first year?

How do you determine the amount of samples to offer in each box, does the product value make a difference? For example, some boxes charge $35 per box per month, unless it is a 6month or year subscription but they have a $75-$100 value box. This is when you calculate the value of the actual items.

Is it best to hire a graphic artist for company logos and web techs for websites?

What social mediums do you recommend using your first year of service?

I’m sorry for all the questions, I’ve been debating this issue for some time. I’m just curious if this is an investment worth seeking. Thank you for answering!

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