Meat on Demand Does $1,200,000 in 2015

Tim Ray

Summary:
In Episode #280 Nathan interviews Tim Ray, the founder and CEO of Carnivore Club, a speciality meat subscription business. Tim sold his first company, Foodscrooge, within 4 months of starting it. He’s currently the CEO of two companies and is hoping to double Carnivore Club’s profits this year. Listen as Nathan and Tim talk earning out and buying, bootstrapping a business, and how to get the most from podcast advertising.

  • Favorite Book? – 48 Laws of Power
  • What CEO do you follow? — Elon Musk
  • Favourite online tool? — None
  • Do you get 8 hours of sleep?— Almost
  • If you could let your 20 year old self know one thing, what would it be?— Swing for the fences. Be bold and swing big.

Time Stamped Show Notes:

  • 01:01 – Nathan’s introduction
  • 01:42 – Welcoming Tim to the show
  • 01:58 – Tim started his first company, FoodScrooge, to allow consumers to buy bulk frozen food surplus
  • 02:40 – Revenue in the first year was $150k – they were bought within 4 months
  • 03:07 – Sold for $2.1 million on an earn-out scheme
  • 03:45 – Tim acquired Broquet for $150,000
  • 04:25 – Broquet’s a premium curated gifts company
  • 05:30 – Carnivore Club has a subscription model, whereas Broquet is more traditional e-commerce
  • 06:40 – Carnivore Club was launched via Indiegogo
  • 07:10 – Crowdfunding raised $22,000
  • 08:15 – First monthly order was 175 orders in the US and 250 in Canada
  • 08:41 – The business is seasonal – in December 2015, they shipped around 8,000 boxes
  • 08:51 – March 2016, sent just over 5,000 boxes
  • 09:25 – Subscription is $55 per month – people often give gifts of a multi-month subscription
  • 09:50 – Paid up-front and don’t have to ship for the next few months
  • 10:40 – Around ⅔ of sales are fixed-term gifts – the other option is a rolling subscription
  • 13:00 – In 2015, total revenue was $1.3 million
  • 13:01 – Business was bootstrapped from an initial $100,000
  • 13:24 – 35% average margin – currently investing all profits in the business
  • 13:50 – 4 full time employees
  • 14:15 – Currently focusing on podcast advertising
  • 15:00 – The most successful podcast advertisement has been a 30-second midroll on Drinkin’ Bros. Pay around $270 per episode.
  • 17:34 – Connect with Tim on Linkedin
  • 19:00 – The Famous Five

3 Key Points:

  1. Your consumer base might not be who you originally expected. Accept them and see how you can understand and serve them best.
  2. Think big. Timidity doesn’t serve anyone.
  3. You’ll benefit from creating a payment model that gives you cash up front. Traditional e-commerce requires sunk costs in inventory and storage – try being more creative.

Resources Mentioned:

  • Freshbooks – The site Nathan uses to manage his invoices and accounts.
  • Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible.
  • Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
  • Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.