One of our longest client relationships has been with Ranger Station, an amazing fragrance brand out of Nashville that was started a few years back by Steve Soderholm.
From our earliest conversations it became clear that there was an opportunity to put a growth plan in place that began to address some key questions on the table:
How much can we self-finance our growth without the help of investors?
If we want to bring on investors at some point, when and why should we do so?
Where is the untapped opportunity to generate more profits?
We began by breaking down each candle into its unit economics--how much revenue we make when we sell each unit, and what profit remains once we deduct the cost of production and sales. At different points, we’ve identified opportunities to improve our pricing to better serve our customers and wholesale relationships, all while being careful to not miss out on capturing whatever demand was available.
Once we defined unit economics, we then analyzed historical seasonality and growth patterns to better understand how the upcoming months would look. In addition to selling directly to customers through the website, we’ve also been able to push wholesale (2x over the previous year) and develop a custom project revenue stream that has the potential to cover monthly overhead on its own.
As a result of some organized planning, we were able to help improve profits in the first 12 months from slightly below breakeven to above $50,000. With the business in a more sustainable place, this meant Steve is able to basically double his monthly compensation.