Ayo Supplements Update: How We Scaled Back On Ad Spend And Became Profitable

$5K
revenue/mo
1
Founders
0
Employees
Ayo Supplements
from Chicago, Illinois, USA
started November 2019
$5,000
revenue/mo
1
Founders
0
Employees
6.41M
alexa rank
1.69K
followers
8
followers
0
subs
market size
$123B
avg revenue (monthly)
$416K
starting costs
$17.2K
gross margin
25%
time to build
14 months
growth channels
Advertising on social media
business model
E-Commerce
best tools
Instagram, Google Drive, Facebook
time investment
Full time
pros & cons
35 Pros & Cons
tips
25 Tips
Discover what tools Paul reccommends to grow your business!
Discover what books Paul reccommends to grow your business!
Start A Supplements Company

Hello again! Remind us who you are and what business you started.

My name is Paul Sciortino, I am the founder of Ayo Supplements and we sell Matcha Boost, the best matcha tea supplement you will find on the market. It’s a simple product; organic, ceremonial grade Japanese matcha powder combined with vitamin B-12 to support natural energy.

Matcha’s renowned health benefits are widely recognized and it is one of the healthiest substances in the world. It’s an acquired taste, however, and prep time can make it difficult to fit into a daily routine. I thought that if I created a quality product in a convenient “take with you anywhere” capsule, people couldn’t afford not to take it.

how-our-business-transformed-to-online-and-grew-revenue

Tell us about what you’ve been up to! Has the business been growing?

With covid putting a halt on many pop-up events and plans to reach out to retailers, our business has transformed to being almost entirely online through our website, Amazon, or a few select online retailers. After plenty of experimenting with PPC keywords and product ads, we’ve been able to turn our most online model into a profitable equation month-to-month. One thing we learned was that for us, that actually meant lowering our monthly sales figures.

There is certainly a time and place for brand awareness, but be sure you have a steady customer base that can support your spending in that arena.

For several months in a row, we would overspend on ads to drive sales only to end up in the red at the end of the month despite our monthly revenue increase. Once we got a bit smarter about our advertising approach, we scaled back our spending significantly and found that while our monthly revenue took a slight hit, our profits did a complete one-eighty on a monthly basis. While this will result in slower growth for our company, it will allow us to grow sustainably and avoid taking on any major debt.

What have been your biggest lessons learned in the last year?

This may come as no surprise given the last section but the largest lesson learned for us was not to chase growth at all costs. Every business is unique and will have different goals and financial situations.

For us, we are a small business without any outside funding and we are committed to a slow and steady approach that allows us to turn a profit along the way.

What’s in the plans for the upcoming year, and the next 5 years?

We are gearing up to launch our new website and we are very excited to do so. With time, we’ll look to continue to grow our product line little by little and as COVID-related restrictions continue to loosen across the country, we will begin to explore partnering with select retailers.

Have you read any good books in the last year?

Profit first, this is a must-read and I have actually read this twice. It brings a great perspective to any entrepreneurial venture and a new way to operate your business, which I would highly recommend.

Advice for other entrepreneurs who might be struggling to grow their business?

Understand the core of the problem your business or product solves and meet your consumer at the buying point of that problem.

At the get-go, brand awareness can be overrated. Make sure your dollars are spent on revenue-generating activities as most entrepreneurs won’t have a ton of extra cash lying around simply to “create a buzz” about a new product or company that no one knows about. There is certainly a time and place for brand awareness, but be sure you have a steady customer base that can support your spending in that arena.

Where can we go to learn more?

If you have any questions or comments, drop a comment below!

-  
Paul Sciortino,   Founder of Ayo Supplements
Pat Walls,  Founder of Starter Story

Want to start your own business?

Hey! 👋I'm Pat Walls, the founder of Starter Story.

We interview successful business owners and share the stories behind their business. By sharing these stories, we want to help you get started.

Interested in starting your own business? Join Starter Story Premium to get the greatest companion to starting and growing your business:

  • Connect + get advice from successful entrepreneurs
  • Step by step guides on how to start and grow
  • Exclusive and early access to the best case studies on the web
  • And much more!

Did you know that brands using Klaviyo average a 95x ROI?

Email, SMS, and more — Klaviyo brings your marketing all together, fueling growth without burning through time and resources.

Deliver more relevant email and text messages — powered by your data. Klaviyo helps you turn one-time buyers into repeat customers with all the power of an enterprise solution and none of the complexity.

Join Brumate, Beardbrand, and the 265,000 other businesses using Klaviyo to grow their online sales.

Try Klaviyo for free right now ➜

Leave a comment
Your email address will not be published.

Want to start a supplements company? Learn more ➜