How My Business Makes $500K/Month Selling Yarn Products To Clothing Companies And Knitters
Hello! Who are you and what business did you start?
Hello! My name is Evgenia, and I am the founder of Woolstock . Our company is engaged in various types of yarns: for hand knitting, machine knitting, knitting accessories, and finished yarn products.
By working closely with customers, we began to better understand their needs, which led to the need to expand the range and growth of our company. We also sell handmade items made from our woolen yarns by talented knitters worldwide.
Our products are priced extremely competitively, so you can get them for a fair price without sacrificing quality or customer service. Our company welcomes and guarantees fast delivery to any location worldwide (you can split your order into several shipments if needed).
When we started, our focus was on the customer and their needs. We worked closely with them, listening to their wants and meeting their demands. As a result of this approach to business, we were able to grow our business very quickly by developing products that customers wanted.
We had a clear vision for what the company needed to do next: expand its range beyond wool yarns into knitting accessories such as knitting needles and hooks. To increase sales and engage new customers, we must increase our marketing efforts.
As well as providing high-quality products, we strive to create a friendly atmosphere where customers feel comfortable talking with us. Customers are important parts of our community, and we want them to know they will always be treated with respect.
Our clients are end-buyers who create their creative products for further sale. We started our company with a few thousand a month, but after a year, we made 500,000 US dollars per year.
There are two kinds of clients. The first is the end buyer, who buys from us and resells our products. These clients may be resellers or large companies like Macy's or GAP that want to sell our products in their stores. For example, if someone wants to buy a sweater from me with my brand on it, then I would sell them one of my sweaters for $60 but then make more money selling it again to Macy's for $100.
Second, some clients create creative products for sale (e.g., knitters who design their scarves or yarn companies that produce prints). You could also call these people "customers" instead of "clients."
We sell knitting kits and patterns through our company, which sells yarn and knitting products. Our monthly subscription box is our main product. Customers receive a curated set of new yarns each month in their mailbox. They also get access to exclusive discounts on select products within our store.
We have customers who enjoy receiving a surprise package every month.
However, we also have clients who like stocking up on their preferred brands, so they never have to worry about running out of goods again.
Customers can choose between two subscription models: 1 month or 3 months (discounted slightly). Both options include free shipping anywhere within the United States.
We stock Pure Wool Worsted and Kidsilk Haze, which are great for machine or hand knitting. Big Wool is a great alternative to bulky yarns that are less soft than Big Wool. It also comes in a nice array of colors.
What's your backstory and how did you come up with the idea?
I'm not going to hide that starting a knitting business was on my bucket list for years. I knew about it but had yet to think about how to start it or where I would begin. It's been quite an adventure, and I've had some amazing opportunities.
I started because I wanted to make a living doing what I love. I wanted to help people find their perfect yarn, design beautiful patterns, and teach others how to knit.
I first became interested in yarn after learning to knit. It was a hobby at first, but then I found myself looking for interesting and beautiful yarns to work with. I also fell in love with hand-dyed yarns and began searching for them online. But it was challenging because most of these products were sold by small businesses on Etsy or Artfire (a marketplace for handmade goods). And I needed help finding all these products together in one place!
The idea came from my experience as a customer: I wanted to have access to online shops that sell these things and offline shops. I did this so I could feel the materials and make my own decisions face-to-face with experts who could assist me in finding something that precisely suited my taste! So we decided to start our yarn, Wool, and knitting company.
After university, I worked for a long time in the development and wholesale of cleaning equipment. However, I always wanted to do something for the soul. I wanted to enjoy my work. I used to do yarn for myself, it was my hobby after work. Finally, the moment came when my hobby grew into something more, and my knowledge and experience grew into opening my own company.
Despite my experience in working with suppliers, the beginning took work. I had to visit the factories of Italian suppliers several times and make several deliveries of goods in search of good quality necessary products.
You can use a timer while working on a computer to see how much time has elapsed since you started. Likewise, most are large factories far from settlements, which only have emails and telephones for communication. Therefore, I had to spend time traveling and choosing the most interesting options. It took several thousand dollars.
When choosing a factory, there are several important factors to consider:
- Location: Most are large factories far from settlements, with only emails and telephones for communication. Therefore, I had to spend time traveling and choosing the most interesting options. It took several thousand dollars.
- Price: Of course, you should choose a manufacturer with reasonable product prices and acceptable terms of cooperation. Check out internet shops where you may buy inexpensive yarns and Wool from Italy at incredibly low costs if you want to save money on your purchases.
Take us through the process of building the first version of your product.
After selecting several permanent suppliers, we hired the first people to work in the customer service office and the product warehouse. It was necessary to purchase storage equipment and furniture. Also, we purchased various equipment for working with yarn and its processing (winding, unwinding, twisting, etc.
My brand is all about social media. I've grown a large following on Instagram and Facebook by posting pictures of how-to videos, tutorials, and other things people want to see. It's also helped that I have so many friends in the knitting community who like my work and share it with their followers.
I also keep everyone up-to-date on new products or sales through email marketing campaigns (using MailChimp). This is especially important for repeat customers who have already bought from me and are interested in buying but have yet to become familiar with my brand.
It is crucial to surround yourself with others who are upbeat and supportive of your objectives. It helped me stay motivated when things got tough!
Describe the process of launching the business.
Making a prototype is a wonderful approach to testing your business idea.
A prototype can be used to test your product's functioning and viability on the market and cost. For example, if you're launching a new type of soap or lip balm, you might create a few sample batches with different scents and flavors to see which sells best.
You may also want to try different packaging options—for example, do customers prefer an eco-friendly paper bag over plastic?
Since my store was a very simple online product with a unique twist, it was a social network for knitters; users could chat with each other, ask questions and get advice. It also had a database of knitting groups and yarns that people could use as they browsed through the site.
They would have the option of choosing from several different kinds of yarn. After selecting their type of yarn, they will be asked questions about their knitting interests. For example, "Which of these colors do they like?" The answer to this question might be used to suggest knitting groups in the Latvia area. Once the question had been answered, the user would be offered suggestions for knitting groups in the area.
The suggested knitting groups were selected based on the user's answers to the initial question. Once the user has accepted their invitation to join a group, they are presented with a list of suggested groups they could join. The groups are selected based on the user's answers to the initial question. Each group includes a brief description of its purpose and an image depicting what it does.
The user can choose which group they wish to join by selecting its name from this list. If no groups interest them, they may choose "I don't want to join any knitting group” from this list.
The next step was to create a database of local knitting groups. I spent time searching the internet for groups, and I also asked friends who knit if they knew of any groups in our area that would be interested in my yarn store. I then called each group and introduced myself as someone planning on opening a new yarn store in our town.
After finding out their interests and needs, I created an Excel spreadsheet with all the information about each group. So that it could be easily accessed during meetings with customers or potential investors.
To create a prototype of my online store, I first worked on creating a database that would be used to store information about each person interested in my site. Then, I created a Facebook group where interested people could sign up and make themselves known. This allowed me to easily test my application's functionality and make changes without worrying about losing data or corrupting any existing information.
I showed my yarn products to the people in the group. We also showed our products to the people in the group. We asked them what they thought about our product and if they would buy it. They gave us feedback on how we could make our product better and more appealing to others.
Now let's talk about testing your product with real users. Many people think they must wait until their product is ready to launch before testing it with real users, but this is different! It's important to test your product with actual people as early as possible, even if it's just yourself and a friend or two who are willing to help you.
By conducting this testing, you can not only ensure that everything functions as it should but also gather input on how the user interface may be enhanced. This allows you to make changes without worrying about losing data or corrupting any existing information.
Since launch, what has worked to attract and retain customers?
When I first started the company, I was a one-man show. I did everything from sourcing yarn from Italian, designing patterns, supporting customers, and managing my social media accounts.
Since launch, I have worked to attract and retain customers by ensuring that my website has the best possible design and content. I post information from my Instagram and Facebook pages on my website with daily alerts. I devote significant time to my social media presence, answering inquiries and running contests. My customers are really happy with the products I provide, which keeps them returning.
· It wasn't until later that I realized how important it is to delegate tasks and build a team around your brand.
I expanded my team slowly but surely by hiring freelancers for specific tasks.
I hired a graphic designer for branding and logo design, a writer for blog posts, and an SEO expert for SEO optimization of our website pages.
And slowly brought them on board full-time as they became more experienced within their respective fields.
Now in my store, I strongly focus on social media marketing and Facebook ads. I also have a newsletter that helps me keep in touch with customers, share occasional sales and share upcoming events. PR has also been important in helping spread the word about my store.
We also have an ongoing social media presence on Instagram and Twitter. These are vital to our marketing efforts because they help us reach more customers and keep them engaged. We also listen to customer feedback so that we can keep improving each of these platforms. We run occasional sponsored Facebook ads using our target customer demographic data. These ads are very successful in driving traffic to our website.
Moreover, we also have partnerships with other brands to ensure quality products, and our email marketing/newsletter keeps people up to date with sales and promotions. My yarn store also offers SEO for shoppers looking for a particular product or something to do with their stash.
Amazon, Shopify, and Google Analytics are all names that I recognize. Amazon is the biggest e-commerce website in the world, and Google Analytics is the most popular website analytics tool. There are many other e-commerce platforms out there that you can get on, including Amazon, Shopify, and Google Analytics.
Still, if you're launching a brand new business, I'd focus on what works best based on your goals. But remember, you must invest a lot to advertise on these channels.
My main goal was to bring my existing customer back to make them my returning buyers. I’ll be honest, it’s not easy at first. But I made a courageous step to do this. I have strengthened my communication skills to talk to my customers about their needs and provide unique solutions. This has helped me build a relationship with my clients online and offline.
How are you doing today and what does the future look like?
I've been running my yarn store for over a year, and it has been going great and profitable. I'm enthusiastic to see what the future holds for my business. My customers are happy with the yarn I sell and the service they get from me. I'm considering expanding my business to include wholesale sales to other yarn stores in the area.
This will expand my market, but it will also mean that I have to be competitive with other vendors from which these yarn shops already buy. To do this well, I need to know how much each skein of yarn costs me to price it competitively while still making a profit on each skein sold.
There are many benefits to having a wholesale business. You can sell more yarn and don't have to worry about inventory as much. It’s also easier to manage because you only have one customer at a time. This will expand my market, but it will also mean that I have to be competitive with other vendors from which these yarn shops already buy.
Knowing the cost of your yarn, the price you charge for it, and the profit you generate on each skein sold is essential for small company owners. Knowing this information will help determine if there is a market for your product. If you run a profitable business, feel free to expand your market and see what happens.
The best way to determine if there is a market for your product is to find out how many people want it. You can do this by surveying customers or friends who like knitting or crocheting and other business owners in the same industry. To find more information about businesses similar to yours (and their pricing), use an online tool called Google Trends, which shows search results based on popularity over time."
The cost of goods is the most obvious part: how much does it cost to buy all these balls of yarn? The answer will vary depending on your supplier, but let's assume you're buying from an average U.S.-based wholesaler with a 20% markup (some places have even higher markups). If a skein costs $5 wholesale, you'll pay $6 at retail.
There are other costs in your business besides the materials themselves: labor and marketing are two big ones to consider here. Labor includes your time spent designing patterns, taking photos, and writing descriptions for each item in stock.
And there are also payroll taxes if you hire staff members (or contract out their services). Marketing expenses include advertising on social media platforms like Facebook or Instagram and printing flyers or brochures.
These are to promote sales events at local yarn stores where customers can pick up special promotions with their online purchases through mail orders.
These types usually involve discounts given either automatically upon purchase or manually granted during checkout via email confirmation sent directly from company headquarters. This will proceed after payment details are received directly from consumers' credit card companies once the order has been placed and successfully processed.
It would be best if you also decided what your long-term goals are. Do you want to sell the company in a few years, or do you want it to continue as part of your life? You can plan for either one by ensuring enough money every month, so you don't have to worry about paying bills or having a job.
I recommend against selling unless you feel the business is ready and has been around for at least two years. That way, if anything goes wrong and sales fall off quickly, it will be manageable for both parties involved your income will be more stable.
Through starting the business, have you learned anything particularly helpful or advantageous?
I had no idea how much courage it would take to start a business. I knew it would be difficult, but I was still determining how much time and effort it would require. And I was surprised to find out there would be many challenges along the way.
But the yarn store business has helped me to grow further. I initiated my business because I wanted to make a living doing what I love. Also, I wanted to help people find their perfect yarn, design beautiful patterns, and teach others how to knit. My goal is to help people feel good about themselves while working on their projects, and I want them to see how amazing they are when they finish those projects!
I've also realized how crucial it is to surround yourself with others who are upbeat and supportive of your objectives. It's helped me stay motivated throughout this process when things got tough!
Not only that but also, I learned that I'm good at talking to people. I also learned how to be an entrepreneur, which I didn't know how to do before this business. I've built many skills in marketing, social media, and sales, which are things I didn't know before starting my brand.
What platform/tools do you use for your business?
Shopify - I love it. It's easy to use and has a ton of features. I used to be using BigCommerce, but that was a nightmare.
Shipping tools - ShipStation is great; it integrates with Shopify and has many other shipping options (like USPS).
Fulfillment - Printful is great for drop shipping t-shirts and other items.
Email tools - Klaviyo has been working really well for me so far. The email templates are easy to use, and you can set up automated sequences based on really cool customer behavior!
Review tools - Yotpo lets you set up popups on your product pages for reviews. You can also send automated emails after a purchase asking for reviews or have them pop up when customers log back into their accounts after making a purchase. They also have an app that integrates with Shopify, so you don't have to do much work!
Social media tools - Hootsuite is perfect for scheduling posts across multiple platforms at once which helps save time! I also use Buffer, which has similar functionality but doesn't integrate with Shopify.
Buffer - This is my go-to for scheduling social media posts. It's easy to use and does a good job of keeping track of what I've posted, so I can do my best.
Google Analytics - I just started using this recently. Still, I have been impressed with how detailed the reporting is and seeing traffic from different sources.
MailChimp - My go-to email marketing tool for sending out newsletters and offers. Plus, they have great tracking to see if someone opened your email or clicked on any links.
What have been the most influential books, podcasts, or other resources?
- The 4-Hour Workweek.
- Rich Dad, Poor Dad.
- The Secret.
- The Compound Effect (I listened to this book on Audible).
Advice for other entrepreneurs who want to get started or are just starting out?
I want to say that you should never give up! When things don't go according to plan, it's simple to become frustrated, but keep going! Simply start by taking the initiative. Waiting for tomorrow is futile since it never comes. Instead of waiting for opportunities, create them. If you want something badly enough, then go for it!
I have had many moments where I've wanted to give up, especially regarding finances. When you're working with money, there are so many factors that can affect your profit margin. And if you're like me and have yet to gain experience running a business before, it may seem overwhelming. But if you keep at it, things will improve!
The most important thing for me had a vision and goal that I wanted to achieve with my business. Patience helps a lot when starting out; don't expect everything to happen overnight because it won't! It takes time to build up your business and grow as an entrepreneur, but if you're willing to work hard, success can be achieved!
Where can we go to learn more?
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
