Making difficult decisions, pressing the pause button

Over the last two years, I invested a substantial amount of money trying to build a market for one of my signature products, Dragon Beard Candy, from Bamboo Garden.

Other than Japanese ceramics, it was the first big product that I started with, so I have a pretty strong attachment to it. I want to continue to invest in the Dragon Beard Candy, but I analyzed the last two years of sales and trends over the last couple of months and I realized that it doesn’t make much sense to throw more money at the product during the summer months, when sales are not quite as vigorous as in the fall and winter. I also don’t have the time to fully invest in promoting it right now, as I’m trying to build up more resources before the next holiday season.

There’s only about a 3.5–4 month shelf life from the time I receive it from the manufacturer on average, so I tend to import very modest amounts because I’d rather run out than throw it away or give it away.

Fuel costs went sky-high over the last year, so my freight costs have made wholesale sales of that product, which really needs to be shipped by air, almost without value, and I just got another notification from my freight vendor that air freight fuel surcharges went up again. I have been emphasizing retail sales on my web site more this year partially for that reason, as the margins on the web site make profitability more attainable.

Unfortunately, there’s just not that much value in selling the product in the summertime, unless I do more large-scale corporate gift sales… Of course, those orders tend to cluster around the holidays, as well.

I don’t expect the fuel costs to get better, but I want to assign my resources toward some new products this summer, so about a week or so ago I clearance priced the last little bit of candy I have from my spring shipment.

I plan to pick up a few other products that I’ve had in the back of my mind for the last few months… some Japanese snacks, some more gifty stuff, and maybe a few other unexpected things. I’ll pick up the dragon beard candy again when appropriate holidays are approaching, starting around September. That’ll coincide with the Chinese mid-Autumn festival, sometimes called the Moon Festival in the U.S. For the last two years, that’s when sales for the product really started picking up. Thanksgiving, Christmas, and to a lesser extent, Chinese New Year also drive a lot of sales.

I also think it’s more compelling as a special occasion product, with limited availability. When I was at FoodEx this year, I started thinking that I might shift into selling a few featured products and only offer them until I run out… It would let me feature a wider variety of interesting products, and of course, I could always revisit a product that turns out to have particularly enduring demand.