Chocolate subscriber model works a treat
FORGET magazines, imagine there were chocolate subscriptions, where you could have the best chocolate from different countries of the world delivered to you on demand.
It sounds too good to be true, but that was exactly what university researchers Alison and Chris Brown stumbled upon when living overseas.
“We were living in Ireland and came across a chocolate subscription service. When we came back to Australia we looked for something like that but were surprised when we couldn’t find anything,” Ms Brown said. “We decided we’d start a business to import craft chocolate … and started Bean Bar You as our side hustle.”
The couple had no business experience, so had to learn to set up a web store that could handle subscription payments, how to import commercial goods, plus make and accept overseas payments. Then there was marketing and sales.
“We were lucky in that many of the people we’d met overseas and our friends who had experience in some aspects of business, were willing to share their advice to get us started,” Mr Brown said.
The pair convinced foreign chocolate makers to send products to Australia and helped them comply with Australian regulatory standards. They then invested $5000 of their own money to get off the ground.
“One of the advantages of a subscription-based business model is cashflow becomes easier and reduces the uncertainty around how much stock to order,” Ms Brown said.
The global nature of their business meant international transaction fees were a major cost barrier.
“One of the biggest costs we faced was exorbitant fees for international payments through the local banks; telegraphic transfers up to $30 for every international transfer and 3 per cent international transaction fees via cards,” Mr Brown said.
“Importing products means high shipping costs … we then have postage costs associated with distributing a perishable product, especially in Australian weather.”
The Browns cut banks out of the process, using global transfer provider TransferWise to pay suppliers. They estimate the 0.5 per cent fee has saved thousands, while same-day payments are an added bonus.
“By default, small businesses turn to their business bank account to make international payments,” a TransferWise spokeswoman said. “Banks continue to charge a premium on foreign money transfers … small businesses considering foreign currency transfers should look beyond the big four banks and be extra vigilant to unnecessary fees or commissions.”
Other benefits of working with specialist transfer providers include the ability to pay suppliers in different currencies, said OFX chief operating officer Adam Smith.
“Agreeing rates in advance will protect you from currency movements and remove the risk of market moves,” he said.
Find
someone with experience you can talk to and learn from. be afraid to ask larger companies overseas about their experience exporting to Australia. data from customers to improve their experience and your service, but also to provide feedback to suppliers. This motivates them to work with a small, overseas business even though it is harder for them. managing international transactions find a card with low fees, plus use specialist transfer providers as much as possible, provided they are less expensive than banks.
Don’t Collect When
ANTHONY KEANE MOBILE phones have become a necessity for most Aussie adults and now their children are dialling into the action.
Telecommunication specialists say the average age for children getting their first phone is 11 or 12 – and some are as young as six – increasing the financial strain on parents who pay up to $70 a month for each child.
However, there are much cheaper options available.
Kristy Calabria said her daughter Amber 15, was given her first phone at age eight, mainly “for security and peace of mind”.
“My daughter walks home from school and I want us to be able to contact each other at all times,” she said.
Ms Calabria said the cost of mobile phone contracts was a concern. “For me a prepaid plan is much better value for money and a lot less hassle than a contract,” she said.
Amaysim mobile commercial director Maik Retzlaff said “plenty of deals are emerging” and paying just $10 a month was possible.
“I recommend staying as flexible as possible and starting with a no lock-in contract at the lower end of the price spectrum,” he said.
Hand-me-down phones can be a good option for budgetconscious parents, and Mr Retzlaff said money should not be spent on bells and whistles that children didn’t need.
Moose Mobile CEO Dean Lwin said “$9 to $14 a month is really all you should pay”.
“Monitor their usage and set limits,” he said.
Mr Lwin said there were many cheap phone plans advertised online.