The Koerner Office - Business Ideas and Deep Dives with Chris Koerner - 080: Making $4k/Month Selling Shipping Labels

Episode Date: November 23, 2023

Today, we've got a real gem for you – the story of A Z Labels, a company that revolutionized label printing for Amazon Sellers. In the next few minutes, we're going to unravel the key principles that propelled A Z Labels to success. From identifying a pain point in the market to the art of continuous experimentation and the power of creative problem-solving, there's a lot to unpack. So, grab your coffee, settle in, and get ready to glean insights that could transform the way you approach your own business endeavors.Introduction:Overview of AZ Labels and its impact on simplifying label printing for Amazon Sellers.Teaser for the key principles that contributed to AZ Labels' success.Principle 1: Identifying a Pain PointDiscussion on how Keith Brink recognized the frustration of label printing as an Amazon Seller.Emphasis on the importance of listening to customers to identify pain points in any business.Concrete advice: Conduct surveys, engage in conversations, and actively seek customer feedback to discover and address their challenges.Principle 2: Continuous ExperimentationExploration of how AZ Labels experimented with various marketing tactics and strategies.Insight into the significance of being agile, adaptable, and willing to pivot based on feedback and data.Concrete advice: Encourage a culture of experimentation in your business; try new marketing approaches, product features, or pricing models, and learn from the results.Principle 3: Creative Problem-SolvingExamination of Keith Brink's bootstrap mindset and emphasis on creative problem-solving.Discussion on fostering an environment where unconventional ideas are embraced.Concrete advice: Cultivate a culture of creativity within your team, encouraging them to think outside the box to find innovative solutions to challenges.Conclusion:Recap of the three key principles: identifying a pain point, continuous experimentation, and creative problem-solving.Encouragement for listeners to apply these principles to their own business ventures.Closing remarks and a teaser for future episodes.

Welcome to Startup Gems, where we find undiscovered startup growth hacks, stories, and case studies from every random nook and cranny of the internet. Whether you're a seasoned entrepreneur, an aspiring startup expert, or simply someone seeking inspiration, startup gems is your source for the stories that ignite the flames of innovation. I'm your host, Chris Kerner, and today we've got a real gem for you, the story of AZ labels, a company that revolutionized label printing for Amazon sellers. In the next few minutes, we're going to unravel the key principles that propelled AZ labels to success. From identifying a pain point in the market to the art of continuous experimentation and the power of creative problem solving, there's a lot to unpack. So grab your coffee, settle in, and get ready to glean insights that could transform the way you approach your own business endeavors. So what's the deal with AZ labels and who's the mastermind behind it?

Well, AZ Labels is a software as a service product designed to eliminate the frustration of printing labels on thermal printers, specifically targeting Amazon sellers. The brain behind this operation is Keith Brink, who at the time was knee-deep in the world of selling products on Amazon. He felt the pain of dealing with the hassle of printing labels for his business, and that frustration became the catalyst for A-Z labels. Now let's rewind a bit and talk about how this whole business started. The motivation didn't just come out of thin air. Keith was also an Amazon seller. He realized that spending up to an hour daily to print labels accurately was a shared struggle among Amazon FBA sellers. The existing solutions were either manual and time-consuming or just downright unreliable, with no customer service to bail you out of trouble. But here's the kicker. AZ labels wasn't an overnight sensation. Keith started

by testing the waters, creating a basic landing page that garnered around 20 sign-ups in a month. Not exactly breaking the internet, but it was a start. Undeterred, Keith decided to roll out the product, even if it meant a modest income. The initial version was a side project, worked on during Keith's spare time and evenings, with a minimal budget that covered essentials like a domain name and a few digital ocean servers. Now, let's talk marketing strategies. Keith didn't claim to be a marketing guru, but he sure knew how to experiment with different tactics. He leveraged online communities, engaged in content marketing, participated in interviews,

ran Google ads on competitor brands. You name it. He tried it. One key success came from reaching out to influencers in the Amazon seller space, driving about a third of AZ labels sales through this channel. Keith understood that finding a one-size-fits-all marketing strategy was a tall order, but he embraced the importance of minor successes across various channels, contributing to AZ label's overall growth. Now let's talk money. AZ labels started with a straightforward pricing model of $5 per month for unlimited label printing. But as the product evolved, so did the pricing structure, transitioning to a tiered system with a free tier, a $5 a month plan for 1,000 labels, and a $20 a month plan for unlimited labels. However, in a recent shift, the unlimited plan got the boot.

Now customers pay based on the number of labels they use. This change was all about fair pricing, considering the diverse usage patterns among customers. Some are now shot. selling out $100 a month based on their label printing needs. Keith was adamant about avoiding a price war with competitors, focusing on superior execution instead. The recent pricing adjustment aimed to position AZ labels as a high-quality choice, confident in its speed, workflow integration, and bug-free operation. But of course, it wasn't all smooth sailing. The main revenue challenge was differentiating from competitors,

and Keith's strategy involved continuous improvement in usability, speed, integration, customer service, and bug-free operation. And guess what? Higher pricing actually boosted customer retention. In terms of expenses, Keith outsourced day-to-day tasks, including customer service, bookkeeping, accounting, content creation, and sales tasks, racking up costs of approximately $1,000 a month. Additional expenses included $1,000 a month for marketing and $500 per month for software

hardware costs. Despite cash flow limitations from bootstrapping, Keith was all about finding creative solutions and experimenting with various strategies to move AZ labels forward incrementally. He emphasized the importance of eliminating day-to-day work to stay focused on core business aspects. And that, folks, is the story of AZ labels, a journey of experimentation and continuous improvement. Now that we've heard the story, we're breaking down the success story of AZ labels and extracting three key principles that propelled this business to new heights. So grab your notepads because we're diving right in.

Principle 1. Identifying a pain point. As an Amazon seller himself, Keith recognized the frustration of spending precious hours printing labels accurately. Now, how can you apply this principle to your business? Simple. Listen to your customers. Pay attention to their challenges, complaints, and wishes. Conduct surveys, engage in conversations, and identify those pain points that your product or service can solve. It's all about meeting a need in the market. Principle 2. Continuous Experimentation.

AZ labels didn't find success by sticking to a rigid plan. Keith Brink embraced the principle of continuous experimentation, from leveraging online communities to running Google Ads on competitor brands, he tried it all. So how can you apply this principle? Don't be afraid to try new things. Experiment with different marketing tactics, product features, or pricing models. Keep an eye on what works and what doesn't. The key here is to be agile.

adaptable, and willing to pivot based on the feedback and data you gather. Principle 3, Creative Problem Solving Keith Brink tackled challenges with a bootstrap mindset, emphasizing the importance of creative problem solving. Whether it was through interviews, outreach, or various marketing tactics, he sought innovative ways to enhance visibility and attract users. How can you apply this principle? Encourage a culture of creativity in your business.

foster an environment where your team feels empowered to find unique solutions to problems. Sometimes the most unconventional ideas lead to breakthroughs. It's about thinking outside the box and not being afraid to take a different approach. And there you have it. Entrepreneurs. Three principles from the AZ label success story. Identifying a pain point, continuous experimentation, and creative problem solving. Apply these principles to your own ventures, and who knows, you might just be on your way to your own success story.

Thank you for being part of today's adventure through the world of startups and innovation. Did this episode ignite any fresh perspectives or ideas? Share your reflections and favorite takeaways in a review wherever you're listening now. Remember to stay curious, continue to forge your own path, and subscribe and follow Startup Gems to be the first to access stories that will fan the flames of your entrepreneurial passion.