Why Micro Niching Saved My Product Business (and My Sanity). How I Went All In on Balms & Salves for Dogs
Many of you will know that I have been running my product based business, The Dog and I, for around 10 years now. Running a product based business isn’t always the dream people think it is. After eight and a half years of making and selling everything from dog soaps and shampoos to colognes, balms and salves, I very nearly closed The Dog and I down completely at the end of 2024.
I still loved my business but because I was losing the ability to think straight, was running out of space and knew I may be moving the business out of my workshop and back home within the next 12 months or so plus I was working silly hours 7 days a week to keep both businesses on track.
Quarter four in 2024 was when everything came to a head. Soap in particular was flying out the door for Christmas gifts and wholesale orders, and whilst I was grateful, the sheer pressure of making and curing soap, managing stock, packing, and keeping on top of customer service became too much along side this business, The Soap Coach.
Despite my best efforts to explain turnaround times and get seasonal wholesale orders sent in early, I still had to turn people away. It all got a little bit chaotic , and I found myself resenting the business and just wanting to pack it all in.
A Different Way Forward
I even got as far as telling everyone I was closing. I sold all my excess stock off at cheap prices (thanks to my email list) but once the chaos had subsided and I had a bit of time off over Christmas, my sensible head, and my training as a business strategist kicked in. I knew closing a revenue stream during a cost of living crisis wasn’t the smartest idea. I also knew my hands on soap workshops were slowing down and the online space ( most of my Soap Coach courses and training are online) had shifted dramatically and I shouldn't rely just on that. My integrity head also wanted to keep a product based business - it didn't feel right to me to continue helping others start and grow businesses if I am not doing it alongside them, staying up to date, living the same problems etc.
Along side this, I know that at some point we will need to move house and downsize. We have gone from 6 of us at home and 3 dogs, 2 cats - to just 3 most of the time, 1 dog and 2 cats, For 8 years our main reception room at home has been my office/packing room/storage room and it needed to be turned back into a usable room for when we do move. Plus - even back then I knew there was every chance I would not be renewing the lease on my workshop when it came to an end. Committing to a formal 3 year commercial lease in the current economic climate is a big decision.
I asked myself 'What do I like doing , what work's and what is sustainable' given all of the above.
That’s when the idea to micro niche into just white label balms and salves came up, something I’d already been doing a bit of anyway with some existing returning customers. It felt like a natural fit, high quality products I could make in bulk, with sufficient margins for a wholesale only business model, in a compact space… and they tied in perfectly with my visibility and brand strategy work. It was also a bit of an experiment. I wanted to see if having a very small product range was a viable business model for hand made businesses like ours.
What has the reality of making this change been like?
I can’t tell you how much headspace it’s freed up. No more juggling twenty products. No more shelves of multiple ingredients and ready made stock and £000 of cash tied up in them. No more constant dashing to the post office every day. It has been a lifesaver.
We have reclaimed the front room of our house, now, I have storage space in our utility room and I have converted one of the spare rooms upstairs into an office and store room. Most products are made to order and I just have a small amount of stock on the shelf. It is a bit chaotic when a larger order comes in - I have to ban everyone and the cats from my making area and I won't lie, it is not ideal but it works for me at the moment.
The best part is that I’m excited about the business again. If I am honest with myself I get bored very easily, I like to have a new project on the go and this is currently it. I’m now known for one thing now. It’s easier to be found. Easier to be recommended. Easier to create content. Easier to manage SEO, socials, email. I’m focused, and it is easier to say no to things I don't want to do in the business.
Things have still had to evolve - my original vision on it's own was not enough
I now have a retail section again too. A few long time customers convinced me this was a good idea and it makes sense for some of my white label customers, For example, if a guest at a dog friendly holiday cottage receives one of my balms as a gift and wants to buy more, they can now come direct to me.
I have also added on the option for wholesale products with my branding and the ability for pet businesses to buy products unlabelled for DIY branding (that has proved to be a fantastic move and my most popular option). Doing this means I can cater for all, but without expanding my product range.
I have joined Faire - an online wholesale platform. That is not ideal as the commission on first orders is 25% but I look at it as a form of marketing that does not require my time. It is somewhere else I can be found, and the 25% commission is the cost of that visibility. It would not work if I had not built leeway into my pricing.
I have also starting working with businesses who are looking for something a little more bespoke - still balms and salves but using different ingredients to suit their brand.
The moral of the story here is that everything in business is an experiment and we need to be open to that from Day 1. It is ok to make changes or deviate from the original vision but do keep in mind your original goals. Mine was to simplify everything in my business and make it less of a monster that required a lot of space, I haven't moved away from that with the changes I have made.
In a Nutshell This Is How It Works Now
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I offer four core products Nose & Paw Balm, Soothing Skin Salve, and a more upmarket Rosehip & Calendula Salve. I have also added a Wrinkle & Fold 2 in 1 Clean and Care balm for pugs and other wrinkly breeds. All products are available in 2 sizes as standard and also fragranced and unfragranced except the wrinkle balm which is unfragranced and 1 size only.
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I have made it easy for trade customers to buy direct from the website with packs of wholesale and unlabelled products available to buy with a low MOQ of just 25 per variant. This saves us both time with emails going backwards and forwards discussing what they would like, and I don't need to generate an invoice and wait for it to be paid.
- White label customers who would like the fully managed Done For You service complete a Google form which covers everything myself and my designer/printer need to complete the order. Again, this saves so much time and there is no confusion over what is required as they have all the questions we need answered in one place.
- Bespoke orders still need a greater level of interaction, discussion and testing. I manage this with a Zoom call much of the time as nothing beats a proper discussion and it saves time in the long run.
The Results So Far
I’m 16 months in, but it’s already made a huge difference. I’m not back to the same level of turnover (yet), but I’ve had amazing feedback, repeat customers, and it finally feels like I’m building a business that works for me, not the other way around. I am also gaining traction with Google and AI again, particularly around wholesale and white label searches and I am being found by brand new clients. I have learnt a lot, not least that it is possible to expand your offerings without adding a ton of new products. That is something I don't want to do. I would much rather be brilliant (and known for) one thing and that means I have to look outside the box for ways to expand my business moving forwards.
A Final Word of Advice
If you’re feeling stretched too thin, trying to do too many things, or afraid to niche down because it feels like cutting things off I understand.
But this is what I know now.
- Micro niching doesn’t shrink the scope of your business although it may well reduce your turnover in the shorter term.
- It does mean you say no to things and I know that is tricky when it feels like you are leaving money on the table.
- It takes a long time to build traction again and a lot of work. I am back to blogging in a big way and am also doing a lot of outreach to businesses who I would love to work with. That is new to me as I was fortunate enough to be approached by many pet businesses wanting to stock my products in the past when I carried a full range.
- Being very niche cuts off many sales opportunities for me - I can't decide to rock up at a local craft show or Christmas event with just 4 products. Fortunately I decided a long time ago that I was not a fan of events and have also looked at other options.
- In many ways it so much easier in terms of messaging, brand awareness, emails, stock control, admin etc but you do need to look at what you have in place already before you make drastic changes. I had an email list and a lot of contacts in the dog business world, which it seemed crazy to just throw away. This served me well in the early days and meant I gained some new white label customers in my first few months without too much effort. That doesn't mean I haven't had to take steps to put myself in front of the right people in other ways and I have been proactive in doing that but I had a good starting point.
- The best bit about niching however is you become easier to recommend, easier to remember, and easier to trust. You get to be the expert not just someone offering everything to everyone.
- And most importantly you get to enjoy running your business again.
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