Honest Ecommerce

271 | Investing in Commitment: How Subscriptions Drive Growth | with Brian Pedone

Episode Summary

On this episode of Honest Ecommerce, we have Brian Pedone. Brian is the founder and CEO of Quiet Punch, a home boxing fitness company selling doorway punching bag experiences. We talk about brand commitment through subscriptions, shifting from boxing equipment to home fitness, embracing the idea of a wider market, and so much more!

Episode Notes

Brian Pedone took up boxing at the age of 13, and by 19, he had started his own boxing gym working with teenagers. 

Brian holds a BS in Computer Science and was featured by BusinessWeek in 2008 as one of the top 25 entrepreneurs 25 years and under in America. 

In 2013 he started the concept for Quiet Punch and has been at it now for over 10 years. His mission has been to make boxing accessible for all. 

He loves working with entrepreneurs and helping others get started.

In This Conversation We Discuss:

Resources:

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Episode Transcription

Brian Pedone

I've learned too, especially with subscriptions, there's a lot of apps out there. It's hard to compete. But if you have a physical product, you have something that's tangible. Someone can touch, they can feel. 

Chase Clymer

Welcome to Honest Ecommerce, a podcast dedicated to cutting through the BS and finding actionable advice for online store owners. I'm your host, Chase Clymer. And I believe running a direct-to-consumer brand does not have to be complicated or a guessing game. 

On this podcast, we interview founders and experts who are putting in the work and creating  real results. 

I also share my own insights from running our top Shopify consultancy, Electric Eye. We cut the fluff in favor of facts to help you grow your Ecommerce business.

Let's get on with the show.

Hey everybody, welcome back to another episode of Honest Ecommerce. I'm your host, Chase Clymer. 

And today I'm welcoming the show Brian Pedone. He is the founder and CEO of Quiet Punch, a home boxing fitness company selling doorway punching bag experiences. 

Brian, welcome to the show. 

Brian Pedone

Thank you for having me.

Chase Clymer

Alright. So quickly, Quiet Punch, give me the elevator pitch. What are you guys selling over there? What's the product? 

Brian Pedone

Yeah, you nailed it already in the intro. It's a doorway punching bag. That's a home boxing experience. People in small spaces want to get boxing. This is their answer. 

Chase Clymer

Awesome. That's amazing. Now, take me back in time. Where did the idea for this product come from? 

Brian Pedone

Yeah, absolutely. So when I was 13, actually, I was born and raised in Queens, New York. And then I moved to Pennsylvania. Parents wanted us to get out of the city. 

When we moved to the country area, my neighbor was a boxing instructor, so I started taking boxing classes. I was always into the traditional sports, baseball, basketball. Boxing seemed really interesting to me, so from 13 to like 17 or 18 or so I was doing amateur boxing, I was competing in competitions. 

As I was doing that, I went to college for computer science, so I started studying computer science, still doing boxing. I started a boxing club for myself to keep training, kids started coming in and I started becoming basically like a trainer for younger kids. 

As I was doing that, I started to fall in love with teaching, especially boxing. So I was still doing the computer stuff. So I had the computer software going,as well as teaching boxing. 

And when I moved back to New York to teach, I still continued teaching boxing. I realized it had to be a better way for boxing instruction, especially in small spaces. 

In the city, everything's really tight. I lived in a really small studio. There were no bedrooms, just one room, and there was no way, obviously, to hang a heavy bag or anything bigger that mostly boxing equipment requires. There's a lot of space. 

So I came up with the idea. I had pull-up bars. I put them in the doorway, had a duffel bag, set up a duffel bag, and started punching it. I was like, “Oh, this is kind of neat, and nothing like this exists.” 

So I went out and found a prototype company. Again, this is my first foray into product development. I was always doing software, so never did anything physical. So I just thought it was exciting. And that was really the point of me starting it because I was excited to get it out there. 

My whole goal was to create something that people could use and really enjoy. And I thought for me, success would be seeing it in somebody else who I didn't know, and actually put it up somewhere and showcase it. That's how it all began. 

So really, from 13, when I loved boxing until the invention, the creation of Quiet Punch was in 2013. It was when I first came up with the product idea. 

Chase Clymer

Awesome.

Can you walk me through a little bit more about ideation? You said you hung a duffel bag up on a pull-up bar and said, hmm, I'm onto something here. 

Brian Pedone

Yeah. I still have the video, which is cool. I recorded it because I think it's kind of interesting. Yeah, I always had a pull-up bar. Just the typical ones that you rotate and it digs into your doorway. You rotate a lot of times and you hang on it. 

So I was like, “I wonder if I should take another one.” So I bought one, I think it was Amazon or whatever. And I was like, “Let me put one below it, and what if I had something in the center of it?” So it was just a regular duffel bag with strings on it. 

I strapped it to the bars on the top and the bottom. It's similar to a double end bag. If people are familiar with boxing equipment, that's usually the ball that has a string on the top and the bottom and you hit it and it goes all over the place. It's like, it's a lot for coordination and timing. 

I was like, what if I did four straps to make it simpler? Cause I really, when I was training people, most of them were beginners and rookies. I was like, a double end bag is definitely too complicated. So I was like, “How can I simplify the process?” That's how I came up with the model that I created, which exists now. 

It's kind of a first of its kind when I first created it. There's definitely knockoffs now. But when I first made it, nothing like that was in existence yet. 

Chase Clymer

Absolutely. 

And then when you made this prototype, did you get any validation from people that weren't yourself? Did you show anybody? 

Brian Pedone

No. That's a great question. 

The first prototype was crazy. It was like turnbuckles, so it was like big metal turnbuckles in this wooden back. It was really heavy, probably weighing like 10 pounds. The bungee cords were gigantic, so actually, the top bar was on the top of your doorway and the bottom bar was on the bottom of the doorway. 

And it sat in the dead center and it was huge and you hit it and it would shake back and forth. It would bang into the doorways on both sides. It made a big mess. I had that prototype and I was playing with it, it was actually New Year's Eve, I think of 2014.

And I was like, “What if I just take the turnbuckles out and take just a little bungee cord and actually do it across?” 

So what happened was they had corners. So it was like four corners. It was a top, we had four bands. So it was top corner, bottom, you know. So I was like, “What if I just take it and strap it through the bag?” And that came up with the concept that we use today. 

So just to make it really easier to manage. And I loved the way it reacted. Because on the first react, I just couldn't hit it and just went all over the place. And then I hit it, and I was like, “Oh, this is what I want.” And it kind of had a really nice movement to it.

I was like, this is the one. 

So I took that and then sent it over to the manufacturer. The manufacturer was referred to me by the prototype company.  I was very lucky just to find the right prototype company and the right manufacturer, who I still use to this day, which is very rare. 

So it's been like 10 plus years, I've been using the same manufacturer, with very little defects. So it's been lucky on that part. 

Chase Clymer

Oh, absolutely. 

How did you realize that you needed to work with a prototyping company?

Brian Pedone

When I first thought of the idea, I was like, “What's the next step?” Because I see products out there that look all beautiful and finished. And I just Googled stuff. I was like, “How do you start a product?” And they were mentioning prototypes, like you have to come up with some sort of concept to send the manufacturer. 

You know, going back now, the prototype company, it was pretty expensive, and it was very rough, and I didn't understand. I was like, “What do I do with this now?” Because it doesn't look like an actual product. 

So when I finally got it to the factory, and they sent me back a sample, then it was starting to get more and more refined.

Now, going back to your question, Chase. I mean, there were so many versions of this, but yeah. When I first used the product, I was doing it specifically for the clients that I was training. That was it. 

I didn't expect it to be for everyday person who just wanted fitness. This is really about boxing. I was like, “It’s going to be boxing skill work,” and very focused on that. 

This is before Peloton became big and everything else. So home fitness wasn't really as hot as opposed to like with Tae Bo and, you know, stuff in the earlier days. We just watched video cassettes. There wasn't a lot of home equipment yet for fitness. So when I was doing this, again, it was like focused on just doing for actual boxers. 

And then somebody in my class saw it, and her aunt did infomercials. She was a marketing agent. She brought me in and she was like, “This is really cool because women could tone their arms.” I was like, “Oh, this is interesting.” 

I was never going that route. I actually went the route of the infomercial. This is 2014. We started putting together samples to say, “Okay, this could be actually on an infomercial.” 

They wanted to use Dorothy Hamill, which is, this is old school now. She's a figure skater from the 70s. I don't know who she was, but I had to look her up, and she was toning up her legs. I'm like, “This would be great if she could tone her arms with it.” 

They're trying to figure out how to pitch her. So that's how we first started. It was a whole different route. I wasn't doing Ecommerce. It was just trying to figure out if this is something that people would buy, that your everyday person would purchase. 

Chase Clymer

Yeah. So you made this to solve your own problem for your own one-on-one coaching clients. 

Brian Pedone

Correct. Yes, exactly. It was specifically for me and for a few of my clients. Maybe 10 clients. 

Chase Clymer

And then someone happenstance in the gym sees it and goes, Hey, you can sell that on TV. 

Brian Pedone

Exactly. And I was like, “Oh, that's a weird concept. I didn't think of that. Didn't cross my mind.” And she was like, “This is really cool. You could actually do this big.”

Chase Clymer

Now, were you selling these to your clients? 

Brian Pedone

You know, funny enough, when I first got the sample from the factory, I loved it. But there's a minimum order and that's the way they work–usually in bulk. So it was like 1000 or 2000 units and I just didn’t have the money to outlay it. It was like maybe $30,000 to $40,000. 

I didn’t have the cash right now to do this. So what I did was, my mom would sew these handmade bags, and then my dad, he's kind of like a tinkerer as well. So we got some bars, some Walmart canes, and we cut the bars off. 

We tried to figure out how to make our own bars and make our own bags. We actually produced 20 homemade versions. I have it so I can always showcase it. 

It's pretty bad. It's disgusting. But we sold it. I mean, people actually purchased it. It didn't work very well. But that was kind of the beginning of it. The working concept. 

Chase Clymer

Awesome. And that's what got noticed. 

Honestly, did you go and do you put this on TV? Is that the next thing? 

Brian Pedone

So this was like a year and a half of really more negotiating to figure out the terms, because what they're going to do is they're going to bring in their own investors who would fund the commercial. I was going to become just the inventor and get a royalty. Licensing deals, they do just the royalties and most of it is 5%. It's very small. 

They're really banking that it's going to be a really big deal and they'll sell millions and millions of units. I was going down that route because I didn't know any better. And I was like, “All right, maybe this is what I should do.” 

So that was like a year and a half of negotiating. And then they're trying to come up with a version that costs less. Because even when we got it down to like the bare minimum, the quality still needs to be good because you're punching it. I didn't want to produce something that would just fall apart immediately. 

So the cost was still a little too high and they weren't happy with it. So, the quote unquote investors that were coming in, they were like, “You know what, let's just scrap this because we want to sell this for like 29.99. on TV. We can't have a price of $79, $89. No one's gonna want to buy this.” 

So after a year and a half, they just dropped it. I signed everything and then they're like, “You know, this isn't gonna work,” and they dropped it and they're like, “We're not doing this. Good luck. Go on your way.” 

Chase Clymer

I'm assuming during that time, you learned a lot. 

Brian Pedone

I did learn a lot. And also a lot of expectations. When I went back to the manufacturer–he's a close friend of mine now– he was like, “Brian, your product is good. You have a good concept.” He's like, “Do it yourself. No one else is going to help you get this thing out there. If you're going to put your time and energy in, do it yourself. You have enough resources. I'll stick with you. Whatever you need. If you want to lower the minimum order, we can work on that. 

But let's forget that. Forget the infomercial. Forget all that crap. Forget trying to get a royalty. You should be able to, whatever you're producing, you should be able to get paid for it.” 

Chase Clymer

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Chase Clymer

So a bit of a misstart on getting on infomercials. 

So how did we get these customers? What was the go-to-market strategy? 

Brian Pedone

So what happened was... Actually, it's funny enough. When that happened, I filed for a patent. So it's publicly filed, the product that I have. I let it drop. So I did the provisional and I was going for the non-provisional, and I let it drop during this infomercial time. 

So I'm like, “Forget it. Maybe this will never happen.” That will come up later in the story. But I was like, “What? It doesn't matter. Maybe this will never work.” 

So what happened was… let me rewind back. So what happened was I was teaching the classes in New York, and the classes were growing. I was getting more and more customers, more and more people coming in training. 

The other gym owner in New York, he was like, “Hey, Brian, like I see what you're doing. You have a good group of people.” He's like, “What would it take if I wanted to purchase the classes from you and your members? Like, what would your price be?” So I was like, “Oh, interesting.” 

So I went back to the manufacturer. I figured out the minimum order quantity, the number of units I needed to purchase directly from them. And that was like 30,000. And I was like, “I need $30,000 if you want these classes from me.” 

So he paid me 30,000. I sold off the members and all the classes I was teaching. So that money I took directly to the manufacturer. We got a thousand units produced. They got shipped to the states, and they actually went into my parents' house. They went to my childhood bedroom, the boxes. It was like floor to ceiling boxes of units. 

And this is now in 2016, when I got all the units in. So now I had a thousand units and they were good. They were actually of good quality. There's still things I need to work on with it.

And I started to do my own thing on Ecommerce and I was, “Okay, let's sell it.” I started doing some paid ads. It was very slow, Chase. It was very, very slow. I'm talking, maybe 10 orders a month, right? It was really slow. 

And then what happened was Conor McGregor and Floyd Mayweather were fighting in 2017. It was a big social media thing because it was like the worlds were colliding. You had a big MMA fighter. You obviously had a big boxing fighter. Um, people showed interest in this fight because it was like a crossover.

And what happened was, in the end of 2017, I got a unit out to one of the instructors of Peloton. She does boxing too. She was punching the bag. She really likes it. She put up a video. Nothing spectacular about this video. It's just a woman punching the bag. 

What happened was, when that fight happened, the very next day on Facebook, the video went viral. So, just her punching it. It wasn't really an ad. And people started flocking to the website. 

So besides the video being viral and people sharing it, I would say we got like 50,000 shares of the video itself. But what happened was people were actually coming to the website and purchasing. So in that one day when that video went viral, I'm gonna say I sold maybe like 500 units. 

It was that quick. It was pretty chaotic, and the fact that we're getting close to Christmas. So I actually talked to the manufacturer, got a good amount of sales, and then I worked on flying them a new set of units for Christmas. 

So I paid a lot of money. I learned a lot about import and stuff, like with boat and plane and what that costs as well? Yes. 

But yes, that game was a really amazing kickstart. So when the video went viral, we got a huge traction, and we sold out, and then I did a pre-order and the pre-order, it was amazing. 

I would, I set it for October 1st. I remember that's October 1st, 2017. I went on sale and that very day I sold 550 units in one day. 

So it was like from doing, again, like 20 orders a month, to like 500 in one day. It was like a night and day difference. 

Chase Clymer

Sometimes, when I'm doing these interviews, I ask people, “Was there a moment where you're like, oh, I think we're on to something?” I'm assuming that was the moment. 

Brian Pedone

Yes. That was the moment. Yeah, exactly. It went from worried about how I am ever going to place an order to how am I going to fulfill the orders. So worries are shifted. 

Chase Clymer

So here's something I want to know. 

I often talk about this when it's more on the agency side of things, when I'm talking to clients and I'm like, well, “We built this cool, awesome website. How are we going to get people there?” And they're like, “Oh, we want something to go viral.” Right? Remember, that was a huge thing forever ago. 

Brian Pedone

Absolutely. Absolutely. 

Chase Clymer

You can never bank on that. Those are almost like acts of God. It's like lightning striking. 

Kanye is not going to wear your t-shirt. And if he does, congrats. Right? These things, you don't have control of them, right?

You were lucky enough to benefit from Zeitgeist. It happened for you. Awesome. 

Brian Pedone

Absolutely. 

Chase Clymer

How do you capitalize on that? How do you roll that into sustainable growth? Or did it go back down to 10 a week? 

Brian Pedone

Yeah. So we rolled that wave. The wave lasted, I'm gonna say, about 6 months, just because of keeping pre-orders. 

It wasn't... I didn't even do it by practice. It was just by chance. When I started limiting the amount of units I was selling, it created more of a demand. So I didn't do it on purpose. I wasn't trying to trick anybody, we just were low on supply. 

Chase Clymer

Accidental scarcity. 

Brian Pedone

Absolutely. And people went nuts. They were trying to get it and figure out how they could get it. So every time I did a pre-order, I had maybe like 60 units to sell at a time. And it would go from like 12pm to 12.01pm. I would sell all 60 that quickly. 

And then somebody is like, “Hey, I was just at the checkout and where did it go?” I'm like, “I'm sorry.” 

Long story short, that lasted about six months, and I needed something else, right? If I could rewind back, I would have added even more products to the product line or really started working on a subscription. 

So my background is in software development, so I do have an app. I did add a punch tracker to those technology to the product as well now. But I never did a subscription. That's a tidbit I would offer to other people: If you got the momentum going, figure out how you can continue to make it a sustainable revenue.

Because when we're selling a product, it's really like a one-off, right? Somebody buys a product, maybe a year later they buy it again, maybe they tell their friends, maybe they don't. 

So what happened was for about six months, we kind of peppered out. I was still doing sales pretty well. I am doing Facebook ads now. I had a pretty good flow going. 

And then I got a call from Shark Tank. So they saw the ads, they saw the videos, because some kind of momentum was still flowing. 

Producers reach out to people. I don't know if you've spoken to anyone who's ever interacted with the show, but what happened was they reached out and they were like, “You know, this is interesting. Would you be interested?” This was like another long process going back and forth and submitting videos. They had like an opening came up. 

So I flew out to California and this is in 2018. So the next year I pitched, got behind the scenes to deal with Daymond John. And I was like, “Okay, this is my next thing, right?” So, you know, we had the buzz going. Now I'm gonna get the next wave that will really take me up. 

It didn't happen. So I got the deal and I waited for the producers to call and say, “Okay, here's when your episode's gonna air.” This is in 2019 now. And I was starting to prepare, like, “Maybe this is not gonna air at all.” 

So I got a call from the producers, like “Yeah, your episode's not gonna air.” I talked to Daymond John, he's like, “Yeah, without the episode airing, this is not worth it, you know? There's no deal here.” 

So that was like a low in the flow, right? I was like, “Okay, this is great. I'm gonna ride one to the next.” So that didn't happen. 

So what it did was teach me to, okay, I gotta figure out how to be sustainable. And that was at that moment where I’m doing a lot of work on the marketing side for the ads, mostly social media. So Facebook, Instagram, Google, here and there. But it was really Facebook and Instagram that kept the flow going and got more people coming in. 

And then I got on Amazon, it was just kind of just kept stacking and stacking. It was slow growth again. So I had the buzz, and then the slow growth. I had to go dial it back and then figure out what would be sustainable. So that's how I continued on then from 2019 until here we are today. 

Chase Clymer

Absolutely.

We glossed over something that I mentioned that I wanted to talk about with you when we first spoke a few weeks back, which was the subscription element on top of a physical product. 

And I think that that, as a part of your business model, is such a smart play. So walk me through it. 101 level, I'm an idiot. Tell me why this is a good idea and how it's making you money. 

Brian Pedone

Yeah, absolutely. I mean, the subscription is like bread and butter. 

So I have a competitor, they’re called FightCamp, and I know the CEO, we talk sometimes and he was like, “I'm not a product company, I'm a subscription company,” and I found that really interesting. I'm like, “Wow, you're making a product yet you're defining yourself as a subscription company.” 

I think that if someone likes your product, and what I've learned too, especially with subscriptions, is that  there's a lot of apps out there. It's hard to compete. But if you have a physical product, you have something that's tangible. Someone can touch, they can feel like, “I really like this. This is something I want to do. How can I continue using it?” 

So the subscription adds to that, right? They have the physical, and now they wanna add in something that they can do on a regular basis to keep it consistent. 

So the subscription's really important because now they have something, and it's also holding them accountable. They’ll also learn that free is great, however, with free, you also don't get accountability, and people don't feel as inclined to continue using what you have. 

This is why it's great with SoulCycle and the other products out there. If you're paying monthly, you’ll think, “You know what, I'm going to use this again, I'm paying for it.” Besides, I don't like to charge people for things if I don't feel like I should charge them, but what it does do is give accountability to them as well. 

So what's happening now is with the product, it's like adding in a subscription for people so they have the on demand already that's free and available. It's not adding another element of content that will keep them accountable as they're using the product. 

It’s the next stage for what we're doing. So they have the product, they like using it and now they're, “Okay, now I have something that I can use on a daily or weekly basis. I'm paying for it because I want to use it.” and it keeps them using it because they're paying for it. 

For us, though, that's really important because again, they buy the product one time, and then maybe a year or 2 years later, they might buy again. But that's it. So we need to have this consistent revenue coming in to keep the company going. 

Chase Clymer

So I'm on the website, and I've been playing with the website. From what I understand, the app is free, and you can get some data from interacting with the bag if you have the technology plugin on the bag. 

The subscription though, is that classes and training? Is that what I'm paying for? 

Brian Pedone

Exactly. So it's classes and training. It's actually still in working form right now. So we only have a few members that are on it, the ones that are our consistent members. 

We're still testing the subscription. It's not actually a live thing that right now you buy it and you just get the subscription. We still have a big pool of people. 

If you're looking at the website, you're absolutely right. Everything is free, but we're adding in a component now where people can be like, “Okay, I'm willing to pay for this.” So we've been beta testing at the moment what people will pay for. 

And what they've been wanting to pay for is, besides the one-on-one training, the small group training is really important to them because they want to work on their technique. So we have a lot of on demand, people can follow along, but the consensus I've been getting from people is like, “Am I doing it right? Is my form correct? I don't really know.” 

I got in there, I like this. And that's kind of what I've learned too with boxing. It's like a nice gateway into fitness where they're punching something and they're saying, “Oh wait, I'm actually working out,” and now they're like, “Hey, you know, I watched a boxing event.” 

This is like the beauty of Jake Paul and like the social media people, they keep adding more and more like a presence to the sport of boxing. And then people are like, “I want to learn a little more technique. Am I doing this correctly?” 

So that's like the next step. And now that we have a relationship with them, it's much easier to pitch. It's not a hard sell anymore. It's pretty much a soft sell. Cause they’re like, “I'm already using this, what else can I get from this?" Instead of, “Hey, you got to get this subscription, and that's the only way to be able to use the content.” 

So it's like a freemium version. They have a lot of stuff, but now it's like, “Okay, I really want to take this to the next level. What can you offer me?” 

Chase Clymer

Absolutely. That's amazing and it's definitely going to change your business. 

Brian, is there anything I didn't ask you about today that you think would resonate with our audience?

Brian Pedone

The question, Chase, that I get a lot, because you know, I talked a lot especially to startups and startup founders. They kind of want to know if they do have a good idea, and is it worth pursuing? 

I think it's a good question because a lot of people come up with ideas. “I got this idea, it's great, I'm not going to tell you, because you'll steal my idea.” What I've learned too is that, idea is amazing, but again, it's the combination of the idea plus execution that really matters.

So I feel like if you love something, and you're like, “This is awesome”, that's key right now. You have to do something you really wanna do. But you're not gonna make any money with it. But then it's really like taking the next step, right? Executing. It's like, “Okay, what does that look like?” 

Also planning out, “This may take me two, four years to start seeing some results.” I think we get jaded watching or looking at things and be like, “Oh, this is how these founders do it.” 

You watch the founder of Uber and you watch these documentaries, “Oh my God, they just came up with an idea and like a couple months later, investors are knocking down their door and they're trying to give them tons and tons of cash.” 

I mean, it does happen, but just like in the boxing world, it's a very small percentage. There's only a few like Floyd Mayweathers and these great fighters who get a lot of money. A lot of them don't get paid at all. 

So really, I think it takes time. I mean, that's usually the thing people ask me. I'm like, “Well, why don't you work on it first, see if people are interested?” Even if it's like a sample, he's a colleague, MVP, like a minimum viable product.

Create something very basic and then see if people like it and want to use it. And then from there, you can start to stack up. 

Chase Clymer

Yep. That's amazing advice. 

Brian, I can't thank you enough for coming on the show today. There's going to be links down below to a lot of the stuff that we chatted about. 

I hope you have a great rest of your week. 

Brian Pedone

You too. Thank you, Chase. 

Chase Clymer

We can't thank our guests enough for coming on the show and sharing their knowledge and journey with us. We've got a lot to think about and potentially add into our own business. You can find all the links in the show notes. 

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