Latest / Small Business Success with Fexingo: Local Companies, Main Street Stories, and Community Commerce / How a Local Soap Maker Built a Subscription That Tripled Revenue
Transcript
- Lucas: There's a soap maker in Portland, Maine, named Jenna Rivers, who started making soap in her kitchen four years ago with a two-thousand-dollar investment in oils, lye, and a second-hand mixer. Luna: And she's now running a subscription business that tripled its revenue year-over-year for two straight years. How'd she pull that off in a market flooded with artisanal soap? Lucas: Right. So the key insight Jenna had was that soap is a repeat purchase — people need it every month or two — but most local soap brands sell only through farmers' markets or wholesale to boutiques, where they compete on packaging and price. She decided to build a subscription model directly to consumers, but she didn't just slap a 'subscribe and save' button on her site. Luna: What did she do instead? Lucas: She built a fragrance quiz. When you land on her site, you're asked about your skin type, scent preferences — floral, citrus, earthy — and whether you want exfoliating or moisturizing bars. The quiz then recommends a personalized four-bar box. That quiz boosted her conversion rate by forty percent. Luna: Forty percent is huge. And that quiz also collects data — she knows exactly what scents her subscribers prefer, which helps her manage inventory and reduce waste. Lucas: Exactly. She told me that before the quiz, she was overproducing lavender — her bestseller at markets — but subscribers actually preferred cedar and eucalyptus. That changed her entire production plan. Luna: So the subscription model gave her predictability, and the quiz gave her personalization. That's a powerful combo. Lucas: And she layered on a referral program. Each subscriber gets a unique code they can share with friends. When a friend signs up, the existing subscriber gets a free bar in their next box. Simple, but it drove forty percent of her new subscribers in the first year. Luna: That's organic growth at its best. No paid ads, just happy customers doing the marketing. Lucas: And she kept the bars affordable — fifteen dollars per month for four bars, shipped free. That's about three seventy-five per bar, which is competitive with high-end drugstore soap but feels artisanal. Luna: What about the economics of shipping? Soap is heavy, and shipping costs have gone up. Lucas: She negotiated a flat-rate shipping deal with a regional carrier by committing to a minimum volume. And she uses lightweight packaging — just a cardboard sleeve, no boxes. That keeps her shipping cost under three dollars per shipment. Luna: Smart. So what's her churn rate look like? Lucas: She told me monthly churn is around five percent, which is decent for a subscription box. But she's been experimenting with win-back emails — if someone cancels, she sends a survey asking why. Turns out most cancellations were because people had too much soap stockpiled, so she introduced a 'skip a month' option. That cut churn by about a point. Luna: A small tweak that keeps customers. It's those little things that add up. Lucas: One other thing she did that I think is worth highlighting: she prints a handwritten thank-you note in each first box. Not a card, not a sticker — a real handwritten note. She says it costs her about thirty seconds per order, but the share rate on social media for those notes is high. Luna: People love that personal touch. It makes them feel like they're supporting a person, not a faceless company. Lucas: And that's really the heart of Main Street commerce. Jenna's story is a great example of how a local business can use subscription as a tool to build a loyal community, not just a revenue stream. Luna: You know, this kind of deep dive into one business's strategy is exactly why listeners tell us they appreciate the show. It's ad-free, and a handful of listeners chip in monthly through buy me a coffee dot com slash fexingo to keep it going. That support lets us spend time on stories like Jenna's. Lucas: Yeah, we really appreciate it. It's a small group, but it makes a big difference in allowing us to stay independent and focus on the details that matter. Luna: So back to Jenna — she's now at about eight hundred subscribers, and she's thinking about adding a sister brand for men's grooming. What's your take on that? Lucas: I think it's a smart move, but she needs to be careful not to dilute her brand. Her current subscribers trust her for natural, skin-friendly soap. If she launches a men's line under the same name, she might alienate some customers. She'd be better off creating a separate brand but using the same production and fulfillment infrastructure. Luna: That way she can cross-sell without confusion. And she already has the data on what scents men prefer — cedar and eucalyptus, right? Luna: What about the broader lesson for other small business owners? Is a subscription model right for everyone? Lucas: No, it's not. Subscription works best for products that are consumable, have a predictable refill cycle, and can be differentiated. Soap, coffee, pet food, supplements — those are naturals. But if you sell handmade furniture or custom art, subscription probably isn't the right model. The key is to ask: do customers need to rebuy frequently? And can I offer enough variety to keep it interesting? Luna: And you need to have the operational capacity to handle recurring shipments. Jenna started small — she was packing boxes herself in her living room for the first six months. Lucas: Exactly. She didn't invest in a fulfillment center until she had two hundred subscribers. That's smart — let the revenue scale before the costs. Luna: Another thing I noticed: she uses a simple Shopify app for her subscription management, not a custom platform. That kept her startup costs low. Lucas: Right. And she's very active in a Facebook group for local small business owners. She shares her subscription metrics openly — churn, acquisition channels, cost per acquisition — which has helped others in the group learn. She's become a kind of mentor. Luna: That community aspect is so important. Small businesses don't have to figure it all out alone. Lucas: And that's the spirit of Main Street. Jenna's success isn't just about her own revenue — it's about building a model that other local businesses can adapt. She's already had a candle maker and a hot sauce maker reach out to her for advice on starting their own subscriptions. Luna: So what's next for her? Any plans to open a physical storefront? Lucas: She's considering a small workshop space where customers can come watch soap being made and pick up their boxes in person. That would also let her host events — like scent-blending workshops — which could be an additional revenue stream. Luna: That's a great way to deepen the community connection. And it keeps her rooted on Main Street, even as her subscription business scales. Lucas: Exactly. So that's the story of Jenna Rivers and her soap subscription. A two-thousand-dollar investment, a fragrance quiz, a referral program, and a lot of handwritten notes. Simple ingredients, but the combination is powerful. Luna: And it's a reminder that in the age of Amazon, local businesses can thrive by leaning into what makes them personal.