Sunday, December 31, 2000
Nesting on the Net
BestNest finds a niche selling bird feeders and houses
By Jenny Callison
Enquirer Contributor
As many dot-com businesses crashed this year, David and Beth Woeste's new enterprise took flight.
The couple, owners of BestNest.com based in Anderson Township, have thought strategically in their efforts to nurture their company, which specializes in feeders and houses for wild birds and backyard wildlife. They've also worked hard to keep customers and suppliers happy in the two years they've been in business.
The result? A 600 percent increase in sales this year over 1999.
David and Beth Woeste, owners of BestNest.com, with three tall butterfly houses and a decorative birdhouse, among the feeders and houses for birds and wildlife they sell on the Internet.
(Jeff Swinger photo)
| ZOOM |
|
Only three years out of Miami University, the couple decided that they wanted a small business they could operate from home. The arrangement would allow them to start a family and spend time together. An Internet business made sense, since it would benefit from Mr. Woeste's experience as an e-business consultant.
The choice of specialty made sense, too.
My family and I have always been very interested in wildlife and the outdoors, Mr. Woeste said. We looked for business niches that were in line with our interests. We looked for a small niche that a budding company could do well with. Companies that try to be all things to all people aren't successful.
With their product line defined, the first step in getting the company off the ground was obtaining an e-commerce storefront solution. In simple terms, that's a host and software to run an online store. Mr. Woeste was able to design BestNest's storefront, but he said there are hosts such as Yahoo! that can provide basic software for startups for as little as $100 a month.
For that price, Yahoo! allows you to put up to 50 items in your storefront, he said. There's a sliding scale for more products.
|
HOLIDAY PREPARATION
|
David and Beth Woeste wanted to make sure they could handle rapidly increasing sales volume during the gift-giving season this year. To meet customer expectations, they: More than doubled product offerings. Tripled inventories. Aligned themselves with new manufacturers that could either drop-ship or deliver wholesale orders to BestNest in fewer than seven business days. Added product availability information to their eCatalog. Allowed customers to enter gift messages to be included with any package. Prepackaged items in inventory for quick shipment. Upgraded technology/hosting provider for stronger and more reliable service with 24-hour administrator support. So far, we've had a couple of exchanges, but no returns, Mr. Woeste said. BestNest is on the Web at www.bestnest.com, or contact the company via e-mail at david@bestnest.com, phone (513) 766-2131. The company publishes a monthly e-mail newsletter.
|
After the storefront was ready, the Woestes researched suppliers of birdhouses, bat houses and bird feeders. Not only did they check out the quality of suppliers' products, they learned how the companies worked.
Every supplier is different. A lot of companies have come from the catalog business, where delivery in four to six weeks is acceptable, Mr. Woeste said. If I'm a consumer in an e-commerce situation, I want my stuff now. The landscape has changed because these companies are more customer-focused. Most of the suppliers we work with now, we can get things in under a week.
I've learned the importance of networking, of developing good relationships, and of keeping suppliers happy as well as customers, Mrs. Woeste said.
With their storefront stocked with products that Mrs. Woeste describes as top-quality, high-end; products that do the job well, the next task was to do the math. This involved setting up accounts, figuring financial projections, financial needs and then securing financing.
Our startup expenses were extremely limited, about $6,000, and were spent almost entirely on inventory, Mr. Woeste said. We already had computer equipment, although we had monthly payments to our host provider.
Finding customers involved a lot of detail work.
Said Mr. Woeste: One of the initial best ways is getting your site listed in search engines. Each search engine works differently. It's tough for someone not familiar with the field. Some you provide with key words, some you pay a fee and someone will describe and list your site. Some scan through all your pages and rank your site.
BestNest has not invested in banner advertising, which Mr. Woeste thinks is not cost-effective. But online networking, much less expensive, can draw customers who are interested in your field.
It's a process of asking other people to link to your site. For example, we hook up with sites related to birding topics. The network funnels customers to you.
After customers discover the online store, Mr. Woeste said, the approach is not much different from serving customers in a bricks-and-mortar business. A well-designed site that makes it easy for people to find what they want and buy must be matched with attention from the company.
You need to keep the customer in mind and satisfy the customer's needs, he said. You have to answer all your e-mails, even those that don't involve an order. You have to get the products out quickly. And we offer a 30-day guarantee on all items.
Communicating with customers has been an interesting process, Mrs. Woeste said.
I like hearing stories from customers that they e-mail in. They tell me what's going on in their back yard. Some of our customers take care of bird sanctuaries for their elderly neighbors.
Stewarding resources and working hard are final tips from the BestNest owners, who say their efforts are paying off in mushrooming sales. During the first half of December, they had logged 300 orders, 10 times their sales volume for the first half of December 1999.
We're starting to get repeat customers, too, Mr. Woeste said.
Investors, others tally the plusses and minuses
The year in business,
BYCZKOWSKI: New Economy
Commercial landlord stretches out
Buying a PC
Nesting on the Net
Small-business diary
What's the Buzz?