LITKIT is a subscription box service designed for lit nerds, writers, and book lovers of all kinds. Each month, we design and deliver a surprise box of experimental or independently published literature, alongside interesting writing prompts and devices. Each box is carefully curated to spark creativity, with included items selected to represent a unique theme or concept.
Financials and traffic
The above profit is a our current income (from focus group), which is reflected in Shopify's numbers. Actual net for a year of operation was $40k - which was in line with preorder commitments (received while the site was live, but ordering disabled). This was achieved with zero advertising, marketing, or social media activity.
Our profit margin has been 50% on delivered orders - which included inventory purchased in small batches at wholesale prices (in most cases, without a bulk order discount). As bulk purchasing power rises, profit margins on this business will only increase (as shipping/delivery costs and inventory costs have plenty of room for reduction).
Average overall profit margin
Average number of sales/month
Value of inventory
Revenue and traffic data from this graph is calculated by Exchange and can not be edited by the seller. Average profit, profit margin and number of sales are provided by the seller. Learn how Exchange calculated this data.
Total annual operating expenses for this business (minus owner/operator labor and inventory costs) are less than $3500 per year. We designed it to have very little overhead.
We originally launched on Kickstarter, with approximately $25,000 in orders not reflected here. The project was then suspended while we went through a transition in ownership, and left dormant for more than a year, while collecting data. In that time, we received more than $28,000 in preorder commitments with absolutely zero advertising or social media interaction. For the last 8 months, we've been honing our offerings by experimenting with a small but loyal focus group. Interest is solely generated through unsolicited reviews and word of mouth - so with the current set-up, demographic knowledge, and expressed interest, this business will be immediately profitable upon launch, with very little advertising, effort, or budget invested.
How can the future owner improve the business?
Just advertise, and maintain even a small social media presence. Our followers are interested in literary endeavors and writing prompts, and will be incredibly active and engaged with very minimal effort.
The business was also designed to scale, and a new owner could easily enlist with a fulfillment company once they reach the level of 500 subscribers (which is incredibly reasonable).
Our future plans also included a 1-to-1 model, in which subscribers would sponsor a charitable donation with each 12-month subscription (for instance, one box of school supplies donated per 12-month order). Our research implies that our demographic would respond positively to this kind of arrangement.
What work have you put into the store?
Concept, development, and branding were all backed by extensive research and have been refined post-launch to meet the needs and interests of our demographic. The stage is set for someone who would love to run it full-time. This was a fun project for me, but I travel too much to really do it justice.
How many hours does it take to run this business per week?