About the Company

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BruMate, led by Dylan Jacob and playfully nicknamed "The Dehydration Company," stands out in the drinkware industry. Unlike most brands, BruMate specifically caters to the adult beverage crowd. Their innovative products are all designed with insulation in mind, ensuring your drinks stay at the perfect temperature, no matter the occasion.

BruMate's flagship products showcase this focus on functionality. The Hopsulator TRiO is a versatile 3-in-1 koozie that works for both 16oz and 12oz cans (with a freezable adapter), and even doubles as a pint glass. Wine lovers will appreciate the Uncork'd Wine Glasses, the world's largest triple-insulated option, capable of holding over half a bottle. And the Winesulator takes the cake for wine enthusiasts. This sleek design holds a full bottle, maintains its temperature for over 24 hours, and eliminates the need for extra coolers in glass-restricted areas.

BruMate isn't resting on its laurels. They're constantly innovating, with exciting upcoming releases like the NOS'R, the world's first indestructible insulated nosing glass for whiskey. Beer drinkers who prefer slim cans will be happy to see the Hopsulator Slim hit the market, while the Hopsulator Juggernaut caters to the growing demand for larger 24/25oz can insulation.

Since its launch in November 2016, BruMate has experienced phenomenal growth under Jacob's leadership. Sales have skyrocketed from a quarter-million dollars in its first two months to a staggering $2.1 million in 2017. Currently, they boast monthly sales exceeding $1.1 million with products in over 1,000 retailers nationwide. With projected sales of $20 million for this year, BruMate is poised for continued success, offering a healthy profit margin depending on their advertising strategy.

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Idea Behind Company

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Dylan Jacob's entrepreneurial journey took a distinct turn with BruMate, his third venture. Unlike his first high school part supply company, BruMate saw him deeply involved in product development and design. This passion for creating innovative solutions stemmed from a desire to move beyond simply selling parts to creating tangible products that addressed real needs.

After selling his first company in 2014 and embracing full-time entrepreneurship, Jacob found success in high-end glass tile manufacturing. However, his true calling lay in product innovation. He craved the satisfaction of seeing people benefit from and enjoy his creations. This desire for impact led him on a quest for a unique idea, culminating in the spark that became BruMate – born from a personal need for a better beer koozie and the ambition to bring it to market.

Developing BruMate's flagship product, the Hopsulator TRiO, involved navigating the complexities of prototyping and molding. While Jacob's experience with sourcing and development from previous ventures provided a foundation, the process proved intricate and time-consuming. The journey highlighted the dedication required to refine a product and deliver a truly exceptional solution for consumers.

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Creating the Company

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Before diving headfirst into mold production, Dylan prioritized market validation for his product. A rough sketch was transformed into a 3D model by a local engineer, then printed by Xometry, a 3D printing lab in Maryland. Armed with these prototypes, Dylan approached local breweries, securing a crucial partnership with a major Indiana brewery. Customer feedback from this collaboration fueled further refinement, leading to numerous iterations over nearly a year before the final design was realized.

Winesulator Takes the Lead

While the Hopsulator served as the initial spark, the simpler design of the Winesulator allowed for a faster launch. Targeted Facebook ads were used to generate pre-orders and gather customer insights. This low-risk approach was further bolstered by the lower manufacturing costs of the Winesulator. In the absence of physical prototypes, Dylan leveraged high-quality renderings to cultivate interest, amassing a significant customer list before the product's arrival.

Sourcing Strategies and Intellectual Property

Leveraging the knowledge gained from previous ventures, Dylan developed an efficient strategy for sourcing reliable manufacturers. Public import records provided a window into established companies' supply chains, allowing him to identify reputable manufacturers in China. He then undertook personal visits to these factories, ensuring compatibility and scalability for future growth. Recognizing the importance of long-term partnerships, Dylan prioritized manufacturers with the capacity to expand alongside BruMate. Furthermore, he implemented contingency plans to minimize disruption, and proactively protected his intellectual property by expediting patent applications for his products.

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Launching the Business

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Before the initial launch of BruMate, Dylan found himself with ample free time as the product was still in the design and production phase. He utilized this time to experiment with various marketing tactics to build awareness prior to the product release, exploring avenues such as Kickstarter campaigns, giveaways, and collaborations with bloggers and micro-influencers. Through trial and error, Dylan identified the most effective strategies, ultimately focusing on bloggers and Facebook ads due to their proven success in reaching the target audience.

The approach to marketing evolved as Dylan honed in on the most fruitful channels, allocating daily budgets for targeted advertising and directing traffic to a landing page for sign-ups. This meticulous strategy culminated in significant traction, with BruMate achieving $250,000 in sales within a short timeframe. With this initial success, Dylan expanded the marketing team to seven members, who now oversee advertising efforts across various platforms including Facebook, Instagram, Google AdWords, Bing, Snapchat, and Pinterest.

Beyond driving traffic and conversions, Dylan prioritized customer engagement and retention strategies. This included initiatives like email collection through Spin-a-Sale, ambassador programs, and ongoing website optimization to enhance the conversion rate. Furthermore, Dylan emphasized the importance of retargeting efforts to re-engage potential customers and capitalize on the existing email subscriber base, highlighting the significant role of email marketing in maintaining customer loyalty and generating sales. Additionally, Dylan recognized the value of leveraging Amazon as an additional sales channel, capitalizing on its reach and convenience for customers while complementing the direct-to-consumer sales strategy.

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Earnings

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BruMate boasts a healthy average gross margin of 59% before factoring in advertising costs. This figure is arrived at after deducting the costs of goods sold, shipping, and fulfillment. However, the company's bottom line fluctuates due to the variability in monthly advertising spend. The competitiveness of targeted audiences at any given time can significantly impact the return on ad spend (ROAS).

For example, in June, sales hit $1.1 million with a stellar 4x ROAS, resulting in a 33% bottom line. Conversely, May saw a lower ROAS of 3.1x and a 26% bottom line, likely influenced by factors like Father's Day and adjustments to Facebook's algorithm related to GDPR. The holiday season, however, can see ROAS skyrocket to 6x due to increased conversion rates. On average, the company maintains a consistent bottom line of around 30%.

The website attracts a substantial audience, drawing in 400,000 to 500,000 monthly visitors. These visits translate to a 4% conversion rate, with a noteworthy 15% of customers returning for repeat purchases. Facebook plays a crucial role in their marketing strategy, boasting over 270,000 followers and generating significant engagement on product posts. Currently, online sales average approximately $1.1 million per month, encompassing transactions through their online wholesale portal, secondary channels like Cabela's, and Amazon Retail.

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