Listen on Spotify, YouTube
Hey friends,
Today’s episode is with David Simnick, co-founder and CEO of Soapbox. We initially recorded this interview in person back in February in Miami during Cosmoprof, however, I lost the recording (big fail by me). So this has been months of anticipation to have David on the podcast and thankful we could make it happen. Thank you to the one and only Doug Waller for making the intro.
Consumer VC is brought to you by:
The Hidden Gems: There’s a lot of bull$#!+ in the Agency landscape. That’s why Brand Founders and Executives big and new trust: The Hidden Gems. They provide the most optimal boutique Agencies to conquer any goals/needs with top quality and efficiency. Brands get preferred rates. Can’t lose. They’re supporting the growth of incredible brands like Dr. Squatch, Monster Energy, Gorilla Mind, Saatva, and many more. David Drexler (founder) has agreed to provide the service for FREE forever to anyone in the Consumer VC community or mentions Consumer VC.
Whatever your need, just send a request and they’ve got the solution... it’s that easy! –> david@thehiddengems.com
So David started making soap in his college kitchen in 2010 (his landlord thought he was cooking meth). Sixteen years later, Soapbox is sold in Walmart, CVS, Walgreens, Target, Costco, and Wegmans, it’s profitable, and private equity firms reach out every month.
We get into why consumers don’t buy because of the mission (and why the mission still drives repeat purchases), what a BCG study found about Soapbox’s loyalty, why a one-for-one model beats a percentage pledge, what one of his largest investors said when David brought him a bad acquisition offer, and how David thinks about building new brands through incubation and M&A.
Listener offer: get 20% off your first order at soapbox.co with code CONSUMERVC20
Chapters:
0:00 Intro
1:03 Round two after the lost recording
2:36 What’s most misunderstood about Soapbox
4:27 First-time founder or seasoned operator?
5:18 From USAID to starting a soap company
8:52 Making soap in a college kitchen
12:52 Why consumers don’t understand cents or percents
14:32 Weaving the mission into the product
16:54 Moving the mission to the back of the label
17:13 What BCG found about Soapbox’s loyalty
19:01 Why Soapbox couldn’t be a nonprofit
20:33 Sponsor: The Hidden Gems
22:03 How investors viewed the mission
22:54 Why buyers root for a mission-driven brand
27:52 The 2016 pivot: 0.15 units per store per week
29:48 Why he decided to keep going
32:35 Product or positioning?
33:37 Asking retailers to believe in the rebrand
34:51 Growth ambitions and building more brands
36:53 Incubation vs. M&A
37:26 What he looks for as an angel investor
38:44 Format innovation and solving a known need
41:20 What he’d do differently launching today
🎧 Enjoying the show? Subscribe and give a ⭐️⭐️⭐️⭐️⭐️ rating wherever you listen to your podcasts – YouTube, Spotify, Apple
🤝 Want to connect or have a question? DM us on Substack Consumer VC
💡Have ideas for guests? Email mike@theconsumervc.com
