Can You Make MONEY With A Freeze Dryer? | The Truth About The Freeze-Drying Business Industry

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hey my name is David I'm a freeze Drive
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business owner in Idaho and I'm going to
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show you whether you can actually make
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money freeze drying as a business
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specifically freeze drying candy now
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behind me is the commercial kitchen that
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I rent I did a video on the 10 things
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that I would do to start a freeze-dried
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business and one of the things that I
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mentioned is that you can rent space out
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from a licensed commercial kitchen in
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the town that you are in now you might
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want to look at churches you can look at
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bars you can look at restaurants things
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like that that already have the permit
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for you to operate commercially and you
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don't have to go through that process
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you can just rent from them so that's
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what I'm doing here and it allows me to
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sell wholesale and allows me to do a lot
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more things to grow my business now
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before we go in here this video is going
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to be about whether you can make money
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as a free stripe business and I've been
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in business for three years and I have
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done some calculations to figure out
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whether you can make good margins today
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I did three pounds of Taffy now I've
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already got it done from the freeze
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dryer and so I looked at taffet and like
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hey can you actually make money freeze
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drying Taffy freeze drying candy well
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we're going to find that out I'm going
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to bag all three pounds and we're going
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to see whether you can actually make
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good margins on that so let's go ahead
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and take a look
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foreign
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we're in our commercial kitchen again
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this video is going to be about whether
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you can make money freeze drying candy
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there's a lot of other things that you
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can freeze dry but this seems to be the
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most popular and the most reasons why
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people start getting into buying a
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freeze dryer and if you are interested
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in buying a freeze dryer I am a referral
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affiliate of Harvest Right freeze dryers
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if you use the link below that'll help
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them know that I sent you and you can
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purchase a freeze dry directly from
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their website now when you get into
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freeze drying as a business whether
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you're Cottage food or commercial there
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are things that you need to make sure
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you're aligning by based on your state
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Cottage food laws or commercial food
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processing laws now every state is
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different I live in Idaho so you need to
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double check your own state licenses I
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would highly recommend you talk to your
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health district rep because they'll be
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able to tell you exactly what is
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necessary to do that do not lean on
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people on Facebook or lean on other
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types of forums even my videos don't
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lean on it specifically I'm just giving
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you information of what I've learned and
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observed and seems to be common practice
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across all different states but make
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sure you're looking at your own alright
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so now let's get into the ROI of freeze
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drying candy now can you make money
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freeze drying candy freeze drying as a
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business I believe you can and I'm going
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to show you practically using Taffy I
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already freeze dried this Taffy it's
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cotton candy Taffy and I'm going to show
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you the bagging of all of that product
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all three pounds of that Taffy and we're
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gonna see how many bags it produces and
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then I'm going to show you the ROI
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calculation so you can see actually the
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profit margin that there is both on the
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retail side selling direct as well as
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wholesale once those discounts are
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applied so let's get to it okay so let's
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see if we can make money freeze drying
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Taffy now I bought this three pound bag
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of Taffy you can get this off of Amazon
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it's three pounds this is Huckleberry
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but I've got cotton candy in here but
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you can buy this this is three pounds of
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Taffy I did the entire bag of this bag
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but cotton candy and I put it into this
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air sealed gamma seal bucket now this
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does work checked with my health
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inspector and this is food safe and
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proper storage for short-term use as you
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can see this is what Taffy turns out to
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when you freeze dry it becomes super
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crunchy and Airy and crunchy instead of
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chewy all right so a couple things that
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I use for my bag I've got my bucket that
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has all the product in it I've got my
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gloves on I've also got these bags that
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has the labels on it I've also got my
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scale and then we'll see how many actual
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bags we get out of three pounds of Taffy
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and then we'll do an Roi calculation
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using all this product and my labor and
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we'll see actually if you can make money
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freeze drying candies let's go ahead and
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get to it now we need to tear It Off
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make sure our bags it's at zero and it's
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not counting the weight of the bag
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because we need net now if you're not
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familiar with freeze drying Taffy it's a
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great product to do not many people are
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familiar with it so when you're when
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you're starting to like get into freeze
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drying and you're trying new products I
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would just do a couple different samples
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because that'll actually give them a
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good idea of you know the taste and
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everything of what I found when you do
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the samples with the Taffy is people
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also are like oh my gosh that is just a
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flavor right immediately because it's
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crunchy right so you don't have to suck
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out the flavor versus with the hard
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candies you kind of have to suck it out
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for a long period of time like a
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lifesaver Jolly Rancher even Taffy you
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got to chew it all the way through to
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get the flavor all right right now I'm
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already at five bags
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[Music]
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foreign
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so this is the process for bagging by
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the way it's just going to take time
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unless you have people that can work for
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you this is just part of the process you
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got to be able to just get into a good
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Rhythm as you start understanding your
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bag you can get better about opening
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your bags and just getting faster and
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more fluid with it
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[Music]
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all right all finished let's take a look
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all right look at all that beautiful
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beautiful bags let's count to see how
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many we get all right here's a group of
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five so that's five ten
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fifteen twenty
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25 wow 26
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26 bags way awesome I got 26 bags of 1.5
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ounces in each bag of Taffy this is
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going to be great to figure out so what
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I'm going to do next is I'm going to
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seal all these up now Harvest right when
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they give you a freeze dryer they also
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give you a heat sealer so I'm not going
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to do that for you today it's fairly
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straightforward you just press this heat
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seal and make sure that the glue on the
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on the bags is there that way people can
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tear off the little edges and then open
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up the zip lock and there you go you've
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got all your candy that they can enjoy
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so I'm going to go ahead and do that off
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camera but I am going to go back to the
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office and we're going to do some
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calculations to see whether you can
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actually make money and if there's good
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money in freeze drying candy all right
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we're back at the office what I'm going
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to show you is a Google sheet that I
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created years back when I first started
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the business because I wanted to really
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know what my cost was per bag so I've
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got a formula that I've already created
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I'm going to show you what that looks
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like now we all have different margins
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we all have different areas that we're
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able to price our product differently so
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this is just going to be more of a plug
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and play to see what the ROI is for you
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both on wholesale and Retail so let's go
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ahead and dive into this so now that
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we're looking at this Google spreadsheet
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I would highly advise using Google
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spreadsheets because it's free and you
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don't have to pay for any type of
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subscription or things like that I've
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got this spreadsheet that I created
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almost three years ago because I really
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wanted to know itemized wise how much
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I'm paying for bags and the labor and
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how it all fits into my Roi I've got a
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lot of different columns and and
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different rows hidden because I've got
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all my different product categories in
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this same type of format so that I can
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calculate everything from fruit to ice
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cream to different types of candies so I
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would advise you to do the same let's go
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ahead and get started and what I'm going
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to do is I've already pre-loaded what it
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cost me per bag and it's about 10 cents
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for my craft mylar bags also my labels
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that I use for Avery labels that 53.90
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five that's about eight cents per label
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to put the ingredients on and then what
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I've got also is a section for labor
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that we'll put in the amount of bags
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that It produced and then I've got the
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list price that we can plug and play
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based on just different uh pricing
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structures now I've also got our retail
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profit that means just if you're selling
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it directly at a show and there's no
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commission taken from the show sponsors
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I've also got an individual bag cost now
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down here as well let's say you're
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selling on Etsy I've got all the
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calculations of what the fees are per
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bag for Etsy as well as Shopify for my
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Shopify site and wholesale already got
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that coordinated with a 40 percent
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discount for all my wholesale retailers
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and I've got that calculated off of the
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list price so we'll see what the
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wholesale profit and margin are for that
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so let's go ahead and get started so
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this is going to be fairly
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straightforward the cost for this cotton
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candy Taffy that I bought off of Amazon
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now I have found it cheaper later but
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off of Amazon it comes in two days so I
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don't mind paying that cost because it
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comes pretty quickly it was
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18.96 first we're gonna put in the
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number of bags that we produced and we
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produce 26 bags now as you can see all
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of a sudden the formulas have started
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creating so right now the individual
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back cost is only 91 cents that's
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calculating basically 18.96 divided by
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the 26 and then it's adding the 10 cents
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and the eight cents right now as it
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stands it's cost me 91 cents per bag
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based on this cost of candy now I'm
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going to put in some labor because my
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time is valuable with the prep time of
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about an hour for all those five trays
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as well as just bagging I'm gonna put in
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an hour's worth and I'm gonna say that
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my time is worth 30 dollars per hour now
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as you can see this increase the
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individual Bank cost by two dollars but
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right now as it stands it's costing
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about two dollars and six cents for me
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to put this bag out there including my
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labor to sell this is the fun part let's
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actually calculate what our margins
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would be based on different price
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structures if you've watched past videos
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for me on my YouTube channel I've talked
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about how you've really got to increase
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your prices and set your prices to
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evaluate how much time you're putting
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into creating the candy cutting it
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things like that so let's go on the low
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end and for people that are pricing at
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five dollars for their packaging they're
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still making about a 58 percent margin
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okay so now let's actually look at the
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total for uh list price as well as the
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individual bag cost my six bags times
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the five dollar this is gross so you're
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gonna sell the 26 bags and you're gonna
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get about 130 dollars back and then
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let's go ahead and calculate the sum of
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the individual back cost which is two
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dollars and six cents we've already paid
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ourselves thirty dollars and then and
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let's multiply that by the 26 bags so 53
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and what you're left with is
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76.36 so you've paid yourself 30 dollars
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and so your profit margin on this a
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three pound bag of Taffy is 76 bucks
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this is why free strike Taffy and doing
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it even Cottage food is very profitable
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but again you got to sell a 26 bags if
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you can scale that and sell more and
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more bags you can see that man you're
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still only you're still paying yourself
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thirty dollars an hour which that's
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pretty dang good in this Marketplace not
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many people make thirty dollars an hour
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and you still have 76 dollars left over
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which is great let's take a look at the
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wholesale side of things as you can see
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here with my cursor we've got the Etsy
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rate that's only look at this this is
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only about 18 cents more on Etsy selling
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on Etsy and then Shopify on my website a
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little bit more more cost but on the
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wholesale side
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again I'm giving 40 percent and the
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reason you do wholesale is more it's a
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volume based game but you're getting
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direct payment for all of that Taffy
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immediately from the wholesale vendor
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and the profit margin on that is only
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about 18 all right so now let's
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calculate the wholesale rate and let's
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take a look to see how much you'd have
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left over profit wise so we'll do the
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equals on the sum
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and we'll do 94 cents doesn't seem like
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a lot does it and 26 bags so after
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you've paid yourself the thirty dollars
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for labor you now have
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24.36 left when you're doing wholesale
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so as you can see at a five dollar price
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point not very much left over but you're
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still making thirty dollars an hour I
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think that's still pretty good even as a
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side hustle now let's have some fun with
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this and actually go up in different
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prices so let's go ahead and change this
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to nine and let's see what happens here
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wow look at the look at the difference
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gross you get 234 dollars even after you
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paid yourself the thirty dollars for
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labor and you're left with a hundred and
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eighty dollars and 36 Cents pricing it
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at nine dollars per bag that's if you
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sell it completely out and that's at
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retail again retail is going to be
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anything that's selling direct now you
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go to Etsy let's take a look at that so
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let's go ahead and do the Etsy rate
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that's when
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Etsy takes a cut you're making 151
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dollars let's take a look at Shopify all
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right so offer your website you're going
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to be left over with a 165 dollars on
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profit and then for wholesale and that's
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86.76 now if you price it at nine
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dollars what I don't have in here is the
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cost for electricity things like that
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it's pretty minimal for this now most
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the time with uh electricity for a candy
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run I usually average maybe let's say
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two to four dollars for a three hour
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candy Run for the freeze dryer so you
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can kind of put those in but this is in
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essence just a really quick overview of
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whether you can make money freeze drying
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candy well after plugging those
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different formulas in I hope that gave
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you a clear indication that yes you can
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make money in freeze drying candy there
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is good margin in it one you just need
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to make sure you price your product
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according to what the value is that
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you're placing on there as well as you
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know there is competition there are
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other different ways that you can price
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your product and have to evaluate
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different things in your environment but
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overall if you can demand a good price
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you can make great margin on
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freeze-dried candy and that is why
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freeze drying is really accelerating as
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a free strike business whether you're in
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side hustle or you're in wholesale you
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know I think a lot of people get caught
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up in the fact there's competition as
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well as there's just more and more
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people getting freeze dryers don't let
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that stop you if you go to a market
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these days a farmer's market or Art in
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the Park something like that you're
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you're going to see that there's a lot
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of people making barbecue there's a lot
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of people making honey there's a lot of
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people selling flowers there's a lot of
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people doing woodworking are they all
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doing the same thing yes but they all
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have their little niche they all have
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their little core customer group and
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they all have different goals for their
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business so continue striving for
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Success continue growing your business
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don't worry about what all the other
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noise is about you can create the
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business that's sustainable for you so
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go out and make a difference in your
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community with owning a freeze-dried
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business we hope to see you again next
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time cheers
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[Music]

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