This story is part of CNBC Make It’s Six-Figure Side Hustle series, where people with lucrative side hustles break down the routines and habits they’ve used to make money on top of their full-time jobs. Got a story to tell? Let us know! Email us at [email protected].
Six months ago, Tim Riegel bent over his computer, reviewed his monthly earnings statement and saw that his highly lucrative side hustle was making less money.
He was shocked — until he realized just how much inflation was impacting his business.
Riegel’s side hustle, Mozark Fire Pit Studio, was successful immediately upon launching in 2021. He started by sourcing, welding and selling 275-pound steel fire pits to his neighbors in Lamar, Missouri, a rural town of 4,000 people two hours south of Kansas City. Within six months, freight trucks were delivering his products to Etsy buyers across the U.S. and Canada.
The business brought in $50,000 in sales in just five months on the platform, according to documents reviewed by CNBC Make It.
Staring at his screen, Riegel, 60, noticed that his volume of orders was still high. But his profit margins were shrinking, because the cost of recyclable steel, gas and packaging supplies were climbing.
He’s far from alone. Between April 2021 and April 2023, everyday essentials like groceries, utilities and gas cost Americans 20%, according to a CNBC Make It analysis of consumer price index data.
While keeping an eye on his competitors, Riegel raised his prices to get his margins back into the 35% to 40% range, he says. He added new features to his products — more color and customization options — to help justify the price increases for consumers.
Today, his fire pits cost an average of $950, up from $650 since fall 2022 — and in the last 12 months, Mozark has brought in $169,000 in sales.
If he’d waited any longer, the price jumps would have been higher, and customers could have bolted, Riegel says. His No. 1 lesson: Reevaluate your prices on a monthly basis, so…
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