Ben Kovacs of Myster and Octave has vast experience in executive positions for various companies in diverse fields. He has worked as the Chief Revenue Officer at NorCal Cannabis, which is one of the “largest vertically integrated indoor producers” in California.
Likewise, Ben Kovacs sits as the chairperson of a group of companies operating in the cannabis hardware industry, including the international brands Octave and Myster.
Before Myster and Octave, Ben Kovacs has also worked at Twitter and co-founded Guardian, which is a non-profit martial arts gym offering free gyms and programs to young people in downtown Oakland. The gym also provides free Brazilian Jiu Jitsu and boxing training to kids. In the cannabis world, he has helped grow NorCal into a “powerful house of brands distributed state-wide” from a “small wholesale business.” He played “pivotal roles in sales and marketing, fundraising and corporate strategy.”
Currently, Ben Kovacs sits in the Board of Directors at Next Green Wave Holdings. According to Next Green Wave CEO Michael Jennings, Ben Kovacs “is a special individual.” Ben “has a clear vision of how this industry will likely unfold, and the understanding for how to help a company execute to get there which is a rare combination in the space.” Jennings continues, Ben has “extensive experience in CA cannabis, but a diverse background in digital advertising, brand building, and adjacent industries to what [we] focus on at NGW.”
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Treating people with respect and dignity, even when you don’t have to, is how we want to grow our company and spread positivity in the world. Ben Kovacs, Myster and Octave
Jerome Knyszewski: What do you think makes your company stand out? Can you share a story?
Ben Kovacs: Because I worked at Twitter for so long, I really learned how the best companies in the world treat their employees to retain and attract top talent. We are implementing some of these things with our Chinese partners bringing them a “Silicon Valley Experience” to their workplace in China. Free food, equity for all employees, and higher pay. We are not ashamed to say we make products overseas, rather we embrace the new global economy and recognize that our colleagues are the best in the world at what they do. Treating people with respect and dignity, even when you don’t have to, is how we want to grow our company and spread positivity in the world.
Jerome Knyszewski: Which tips would you recommend to your colleagues in your industry to help them to thrive and not “burn out”?
Ben Kovacs: With our business, it’s easy to get distracted. You have to focus on just a few core things. The second thing is, you have to have one day away per week to turn off the phone, stop replying to slack, and not worry about your inbox.
Jerome Knyszewski: Ok thank you for all that. Now let’s shift to the main focus of this interview. The Pandemic has changed many aspects of all of our lives. One of them is the fact that so many of us have gotten used to shopping almost exclusively online. Can you share a few examples of different ideas that eCommerce businesses are implementing to adapt to the new realities created by the Pandemic?
Ben Kovacs: E-commerce is obviously benefitting during the pandemic while brick & mortar is struggling. For the cannabis business, there is no longer such a stigma for ordering products online and having them delivered, nor a fear of getting in trouble. For years people went into head shops to make more discreet purchases, but we think that is becoming less of a focus everyday.
Jerome Knyszewski: Amazon, and even Walmart are going to exert pressure on all of retail for the foreseeable future. New Direct-To-Consumer companies based in China are emerging that offer prices that are much cheaper than US and European brands. What would you advise retail companies and eCommerce companies, for them to be successful in the face of such strong competition?
Ben Kovacs: I think the folks who don’t create value, “the takers or the middlemen” are in trouble. You have to have a competitive advantage, because Amazon sees your margin as their opportunity. We worry less about this as the manufacturers of the products vs. just being a site online that re-sells something everyone else has.
I think the folks who don’t create value, “the takers or the middlemen” are in trouble.
Jerome Knyszewski: What are the most common mistakes you have seen CEOs & founders make when they start an eCommerce business? What can be done to avoid those errors?
Ben Kovacs: They think that people will just show up. Starting an Instagram account with 58 followers and launching a website isn’t going to work. It takes years to build that organic reach, or you have to spend a ton of money and have other avenues for driving traffic to make e-commerce work at scale.
It takes years to build that organic reach, or you have to spend a ton of money and have other avenues for driving traffic to make e-commerce work at scale.
Jerome Knyszewski: In your experience, which aspect of running an eCommerce brand tends to be most underestimated? Can you explain or give an example?
Ben Kovacs: I believe folks think it’s easy and that the margins are so huge. In reality, there are a ton of costs that don’t get factored in. Credit card processing, inventory warehousing, shipping, returns, customer service, etc. You really have to calculate all costs.
Bad reviews come when you dig in your heels and refuse to make a bad situation right, even when it’s the customer that is in the wrong.
Jerome Knyszewski: One of the main benefits of shopping online is the ability to read reviews. Consumers love it! While good reviews are of course positive for a brand, poor reviews can be very damaging. In your experience what are a few things a brand should do to properly and effectively respond to poor reviews? How about other unfair things said online about a brand?
Ben Kovacs: Bad reviews are just part of the game. Most people though dont’ leave scathing reviews if you return their money or swap out their defective products. Bad reviews come when you dig in your heels and refuse to make a bad situation right, even when it’s the customer that is in the wrong. Bad reviews aren’t worth the fight to save a few dollars.
Jerome Knyszewski: You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
Ben Kovacs: I have tried to make a small difference in the world with our non-profit, Guardian. I felt providing exercise and safe haven to kids for free was one of the simplest and most effective ways to make a small difference. Outside of that though, I think too many people take things for granted. That’s why I’m so focused on our initiative for paying our Chinese team better and increasing their quality of life. We should take care of the people that help us make our money and ensure we are spreading those dollars out more fairly rather than paying people less and then donating to a charity on the backend. I call it “volunteered socialism”
Jerome Knyszewski: How can our readers further follow you online?
Ben Kovacs: You can send me a friend request on LinkedIn, Ben Kovacs. I’ve made a conscious decision to not spend much time on social networks like IG & Twitter anymore.
Jerome Knyszewski: This was very inspiring. Thank you so much for the time you spent with this!
