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Episode 203 - How to Compete in a Crowded DTF Market

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Manage episode 500499188 series 3207226
Content provided by Custom Apparel Startups. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Custom Apparel Startups or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Episode 203 - How to Compete in a Crowded DTF Market

Intro: The Shop Struggle

  • DTF is booming and more businesses are jumping in.
    • DTF is much easier than older methods like screen printing.
    • Barrier to entry is lower with 'production friendly' equipment under $15k.
    • Full-Digital Apparel that looks, feels and washes great is 'easy' to make.
  • If you're feeling squeezed on price, overwhelmed by competition, or stuck on how to grow this episode is for you.

Why It Feels Crowded

  • Custom t-shirt businesses are more common than even just a decade ago.
  • People have a 'friend' or 'cousin' with a cricut.
  • Customer expectations are all over the place a "Why is this shirt $30 when the guy down the street sells it for $15?".
  • Social media makes everyone look busy, even if they aren't making money.

The Good News

  • Just because everyone's cousin makes shirts, doesnt mean they are good at it.
  • Most 'side-hustlers' give up or cannot deliver.
  • The business isnt 'easy' so YOU putting in the work will be around when others won't.
  • The barrier to entry to be profitable is still high enough that its not for everyone.
  • You can still produce a high-quality custom logo apparel for the same price or cheaper than stores sell blank apparel.

Avoid Common Traps

  • Racing to the bottom on price.
    • You will NEVER be the cheapest. "There is hardly anything in this world that some man cannot make a little worse and sell a little cheaper."
  • Undercharging because they don't know how to break down costs and margins.
    • Know your numbers!
    • Consider other costs - website, accounting software, credit card fees.
  • No Systems in place to make sure your business runs well
    • No workflows
    • No pricing structure
    • No Schedules
    • No delegation
    • No CRM
  • Trying to do it all: artwork, printing, packaging, selling - without delegation or efficiency.

Competing the Smart Way

  • Find Your Differentiator: Custom designs? Rush jobs? Better garments? Customer service? Find 1-3 core differentiators and talk about them all the time.
  • Find Your Niche What is your ideal customer or product? Push towards that and spend less time trying to compete beyond.
  • Charge What You're Worth: Because of the above, you can (and should) charge more than others.
  • Tighten Production: Tips to streamline (pre-press setups, batching jobs, designated work zones).
    • Less mistakes
    • Faster delivery
    • Less waste
  • Customer Experience
    • Personal delivery
    • Handwritten thank yous
    • Reorder reminders
    • Birthday / Anniversary

Growing in a Crowded Space

  • Don't be Amazon / Walmart You can't beat the lowest price, but you can offer the best experience / quality.
    • People will want to buy from YOU / Your Business... because you are not the big business.
  • Get Referrals Working
    • Script for asking for referrals
    • Remind people again
    • Give/Get program
  • Leverage What You Already Have
    • Upsells / bundled product
  • Be the best on the block
    • You would be surprised on how many people havent truly mastered their craft, be a master. Experiment, practice, play, learn.
  • Invest in an Efficiency (repeat): Set goals for single efficiencies you can invest in (even if it's small.)
    • Additional heat presses
    • Accounting software
    • CRM
    • Ecom Store

Final Thoughts: There's Still Room!

  • You don't need to be the best at everything, just the most dialed-in for your customers.
  • Think efficient and excellent, not big and chaotic.
    • You don't need to be the master of an entire catalog of products, just be fantastic at a handful.
  • If you are struggling to compete with lower priced competitors, consider changing how to are getting your business or what you sell.
    • Only offer premium quality apparel
    • Look for a niche or type of customer that is going to be less price concerned.
    • Purchase apparel from the 'cheap' competition to see how you can offer a better product (and sell against that.)

Challenge: What's one thing you can fix in your pricing or workflow this week?

  continue reading

207 episodes

Artwork
iconShare
 
Manage episode 500499188 series 3207226
Content provided by Custom Apparel Startups. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Custom Apparel Startups or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Episode 203 - How to Compete in a Crowded DTF Market

Intro: The Shop Struggle

  • DTF is booming and more businesses are jumping in.
    • DTF is much easier than older methods like screen printing.
    • Barrier to entry is lower with 'production friendly' equipment under $15k.
    • Full-Digital Apparel that looks, feels and washes great is 'easy' to make.
  • If you're feeling squeezed on price, overwhelmed by competition, or stuck on how to grow this episode is for you.

Why It Feels Crowded

  • Custom t-shirt businesses are more common than even just a decade ago.
  • People have a 'friend' or 'cousin' with a cricut.
  • Customer expectations are all over the place a "Why is this shirt $30 when the guy down the street sells it for $15?".
  • Social media makes everyone look busy, even if they aren't making money.

The Good News

  • Just because everyone's cousin makes shirts, doesnt mean they are good at it.
  • Most 'side-hustlers' give up or cannot deliver.
  • The business isnt 'easy' so YOU putting in the work will be around when others won't.
  • The barrier to entry to be profitable is still high enough that its not for everyone.
  • You can still produce a high-quality custom logo apparel for the same price or cheaper than stores sell blank apparel.

Avoid Common Traps

  • Racing to the bottom on price.
    • You will NEVER be the cheapest. "There is hardly anything in this world that some man cannot make a little worse and sell a little cheaper."
  • Undercharging because they don't know how to break down costs and margins.
    • Know your numbers!
    • Consider other costs - website, accounting software, credit card fees.
  • No Systems in place to make sure your business runs well
    • No workflows
    • No pricing structure
    • No Schedules
    • No delegation
    • No CRM
  • Trying to do it all: artwork, printing, packaging, selling - without delegation or efficiency.

Competing the Smart Way

  • Find Your Differentiator: Custom designs? Rush jobs? Better garments? Customer service? Find 1-3 core differentiators and talk about them all the time.
  • Find Your Niche What is your ideal customer or product? Push towards that and spend less time trying to compete beyond.
  • Charge What You're Worth: Because of the above, you can (and should) charge more than others.
  • Tighten Production: Tips to streamline (pre-press setups, batching jobs, designated work zones).
    • Less mistakes
    • Faster delivery
    • Less waste
  • Customer Experience
    • Personal delivery
    • Handwritten thank yous
    • Reorder reminders
    • Birthday / Anniversary

Growing in a Crowded Space

  • Don't be Amazon / Walmart You can't beat the lowest price, but you can offer the best experience / quality.
    • People will want to buy from YOU / Your Business... because you are not the big business.
  • Get Referrals Working
    • Script for asking for referrals
    • Remind people again
    • Give/Get program
  • Leverage What You Already Have
    • Upsells / bundled product
  • Be the best on the block
    • You would be surprised on how many people havent truly mastered their craft, be a master. Experiment, practice, play, learn.
  • Invest in an Efficiency (repeat): Set goals for single efficiencies you can invest in (even if it's small.)
    • Additional heat presses
    • Accounting software
    • CRM
    • Ecom Store

Final Thoughts: There's Still Room!

  • You don't need to be the best at everything, just the most dialed-in for your customers.
  • Think efficient and excellent, not big and chaotic.
    • You don't need to be the master of an entire catalog of products, just be fantastic at a handful.
  • If you are struggling to compete with lower priced competitors, consider changing how to are getting your business or what you sell.
    • Only offer premium quality apparel
    • Look for a niche or type of customer that is going to be less price concerned.
    • Purchase apparel from the 'cheap' competition to see how you can offer a better product (and sell against that.)

Challenge: What's one thing you can fix in your pricing or workflow this week?

  continue reading

207 episodes

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