Custom Apparel Startups

The idea for this podcast came up just recently - because of a disastrous detail.

One of my clients has me managing their Google Ads account, which I've been doing for about 6 months. When I first did the analysis on their ads and budget I noticed there were SEVERAL other account managers.

I didn't think anything of it at the time.

It turns out that they had left admin access turned on for a few previous ads managers.

AND one of them had left THEIR CREDIT CARD attached to the account.

So 2 Hidden Expenses there:

Here are just a few expenses that I've personally missed over the years that have cost me serious money - and a checklist of the most common things for YOU to check to makes sure you're not wasting your profits on nickles, dimes, and dollars:

Domains - remember that www.thisisanamazingidea.com url/domain name you bought? No? Well, it could be costing you $30-$300 per year depending. If you started a store or have a GoDaddy or Bluehost account start clicking and checking.

Monthly software charges - this e-store fee, that cool plugin, a CRM software you've never really used. Did you try out a DecoNetwork store? How about a "free trial" you never canceled?

Overpaying for services - do you have an internet or mobile plan that’s above your company's needs?

Are you overpaying for something you can easily do yourself? You might be paying a service company for your printer/copier. Are you using enough to warrant a service? Would investing in your own printer/toner be better over time? Do you pay an office site cleaning crew like everyone else in your office complex? Do you need them?

Poor inventory management - how often are you paying next day or second day air to ship paper, ink, apparel? Can this be managed better with better inventory tracking

Not buying in bulk or TOO much in bulk should be managing a good inventory rollover. There are a lot of books and theories about what is good. but if you can buy in bulk and not have excess inventory, do it. e.g. liters of ink vs small bottles.

Switch Providers for phones/internet/insurance - The best deals on these local services are often to those who switch. Contract up on the internet? Call the competition

Stop tripping on pennies - Remember with all of this, it's about finding hidden expenses, not wasting time on pennies. A cone of threat is like 6-8 dollars, if you save 50 cents... you are saving less than a penny per logo. Unless you are doing a million of those, they won't add up. Instead, spend your time on managing thread inventory or investing in tools to prevent mistakes. Saving every inch of vinyl? don't waste too much time on making it work, your time is most valuable.

In this mini-cast episode, Mark from ColDesi is talking about the idea of Horizontal Marketing. Listen to this episode and learn how your business can benefit from using Horizontal Marketing.

During episode of the CAS Podcast we have a special guest, one that represents a product that has basically revolutionized the custom t-shirt and promotional products business – let’s welcome Randy Rickert from Okidata, the Pope of White Toner Printing.

Randy has worked in the printing industry since the 80s. His resume includes running Mutoh and being in charge of OKIData Sales in the USA.

Listen in to learn a little more about the OKI White Toner Printer Revolution.

Everyone out there can shoot a basketball into a hoop. You really don't even need to be taught how to do it. You could hand someone who's never seen a basketball or a hoop and say... get the ball in there.

They will eventually get the ball in. In fact, they may get it the first time, or the first 3 times. How would they go up against someone who's played every weekend for 20 years though? How would they go up against a high school student who goes to practice every day?

This is just like selling! You don't need to be taught how to sell a t-shirt. Anyone who starts a t-shirt shop might get their first sale easily, they might get their first three sales easily. How would they go against someone who has had an embroidery side business for 10 years? How would they go against someone who has been practicing and refining a sales method for custom apparel?

If you want to be the best at anything, you have to practice and refine. This episode is about building a framework for your sales method

Where to start

In other words, you want to spend your time talking to the right people and getting them the custom apparel that meets their needs.

Rapport

Qualifying Prospects

Here is how you can qualify prospects. Use the B.A.N.T method:

Budget - How much do they want to spend on custom apparel? How much CAN they spend on custom apparel? How flexible is this budget?

Authority - is the person you are talking to going to make the final decision? If not, who is? Can you talk to that person too?

Need - what is their need for this custom apparel? Is it more a need or a want? Is it mandatory or optional?

Timeframe - when do they want this custom apparel?

You have to be able to answer these questions before you move on. Otherwise, you will be chasing customers who aren't going to turn into sales.

Once you have qualified a customer, you can easily make a decision on how to proceed. It's always going to be grey, never black and white.

What if a prospect seems ideal for you... but they aren't buying for another year. Do you ignore them? Probably not. Do you give them great customer service? Sure. Do you let them monopolize too much of your time with details? Probably shouldn't.

You will develop your own filters to determine how to act based on BANT. Practice makes perfect.

Qualification to Action

Having a framework of the sales process is one thing most 'sales gurus' will agree on. What these steps are vary from one expert to the next. They do all have some common themes. Here is one set that i find to be useful for a custom apparel business:

Identify Prospects - This means having a keen eye for noticing a potential prospect. This could be by cold call door knocking, answering an inbound phone call or meeting someone at a ball park.

Build Rapport / Trust - This is the first step of helping them take down any defensive barriers to being open to conversation.

Qualify - BANT - At this stage, you are essentially deciding if you are moving forward and how than will pan out.

Select / Recommend Products - This is where you decide what products you have to offer that will best suit this customer's BANT. Then you present these options to your customer and explain the reasoning behind each choice (BANT). Good, Better, Best strategy is great here.

Overcome Objections / Clarify - At this point, your prospect will have either objections or questions (or both!). If you do your best to predict what some of these might be, you can better answer them. Tip: if you don't have the answer right away, it's ok to let them know you will get back with them later.

Close / Ask for Business - Once you have gotten past the questions and objections, they should be ready to commit. It's important to ask for that business. You can literally just do that, "It seems like we have covered everything. We would love to earn your business. Can we start your order today?"

Follow up / Referral - Deliver the product, make sure they are happy, resolve any issues. Once they have a smile on their face, ask for a referral. 'I am trying to grow my business and I depend on referrals. Is there anyone you can put me in contact with that also might need custom apparel?" - there are 1000 ways to ask for referrals, make sure you implement one of them.

Mistakes to avoid:

Don't talk to much / too little - Be a good listener and engage

There are tons of resources out there about sales, the sales process, building rapport, etc. They are all good in their own way. There is no perfect answer or solution. However, if you educate yourself and practice (because most people won't).... you will be one of the best.

All businesses are not the same. They each have their own individual personality and goals. Although every business & person is completely unique, we can categorize them. These categories can help us understand a few things:

In this episode, we will talk about each of these businesses/people and how knowing this information will help you succeed.

The Pure Hobbyist

Definition: This person makes t-shirts for fun. They wouldn't even consider it a business. They often aren't charging anything and just doing stuff for presents. If they do a favor, they usually just charge for supplies and do the labor for free.

Pros: It's just for fun! That's it. They like to do it.

Cons: This hobby costs money. It's not 'cheap' to make custom apparel. So if you are concerned with a hobbyist 'taking away your business' - remember it's not sustainable. Its a money pit, not a money generator. Also, they simply cannot do orders of any size in a reasonable amount of time.

How to deal with them: Be their friend! You should connect with every hobbyist you can, they are a source of referral business more than someone who will take your business.

The Side Hustler

Definition: This business is usually still just one person (maybe 2.) The owner has a full time job and is doing this business to earn extra income on their time off. Usually, this business is run off-hours... nights/weekends.

Pros: These businesses have a low cost of ownership. They often don't have a ton of costs...... No rent, No Employees,etc. The profits of this business go right into the pocket of the owner.

If you are a Side Huster you can often compete by offering REALLY personalized customer service and you can operate at a lower margin due to low overhead. Your business is most likely all referral and through relationships you already have.

Cons: Since this business is a second job and operated by one person, it's volatile. Side Hustlers might get a promotion at work, and spend less time 'hustling'. If you are a Side Hustler you should have a plan. Do you want to ride this as an up and down hustle? Do you want to take it to the next level?

How to Deal with Them? Much like the hobbyist, the side hustler should be your friend. If they get an order for 100 shirts, they will need a pro to help them out. If you are selling against a side hustler, your best bet is to sell above what they can. Offer more unique items, better art services or more options.

The Mom & Pop

Definition: This is a two person shop, typically it's a married couple. It also might be two best friends or a couple of cousins. This shop is usually small, and might still be home/garage based. Its typically full time for one or both of the owners.

Pros: Mom & Pop shops offer the best customer service. They build personal relationships and have many repeat customers. They are also experts in their field. They know people, they know the business. They have moved past being a Side Hustler and are now true professionals.

Cons: Mom and Pop shops still don't always operate as a traditional 'business.' They probably don't have a true marketing budget and don't often have a staff. Since they haven't upgraded to the next level, they have limitations.

How to deal with them? I'm going to give the same answer as the other two... be their friends. They build amazing relationships with fellow decorators. If you are a bigger or smaller business than you, you will find you can get business from them. Especially partner with Mom & Pop shops that do things you DON'T do.

The Small but Fierce

Definition: This is the next level up after Mom and Pop. Now, this business might still only be just Mom and Pop running it... but its got UPGRADES. This business now operates with a true PROFIT in mind. It has monthly and annual budgets. It makes decisions not on personal finances but on business plans. This is a nice place to be!

Pros: This business is run by truly seasoned professionals. They know how to sell, how to deal with competition, how to be profitable. They have probably dealt with numerous upturns and downturns in business. They know how to weather a storm.

Cons: Since this is more of a 'true' business, it loses flexibility. They have certain suppliers they work with, they do things within a certain method. It's harder to move a ship that is set in its ways. If you are a smaller shop then them, you should be looking at providing a more personalized experience. You are willing to be flexible where they cannot. If you are about the same size, its going to be all about the sales experience and quality of work. You have to be the best to beat them!

How to deal with them? Be friendly, but REALLY watch them close. They can easily jump in and grow quickly if they put their mind to it. If you are larger than them, you can win with a sturdy sales team. If you are smaller than them, you can win with the best personal customer experience. The 'i am the owner and I will personally be making your shirts' type of conversation.

The Big Leagues

Definition: This category can be broken down into a lot of different categories. However, we will define this as multiple employee shops with prob over 100k in equipment. They have processes, automation, and a true sales force.

Pros: They really know how to win. That's how they got where they are. They often can really provide low prices that the smaller shops can't. They can do this by optimizing their costs and labor. It's no longer about how much is the owner's time worth, its how much profit can the business make per hour, per day, etc. These shops are predictable and can be tough competition.

Cons: They are going to be like the titanic. It's hard to turn these ships. They are very set in ways and if a customer wants something truly unique, they might not deliver it. They also are going to shy away from smaller orders and customers with too specific of needs. They are strong, but cannot operate on a shoestring budget. They need income to survive. Their costs are high.

How to deal with them? You might not even have to! They are often tied into specific niches like doing all the local youth sports or dealing with corporate accounts or having a large online store. However, if you do have to go up against a company in the Big Leagues... don't try to go after price. They can drive costs all the way down (even lose money) to keep a client. You HAVE to win with personal service and having unique offerings.

Now that you know the types of apparel businesses, you probably realize which one you are... and where you'd like to be next year or in 5 years (even if its the same place)

There is room in the custom apparel industry for ALL of these shops to flourish. If you want to maintain or grow your custom apparel shop you have to continue to refine how you run your business, how you get customers, and how to weather storms. Knowing your competition is one tool in your pocket for success.

Leah Calvert has been in the custom apparel industry for over 20 years. Her business, 918 Design Company, works with gymnastics, cheer and schools. Their focus is on spirit wear – t-shirts, bags, etc.

Her business has gone from a huge focus on live events to working from home. What has she done and how can this inspire you?

This short but information packed interview with Mark Stephenson and Leah Calvert is a great listen for business inspiration.

Marshall has 30 years of direct industry experience including running his own custom apparel businesses, working for fulfillment software vendors and doing boots on the ground consulting for shops all over the United States.

During this podcast, Marshall shares his experience in many areas, but in particular on the impact of creating a business plan, following that plan, improving plan and sales processes and more.

5 ways to inject life into a stagnant business:

What are the basics?

Put your selling shoes back on - chances are if a business is stagnant you might not be hitting the pavement and selling.

Call old leads and lost deals.

Take a hard look inside - face some hard truths on what you do wrong.

Re-look at your pricing model - are you too low? do you make a profit so you have money to re-invest?

A CRM is a Customer Relationship Management software. It’s designed to help you organize your customers, track interactions and even more complex items like creating invoices and setting reminders to follow up.

A CRM can also help you create business automation. For example, if you mark a customer as someone to follow up with in 6 months, you can have an email automatically go out in six months and a reminder pop up in your calendar to call them.

Why have a CRM (should you have one)?

– If your customer database isn’t organized you will lose / forget things

– You can make notes about this customer:

They are really cheap / They are really high end driven

They prefer phone calls over emails

They don’t like polyester shirts

– Save quotes in CRM

– Set reminders to follow up

– 1 place to keep names of contacts, emails, phones, websites

– Instant access to database from any computer or mobile device

YOU MUST COMMIT TO USING IT AS YOUR COMMUNICATIONS HUB TO BE SUCCESSFUL!

Picking a CRM – 2020 Pics

ZOHO CRM

PROS

– Free up to 10 users

– Tons of built in features

– Lots of reporting tools

– Built in email marketing tools

CONS

– Tons of add-ons can add up

– Support isn’t hand holding, you will have to learn the system well

HubSpot CRM

PROS

– Free Version available with tons of features

– Excellent email and website integration

– Easy to use interface

CONS

– Really can get costly when you add more features

– Hard to leave hubspot once your website, email, etc integrated

Freshsales CRM

PROS

– Lots of built in integrations:

Phone calling

Emailing

Live Chat

Marketing

– Easy to use interface

CONS

– Try for free, but don’t get access to integrations

– No reports in Free Plan

– Less Popular = Less help online

SalesForce

PROS

– Tons of advanced features

– Biggest and baddest in CRM industry

– Extremely customizable

CONS

– Big learning curve (be tech savvy)

– Pricey to start and grow

Apptivo CRM

PROS

– Affordable

– Very customize-able for small business

– 24 hour support

– Built in apps (email marketing, quotes, invoices)

CONS

– Integrations all take a developer

– Less popular means less help online (hopefully they have good support)

IF NETWORKING IS IMPORTANT TO YOUR BUSINESS, THEN SO IS CRM!

There are many more than this, but this is a short list we have compiled from reading online and personal experience. It’s up to your business to decide!

Other things to consider:

– Do you have current systems you want to connect to your CRM?

Quickbooks or other accounting? Will the one you pick connect? How much work is that?

Do you have a website with live chat and forms? What will you need to convert or connect those?

– Is your business 100% ecommerce? Do you need a CRM or is your ecom system enough?

– Try their free trials in the real world with a few customers. The way it looks, feels and interacts will help you decide what’s good for you.

– Try their mobile app, do you like it?

– Attempt to use their support (test them out with questions) is it good?

– Talk to other business owners and see what they use

This is a perfect convo starter at a meet up like a chamber of commerce meeting or SBA or BNI

You can really bring out your best in social media, but you can also bring your business down. Making you look WORSE! Here is step 1 to nailing stellar social media skills!

Social Channels

Profiles

Groups

Open: Anyone can view the group, its members, and their posts.

Pages

Purpose of Posts

-Gain followers

Posts should persuade people to share and spread the word

Branding

opening closing hours

ask questions, polls, opinions, decisions

frequency

How to

Directly through FB

General rule, once a day. Go from there.

Even though it is social media and more casual - professionalism is important!

Quality content

Check your Inbox, respond to customers!

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