Custom Apparel Startups

Episode 203 – How to Compete in a Crowded DTF Market


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Episode 203 – How to Compete in a Crowded DTF Market
This Episode
Marc Vila
customapparelstartups.com
CAS Podcast
ColDesi
You Will Learn
  • How to deal with customer expectations
  • Traps to avoid
  • Understanding your niche
  • How to compete the smart way
  • Resources & Links
    • ColDesi DTF Printers
    • Buy DTF Printers and Supplies online
    • 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?

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