25th September 2015Brand Case Study – Learn how one of our customers is making £100k

BRAND CASE STUDY

Back in November 2012 SL Black Label were approached by Liam and his business partner, who were in the process of creating a new fashion brand with a requirement for Custom Snapbacks.

The initial request was for a small order of highly bespoke caps which included metal badges, satin lining and 3D embroidery.  After a long discussion with the custom about limitations and minimum orders, it was suggested that they start off with 50 UK Snapbacks which we could embroider their logos onto.  Budgets were tight as they were working off the spare cash they had saved up and weren’t in a position to invest heavily into large orders.

Once everything had been confirmed in terms of the design they went to order.

50 UK Snapbacks with simple embroidery to the front of the cap and logo to the rear.  This initial order cost them £425, which as stated by the customer

“this is a massive risk for us and we are just hoping we have made the right decision”.

Whilst the caps were in production SL Black Label supplied hi-res photographs to the customer for them to use to promote the brand pre-stock arriving.  Within a matter of days, the customer was on the phone to us saying that they had been inundated with customers wanting to purchase the cap and that they wanted to get an idea of how much they should be selling these to their fans and followers.

With a bit of persuasion, we advised that you could easily sell our Snapback with branding for a minimum of £20 – £25 per cap.  With that in mind, the customer set up a basic website and starting selling the 50pcs at £25 each.

COST £425 TOTAL (£8.50/CAP) = £1250 TOTAL SALES = £825.00 PROFIT

Around 3 weeks later the customer came back to us advising that he had sold through all 50 caps and needed to repeat order, but this time they wanted to add an additional 25 caps.  This order we split the colours and supplied 15 caps over 5 colour options – giving them a larger range with limited risk.  Having made £825 profit from the last order allowed them to reinvest back into the new order still leaving £187.50 profit in the bank.

COST £637.50 TOTAL (£8.50/CAP) = £1875 TOTAL SALES = £1237.50 PROFIT

Having sold through the next lot of 75 caps another repeat order of Snapbacks was placed alongside an order for 50 beanies as a trail run.  This gave the customer a great chance to try out the sale of beanies without a massive risk to their own personal investment as they were already making a profit after the initial two orders.

The beanies were sold at £14.00/Beanie and were split over a number of colour options – again to allow for a wide variety of products on the website.

COST £235.00 TOTAL (£4.70/BEANIE) = £700 TOTAL SALES = £465.00 PROFIT

Once again the same pricing structure was used for the repeat order of the snapbacks.

COST £637.50 TOTAL (£8.50/CAP) = £1875 TOTAL SALES = £1237.50 PROFIT

Once calculated the total order cost and profits worked out as follows

COST £872.50 (ORDER TOTAL) = £2575 TOTAL SALES = £1702.50 PROFIT

This was the first step to the customer being able to afford their initial concept which as stated was a highly detailed design with a number of additional branding techniques that just can’t be achieved here in the UK.

This first Bespoke cap was marketed as a Limited Edition cap and with the addition of a Sublimated Satin lining, Sublimated Under Peak custom printed taping, 3D embroidery and Woven labelling, allowed the custom to retail the cap at £40/pc.

“This is a massive step forward for us and with the feedback we have had from our customers we believe we are now in a position to push the brand well beyond what any of us thought would be achievable”

COST £1281.60 TOTAL (£8.90/CAP) = £5760 TOTAL SALES = £4478.40 PROFIT

What was truly amazing was the fact that even before the full production had been finished and delivered the custom was pretty much out of stock, all because of the social media hype that was around the Limited Edition caps.

Since then the whole headwear range just snowballed with the customer ordering 3 relatively simple bespoke designs which soon became their core models, repeating on a regular basis in larger quantities.  At the same time the profits starting to become larger and larger, which in turn allows the brand to reinvest into the company, producing a new website and expanding the range of apparel to include T-shirts – Hoodies – Tracksuits – Socks and more.

3 Styles of Bespoke Snapbacks (144pcs per style)

COST £3844.80 TOTAL (£8.90/CAP) = £17280 TOTAL SALES = £13435.50 PROFIT

We are now at a position where we work up to 6 months in advance to produce and supply up to 7 new styles of caps for Spring/Summer and Autumn/Winter.  This is where the big money is made, and with the help of Social Media, Music Events, Sporting Events and a number of high profile celebs endorsing and wearing the brand, it makes a brand very desirable to the guys on the street.

Liam and his partner are now turning over in excess of £25000 worth of headwear orders SL Black Label, which when you look back to the original order of £450 is a massive increase.

“Without the expert knowledge and helpful guidance of the SL Black Label team, there is no way we would be in a position of turning over £100k worth of headwear in the first 2 years of trading.  We are now in a position where my business partner and myself have been able to jack in our full-time jobs and can now give 100% of our time to making our brand the next big high street name”

With true dedication, the right support and the right type of customers, this could be you in 2 years.

When you work with SL Black Label you can be assured that your brand will be looked after – essentially we want you to succeed, because when you do succeed you will come back for more, it’s a win-win situation.

So you have read how this brand has done it, how would you like a FREE 3 step guide which sets out each of the processes to allow you to make £13000 profit from selling headwear, with an initial investment of £375!

HEADWEAR PROFIT

Sounds to good to be true YEAH?

Well, fill in your details below, get your guide and see for yourself.

3 Steps to making £13000 Profit

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