Episode 203 - How to Compete in a Crowded DTF Market

Episode 203 - How to Compete in a Crowded DTF MarketIntro: 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?