01:27:16 · Max Siegelman, John Coogan, Jordi Hays
[01:27:16] S5: It's my... It's one of my dad's trophies. My mom like in the back is like, we got more. I'm like, I'm like, dude, let me at least get the price before we say it's over. Yeah. Yeah. There... I mean, there's there's things that I've sold in the store that aren't actual things that we make and sell. So like [01:27:31] S1: Yeah. Sure. [01:27:32] S5: Come on in and [01:27:33] S2: Yeah. Let's do it. Add new SKU. [01:27:35] S5: Excellent. Shop by Grapevine by the way. [01:27:37] S2: Yeah. Shoes. That's great. How... Like what is your... How do you think about timelines for building a business? Building a true luxury brand is possible. You just need thirty, forty years. It feels like. Right? [01:27:53] S5: Need time. I think like the biggest misconception is like how fast can we get to the biggest point and like for [01:27:58] S2: us Yeah. [01:27:58] S5: It's never been a sprint. It's always been a marathon. Yeah. We've never been in a rush to get to the next thing. Yeah. Though it feels like it on a daily basis like the amount of inbound... [01:28:08] S2: Yeah. You have to move quick but understand that like there's a million things you could do to juice your revenue this year that would ultimately... [01:28:15] S5: Yeah. It's it's it's the long play [01:28:17] S1: for us. Costco. [01:28:18] S5: And it's a business decision. Like there's there's brands that launch and it's like how much can we make in a year and can we sell it? Yeah. Like that's not the game we chose which is probably the harder long game. [01:28:26] S2: But Yeah.
01:28:26 · Jordi Hays, Max Siegelman
[01:28:26] S2: But Yeah. [01:28:27] S5: I think for where we want to sit as a business, as a luxury brand, it's thing to do. [01:28:31] S2: Yeah. How do you... Yeah. Where... What other... Like is 30% of your revenue coming from New York? Is it more? [01:28:41] S5: Is it is it... I mean, New York's definitely like our top our markets like New York, LA, Chicago, Dallas, and it's crazy we haven't done anything in person here yet. [01:28:49] S2: But Yeah. [01:28:49] S5: Hopefully announcing soon that early twenty seven we will. Maybe... [01:28:53] S2: All of the the the Idaho's, Montanas, the the Wyoming's? Yes. [01:28:58] S5: Listen, there's still good markets for us. I think like the appeal of just the look of a horse. And I also understand our price point is on the higher end. Like a dollar hat is not a cheap item Sure. And that's our lowest priced item, maybe not like a key chain or something like that. Mhmm. But when we first started and I was embroidering on blanks, it was $42. I was... We were in a factory in Downtown LA yesterday and I said the appreciation I have for an $8.99 t shirt in Target is completely different than you asked me about an $8.99 t shirt in 2010 before I was even part of the fashion industry. It's like all the investment that goes into that from the time of the person making the tech pack to the pattern cut to all that, that's money. [01:29:36] S2: Yeah. Yeah. Now we were doing our first ever merch release this coming Thursday. [01:29:41] S5: Awesome. That's
01:29:41 · Max Siegelman, Jordi Hays, Praveer Melwani, John Coogan
[01:29:41] S5: Awesome. That's [01:29:41] S2: up. And it's crazy looking at the numbers, like our cost for the items and like, again, the merch is for us is not a way to make money. We just want like... We enjoy making the products. But it's crazy looking at our cogs and thinking like if we were running a brand, the level to... Like, the amount we would have to mark this up to to be in business is just crazy. And obviously, we're not at scale. We're making like a couple 100 of this, couple 100 of that, but it's a... [01:30:11] S5: Goes back to like the distribution. It's like it's why a lot of brands fall into wholesale and why it makes sense. They're buying a big bulk that helps get your price down. [01:30:18] S4: Yep. [01:30:19] S5: And it's also marketing and awareness sales in general which helps you hit that Middle America that you're also talking about. [01:30:25] S2: Yeah. What about what about paid media? I... There's a big New York brand that's that's like trying to sell right now, like everyone listening would know it. And they... And I didn't really realize but they're effectively spending like not not actually zero but effectively zero on paid media. Like they don't spent like... [01:30:45] S5: What would you consider effectively zero? [01:30:47] S2: Like I just mean like maybe there's something you could classify as a paid media budget but they don't have like ads running at all. [01:30:54] S1: And be protected with Google keyword or something.
01:30:54 · John Coogan, Jordi Hays, Max Siegelman
[01:30:54] S1: And be protected with Google keyword or something. [01:30:56] S2: Yeah. Some something like something like that to prevent like you know, scammers. But but they're not... It's not part of the strategy at all. It feels like it feels like the right approach is like some, you know, some middle ground where you're not. [01:31:09] S5: We we have been to date like a non spend on that. We have started recently like testing some stuff out on Google and on Meta. I think it's like an amazing brand awareness opportunity like you're kind of missing out if you don't. Yeah. It's like when we first started the whole the whole part was like scarcity is your marketing. You end up on secondary markets at a high value. Yeah. That's still a piece of our business when we do some like collaborations and special projects. Yeah. And then you phase into other parts. And so at some point, you're kind of missing out on your own business by not doing some of that. So we do it at a very very small scale, but a lot of it is awareness. So we'll we'll push that our pop ups opening in New York in a 50 mile radius of New York City in the next week. [01:31:52] S2: So Yeah. [01:31:52] S5: Yeah. Things like that. [01:31:54] S2: What about... What are you doing on the... Where where can... And do you spend dollars that's like maybe non traditional channels outside of retail? Like, you partnered with any, like, various groups or athletes on the on the, like, equestrian side? Or you...
01:31:54 · Jordi Hays, Max Siegelman, John Coogan
[01:31:54] S2: What about... What are you doing on the... Where where can... And do you spend dollars that's like maybe non traditional channels outside of retail? Like, you partnered with any, like, various groups or athletes on the on the, like, equestrian side? Or you... [01:32:12] S5: Yeah. We've never paid anyone to ever wear our stuff. We've had this, amazing organic adoption of athletes. Obviously, majority like New York, like the best quote of the NBA run was like we've become a additional logo of the New York Knicks. [01:32:28] S2: Yeah. Hey. [01:32:28] S1: How did that come together? [01:32:30] S5: We started doing a local license with the Knicks. Meaning like there's no like paper It's like they put in a wholesale buy. We sell in arena only. Can't sell through our channels or in person. Yeah. And we built up this relationship with them that was this in person release. [01:32:44] S2: And you knew they were gonna win the championship. [01:32:46] S5: Well, it's a risk take. Yeah. I mean, when Jalen first moved to New York, he became just like an organic fan of the brand, started wearing our stuff and like we became ride or dies before he was Jalen Brunson. [01:32:56] S2: And so
01:32:56 · Jordi Hays, Max Siegelman
[01:32:56] S2: And so [01:32:57] S5: so yeah, it's like a little bit of risk and luck and like relationship building. I think a lot of businesses are built on relationships before you start spending money. Yeah. And so so we've done that with the Knicks over the last couple of years which has been an amazing partnership. We just did a deal with Mitchell & Ness. We'll now allow and we haven't rolled anything out yet that allow us to kinda do any team, any league. So we'll start to do some more licensing opportunities, not just NBA and MLB which we've done before, but other ones which we're super excited about and they've been an amazing partner from the start. [01:33:29] S2: What about other other brands? Have you done any? I don't I I can't...