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- #22 - How to build a profitable DTC business
#22 - How to build a profitable DTC business
Why The Perfect Jean has been able to be an authentic and profitable brand from the get go.
DTC is not always full of fresh hot takes, but Ovadia Labaton, the Co-Founder of The Perfect Jean (“TPJ”), is unapologetically full of them.
From the start, Ovadia and his co-founder Zach were not set on building an unrealistic, VC-backed DTC business, which dramatically changed their growth strategy.
From a clever working capital setup with their suppliers to free up operating cash to setting ROAS targets through well-calculated unit economics down to contribution margin, Ovadia and team have been able to scale TPJ to a much larger opportunity than they expected, all while keeping the brand lighthearted and avoiding mass opinions in the DTC Twitter fray.
Give a listen to our full conversation below:
🍎 Apple
🎧️ Spotify
📺️ YouTube
Some of Ovadia’s 🌶️ takes from our chat:
[06:42 - 07:55] The importance of Contribution Margin
[12:02 - 13:09] The Kidbox “VC bet” that didn’t work out
[14:13 - 14:56] The Perfect Jean is building a Calm and Profitable Business
[31:31 - 32:23] Surviving zombie eComm brands
[35:20 - 36:34] Shopify is the dominant eComm SaaS, but has many problems to address
Some of data 🛠️ Ovadia highlights:
Thanks tuning in to #22 of DVLU - we couldn’t (..well we could actually since we’re not getting paid) do this without all of you.
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