Sustainability in D2C, but at what cost? Kyle Bergman from Swoveralls

Hey hey hey, D2C entrepreneurs building great things out there! This is your host Berkay writing.

Thanks again for subscribing to our weekly newsletters and being a part of the D2CVille Community! As we were saying, there are a lot of D2C newsletters out there, but if you’re reading this:

Trust us, you’re in the right place!

Sooooo, where were we?

👕👖 Kyle Bergman, Founder of Swoveralls

Looking back on our 20-episode podcast journey, where we've had the pleasure of chatting with some awesome D2C entrepreneurs, Kyle Bergman has definitely left a mark.

Not only were his interview stories super inspiring and mind-blowing, but it's also his unwavering commitment to sustainability in his business that sets him apart. Thanks to his incredible insights, we're jazzed to announce that this week's D2CVille Newsletter is all about sustainability in the world of D2C! Pretty cool, right?

Kyle is a true jack-of-all-trades: not only is he a successful athlete, but he's also coaching at The Pace Run Club, teaching at NY University, and to top it off, he's the inventor of Swoveralls! 🙌

Oh, and btw, Kyle actually appeared on Shark Tank – you know, like just like Maxim from last week’s edition was on Dragon’s Den. Kyle was after $150K for a 15% chunk of Swoveralls. But, similar to Maxim's story, luck wasn't on his side – no investment came his way. You should totally hit up YouTube and look for "No Deal For Swoveralls - Shark Tank" to see it for yourself! 🦈👕

^{You can also listen to the episode on Spotify, Google, or Apple Podcast!}

And here are some highlights from our chat!

🕴️I’m a reluctant businessman, Kyle says. Breaking away from his family's retail legacy, he embraced entrepreneurship, fueled by his time at big corporate retail brands like Bloomingdale's and Birchbox.

According to Kyle, those corporate gigs where he picked up skills like data analysis and salesmanship have proven super important for his journey as an entrepreneur.

🏁 🎬When to Kickstart Your Own Company? According to Kyle, there's no one-size-fits-all answer to this question. "The best time is right now," he suggests while admitting that the right timing varies for each entrepreneur.

🤯 Is there actually a demand, or is it just in your head?

“You come up with an idea, and of course, your idea is great. Because it came out of your own brain. But how many other people care about that?”, Kyle asks.

He's been there himself and believes one of the big blunders entrepreneurs often commit is thinking everyone else will love their idea just as much. It's a common mistake to overestimate the demand for your product, he adds.

His advice? Stay grounded in data. Instead of banking solely on your gut feeling, find real evidence that the problem you're addressing is genuinely bothering your potential customers.

💣 Get your MVP as quickly as possible! Back then when Kyle was a buyer at Birchbox, he was all too familiar with snagging free samples from suppliers. However, when he approached a supplier for a sweatpant overalls sample, they slapped a $150 price tag on it. Kyle wasn't keen on paying that price. So he didn’t get an MVP for 6-months.

Yet, once he finally got his hands on that sample, it was like a confidence and momentum booster. It fueled his determination to dive in headfirst!

So, folks, the takeaway here is to hustle your way to that MVP ASAP!

🏭 “Finding the right supplier is like finding your spouse” Comparing the supplier search to finding a life partner, Kyle noted that they've been through around 6 or 7 suppliers in their six-year journey. And not just that, they're already on their third 3PL as well!

🌱♻️ Now the good part about sustainability.

♻️ Building Something to Last: Isn’t this Sustainability 101? Taking a moment to ponder Swoveralls' product quality, Kyle points out that they provide items designed to potentially last a lifetime. This, he believes, aligns with the ethos of sustainable production.

Teaming up with Lefty Production Co. eventually for production, Swoveralls is all about giving customers the perk of ethical production using organic, sustainable materials.

But laying it all out on the table, Kyle admits that if they persist with these prices and margins while sticking solely to LA production, it might just lead them to go out of business.

😢 “If we continue to produce most of our products in LA, we can go out of business”

👖 Non-organic fabrics. While Swoveralls currently embraces 100% organic fabrics, Kyle highlights that non-organic fabrics are $2 per yard cheaper. If they opt for non-organic materials in their new collection, the surplus funds could be channeled into marketing and other ventures, potentially resulting in more revenue and more charitable donations.

The question Kyle poses is whether this compromise is worse than the alternative: going out of business and not contributing to charity at all.

Lately, however, Swoveralls seemed to be partnered up with Fayettechill, working on a new series of swoveralls together. These new items are made from recycled water bottles!

📣 PROMOTIONS - FABRIKATÖR INVENTORY ASSISTANT

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Fabrikatör is your AI-powered companion; it's your virtual employee, handling operational tasks with precision while you focus on innovation and strategy. With its backorder capabilities, you can recover lost sales and turn out-of-stock situations into opportunities for growth. By bridging the gap between the supply chain, CRM, and your Shopify storefront, Fabrikatör ensures your customers are always satisfied.

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Check out Fabrikatör at the Shopify app store! They offer a 14-day free trial and personal onboarding. Check out Fabrikatör on the Shopify app store!

🆇 TWEETS OF THE WEEK

1. It’s really breathtaking how fast things are changing! What are the differences you noticed?

2. 💯

3. It’s a huge industry 😂

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📚 FREE RESOURCES

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🏷️ DISCOUNTS ON LEADING APPS

If you’re a subscriber to this newsletter, well, we have more to offer. Just contact us over email to ask for a list of discounted tools, ranging from CX to inventory optimization.