Hi, this is Wayne again with a topic “Will LTT Store Sell Other YouTubers’ Merch?”.
The next question here is from Raul uh in the foreseeable future, will LTT store ever become a hub for selling other YouTubers merch after the Jerry rig everything knife, I was started to wonder: um. I don’t see why not any other creators y’all out there. You wan na wan na like wholesale some stuff to us. If we think it’s a good product like I don’t see why we wouldn’t carry it.
I don’t know man it’s like. Should we just have like creatorwarehouse.com and, like I’ve, been wanting Creator Warehouse to support other creators for a long time? The way that I want them to do? It is not in that way, and I understand it’s super hard. I get it. Oh, like develop products for them yeah. I know I know you know we are working with someone big, though right, no yeah really big. I didn’t, but it’s gon na take time, yeah and it’s hard and it takes upfront investment, because the way that we do it is a little different. Even from that person it is. It is requiring a significant time commitment, but this person has a lot of integrity and cares about the quality of the products that they want to. They don’t just want to sell stuff to Their audience. The thing that I’ve liked about the store, the most the whole time we’ve had it, but more lately because, like originally, we were just doing like what we could and now we can do more, which is great, but the thing that I’ve liked about the stores that I I feel stoked to stand behind our products, which is cool. I think we make good stuff a lot of YouTuber merch even well intentioned YouTuber merch is kind of junky, because you do what you’re supposed to do right.
You look online. Look at what other people are doing. This is what’s available to me. This is all I can really do without building a business arm, which is not realistic for most creators, which is fine and makes sense, and those results are often kind of junky yeah, so being able to have actually good stuff is cool, but it’s hard and having The Creator rails team be able to be that arm for these other companies, I think, would be really sick, but again that itself is really difficult and we’re already dealing with our own scale things and there’s lots of work to do so.
Yeah and it’s tough right because, like it works for us, because we are taking 100 of the margin, if we had another Creator, come in and say yeah I uh. I want to do uh, uh, uh, a purse, okay, so whatever right, it’s like some product. So let’s say that uh they they wanted to Target um like a pretty typical retail product. Markup is about double okay, so let’s say they wanted to Target a 199 price point.
Okay, so if it was for us, we have a hundred dollars to work with to to to build that product um. While because you got to understand there are certain costs associated with a product that just scale with price. So you know any any losses from warranty. For example, it’s not like um, it’s not like just because it’s a more expensive product you can just you can just make a maximum of 20 on every product, no matter how much it actually costs.
Um there’s also higher transaction fees on the transaction, like there’s just there’s just fixed costs that that go up with the value of the product, and so it’s it’s pretty typical to aim for about 100 points on on a product, and so, if we were operating as Just this single vertically integrated entity like we are now, then we could kind of go okay. Well, then, we have a hundred dollars to work with to develop this product and we will make a hundred dollars on it. This is all purely hypothetical and I’ve used. These simple one to two ratios before for cost to retail price: it’s not always that simple.
We have products we make more than that. We have products we make less than that and um. That also helps us absorb the storage and handling and transaction fees and, like all that stuff, but we’re keeping the math really really simple. So all of a sudden, we are not acting as a vertically integrated company, where the Creator and the creating company are are one essentially now we’re Creator, warehouse and we’re working with another person, okay, so of that hundred dollars. What’S that split um, if, if it’s 90 10, if they take 90 of it and we take 10, that sounds pretty good for them, because they don’t have to like build a business arm like you said to create these products.
But is that even worth our time? If we’re selling these two hundred dollar products and we’re taking home ten dollars of that hundred dollars of margin, why did we even bother unless we, unless we were going to sell like a hundred thousand of them or something um, the the the the the multiple people That are probably because any product you’re gon na sell that many of I guarantee you. The development costs were substantial well into six figures, but I think I think why are we bothering so a lot of what I would I guess bring up. Is that the thing that I like the most about our stuff is the quality of it, but that’s exactly maybe it, and maybe I was getting there hold on. I was gon na get there hold on. I was gon na get there hold on.
Maybe we don’t do purses well, okay, but we have our own blanks for shirts and we have consistent really high quality and the printing is good and we have bottles – and we have other stuff – okay but hold on. Let’S go back to. Let’S go back to the margin question, then, okay, so so we have to figure out that it has to be enough margin for us to get out of bed, because otherwise we could have made our own purse yeah right. Okay, so then we need more than 10.
Probably so, then, from their side, okay! Well, it has to be enough for me to bother getting out of bed because at the end of the day, I’m the one who has to be involved in the design process. For this I have to sell it. It has my name on it and ultimately reflects on me if it’s bad, so they’re taking a lot of they’re taking a lot of inherent risk in in undertaking this, so we might go okay, fine, um, uh! A hundred dollars isn’t enough for us to split. So now the final price needs to be 250 bucks, so we each get 75 and now we’re happy hypothetically right, so we’re both making less the price went up to you by involving these multiple entities.
Now it doesn’t. I know people are gon na, be like um. It doesn’t work like that: yeah you’re, right, you’re, right, you’re, right, that’s not how it works.
But the point is that the more entities involved in this process, the more ways that whatever margin there is, is split and the more it drives up. The finished cost. And so you know from my point of view and you guys might think. Oh you’re, being greedy.
10 should be lots right, well, okay, well, who’s doing customer support. Am I handling that? No, why not not because they don’t they don’t want to build a business arm right if they don’t want to build a business arm. Well, then, why are they doing support? Well, we should be a One-Stop shop okay. Well then, I need more margin because I run their Shopify Pages yeah. Okay.
So what do I have the login? Okay, at that point, who owns the shop? Do I or do you? Am I licensing your brand at that point? That’S not how that works. There’S a few things in here that I don’t think we’re lining up on one. The Shopify page thing running their Shopify page. I know you can have daughter sites would require a login yeah but would not require ownership of the site no, but it could but why it just could okay, because at that, because you don’t need that for customer support, you don’t need that for development.
You don’t need that for marketing complicated yeah, but I think it’s less complicated than your well. It can be yeah so make it less time. What do you want? What do you want me to do? I I think new product development would only be for very, very specific creators and at very, very high volume, which is something we’re doing yeah existing product, though shirt bottles, I think that’s a lot easier than you’re letting out it is design is almost certainly going to Be done by them, or we could have like a more premium track where you work with our designers. It’S still more complicated than that, though, because when we print the design right, so we get it printed.
We have a shirt now. What are they local? Can we show it to them and make sure that the colors meet their needs? Is it what they envisioned when they designed it on their screen? Is their screen even color accurate? I don’t know just ship it to them? Okay, but then now you’re, adding extra time. You’Ll have a hard time doing anything timely at that point, because we have to get their design get it printed, get it back ship it to them, get their confirmation, this kind of multi-step process – and you know I don’t think it adds a step. You know from Community to them, you know from Community.
Well, it doesn’t because we pick them up locally. We have it printed locally and you know from communicating with creators. They really really really really love to know.
They are the worst yeah. They actually are myself included and me yeah. So it’s it’s one of those things where it’s like.
I know I’m over complicating it, but you’re oversimplifying it. I think it’s probably true on both sides. Yeah sounds fair cool .