Over the next month, we will be rolling out MOA Team Supply Version 2.0, which will switch to a wholesale pricing model on custom chenilles and varsity jackets. In many cases, we will be able to sell to schools, organizations, booster clubs, and other instiutions at prices below that what most American custom chenille factories can produce their merchandise! This is due to our extremely fine honed business model that allows us to operate with a fraction of the total capital investment and a cash conversion cycle that is self-funding.
A few months back, I told you that we were launching a new division of Mount Olympus Awards called MOA Team Supply. I explained that we were going after an entirely new market, specifically athletic directors and schools that want to purchase wholesale chenille letters, chenille patches, and even wholesale varsity jackets. We’ve finally got the business model in place and over the next month, we will be modifying the prices on the site to reflect the roll-out of our wholesale chenille structure, in some cases using our substantial purchasing power to sell varsity letters at a price lower than many factories can produce them here in the United States! It’s a huge accomplishment and, frankly, I can’t wait to get this off the ground.
As I said then, and I’m repeating now, I am going to be absolutely ruthless on pricing. We are a better business. We have figured out how to generate higher margins despite passing on substantial savings to our customers, meaning that we can turn a profit at prices lower than most wholesale chenille companies! We are going to structure some key school programs and get printed high gloss catalogs, along with informational videos and other materials in the hands of some of the nation’s biggest districts. I’m going to create a culture where schools can order what they need in under a few seconds, submit their purchase order and payment, and receive wholesale chenille patches, letters, and varsity jackets manufactured right here in the United States.
To put it in simple terms, we’re going to make wholesale chenille letters and patches more affordable for students throughout the country, pump money into American manufacturers of the products, and create an ordering process that makes athletic directors happy and their lives less stressful.
The new wholesale chenille catalog will feature varsity letters, embroidered patches, iron on patches, varsity jackets, and more.
MOA Team Supply Wholesale Chenille Catalog
The wholesale chenille catalog is currently in production and will be released when the updated site goes live in one month (the current site still reflects retail pricing so if you happen to visit it before March 2010, you will see prices that are far higher than they will be following the switch).
How We’re About to Launch a Wholesale Chenille and Wholesale Varsity Jacket Company In The Midst of the Recession
- We are a completely debt-free company, meaning none of our capital goes to paying interest expense or fixed payments.
- We generate a negative cash conversion cycle, meaning none of our shareholders’ capital is tied up in the company. We are able to collect cash for products sold long before we pay the bill to our vendors.
- Utilizing special banking programs, we pre-pay all of our invoices, adding several percentage points to our profit margin without costing our customers anything.
- We are one of the most successful custom letterman jacket businesses in the United States. Our products have appeared in magazines, on television, in movies, and much more. The quality is superb and we stand behind every product that goes out the door.
- Instead, orders are placed and we can work with wholesale chenille factories and wholesale varsity jacket manufactures to get merchandise that lives up to our standards, at massive price discounts for our team dealers and school clients thanks to our huge volume purchases.
- For small schools, we offer low minimums on the wholesale chenille letters and patches, making it easier for districts in even the tiniest farm town to reward their students and athletes without stretching their budget.
This Means That I’ll Be, In Some Capacity, Competing Against My Parents and Their Wholesale Chenille Company
The only downside of this is that I will be indirectly competing against my parents and the company they built throughout my childhood. Their firm, Chenille Appeal, is one of the nation’s leading wholesale chenille manufacturers. Their business model is based upon selling directly to sporting goods stores and team dealers, not schools or individuals. This is because my dad’s background was in the sporting goods industry and he wants to focus on delivering the best service possible on a business-to-business basis. He doesn’t want to deal with the public or with school districts. I understand this. It’s an important part of their customer service experience (even though most of their competitors utilize both distribution channels) and it’s his right.
I, on the other hand, have no interest in selling to sporting goods stores because my company focuses on retail customers (Mount Olympus Awards) and team dealers or school districts (MOA Team Supply). So, perhaps, we won’t end up competing because we are appealing to different segments of the wholesale chenille and wholesale varsity jacket industries. If Wal-Mart and Target can peacefully coexist, so too can Mount Olympus Awards and Chenille Appeal. Even though we’re in the same industry, we are going after completely different customer bases with different business models. I just can’t see one of our customers ever contacting them or one of their customers ever contacting us because it wouldn’t make sense.
Related posts:
- The Wholesale Varsity Jacket Award Catalogs Are Going to the Printers!
- How Chenille Letters and Varsity Letters Are Manufactured
- Chenille Appeal Wholesale Manufacturing Videos Start to Go Live
- MOA Team Supply to Begin Offering Customers Choice of Offshore or Made in the USA Award Letters
- Tonight, 13 to 18 Million Viewers Watched Marcus Canty Share the Stage with Mount Olympus Awards Varsity Jackets and Varsity Letters During the X-Factor Live Show
- Mount Olympus Awards Letterman Jackets and Varsity Letters Featured on Saturday Night Live
- Within 12 Hours, We Declare War on the Letterman Jacket Industry
- Five Business Lessons I Learned from My Mom, Tammy Kennon, and Her Company, Chenille Appeal
- The 800 Varsity Jackets for Our Test Program Were Delivered to the Factory
- Even With The Enormous Business Plot Holes and Errors, I Love Gossip Girl (And Not Just Because We Made the Varsity Awards for the Show)
I'm a private investor who loves architecture, furniture, clothes, history, philosophy, books, cooking, and music as much as I do finance. 
