- Author By Miva |
- Posted on
Scott Jordan, CEO SCOTTeVEST just announced this week that SCOTTeVEST plans to leverage the popular Indiegogo.com to raise $30,000 to help launch the Ultimate Pocket Fleece. This new SCOTTeVEST TEC jacket will be the premier item in the SCOTTeVEST apparel line, boasting 19 hidden utility pockets.
But why use crowd-funding? Seems an odd approach for an established, for-profit company. When asked, more than one SCOTTeVEST fan couldn’t see why the multi-million dollar company would seek crowd-funding.
Jordan, however, has a logical answer – he’s testing the model to see if it can be effective marketing tactic to increase exposure to the SCOTTeVEST brand, lower costs and reduce inventory risks.
“Every successful business must continue to evolve and experiment with new strategies to support the bottom line,” says Jordan.
In fact, if the Indiegogo campaign exceeds it’s $30,000 goal, Jordan plans to use those funds to streamline the direct-to-consumer process by streamlining his supply chain – ultimately eliminating his distribution warehouse located in Chicago. Doing so will save 10% to 30% on each item – saving both the consumer and the business money.
Crowd-funding platforms provide businesses insight into the level of demand for a product – before actually creating it. Using this line of thinking, Jordan plans to accept pre-orders and then ship direct to his customers from the manufacturer.
“The problem with the direct-to-consumer model is I have no idea how many units to order,” Jordan says. “If I knew what the customer wanted in advance in terms of sizing breakdowns, it would make a huge difference to my business. If this is successful, it can fundamentally change how consumer brands bring a product to the market.” – Scott Jordan, Internet Retailer Interview
As of July 1st Jordan’s campaign has raised half of its $30,000 goal – far exceeding expectations, which has Jordan looking gleefully into the future as the future of SCOTTeVEST unfolds before him.