Production Capacity Limits Growth
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Sean Frank shares how Ridge Wallet's growth was constrained by production capacity rather than demand.
"We had a year where we didn't have any wallets because we couldn't keep them in stock. We went from $15 million to $18 million one year, and that was just because we couldn't make enough of the product.
So often demand is the thing that stops these brands - you can only get to so big of a TAM, and that wasn't the case here. We did a wearable and it was so hard to get people to buy it - the CAC on Facebook was $400 back then. It was so hard to get people to buy these wearables, whereas the wallet had like a $6 CAC. We could just put up a new ad with static images and they were just selling.
That was the hardest year of the business, when it went from $15 million to $18 million. We had no inventory with this massive tax bill. That sucked."