Episode Summary — M19 Podcast ft. Tyler Mulsteen (Zapped Headwear) 🎧🧢

Quick Overview

• Guest: Tyler Mulsteen, owner of Zapped Headwear
• Host: M19 Podcast (recorded at Big Cedar Lodge while playing Payne’s Valley)
• Topic: Building a hat business, operations, product strategy, distribution, and golf / M19 membership

Company Snapshot — Zapped Headwear

• Founded: ~7 years ago (started in Tyler’s dad’s backyard with a laser engraver)
• Core product: High-quality, premium hats (balanced price vs. features — B+ market; also an Elite premium line)
• Branding: Military-inspired model names (Tyler is ex-Marine)
• Annual volumes: ~750,000 to 1.5 million hats per year (over a million = eight-figure business)
• Employees: ~18 (in-house customization + sales/fulfillment team)
• Manufacturing: Hats sourced from an overseas factory; customization (embroidery/patches) done in-house
• Daily throughput: 1–2k customized hats/day; ~4k blank hats shipped/day
• Inventory footprint: ~250k in storage, ~500k on order continuously; building a larger warehouse

Product & Pricing

• Tiers:
  • Blanks & standard truckers: ~$15/hat wholesale (100+ qty, fully embroidered)
  • Premium models (stretch-fit, TPU clasp, perforation): ~$18+
  • Small orders (10–20 hats) — decorating shops typically charge $20–$25 per hat
  • Private-label / fully custom runs: minimums ~300 units
• SKUs: Large variety (40–50 color options for some styles), resulting in SKU complexity & forecast challenges
• Popular vs niche: 80/20 effect — a small subset likely drives most sales, but niche colors/models retained for dealer relationships

Sales & Distribution Strategy

• Sales channels:
  • Wholesale “blank” market to embroidery shops and decorators (dealers)
  • Direct custom orders via zapheadwear.com (customization & private label)
• Marketing: Light direct advertising (Google Ads), but primarily dealer-driven demand (dealers promote to end customers)
• Expansion focus: Increase presence on the East Coast, add East Coast distributor(s)
• Competitive approach: Embracing embroidery shops/decorators as customers rather than competitors

Operations & Cash Flow

• Inventory management: Large pre-orders and continuous replenishment create logistics and cash constraints
• Cash management: Use of line of credit, maintain cash thresholds and minimum stock levels
• Development bottleneck: Warehouse/space for fulfillment is current constraint — building larger warehouse

Business Lessons & Founder Insights

• Growth driver: Willingness to act on ideas quickly and iterate (try, fail, repeat)
• Family in business: Transitioned from working with dad to buying him out; brother is GM; sister/others used as trusted operators in comparable stories
• Complexity trade-off: Wrestling with breadth of SKUs vs. simplicity (Apple-style focus vs. offering every variant)
• Forecasting challenge: Hard to predict demand when scale allows previously niche SKUs to suddenly sell out

Golf & M19 Connection ⛳️

• Tyler started golfing ~2 years ago; improved to ~9.4 handicap
• Joined M19 to network with business owners while golfing iconic courses
• Hosts mention partnerships and cross-promotions with M19 members (custom hats, Vessel Bags, product gifting for members/events)

Practical Takeaways (If you want to work with Zapped Headwear)

• Website: zapheadwear.com — view selection, request custom quotes, private-label forms
• Typical order guidance:
  • Order 100+ for best wholesale pricing (~$15/hat for embroidered truckers)
  • Expect 300-unit minimums for private-label / fully custom runs
  • Contact for custom colors, labels, patches (leather/rubber options; pricing varies by decoration difficulty)

Final Notes

• Tyler’s recommendation for M19 prospects: Join if you want to play iconic courses and network with entrepreneurs (handicap ~20 or better recommended, coaches available)
• Episode tone: practical founder conversation — operations, scaling product SKUs, distributor strategy, and golf-community synergy

Links mentioned:

• Zapped Headwear: zapheadwear.com

Thanks for listening — tune into the M19 podcast for more founder interviews and golf mastermind stories. 🎙️🧢🏌️‍♂️