Video Summary — M19 Podcast with Tyler Mulestein (Zapped Headwear) 🎙️🧢

Episode Overview

• Host visits Big Cedar Lodge (Payne’s Valley) with M19 member Tyler Mulestein, owner of Zapped Headwear.
• Conversation covers company origin, product lines, operations, sales, logistics, golf, and M19 membership.

Company Background

• Founded: ~6–7 years ago by Tyler and his dad in a backyard/shop.
• Name origin: “Zap” from using a laser engraver—“Let’s go zap some hats.”
• Ownership: Tyler later bought dad out; brother is GM; sister acts as CFO.

Product & Positioning

• Focus: High-quality, premium hats at accessible wholesale prices (mid-tier to premium).
• Product naming/theme: Military-inspired (Tyler is a Marine vet).
• Models: multiple lines including “Elite” (stretch fit, perforated, TPU clasp), Blackhawk, Osprey, Bomber, rope/golf styles, truckers, etc.
• Color options: typically many more colors (30–50) vs. competitors’ limited palettes.
• Custom/private-label options: available (minimums around ~300 for fully custom/private label).

Sales & Volume

• Annual sales: ~750,000 to 1.5 million hats (over a million → 8-figure business).
• Typical wholesale pricing (per hat, embroidered, bulk ~100+):
  • Standard custom hat: ~$15 each
  • Premium styles: ~$18
  • Small orders/custom work (10–25 units): embroidery shops may charge $20–$25 each
• Main customers: Embroidery shops / decorators (dealers) — Zap sells blanks and finished custom hats to competitors turned partners.
• Marketing: minimal direct advertising; growth via dealer network + some Google Ads and custom site.

Operations & Logistics

• Team: ~18 employees.
• Manufacturing: hats sourced overseas; customization (embroidery, patches) done in-house.
• Daily throughput: customize 1,000–2,000 hats/day; send out ~4,000 blank hats/day.
• Inventory: typically keep ~250k hats in stock, with ~500k on order; storage & space are constant constraints.
• Cashflow: use line of credit and maintain cash + hat inventory thresholds as working capital.

Supply & SKU Management

• SKU complexity: ~400 variants; Tyler wrestles with SKU rationalization vs. customer demands.
• Forecasting challenges: demand spikes when previously unavailable SKUs are stocked; balancing overstock vs. stockouts.
• Strategy: offer core best-sellers while handling dealer-specific or private-label runs.

Business Lessons & Founder Insights

• Success drivers: willingness to act, iterate, and learn from failures; execution focus.
• Family business dynamics: mostly positive—roles split among siblings; dad bought out early.

M19 & Golf

• Tyler joined M19 to golf with fellow entrepreneurs; started golfing ~2 years ago, improved to ~9.4 handicap.
• Host plugs M19 mastermind and golf trips (Pebble Beach, Pinehurst, Bandon, etc.).
• Tyler recommends joining M19 for business owners who enjoy iconic courses and networking (suggested ~20 handicap or better).

How to Work with Zapped Headwear

• Website/contact: zaptheadwear.com — view catalog, submit custom hat requests, private-label inquiries.
• They handle color selection, decoration type (embroidery, leather/rubber patches), and production logistics (minimums vary by decoration type).

Key Metrics at a Glance 📊

• Annual hats: 0.75M–1.5M
• Employees: ~18
• In-house stock: ~250k (with ~500k constantly on order)
• Daily customization: 1k–2k hats
• Daily blanks shipped: ~4k
• Typical wholesale price: $15–$18 (100+ units)

Notable Quotes

• “We transitioned to selling to our competitors and becoming friends with our competitors — best thing we ever did.”
• “Hats are cash — inventory is cash; managing thresholds is key.”

Actionable Takeaways (for entrepreneurs / apparel brands) ✅

• Consider selling B2B to local decorators/dealers to scale distribution.
• Maintain strong inventory/credit strategies when working with overseas sourcing and high SKU counts.
• SKU rationalization (focus on best-sellers) can simplify logistics but balance with dealer-specific demands.
• Offering many colorways can be a strong differentiator for lifestyle/golf hats.

— End of summary.