Life has been one long weekend for Tom Montgomery.
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Unfortunately, the co-founder of vintage shorts retailer Chubbies fears the weekend is in danger as the work week for many has ballooned to 60, 70, or even 80-hours. As longer work weeks become more common, Montgomery believes the weekend is something which deserves to be fought for and reclaimed.
“The weekend has definitely become endangered,” Montgomery bemoans. “Are there bigger problems on Earth, absolutely, but it really bothers me that people are constantly frustrated and stressed, and not taking time to relax and care for themselves.”
What’s to blame for the death of the weekend?
Shorts that lead to “unliberated thighs,” according to Montgomery.
He’s only partially kidding…
The Cargo Curse
Montgomery and his buddies grew up in an era when the world of fashion was ruled by male models with washboard abdominals who would spray funky-smelling cologne on you as you passed by their storefronts.
“The shorts de jour were cargo,” Montgomery recalls. “These things weren’t custom designed for anything; they’re moderately cooler but almost as long as pants which makes no sense for a man looking to be cool and comfortable.”
The idea of conformity and an undifferentiated one-size-fits-all mentality not only makes for poor fashion Montgomery suggests, but also indirectly contributes to the erosion of the weekend and what it should symbolize for American men.
To restore some of the individuality that makes weekends special, Montgomery knew he wanted to flip the world of men’s fashion, specifically men’s shorts, on its head.
But it wasn’t immediately clear how this would happen.
At least it wasn’t until Montgomery and three friends inherited something that would change their lives.
And maybe yours…
The Heavenly Hand-Me-Downs
Montgomery and three friends from Stanford University- Rainer Castillo, Kyle Hency, & Preston Rutherford- were well on their way after graduation to promising careers in traditional businesses like venture capital, finance, and retail.
But they were “working for the man” and they didn’t love the man.
Back in their college days the four were known for wearing short shorts; the kind of thigh-liberating pieces you might see on NBA legends like Larry Bird:
Image via: Sports Illustrated
“These shorts were magical, just incredible,” Montgomery recalls fondly. “They were passed down to us by our dads and uncles and they were amazing because these shorts were how we defined our weekends.”
In 2011, several years after graduating, Montgomery and friends planned a Fourth of July trip to Lake Tahoe. As always, the group planned to wear vintage shorts but this time, after pooling their money, they had 25 extra pairs made to take along.
The four had always wanted to start a business and decided to use the weekend as a test. The extra shorts were jammed into backpacks and Montgomery and team hit the beach wearing the thigh-revealing shorts they had a hunch might sell.
“We saw an intense reaction,” Montgomery remembers. “We sold out quickly and afterward people were offering to trade their shorts for the ones we were wearing.”
Proof of concept…
Check.
The Rebirth of the 5.5’ Inseam
The team of vintage shorts hawkers weren’t actually selling shorts.
Rather, the founders of Chubbies wanted to sell the weekends of yesteryear; the ones they grew up loving as children and the ones they want to help others reclaim. The Friday at 5 o’clock crowd itching to let go of the week’s stressors are the very people for whom Chubbies was created.
“We wanted to sell our lifestyle to people,” Montgomery said. “When we decided to start this business we wanted to sell the notion of fun and embody that in every pair of shorts we sold.”
So Montgomery and his buddies quit their jobs and set out to upend a slice of the fashion industry while simultaneously helping men reclaim their dying weekends.
Hence, the birth of Chubbies and the rebirth of the 5.5-inch inseam.
The Shorts-Breathing Dragon
The initial run of shorts that sold out that Fourth of July weekend proved to Montgomery vintage shorts resonated with others who were reminded of their dads and the fun had on weekends. So Montgomery quickly built a website to market another handful of shorts.
The result; another rapid sell out.
The scenario repeated itself several times.
The early success was great and would eventually lead to several rounds of venture capital funding but Montgomery and his friends wanted to create something different:
- A different type of product
- A different way of marketing it
- A different way of manufacturing it
“We’re just a small company doing big things,” Montgomery says. “The story we’re telling is big, emotional, and it’s our dream and we began seeing our customers are just as passionate about these things as we are.”
The Product
Retro-inspired shorts are polarizing.
There were some at that lake Tahoe beach who thought men’s legs were something that ought to be covered, not shown off.
But the American flag-like original run of shorts would become a cornerstone for the brand.
Image via: Chubbies
The American dream the Chubbies founders are living is possible, in part, because of the sacrifices made by our armed service members. Castillo’s father served as did both of Montgomery’s grandfathers.
“We want our products to recognize these guys,” Montgomery said. “The fact is what they do has allowed us to create a shorts company which is absolutely amazing when you think about it.”
Service members around the world have noticed and are responding by dropping their fatigues to reveal shorts Montgomery hopes provide a moment of levity or comfort in otherwise stressful or dangerous environments.
Image via: Chubbies
The only ecommerce home the Chubbies brand has ever had has been on Shopify and now Shopify Plus, an enterprise ecommerce platform for high volume merchants. “We’ve been with Shopify from day one,” Montgomery boasts. “None of us are engineers so it’s great to be able to rely on Shopify’s experts so we can focus on innovating.”
Besides crediting Shopify with enabling Chubbies to easily offer military discounts, Montgomery says not having to worry about IT is something that helps differentiate the company.
“It’s why we are a different company,” Montgomery says. “The platform is easy and fast and frees us to create content that’s building our brand.”
The Marketing
You won’t often see Chubbies advertising like its competitors with big banner ads or those annoying full screen pop-up interstitials.
“We have a mindset of let’s earn their attention and trust,” Montgomery says. “We create a lot of content but the rule is we have to give them something they enjoy or we’re simply not going to do it.”
The way Chubbies talks about shorts is fun, ridiculous, and edgy. For instance, the company’s manifesto reads, “To us, pants are a necessary evil- built for the work week because your boss doesn’t get it.”
Image via: Chubbies
Rather than talking at their customers, Chubbies tell stories with their customers as evidenced by volumes of user generated content illustrating the Chubbies’ lifestyle:
Image via: Chubbies
To become a global ecommerce brand that defines the weekend and one to which everyone can relate, Chubbies recruited college campus ambassadors to spread the word. The way Chubbies puts it, ambassadors are its, “Badass crew of thigh-liberating patriots you’ve been hearing so much about.”
Image via: Chubbies
Instead of interrupting prospects with special offers, sales, or “buy now” calls to action like the majority of retailers, Chubbies opts to let ambassadors and customers tell the brand’s story visually and in ways prospects can internalize.
For example, you know Montgomery hates cargo shorts. But rather than endlessly rail against them itself, Chubbies lets customers do the talking- or showing:
Image via: Chubbies
“Our marketing is totally different because we’re about giving people awesome experiences,” Montgomery says. “It’s all about having the best content and ours is better, faster, and crazier than the competition.”
But there’s more to being different than frat parties and fun.
The Manufacturing
“We are hyper competitive,” Montgomery says. “Anything that gets in our way is something we have to go around or over.”
One of those hurdles, manufacturing apparel, is the third way Chubbies differentiates itself from the competition.
Chubbies charges a premium for its shorts, between fifty and sixty-five dollars a pair, but customers appear happy to pay, in part, because the shorts are sourced and manufactured in the United States. At first blush, you might think this puts Chubbies at a competitive disadvantage to companies with less expensive overseas manufacturing. But Montgomery says making shorts in the U.S. is consistent with the Chubbies’ brand.
“It takes a strong commitment to manufacture here,” Montgomery says. “Our customers understand it’s a bit more expensive but that’s because we’re investing in the U.S. and creating jobs our competitors outsource.”
The Chubbies supply chain has become a valuable asset. Not only does building out that chain in the U.S. put Chubbies closer to its suppliers which enables quicker product turns, but piecing together the chain over the last four years creates a competitive advantage difficult for larger competitors to mimic.
“There isn’t a one-stop-shop for manufacturing apparel in the U.S.,” Montgomery says. “While a minor problem in a chain we piece together can cause delays and other issues, there’s a ton of expertise in the U.S. and our customers reward us for putting our faith in the U.S. worker.”
Chubbies sources cotton from mills in North and South Carolina. Afterward, it’s dyed and sewn in several manufacturing facilities in California, where Chubbies is headquartered. It’s an example Chubbies hopes competitors will follow even if it erodes the advantage Chubbies has created.
“We want to teach our competitors it’s possible to manufacture here,” Montgomery says. “As competitive as we are, if we could get competitors to follow our lead we’d love to be part of spearheading that.”
If Chubbies gets its way, it may soon have the brightest spotlight of them all highlighting the differences that make it unique.
The Chubbies Bowl
“We’re a scrappy little company,” Montgomery says of his 35-person team. “We pull together and emphasize doing more with less and that earns respect money can’t buy.”
That ethos has earned Chubbies plenty of attention and may just earn it 100x more.
Today, more than 1.5 million people are part of the Chubnation, otherwise known as the dedicated group subscribed to receive content from Chubbies. But the Chubnation could grow exponentially if the company wins the equivalent of a multimillion dollar marketing opportunity of a lifetime; a free Super Bowl commercial.
“The exposure would be unreal,” Montgomery says. “We are super amped about the opportunity and would be hyper grateful if people would help make it happen.”
Chubbies recently entered the Quickbooks Small Business Big Game competition for a chance to win a free Super Bowl commercial. More than 15,000 businesses entered the contest and Chubbies was selected as one of ten finalists. The winner, which will be determined by the company that gets the most votes, will be announced in November.
Image via: Chubbies
Super Bowl commercials are generally reserved for big brands with deep pockets and cost nearly $5 million last year. An audience this size, more than 114-million people watched last year, would undoubtedly help Chubbies grow faster than its current clip of 50% year over year.
“If we win this I promise you’ll see a first-of-its kind type of commercial,” Montgomery teases. “We have huge imaginations here and a Super Bowl commercial would allow us to be ridiculous, crazy, and educate people about American manufacturing all at the same time.”
Learn more: Online shopping statistics
The timing couldn’t be better.
Just as it’s vying for a Super Bowl ad, Chubbies is also set to launch its first ever worldwide male model search.
Seriously!
Rather than pictures of the founders in skimpy shorts or professional models with rock star-like features, Chubbies wants real men to show off their retro shorts known for their forgiving elastic waist bands.
“We are stoked to find relatable guys to do fun stuff with,” Montgomery says. “We’re gonna open the casting call to every regular guy on earth, help them make really cool content, and feature them in ads and billboards.”
And who knows, the regular guy models selected just might work their way into supporting roles in the Super Bowl ad should Chubbies pull enough votes. To smooth out the seasonality of selling shorts, Chubbies has expanded and now offers shirts and will soon offer what the company calls jacket shorts, or shorts you put over your vintage shorts to keep you a bit warmer so you can wear Chubbies year-round.
“It would be insane,” Montgomery says as he laughs thinking about the number of new customers a Super Bowl ad might wrangle. “It’s crazy, exciting, risky, and scary but we’d ramp up quickly and are asking people to help a small business that’s in this for all the right reasons.”
So what’s in it for you?
If Chubbies wins the contest, it’s inviting each and every one of its customers to its San Francisco headquarters for a Super Bowl commercial viewing party guaranteed to provide everyone a stroll down memory lane to a bygone era that, win or lose, Chubbies is trying to bring back for good.
By the way, that Super Bowl ad would air in the dead of winter.
But you can bet everyone at the party will be wearing shorts.
Vote for Chubbies here.
Google the word warehouse, and you’ll conjure up dozens of images and layouts. Cold, gigantic, and overfilled with merchandise, the common warehouse has captured the popular imagination for decades.
In today’s world of high-traffic eCommerce, globalization, and automated workers, the ordinary picture of the warehouse is changing quickly.
Warehouses of the past fell into categories based on their size and production. Today we need to take a fresh look at warehouse types. We can evaluate how they work and what fills them. Defining their types will let us familiarize ourselves with the past, present, and future of warehouses worldwide.
Top 11 Warehouse Types
1. Bonded or Customs Warehouse
Bonded warehouses are structures built to store imported products and goods that usually require duty payments. After a set period, the stored goods can leave the warehouse without the obligation of paying duties. It’s not only duties which these goods incur, but other charges and taxes involved in imports.
Bonded warehouses also go by the name of Customs warehouses. This naming is because these warehouses primarily serve as storage for products under Customs and Border Protection’s charge. Because Customs officials protect national borders, these warehouses are often close to borders, airports, and ports.
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In Customs Warehouses, the proprietor who holds liability pays the duties upon release from the warehouse. However, liability no longer applies if the goods are exported or destroyed by Customs officials. In such cases, duties don’t apply.
✅ Pros
- Duty fees are exempt from any goods that don’t sell, so demand isn’t crucial to target
- Less financial strain for businesses storing goods for more prolonged periods
- Holds a variety of products
❌ Cons
- Passing Customs compliance can be complex
- It can be challenging to arrange international cargo
2. Public or On-Demand Warehouse
One of the best ways to reduce storage costs for small businesses is to own or lease space in a public warehouse. This warehouse type is widespread and growing year by year in the U.S.
Since public warehouses operate “on-demand” and owners depend on filling available space, pricing can be competitive. In addition, business owners often have options: some charge per pallet, others by square footage. Each on-demand warehouse has its own system.
How does the owner operate a public warehouse?
First, they operate in the form of monthly fees. Lessees regularly pay for the warehouse space, on-site staff, https://www.extensiv.com/extensiv-warehouse-managerinventory management software, and even shipping capabilities.
Also, public warehouses offer varying time limits for storage rights. Business owners can select monthly or yearly terms. That’s a big bonus for companies that need flexibility.
✅ Pros
- The owner, not the renter, has responsibility for building maintenance, staffing, etc.
- Flexible contracts encourage small businesses to use these spaces for their warehouse
- You don’t have to employ staff. It’s an all-in-one contract
❌ Cons
- Less control over climate, square footage, floor plan
- Monthly costs can pile up quickly
3. Government Warehouses
Government warehouses primarily store objects and goods belonging to national governments. But private individuals and business owners can often also rent space.
Government warehouses reserve the right to seize the goods of any renter who fails to pay rent. That means the government can freely examine and even sell the property of renters who default.
Still, the benefits of using government warehouses are pretty straightforward. Government property is generally well managed, clean, regulated, and sometimes climate-controlled. Staffing varies between facilities, but most warehouses are secure, fire-proof, and prepared for disaster.
✅ Pros
- Provides storage for schools, offices, and institutions
- Government oversight keeps warehouse management competent and well-trained
- Rental rates remain low with government regulation
❌ Cons
- Delinquent rental dues may result in property seizure
- Renters must comply with exacting governmental standards
- Limited to what can be stored legally on government property
4. Cold Storage or Temperature-Controlled Warehouse
If you’ve worked for a florist, high school cafeteria, or certain hospitals, then climate-controlled spaces are familiar to you. Temperature-controlled warehouses (AKA climate-controlled warehouses) are designed for products that require extra attention. Artworks, medicine, cosmetics, and candles also frequently appear here.
Not only do products line the shelves in temperature-controlled storage, but you’ll also find animals and other living organisms in these warehouse types. They attract businesses and cargo companies that ship food, flowers, fresh produce, and more.
Cold storage is an extreme type of these warehouse types. They specialize in deep freezing sensitive goods over long periods. If you need a solution for improving the shelf-life of inbound and outbound shipping, these warehouses are for you.
✅ Pros
- Caters to business owners with particular storage requirements
- Allows you to eliminate negative factors like heat and sun exposure
- Provides a dust-free environment perfect for computer parts
❌ Cons
- High cost compared to ordinary shipping warehouses
- It can be hard to find in remote areas of the country
5. Smart or Automated Warehouse
We see videos frequently on the news of warehouse hangers full of goods and activity without a human worker in sight. Robotics and technological innovations in automated storage and retrieval systems (also called AS/RS) have been central to this new vision of the warehouse.
Smart warehouses (or automated warehouses) are growing in popularity and attracting funds from tech investors day by day. They are primarily filled with low-emission automated tools, conveyor belts, sorting tools, and unmanned equipment.
Storage and retrieval from automated warehouses can be cost-prohibitive for some. Operating costs are high and often change as tech innovations replace legacy systems.
✅ Pros
- Almost unlimited potential for business owners looking to cut workforce costs
- Cutting-edge sorting, retrieval, and material-handling tools
- Minimal inventory count issues or production errors
❌ Cons
- High cost of entry
- Vulnerable to large scale blackouts or computer malfunctions
6. Distribution Centers
One of the final stages in the supply chain is distribution. Warehouse types explicitly built to make exchanges between inbound and outbound efficient are called distribution centers.
Distribution warehouses specialize in short-term goods storage. Owners prioritize short-term storage because they can increase turnover with each cargo reception and expedition. In many cases, goods stay in storage for less than a day. It is especially true in the food and flower industries, but any perishable item will do well in distribution centers.
Though storage space in a distribution center is at a premium, costs may be lower than expected. Prices are significantly lower with more extensive inventories. Owners can also keep rental rates down by accepting a wider variety of products into storage. Renters can chalk that advantage up as a win.
✅ Pros
- Widely available nationwide with competing warehouses in many metro areas
- Used explicitly for quick distribution, so outsourcing is efficient
- Accommodates a range of product types
❌ Cons
- Services and technology vary widely from center to center
7. Hazardous Materials (HAZMAT) Warehouse
Hazardous materials warehouses are closely related to climate-controlled warehouses. They both subscribe to high safety standards. They both cater to business owners who require trained staff and exact handling instructions.
However, hazardous materials warehouse types take those standards up a notch.
Otherwise called HAZMAT warehouses, these buildings follow government regulations on the handling of several materials, including:
- Gasses
- Explosives, weapons
- Radioactive Objects
- Viruses, bacteria, communicable diseases
- Any substance potentially harmful with minimal exposure
Investing in storage space at a HAZMAT warehouse comes with additional perks. Many times, owners employ expert staff trained in proper handling procedures. Workplace injuries rarely occur in these environments. Plus, they are often located far away from vulnerable populations and cities.
If high safety standards and dangerous material is your industry, HAZMAT warehouses are where substances travel.
For many who use these facilities, storage costs are a lesser concern. HAZMAT warehouses can be pricey for non-governmental or private small business owners. Why?
More space needs to surround each hazardous cargo. Facilities often employ 24/7 security and on-site fire defenses. Temperature and humidity control call for sophisticated equipment.
Constant surveillance demands a trained staff with HAZMAT handling training. And those are just a few reasons why HAZMAT facilities are so unique— and so foreboding.
8. Cross-Dock Warehouse
Cross-dock warehouse types specialize in transferring goods from inbound to outbound trucks and other transport. The process of cross-docking is, in itself, a complicated procedure. Essentially, these warehouses are middlemen between cargo carriers and their destinations.
In cross-dock warehouses, staff unloads, sorts, and reloads cargo from one truck to another. The result? Each carrier leaves the warehouse with a site-specific load which they can drop off all at once. Delivery costs drop, cargo-only passes through one warehouse, so it stays relatively undamaged, and inventory costs are lower because goods aren’t stored.
Without cross-docking warehouses, trucks would need to transport goods to several retail locations— locations that other trucks are simultaneously visiting, too. Warehouses employ expert staff who can sort extensive inventories in hours with the help of advanced technology.
✅ Pros
- Reduces transportation costs
- Relatively low storage time keeps cargo on the move
- Consolidated shipping lowers prices, eliminating the need for shipping partners
❌ Cons
- Only financially viable with more extensive inventories
9. Private Warehouses
Private warehouses are owned by distributors, manufacturers, or wholesalers. Some of the more established online and retail marketplaces will also oversee their own private warehouses.
Compared to public warehouses, private warehouses are more costly. However, private warehouses are an effective solution for small and medium-sized eCommerce businesses.
✅ Pros
- Fewer errors because it is managed by a small group of people
- Can be rented instead of purchased
- Can be designed to fit the needs of a specific company
- Performance improvements
- Viable option when public warehouses are unavailable
❌ Cons
- Return rates are low
- Less flexibility with operations
- Expensive to build from the ground up
10. Cooperative Warehouses
Cooperative warehouses are owned and operated by cooperative organizations like a winery or farmer co-op. All co-op members can house goods at these locations, including the people outside of the co-op. However, co-op members are the ones who gain incentives in the form of reduced rates.
✅ Pros
- Cost-effective option
- Monetary advantages for members of the cooperative
- Allows cooperatives to scale and expand market reach
❌ Cons
- Not as much operational control
11. Consolidated Warehouses
Consolidated warehouses are warehouses that receive smaller shipments from various groups and suppliers. The warehouse then groups these goods into bigger shipments before sending them out to buyers. The warehouse shipping procedures will make sure that the consolidated goods are sent to a similar geographical region.
Consolidated warehouses are a viable option for small- to medium-sized businesses for a couple of reasons. First, they are economical when it comes to fulfillment. Secondly, the inventory volume and capital investment requirement are minimal. eCommerce companies of all sizes can utilize this option without a lot of barriers.
✅ Pros
- Less operating costs
- Inbound costs are less because you can store larger quantities
- Higher customer service levels because of better resource allocation
❌ Cons
- Higher cost for rushed delivery
- Local manager issues
There are many warehouse types for your business to maximize, and each option has its advantages. Businesses will select one according to their supply chain, business needs, budget, target market, and others. When you acquire or redesign a storage space, make sure to consider its features and optimize it accordingly.
What to Consider When Choosing a Warehouse
It’s easy to tell that each type of warehouse is incredibly unique and serves specific purposes. No matter what kind of warehouse you opt for, keep your immediate distribution needs and your long-term needs in mind.
If you sell perishable goods, you’re better off using distribution centers. But if you are very established and have money to invest in making your business run more efficiently in the future, you might take the leap and consider a private warehouse.
No matter what type of warehouse you choose for your business, it all comes down to running it smoothly and productively so your business can thrive.
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The eleven most common warehouse types are diverse and far from the old dingy image of industrial storage centers.
Advancements in robotic equipment have repainted that old picture with the gleaming floors, mobile rack robots, and glassy facades we see today. Warehouses may still store goods, but the way they do is changing every day. One thing that can help take your warehouse to the next level is proper inventory management systems.
Extensiv Warehouse Manager can help you keep your warehouse organized and on track even if you have inventory in multiple locations. Our warehouse tools make a world of difference for even the most established warehouse managers.
Reach out to us to learn more about how Extensiv Warehouse Manager can help you and your warehouse!
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