How American Apparel Lost Their Shirt - A Case Study for Entrepreneurs

[@VALUETAINMENT]

The First LIVE Valuetainment Conference for Entrepreneurs is here. An event you won't want to miss hosted by Patrick Bet-David. For tickets and details visit: www.valuetainment.com

[@Mangi850]

Is Tom still with Valuetainment? We need more case studies...Do one for SABMiller?

[@gilltim5711]

That account of Dov moving into the distribution center in La Mirada is 100% true. He moved in and lived there for months, learned the workings of that distribution center inside and out, became an expert at every facet of its operations. The issue with that dist center was caused by one of his right hand men, who Dov trusted, but mismanaged its construction and operations. Once Dov took over, it worked fine, but by then it had lost a lot of money and used up much of his time. By the way, the total cost of labor per t-shirt in the USA was fifty cents each. And total cost of materials was .016 cents per shirt. Or $25 for 1500 t-shirts. So the fact Dov paid a living wage to his workers did not bump up the cost of his shirts by anything meaningful. The ones now made in Honduras cost 12 cents per shirt instead of 50 cents. When you're wholesaling the shirts at $20 each, and retailing at $30 each, it makes zero, and I mean zero, difference.

[@jesusvalenzuela8410]

can't believe this content is free i would pay 5000 for this lesson alone.

[@zoalord12]

welcome to the internet ^_^

[@andrek.1399]

I'm sure, they have PATREON account?

[@ElectricityTaster]

Really? He talked about how a company plummeted around 2008 and didn't mention the huge worldwide financial recession that happened at that time. No shit a middle-premium clothes company got shafted, especially paying fair wages. This video completely misses the point of what American Apparel was about. As a customer of American Apparel, I can tell you what failed was their distribution. Around the time shit fell apart, my orders would come late, they would not charge me for my order/refund me for no reason. I still owe about $200 to American Apparel. They stopped shipping to my country (in the EU). At one point I was buying their clothes on Amazon through a third party. They had a quality, ethically made, authentic product at an affordable price. Now that has moved to Los Angeles Apparel. American Apparel as it stands today is a dead man walking. It is not about Dov Charney; it's about creating a business where everyone feels a winner, from the person making the garment to the person wearing it. It truly is that simple, although this does not apply to wholesale. Wholesale works on hard economic facts and Dov has grown both his businesses doing wholesale, so don't tell me he doesn't know the basics of keeping a business profitable. The problem with Wallstreet right now is that it is scared of how social media works and demands companies remain politically correct, bland and predictable. That was not compatible with what American Apparel sold. American Apparel was clearly against sex-negative feminism and Wallstreet got scared with AA's billboards.

[@dashnaso]

Feel free to send them money.

[@Aristander]

Love the channel. Found it a week ago, and have been binge watching videos ever since!

[@hickoryhomes6838]

I think your delivery is awesome - entertaining while being very real-life informative. Thank you.

[@Make_it_Make_Cents]

This was the BESTT video ever! As someone that is running an apparel company this was knowledge

[@joethompson6960]

MVMT CASE STUDY PLEASE

[@erlicbackman5691]

You need need need! To do a case study on the Lonzo and Lavar deal, choosing to go there own route on the shoe deal and branding vs going with a large company deal (Nike,Addidas,UA). Please do this one. I would love to hear what you think of this deal.

[@VALUETAINMENT]

+Sam Hartley - great suggestion- Thanks Tom

[@victoriadoingthings]

Being a CEO is what most people think is easy or fun and games.

[@VALUETAINMENT]

+Victoria Taylor True but it's actually an incredibly tough job. Thanks Tom

[@mitos95176]

Lately, the case studies are the only videos I watch on this channel.

[@letsboogie4408]

This was a great cautionary tale, thanks Tom

[@litlesnoopy]

Awesome video Tom! This gives an excellent insight with clear strategy examples. Thanks!

[@joelow63]

1.any ceo with one strong dimension you need to know your limitations 2.you need a partner to help you with stuff youre not good at dont let ego get in the way vertical intergration-when u fo all of the work to send product to customer(difficault but you get highest margins odditer-person that makes oddit letter that tells how they are doing in stock market ■basically promotes company■ deloite is fine oddit company dont expand too fast dont take too much debt have an honest team that calls you out

[@Izanagi2072]

Always look forward to these videos every Friday. Tom is the man

[@VALUETAINMENT]

+David M. Spence - David, I thank you very much for that kind comment. - Thanks, Tom

[@brillcomics]

Thank you. I needed this right now.

[@mynameismatt2010]

These videos are so informative, thank you for the time and effort you put in to them.

[@VALUETAINMENT]

+mynameismatt2010 - Thank YOU for watching! - Thanks, Tom

[@BreakthroughInk]

Awesome video! Thanks Tom and the Valuetainment team!

[@VALUETAINMENT]

+2iLL Clothing Thanks Tom

[@corymuroff]

Very VERY well done! I will be sharing👍🏻

[@VALUETAINMENT]

+Cory Muroff - Thank you for watching and double thank you for sharing! - Thanks, Tom

[@shubhsoni8407]

Hey Pat and Tom , it would be great if you could explain in detail about financing , when to go IPO , or when is the right situation to bootstrap , how to handle board equity and stuff . Thanks for this amazing content

[@rosenborisov7462]

Hi Tom love the vids! Can you do a case study on PHP Agency. Thanks!

[@VALUETAINMENT]

+Rosen Borisov Someday we will do that! - Thanks, Tom

[@hans-denisjr8417]

Rosen Borisov I just hope the "DAMN" will be about an awesome (positive) stuff

[@alnotbiggaytho7124]

Valuetainment Tom and Patrick will you two ever make a video on your start till now as entreperneurs

[@juleshauser506]

Learned a ton! Thanks!

[@sumeets3155]

Love your videos Tom.

[@BigEThoughts]

Great video 👍thanks to you and pat for these lessons .. I will soon see you guys at the top !!#notificationsquad

[@VALUETAINMENT]

+BigEThoughts Than you for watching - we want to help you reach your dreams! - Thanks, Tom

[@florianwueest]

Thank you so much for your time Tom. :-)

[@VALUETAINMENT]

+QualityGains We appreciate that you tune in and watch.Thanks Tom

[@TheGrinningSkull]

Great lesson, good to know the failures as well as the success cases. Tesla also comes to mind as wanting that vertical integration but dealerships are giving them grief over that!

[@TheGbelcher]

Case Studies need their own channel.

[@tanuj9418463307]

Love this segment... A lot to take in in one video... Gotta keep on taking notes😛

[@VALUETAINMENT]

+Tanuj Kumar - Watch it twice :) - Thanks, Tom

[@kailinverano3494]

nice vid tom! lots of newbie entrep like me were just focused on branding and marketing, you made me think about the finance too.. 🖒

[@VALUETAINMENT]

+Kailin Verano - You need both! Good luck with your company! - Thanks, Tom

[@Staygloww]

It’s really useful analysis. Thank a lot!

[@egregore1717]

Love your vids! Love the stories! A great way to learn something new :)

[@VALUETAINMENT]

+Ad Mortensen - LOVE that you tune in and watch. - Thanks, Tom

[@victoradatsi256]

Thank you so much for these videos , victor from ghana

[@VALUETAINMENT]

+Victor Adatsi - Hello Ghana! Thanks for watching - Thanks, Tom

[@mjki4mm2]

Hi Tom, awesome case study. Cheers from Kuala Lumpur!

[@flaxj]

Like the video. Can you do a case study on Enron and why Enron went out of business?

[@VALUETAINMENT]

+Jacob Flax - Corruption corruption and corruption. Other than that... :) - Thanks, Tom

[@filian489]

Right before TieCon!! :) Thank you again!!

[@VALUETAINMENT]

+RB Thank you for watching! - Thanks, Tom

[@kftito31]

Wow, love this!

[@yvansingoye1910]

another great video thanks tom! honestly looking from outside the brand looked so successful I would not of imagined their demise in such a short period.The founder(not a fan) is from Montreal , my hometown(so are Gildan headquarters).Patiently waiting for under armour big Kevin Plank fan . Thanks again

[@VALUETAINMENT]

+yvan singoye - There are always two stories... the one you see from the outside and the one on the inside... - Thanks, Tom

[@mitchell.9632]

Taxes, tax credits and tariffs have a lot to do with doing business too. Maybe you could do one on food again like the Dreyers Ice Cream. Or take some of the suggestions below. Thanks Paul and Tom for another highlight of the week.

[@VALUETAINMENT]

+Mitchell Smith - Another food company would be interesting. - Thanks, Tom

[@ibarramanuel66]

Great JOB !!!!

[@VALUETAINMENT]

+Manuel Ibarra - Thanks, Tom

[@marciabent-thinkpremiumja]

This was a great video. Thanks, Tom! Is it possible for you to advise me of how new entrepreneurs can acquire strong Operations and Financial persons if the entrepreneur is more of a 'Product and Marketing Savant' as you described with a limited budget, relatively unknown and has the burning desire to make a brand that should stand the test of time?

[@pritalbamnodkar2620]

how about a case study on Mercedes?on the company and if possible,on their f1 team too.

[@VALUETAINMENT]

+Prital Bamnodkar The F1 team would be interesting. The car company is also interesting. - Thanks, Tom

[@pritalbamnodkar2620]

Valuetainment BTW,great content. keep going.too exited for Mercedes.

[@pritalbamnodkar2620]

and I think I misspelled excited

[@VALUETAINMENT]

+Prital Bamnodkar I get it! I hear you loud and clear! - - Thanks, Tom

[@Not_so_greatScott]

Great video ! Btw it’s Craig Barrett from Intel

[@DoubleBurgerCheese]

Finances for Entrepreneurs videos is a good idea. Since Money and Finance are major parts of entrepreneurship.

[@VALUETAINMENT]

+Chrissy's World - Absolutely! - Thanks, Tom

[@yvonneruvinski8065]

Be passionate about your product and marketing. Make sure to balance it with people around you that tell you the truth about who you are. In order for you to bring people into the company that will compliment each other. "Check your ego at the door."

[@elishawatkins4835]

A lot of great points. thank you Tom

[@VALUETAINMENT]

+Elisha Watkins Glad to help! - Thanks, Tom

[@sinisarunjic2579]

Hey Tom. Can you do some company from Europe? Like Siemens.

[@VALUETAINMENT]

+Siniša Runjić - Good point, this is a global audience now. - Thanks, Tom

[@SunriseInParadise]

Such an important lesson, to know thy self. But it's not easy finding people, no one will ever care and love my business same as my self.

[@VALUETAINMENT]

+Christian R. - True that but you go farther and go higher with the right team. Thanks Tom

[@michaelsevillerealestate977]

Enjoyed this.

[@peten-x7p]

This was great

[@ClaudeMasseyConsulting]

Thanks Doc!

[@VALUETAINMENT]

+In Real Sales... Thank you sir! - Thanks, Tom

[@BigMark134288]

Hey Tom great video , can you do a Case study on Costco Wholesale . Great company!

[@461932570]

OMG! I f***ing love the case studies. I used to watch hour long tedious documentaries just to get a vague understanding of a question I have. They're so entertaining and it satisfy my curiosity for a good half hour lol. BTW can you do a case study on Zara, Sam Walton and Walmart, and Disney. THANKS TOM and Pat. #ChangingTheGame

[@VALUETAINMENT]

+Felix Chen Thank you Felix! I love your enthusiasm. - Thanks, Tom

[@HockeyVictory66]

Please do a study on Meguiars car care products.

[@brendaelyzabeth5873]

Your videos are amazing. Could you please do one on Levi's? Like the makers of Levi's jeans?

[@oliverv94]

thank you biz doc

[@VALUETAINMENT]

+oliverv94 Thank you for tuning in. - Thanks, Tom

[@ChrisBenedictValencia]

"That's almost worth another damn" LOL I've been watching your vids for almost 2 months now and I just realized that you had a 1-damn limit for each vid. Gotta admire the discipline. Thanks for the case studies though. This is better than most university lectures.

[@chontalewhite6241]

I cannot wait for the financial class !!! 🙌🏾🙌🏾🙌🏾🙌🏾🙌🏾

[@VALUETAINMENT]

+Glam Doll - Coming soon! - Thanks, Tom

[@syz3981]

Moral of the story: Make sure you partner up with some one named STEVE.

[@HockeyVictory66]

Please do a study on Obey clothing. Start with Chris Broders.

[@stuskivens4295]

Excellent video, excellent F1 shirt.

[@jaggurakesgprasad9208]

Damm Tom! Love your work!

[@Ferelmakina]

Hey Tom, thank you for another great analysis. By the way, what do you think about the business tax reduction (35% to 15%) announced by the government? +Valuetainment

[@VALUETAINMENT]

+Fernando Romera - You are VERY welcome - thank YOU for watching! Yes, I think that the business tax can and should be lowered (it makes jobs and people pay sales tax and income tax) but also we need to help the offshore money come home! TGo take a look at home much money Apple is hiding offshore! - Thanks, Tom

[@Ferelmakina]

Interesting, I've just read a little about it and, apparently, they've increased in 10bn their almost QUARTER TRILLION their reserves (230bn parked at offshore subsidiaries) in the first months of this year in anticipation of some "tax holiday" that might let them bring back the money. Overwhelmingly dishonest (If the information is true, of course...) Thank you again, Tom.

[@jaykongo4062]

Great video, going to google him now.

[@VALUETAINMENT]

+Jay Kongo - You will see his marketing genius and his moral fall. - Thanks, Tom

[@Perpetual_Eden]

Case study on a non profit would be awesome!

[@VALUETAINMENT]

+Perpetual Eden - I think that's a good idea - Thanks, Tom

[@joelow63]

yes please do a finance class

[@VALUETAINMENT]

+Joseph Hemingway - Coming soon!!! - Thanks, Tom

[@daytonasixty-eight1354]

They said they could build a massive distribution center in LA for $5 million in 2011? In 2011 and now you can't even build a 800 square foot shack of a home for less than a $1 million. Who the fuck believed that statement? One of the biggest failures I think was thinking they could run a massive factory and distribution center in the 50th worst state for business and one of the most expensive labor markets in the country.

[@adnannagdi4516]

great video

[@VALUETAINMENT]

+Adnan Nagdi - Thanks Tom

[@benjaminnxumalo2957]

Ryan Holiday speaks about the CEO in his book "Ego is the enemy".

[@MsAashh]

Hey, how about making about Tiffany & Co?

[@MartinTothSK]

Hi guys and perfect job! Can you please somehow enable English subtitles for guys like me? I am fluent but sometimes it's really hard to concentrate (when eating for instance) :-)))

[@VALUETAINMENT]

+Martin Tóth - A couple people have asked for English subtitles. - Thanks, Tom

[@therocelectric]

To like this guy! Good stuff

[@VALUETAINMENT]

+Fernando Rocha Thanks! Tom

[@prabjyotsinghchhabra7775]

hay tom video on maths buy and sell busiess equity. % .valuation love your show.....

[@VALUETAINMENT]

+prabjot singh - Finance video is coming soon! - Thanks, Tom

[@mayurpatel5571]

Zara case study plzzzz

[@SafeAndEffectiveTheySaid]

In the end consumers, themselves are the one to be blamed for the bad economy.

[@LegendarySir]

Outro song?

[@SonicSP]

Deloitte is one of the top auditors in the entire world, not just in the US. Even here in SEA, it's a very reputable company to work with (though they'll work you to death). Great video as always Tom. DAMN

[@O_VAKA]

thanks tom

[@michaelsevillerealestate977]

Wasn't Ryan Holiday apart of the branding and marketing?

[@nobertstanel9428]

,, With sock on his ... " - another CIO bites to dust. Thanks VT !

[@sensational8212]

You should do the NFL or some sports league

[@VALUETAINMENT]

+Sensational - NFL would be a great case study. - Thanks, Tom

[@RushellKB]

Really?! Really?! Lol!!! Loved that! This is a great example of poor planning.

[@VALUETAINMENT]

+ReviewQueenRBD Yes indeed!! Thanks Tom

[@RushellKB]

Valuetainment He reopened a new company, I'm pretty sure, well let's HOPE he learned from his past mistakes.

[@andrewulrich5570]

anyone listen to the podcast called startup that talked about American Apparel?

[@VALUETAINMENT]

+Andrew Ulrich - I have not heard it but there is a TON below the surface I didn't cover. - Thanks, Tom

[@travelingkaspersworld4096]

We should not fault the company that makes in the USA for 15 and hour years before everyone else mandates it. You should shame the people who exploit other countries and still sell to us at high retail. (I bet the sneaker idea would of worked out. Look at Vans, even Gary Vee has a shoe).

[@jcintron2412]

Good morning guys

[@VALUETAINMENT]

+J Cintron SQUAD!!! - Thanks, Tom

[@jentaylor8220]

Thank you for another great video, Tom! If you guys do a sports study video, it would be awesome to get your analysis of Theo Epstein and what he did for the Boston Red Sox and Chicago Cubs. Thank you again!

[@VALUETAINMENT]

+Jen Taylor that is a great suggestion. I have a lot of respect for everyone connected to the entire money ball movement. Thanks, Tom

[@double_j3867]

I guess it's good to name your kid Steve if you want them running a mega-company someday.

[@Shockzer67]

You're dope man

[@CamiloGomezDev]

"Tom Thanks"

[@thomassutherland5188]

Seemed to be missing specifics of failure?

[@JG-fg1ye]

so if in trouble get a Steve in the team... check!

[@VALUETAINMENT]

+J Griff - Yep. Ya' gotta have a Steve! - Thanks, Tom

[@Vibhor_]

oh yeah we want google

[@VALUETAINMENT]

+vib - I am sensing a trend for Google.... - Thanks, Tom

[@Vibhor_]

Will Be Waiting

[@aokfromusa]

I honestly don't feel Apple will do great in the near future. Their main source of income comes from cell phone sales. I know they have many loyal customers, but there's going to come a time when consumers realize they don't need a new $900 phone every year. Great luxury item, but when it comes to selection, there's a lot to choose from with much better prices.

[@prettyratchet]

Do Nasty Gal next!!

[@VALUETAINMENT]

+Fashion 4ourward - You are not the first one to ask! - Thanks, Tom

[@sas10x39]

Homedepot please..

[@VALUETAINMENT]

+10X SAS - good suggestion - a weird history. - Thanks, Tom

[@dgdivoky1]

Craig Barrett, not Steve Barrett.

[@monjier]

great stuff Tom. Hopefully one day you could do something on real estate investing haha like something for Trump

[@originalpilot]

Can Google be next? Biz Doc

[@VALUETAINMENT]

+Think Big Start Small OK - I will do Google! - Thanks, Tom

[@originalpilot]

Thanks,

[@abzfarooq3510]

LOL! Mr Johnson

[@sharonbowers9929]

Another one bites the dust. 😢

[@hans-denisjr8417]

Kelly should make sure she doesn't regret saying China will not manufacture her sh!t.

[@VALUETAINMENT]

+Hans-Denis Bamal,Jr. - good point!! - Thanks, Tom

[@adamshuiabu9348]

Wouldn’t Zara be a better example for this case study