Velasca Has Sold 20,000 Italian Shoes to 15,000 Men, $1.6m 2016 Revenue, $750k Raised with CEO Enrico Casati

Enrico Casati

In Episode #603, Nathan interviews Enrico Casati. He is the co-founder and CEO Velasca, a company that specializes in handcrafted shoes. Enrico is based in Milan, Italy.

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Famous Five:

  • Favorite Book? – The 4-Hour Workweek
  • What CEO do you follow? – Elon Musk
  • Favorite online tool? — Adabra
  • Do you get 8 hours of sleep?— Yes
  • If you could let your 20-year old self, know one thing, what would it be? – “Know your audience before doing anything business related”

Time Stamped Show Notes:

  • 01:43 – Nathan introduces Enrico to the show
  • 02:03 – Velasca is an online brand focused on hand-crafted shoes
  • 02:26 – Velasca was self-funded and had a VC round
    • 02:39 – Velasca had raised €750K
    • 03:01 – It was an equity round
  • 03:18 – Enrico’s dad was an entrepreneur but not a shoe maker
  • 03:31 – Enrico shares how the idea of Velasca started
  • 03:51 – It was 4 years ago when Enrico started Velasca
  • 04:34 – Enrico shares about one of their products
    • 04:52 – The source of the raw materials
  • 05:30 – The cost to make the Artista shoes
    • 05:52 – 2.4 markup
  • 06:47 – Net margin
    • 06:52 – Depends on the marketing budget you want to spend
    • 06:59 – High growth pace
    • 07:32 – “We invest so much on marketing”
  • 08:10 – Velasca has spent €20K on marketing in January 2017
  • 08:38 – Enrico had the first idea of Velasca in the summer of 2012
    • 08:52 – The first collection on their website was launched in May 2013
    • 09:25 – The first year was about the testing
    • 09:34 – Since September 2014, Velasca has grown in people
  • 09:43 – Current team size is 10
  • 09:54 – Around 15K customers have bought from Velasca
  • 10:17 – Average check out value
  • 10:50 – Customer repurchase rate
  • 11:52 – CAC
  • 12:00 – LTV
    • 12:10 – “The lifetime is really worth the cost we’re spending”
  • 12:45 – Velasca has sold around 20K pairs of shoes
  • 12:56 – Velasca’s best-seller is the Black Oxford
  • 13:16 – “Versatility is what makes the shoes’
  • 14:00 – First year revenue is €60K
    • 14:04 – €200K the second year
    • 14:08 – €1.6M the third year
    • 14:43 – Topline revenue
  • 15:25 – Enrico’s goal is to reach €4M
  • 16:06 – Enrico spends more on paid advertising
  • 18:08 – The Famous Five

3 Key Points:

  1. Study your product, first, before putting it in public.
  2. Invest paid marketing that performs well.
  3. Your relationship with your customers will reflect on your customer retention.

Resources Mentioned:

  • Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
  • Drip – Nathan uses Drip’s email automation platform and visual campaign builder to build his sales funnel
  • Toptal– Nathan found his development team using Toptal for his new business Send Later. He was able to keep 100% equity and didn’t have to hire a co-founder due to the quality of Toptal
  • Host Gator– The site Nathan uses to buy his domain names and hosting for the cheapest price possible.
  • Audible– Nathan uses Audible when he’s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books.
  • The Top Inbox – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
  • Jamf – Jamf helped Nathan keep his Macbook Air 11” secure even when he left it in the airplane’s back seat pocket
  • Freshbooks – Nathan doesn’t waste time so he uses Freshbooks to send out invoices and collect his money. Get your free month NOW
  • Show Notes provided by Mallard Creatives

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