Embark on a journey through the remarkable story of Tortuga, a brand born from the real-life travel tribulations of two childhood best friends, Fred and Jeremy. Their adventure began with a backpacking trip to Europe in 2009, where the duo traversed from Frankfurt to Prague, Budapest, and Hvar, Croatia. Amid the excitement, they grappled with inadequate luggage - Jeremy's bag broke on day one, and Fred's massive hiking backpack was a nightmare of disorganization. This experience was a revelation, highlighting the glaring need for the right travel gear. Frustrated by the lack of ideal travel backpacks in the market, they channeled their frustration into innovation. The result? Tortuga – not just a product, but a solution sculpted by the rigors of travel, designed for wanderers seeking the perfect blend of comfort and convenience.
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Fred Perrotta: Sure, I'll lead off. I'm Fred, co-founder with Jeremy of Tortuga. We make travel easier by creating carry-on sized travel backpacks, which helps take some of the hassle out of packing and traveling and also cuts costs. We started Tortuga in 2010 to scratch our own itch. We took a trip to Europe where I had a big hiking bag, and Jeremy had a used bag he bought off Craigslist. It was my first time backpacking in Europe, and I quickly learned that my hiking bag wasn't built for that kind of travel, even though that's what everyone else at the hostels had.
During our trip, we had a lot of downtime on train rides and came up with the idea for a better version of a bag, one that would work better for travel. When we came back, we got to work on it.
Fred Perrotta: Yeah, Chris, it was quite a journey. Neither Jeremy nor I had any background in product development or soft goods. At that time, I was working at Google, dealing with ads, and Jeremy was in film school. We were completely new to manufacturing physical products. Essentially, everything we attempted was a learning process and a series of missteps we had to correct later. It's fair to say we made every possible mistake in the book.
Jeremy Cohen: It really was a years-long process, filled with learning from countless mistakes.
Fred Perrotta: Definitely. We started this trip in summer, and by Thanksgiving, we had a design planned out. We found a designer online and developed a tech pack – similar to a blueprint you’d give to a factory. We spent a couple of months working on the design, but then faced over a year of challenges trying to get a sample made. We were attempting to manufacture in China, but we had no connections, didn’t speak the language, and were essentially stumbling in the dark, encountering many dead ends.
We experienced a lot of false starts with factories. After months of searching, we finally got an email with the first sample made. But when we saw the photo of the sample – the bag was disproportionately huge compared to the person wearing it – it was almost a breaking point for us. That photo, one of the worst moments, is saved as a humble reminder of our beginnings.
From there, with the limited funds we had, we had to make a decision: either make something or run out of money without producing anything. We ended up manufacturing our first 100 bags in Long Beach, California. They weren’t what we wanted – quite ugly, actually – but it was a start. We slowly sold those bags, and despite their looks, we received enough positive feedback about their functionality. That was a turning point. We later found a new designer who led us to a more reliable factory in Asia, allowing us to steer our production in a much better direction.
Fred Perrotta: In the beginning, we did see some sales from friends and family, but our first significant burst of sales came from getting featured in a Thrillist newsletter. They used to run daily newsletters for different cities, highlighting new restaurants, companies, and products. Through a connection, we got featured, which gave us a small surge in sales. It was exciting at first, but the very next day, sales dropped back to zero and stayed flat. It was a lesson that such bursts are hard to replicate consistently.
Initially, we experimented with various marketing tactics. Having worked at Google before, I thought Google ads would be effective. People searching for travel backpacks could find us easily. But the challenge was our first version of the bag wasn't visually appealing, so even though we might have had what customers were looking for, the conversion on our site was poor. They would visit but quickly leave.
Eventually, we discovered our niche in content marketing. At that time, travel blogs were very popular. These were typically individuals writing about their travel experiences. We explored different angles within this space and found traction by focusing on content about packing, how to pack efficiently, and traveling with carry-on only. This angle - discussing the practicalities of packing and travel gear - aligned more closely with our product. While most travel bloggers focused on the adventures, food, and the glamorous aspects of travel, we found our strength in the more practical, less flashy side of things like packing lists and gear guides.
Jeremy Cohen: 2020 posed a real challenge for us.
Fred Perrotta: Absolutely. The challenges have evolved over time. Initially, it was about figuring out what we were doing. By 2019, we felt like we were at a high point with a large team and extensive product lineup. But then, the travel industry came to a halt in 2020. Our business was directly impacted. In April 2020, almost every bag purchased the previous month was returned. It was a massive challenge to keep the business going, to convince people to buy travel bags when travel was almost non-existent, and to manage our finances when revenue was drastically reduced. We had the heartbreaking task of laying off almost our entire team and starting from scratch. This period, however, did offer a silver lining – it allowed us to develop a new product line and refocus our priorities. Every year brings new challenges, which is typical in business. The pandemic was particularly dramatic, as it wiped out a significant portion of our business almost overnight.
Jeremy Cohen: Absolutely, Chris. We've faced these issues repeatedly, in various forms and stages. Fred can probably delve into the specifics.
Fred Perrotta: Sure, Jeremy. We've definitely experienced both extremes. During the pandemic, our sales plummeted to almost zero. On the other hand, there were times when our products were in high demand, and we struggled to keep them in stock. Managing our inventory has been a critical aspect, especially since we ship from Asia. This means longer lead times, so any misstep in ordering can lead to a few months' gap in production and shipping.
Back in 2013, when we introduced an improved version of our bag, it gained traction. By 2014, we were sold off-and-on for half of the year. It was a cycle of restocking and selling out quickly, which although a better problem to have, still required careful management. To address this, we've worked on enhancing our sales forecasting and inventory management. Currently, we use a tool called Cogsy, but we've also relied on more traditional methods like Excel in the past. In terms of finances, despite not having a finance background, we've been conservative and proactive, even bringing in external expertise for advice.
Jeremy Cohen: And for those just starting out, especially in the U.S., it's crucial to plan for your taxes. I've seen many freelancers and small business owners face serious issues due to inadequate tax planning. Prioritize setting aside funds for taxes. The book "Profit First" provided us with a solid framework, helping us manage our finances, including tax obligations, more effectively. It's a valuable resource I'd recommend to anyone starting a business.
Fred Perrotta: We both have a genuine passion for the products and gear we create. We’re kind of nerds about it. Our approach is always about improving, doing a little better than yesterday. It’s a continuous process of trial and error. You don’t want to keep making the same mistakes; instead, you aim for new, bigger, and better challenges. It's actually fun for us to solve these problems, knock them down, and then move on to the next. Our interest lies not just in the product space but also in the business aspect – figuring things out, solving problems, and then progressing to the next challenge.
Jeremy Cohen: I think a big part of our motivation comes from the fact that we're working with our best friends. It makes a huge difference. You don’t want to let your best friend down, which makes it easier to keep going. We have a lot invested in this – not just financially, but emotionally too. We’re in it with all our skin, and a couple of organs, so to speak. It’s this commitment that keeps us pushing forward.
Fred Perrotta: 2023 has been a pivotal year for us. I recently summarized our year on our blog for our customers, outlining our accomplishments and what to expect next. This year felt like our first full year post-pandemic, marked significantly by the launch of new products. During the pandemic, we spent a lot of time planning and strategizing for the business's future. It was like a reset – a forest fire that burned everything down, allowing us to build anew in the post-pandemic world. We’ve been focusing on developing new products and making internal changes.
Launching these new products at the beginning of the year marked the start of a new era for Tortuga. It’s been exhilarating. We introduced many products and accessories, which we hadn’t done before. Looking ahead, our goal is to grow and evolve into something akin to our 2019 business – which was a high point for us – but with a leaner, more efficient approach. We aim to replicate the successful aspects of our past, such as product variety and customer price points, but with fewer SKUs. The pandemic, in a way, gave us the chance to make significant changes, something that would have been more challenging under normal circumstances. We're using this opportunity to learn from the past and adapt for a more robust future.
Fred Perrotta: Definitely, Chris. In our yearly planning, something that really stands out is our approach. We've always done things a bit differently, partly because we started early and there wasn’t a clear playbook for DTC brands or ad-driven brands. We’ve kept an eye on the industry and its trends, but we try not to follow them blindly. Instead, we look within our business to see what is working and what is not. Every year, we ask ourselves: What’s working? How can we double down on that? What is not working that we should cut out? We always try to cut out more than we're adding so that we run as efficiently and simply as possible. Businesses tend toward complexity, trying to do a million things because someone said it was working. We try to keep our blinders on, focusing as much as possible on doing more of what's working for us and cutting out everything that's not.
Jeremy Cohen: To add to what Fred said, my advice is to focus relentlessly on simplicity. Be very disciplined about what your business actually is, what moves the needle, and what doesn’t. There are many things you might feel pressured to do because it seems like the 'right' thing as a business person, or because everyone else is doing it. Ignore everything that is not actually important for your business. Learn not to feel guilty about not doing these things because they waste your time and money and make you feel bad about something that doesn’t matter.
Chris Choi: That’s insightful advice. Thank you, Fred and Jeremy, for sharing your experiences and wisdom today.
