DTC Podcast Episode Summary: EP 483

Title: Velocity Wins: How Curtis Matzko Scaled Portland Leather Goods to 9 Figures by Moving Faster Than Everyone Else
Host: Eric Dick
Guest: Curtis Matzko, CEO of Portland Leather Goods
Release Date: February 17, 2025

1. Introduction

In Episode 483 of the DTC Podcast, host Eric Dick engages in a profound conversation with Curtis Matzko, the dynamic CEO behind Portland Leather Goods. The discussion delves into Curtis's journey from a garage startup to scaling a leather goods empire worth nine figures, emphasizing the critical role of velocity and adaptability in direct-to-consumer (DTC) businesses.

2. Curtis’s Entrepreneurial Journey

Curtis recounts the humble beginnings of Portland Leather Goods, which started in the garage of his Portland home. Driven by a passion for quality leather and inspired by childhood experiences, Curtis and his girlfriend launched their first product—a leather journal intended to emulate the authenticity missing in mass-produced alternatives.

Curtis Matzko [00:00]: "Business is jumping off the cliff and constructing the plan on the way down."

The initial sales were driven through art festivals and platforms like Etsy, where they quickly became a top seller within a year and a half. This rapid success laid the foundation for transitioning to a full-fledged e-commerce platform on Shopify.

3. Product Market Fit and Differentiation

A pivotal factor in Portland Leather Goods' success is their unwavering commitment to genuine leather. Curtis emphasizes the importance of authentic materials in building trust and loyalty among customers.

Curtis Matzko [04:19]: "People actually picked it up and said, wow, it looks like leather, it feels like leather. Holy shit, it smells like leather."

By differentiating themselves from competitors who often use synthetic materials masked as leather, Portland Leather Goods positioned themselves as a premium, authentic brand. This focus on quality ensured a strong product-market fit, resonating deeply with their target audience.

4. Scaling the Business

Curtis illustrates the strategic moves that facilitated exponential growth. One significant milestone was the vertical integration of their manufacturing process by establishing a facility in León, Mexico—one of North America's heartlands for tannery and leather craftsmanship.

Curtis Matzko [12:16]: "I'm really, really working. My goals on the company are this. We now have... the heart of the company comes back to me in the house in Sellwood, in Portland, and my girlfriend sitting on the couch with her MacBook writing long messages on Etsy back to somebody."

During the COVID-19 pandemic, Curtis navigated challenges by mobilizing skilled artisans from Mexico, ensuring continuity in production despite global disruptions. This move not only maintained their production capacity but also expanded their workforce to around 1,200 employees.

5. Leadership and Company Culture

Curtis attributes much of his company's resilience and success to a culture that embraces speed, agility, and accountability. He emphasizes the importance of being "unabashedly unafraid to make a mistake" and fostering an environment where mistakes are quickly identified and rectified.

Curtis Matzko [25:34]: "Business is jumping off the cliff and constructing the plan on the way down."

Adopting a hands-on leadership style, Curtis ensures that he addresses immediate challenges across various departments, embodying the principle that "absolute speed wins." This approach allows the company to swiftly adapt to changing market conditions and internal dynamics.

6. The 3-6-9 Hiring and Training Philosophy

A standout element of Curtis's leadership is the 3-6-9 theory applied to hiring and internal training. This strategy involves categorizing employees based on their performance and potential:

• Nines: Top performers who are indispensable.
• Sixes: Mid-level performers who need development.
• Threes: Underperformers who may need to transition out.

Curtis Matzko [25:54]: "If you're listening on a radio or something like that... I have to break through three or four ceilings a year to get to the next level."

This method ensures that the team continuously evolves, fostering a high-performance culture that aligns with the company's ambitious growth targets.

7. Marketing Strategies: Balancing Efficiency and Innovation

Portland Leather Goods allocates a substantial portion of their marketing budget—92%—to proven platforms like Meta and Google, ensuring maximum ROI through targeted advertising.

Curtis Matzko [30:18]: "We spend 92% of our marketing budget on Meta and Google. [...] It works."

Despite this heavy reliance, Curtis remains cognizant of the need to diversify marketing efforts to mitigate risks associated with platform changes. He expresses a desire to explore new avenues but maintains confidence in their current strategies due to their consistent performance.

8. Customer Experience and Growth Model

A cornerstone of Curtis's growth strategy is exceptional customer service, which drives word-of-mouth referrals. He highlights the importance of treating customers well, ensuring repeat business, and leveraging satisfied customers to attract new ones.

Curtis Matzko [36:22]: "If someone's D2C and you're smaller and you're figuring this out, here's the real key. We can buy customers at a profit, [...] and once we own our own makers ability, we get those margins. Then we can give better value, better customer service, and scale."

This customer-centric approach not only enhances brand loyalty but also organically fuels the company's expansion through positive referrals.

9. Personal Insights and Teamwork: The Role of Mariana

Curtis attributes a significant portion of his personal and professional balance to his partner, Mariana. She plays a crucial role in managing day-to-day operations, allowing Curtis to focus on high-level strategic decisions.

Curtis Matzko [41:44]: "If it wasn't for my girlfriend, I couldn't have started the company. [...] She keeps me at least going forward without going in the gutter."

Their collaborative dynamic ensures that the company remains grounded while pursuing aggressive growth targets, highlighting the importance of strong personal relationships in entrepreneurial success.

10. Future Plans and Goals

Looking ahead, Curtis is committed to sustained growth, with plans to expand continuously year over year without a long-term cap. His strategy involves focusing on immediate and short-term goals, ensuring the company remains agile and responsive.

Curtis Matzko [12:46]: "My goals kind of go with three ways. What am I doing today, what am I doing next week, and then next year."

Additionally, Portland Leather Goods is poised to participate in major trade shows like Grow LA and ShopTalk in Vegas, aiming to further elevate their brand presence and industry influence.

11. Notable Quotes

• Curtis Matzko [00:00]: "Business is jumping off the cliff and constructing the plan on the way down."
• Curtis Matzko [25:34]: "Business is jumping off the cliff and constructing the plan on the way down."
• Curtis Matzko [36:22]: "If someone's D2C and you're smaller and you're figuring this out, here's the real key. We can buy customers at a profit, [...] and once we own our own makers ability, we get those margins. Then we can give better value, better customer service, and scale."

Conclusion

Curtis Matzko's journey with Portland Leather Goods is a testament to the power of velocity, quality, and unwavering commitment to customer satisfaction in the DTC landscape. By prioritizing authentic materials, embracing rapid decision-making, and fostering a culture of continuous improvement, Curtis has successfully scaled his business to impressive heights. His insights offer valuable lessons for entrepreneurs aiming to navigate the complexities of scaling a DTC brand in an ever-evolving market.