Crazy Compression: Navigating Seasonal Cash Flow
From prior and advisory engagements
About Crazy Compression
Crazy Compression is a family-owned compression sock brand based in Hickory, North Carolina. Founded in 2014 by siblings Nate, Michael, and Melanie, the company manufactures all products in their third-generation USA sock factory.
The Challenge
As a seasonal business, Crazy Compression experiences significant revenue fluctuations throughout the year. They needed to understand how much they could afford to invest (and lose) during off-season months while still hitting annual profit targets. Additionally, they wanted better tools to understand customer lifetime value and set appropriate acquisition benchmarks.
The Solution
Built a comprehensive annual forecast that accounts for seasonality and maps out acceptable loss periods during off-season. Established lender relationships for potential working capital needs. Implemented cohort analysis to track customer value evolution over time and translate insights into monthly CAC benchmarks for the marketing team.
Key Services Provided
Results
Clear understanding of seasonal cash needs and acceptable investment levels. Marketing team equipped with data-driven acquisition targets.
