Case Study · Pepper Pong

Fulfillment was capping growth. We nearly halved the per-order cost.

Pepper Pong was scaling paid media straight into a fulfillment wall. We reviewed their current 3PL, ran a real evaluation of four alternatives, negotiated against their growth, and managed the move and the exit end to end.

Pepper Pong game set
Nearly halved
Per-order fulfillment cost
Zero gap
Orders shipped through the transfer
4 3PLs
Run through a real evaluation

The problem

Paid media ramped, and fulfillment became the wall.

Pepper Pong is a fast-growing DTC brand and an existing Iron Margin client. A new marketing lead, Phil Vilk of the agency Creative Launch, came in to rebuild the team and scale paid media. The moment spend started ramping, fulfillment became the constraint.

“After the first week I started scaling and hit a wall almost immediately. Shipping and fulfillment costs were eating each order. At that cost my MER and CPA targets weren't realistic.”

Rather than let fulfillment cap the growth plan, he handed the whole problem to Iron Margin and kept his own focus on marketing.

The work

A real evaluation, then a clean transfer.

The expected deliverable is a shortlist. We delivered that: four 3PLs run through a real evaluation, not a directory listing. But the two things that moved the number were the negotiation and the transfer.

On price, we didn't negotiate against today's volume, we negotiated against where Pepper Pong was heading. Using the brand's growth projections as leverage, we brought the per-order cost down and chose a partner whose economics improve as volume climbs.

The harder part was the move. When a brand leaves its 3PL, the inventory transfer is where things break: stock in limbo, split shipments, orders that can't ship. We ran the exit, the timeline, and the transfer into a two-warehouse setup so the brand kept shipping through the switch.

The outcome

Room to spend, and room to sell.

“He was able to nearly cut our per-order cost in half. That's real money back on every order.”

That difference went straight back into the growth plan: marketing as a percentage of revenue could climb, and efficiency held because the savings came back on the backend.

The second win was capacity. Because the new partner was chosen to scale with the brand rather than cap it, marketing has never had to pull back because fulfillment couldn't keep up. When the new 3PL sent its first onboarding message, founder Tom Filippini's read was immediate: it seemed even clearer they'd made the right choice.

Customers playing Pepper Pong at lakesides, parks, kitchens, and offices

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