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BREAKING DOWN OUR STORY

RADICAL TRANSPARENCY

Building Surfing Cow in public — the real numbers, real mistakes, and real story.

BEHIND THE BRAND

Radical transparency in action: costs, margins, growth, wins, and losses.

SUN BALM PRICE BREAKDOWN

Fill - $2.46
Jar - $1.36
Jar Label - $0.55
Lid Label - $0.55
Outside Package - $1.04
Shipping Box - $0.71
Packing Paper - $.35
Thank you card - $.32
Stickers - $.72
Shipping (If free) - $4.39 - $9.00

Total Cost Per Unit - $8.06 without shipping

MOISTURIZER PRICE BREAKDOWN

Fill - $3.50
Jar - $1.60
Jar Label - $0.59
Lid Label - $0.59
Outside Package - $1.21
Shipping Box - $0.67
Packing Paper - $0.35
Thank you card - $0.32
Stickers - $0.72
Shipping (If free) - $4.39 - $9.00

Total Cost Per Unit - $9.37 without shipping

HOW I'M FUNDING SURFING COW

This brand has been entirely self-funded and built from the ground up. For the past six years, I’ve worked in the content space creating ad campaigns for brands—partnerships that typically ranged from $1,500 to $5,000, with a few outliers above that.

Every dollar Surfing Cow has earned so far, has been reinvested back into the business.

NOTABLE COSTS

LLC FILING - $740

TRADEMARK FILING (2) - $3,960

BRAND DESIGNER - $12,571

WEBSITE - $3,000 (HOSTING + INITIAL BUILD)

AD SPEND + AD AGENCY - $2,500/MONTHLY

R&D SUPPLIES - $1,500

HOME MANUFACTURING EQUIPMENT - $1,000

MY MASSIVE ANNUAL SALARY - $0

SALES AND COST OF ACQUISITION

This month (October) has been extremely promising. Sales are up 37% from last month for a running total of $6,436.71

This is largely in part due to the AD campaigns picking up some steam with ROAS (Return On AD Spend) at 3.17

Blended CACs (Customer Acquisition Cost) for new customers is at $18.71

Total orders this month as of October 27th are at 117

THANK YOU and Happy Living!

- Alec Merlino

NOTABLE INSIGHTS ON START-UP COSTS

LLC FILING - There's an $800 annual fee I'll pay each year.

TRADEMARK FILING (2) - Each trademark cost $940 upfront, and after the intent-to-use stage was approved, there was another $500 filing fee to complete the registration.

BRAND DESIGNER -Working with Chad has been worth every penny - I've told him this many times. Having someone who understands the niche and the vision is everything. We continue to collaborate on a per-project basis, typically ranging from $800–$1,500 per project.

WEBSITE - My friend John helped build the original website, and since June, Chad and I have handled all updates ourselves to keep costs down.

AD SPEND + AD AGENCY - I currently spend $50–$100 per day on ads and worked out a deal with the agency I’m partnered with—$400/month retainer while I handle all ad creatives myself. Once things scale, I’ve agreed to move to their standard $2,000/month retainer.

MY MASSIVE ANNUAL SALARY - I don’t take a paycheck from Surfing Cow. Every dollar goes back into growth. That’s the reality of being fully self-funded.

YEAR TO DATE SALES - $53,703.45

HONESTY SHOULDN'T BE A STRATEGY - IT SHOULD BE A STANDARD.

I believe trust is earned, not claimed. So I’m opening the books. The wins, the mistakes, the money, and the lessons. If you support Surfing Cow, you deserve to know exactly what you’re supporting.

- Alec Merlino

FINDING MY WAVE

THE IDEA FOR SURFING COW

I always knew I wanted to build something — I just didn’t know what. I had recently gotten into skincare and kept buying products that didn’t make sense — too many ingredients, too many claims. With some help from my sister, I stumbled into tallow and started learning what it actually did for the skin.

One day I filmed a video DIY’ing my own whipped tallow moisturizer. I didn’t think much of it, but people were interested. Very interested. That was the moment everything shifted.

GOING FOR IT

TURNING MY KITCHEN INTO A LAB

There was no step-by-step on how to build a skincare brand from scratch. So I experimented — over and over again. I melted, whipped, poured, and tested every combination I could think of. Some came out too hard, others melted in the heat.

I ruined pans, wasted ingredients, and made countless messes. But, somewhere in the chaos, I started learning. The formula began to tighten and the vision did too. This was the moment Surfing Cow stopped being an idea and started becoming real.

ROLL CAMERA

I MAJORED IN THIS...

I majored in business, yet I had no clue what my first step was in actually starting one. So I did the only thing that felt right — I hit record and started documenting everything I was doing, even when it didn’t look impressive.

The experiments. The failures. The nights I questioned if any of this would work. I thought, if I ever figured it out, maybe someone could scroll back one day and see the real step-by-step. Not the polished version — just the truth.

LOSING $1,500 TO FIND THE RIGHT PERSON

TRUST YOUR GUT

As Surfing Cow started taking shape, I opened a business account, formed an LLC, filed trademarks, talked to manufacturers, and kept experimenting with formulas — but the brand still didn’t have an identity and Canva could only take me so far. So, I made a video and that lead me to the South African legend behind the Surfing Cow design, Chad Laybourne.

He tells the story like this. 

“Mate, I was in bed one night and couldn’t sleep so I chucked on the reels app and stumbled upon your video looking for a brand designer.” 

Amongst the 27 designers I spoke to, Chad was one of them. Funny enough, he couldn’t start right away. Impatient, I hired someone else and put down a $1,500 deposit. Two meetings in, I knew it was wrong.

My gut said Chad was the guy. So I walked away from the $1,500 and called him back.“I’ll wait,” I told him. “You’re the guy for this.”

He was. The rest is history.

BY THE TIME YOU HAVE THE PERFECT PRODUCT IT'S TOO LATE

JUST LAUNCH THE THING

I was three months in and still considering the idea of going the OTC route. Let me explain. Sunscreen is considered an “Over The Counter” drug, meaning you need to go through an FDA regulated manufacturer in order to make claims like “SPF 30”, or “water resistant”. The problem with this? I learned that the majority of leading sunscreen brands all use active and inactive synthetic ingredients in them that are extremely harmful. So harmful, they're actually flammable. Here’s a few next time you turn a sunscreen bottle over: Oxybenzone, Octinoxate, Octocrylene, Homosalate, Avobenzone. 

After a call with my friends Hunter, Ben, and Dylan, I decided the time was now! No more waiting, I launched Surfing Cow on April 1st, 2025 with the formula I had.

Since then I haven’t looked back. Surfing Cow sold out of its first drop of 250 units, and again, on drop two and three. 

If you purchased one, thank you! 

Since then, I have continued to refine the formula with over 100 iterations to date.

SLOW IS SMOOTH AND SMOOTH IS FAST

SLOW GROWTH & PATIENCE

I'm not building Surfing Cow to launch a bunch of products. This brand isn’t about chasing trends, seasonal drops, or pumping out formulas to hit revenue goals. It’s about doing things the right way— the natural way. Even if it takes longer.

Right now, leading OTC manufacturers still can’t recreate my formula without changing it. They want to add synthetics, stabilizers, and fillers — things that don’t belong on your skin. So I’m not rushing.

We have two products for a reason: they work. They’re real. They’re built from ingredients you can actually pronounce and trust. Progress here is measured in quality, impact, and honesty — not speed.

This won’t be the biggest skincare brand overnight. But it will be one of the most trusted. And that’s exactly how I want it.