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TuxeBodyWear.comPresented by SaleAway, LLC
SaleAway, LLC
Disclaimer & Confidentiality NoticeThis Information Memorandum contains information and data given in good
faith to SaleAway.co by the sellers of the named website/business/asset. Prospective buyers should conduct their own, independent inspection and
due-diligence of this business. SaleAway does not provide any warranty, expressed or implied, regarding the validity or accuracy of the information presented herein. SaleAway disclaims any liability in result of any direct or
consequential loss or damage which may result from acting upon this information. The information contained in this prospectus and any
attachments is confidential and may be the subject of legal, professional or other privileges. Any duplication or distribution without the written consent of
SaleAway.co is strictly prohibited. You are not authorized to disclose, distribute, or copy any information contained herein.
SaleAway, LLC
Executive Summary
Traffic Statistics
Profit & Loss
Products
Supply Chain & Retail
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5
6
7
8
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Marketing & SEO
Customer & Order Data
Growth Opportunities
Investment Considerations
Seller Q&A
Table of Contents
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Executive Summary
SaleAway, LLC
Executive Summary
SaleAway, LLC
Asking Price:
$150,000Revenue (Year-to-Date 10/31)
Net Income (Year-to-Date 10/31)
Founded
Monetization
Time Commitment
$177,325
$53,675
March 2013
eCommerce
37 hours/week
TuxeBodyWear.comTUXE is a leading branded fashion company that designs and manufactures unique bodysuits for women. Along with office professionals, the label has also found a niche among religious communities that follow modesty guidelines in clothing, including Orthodox Jewish and Muslim women. The business has done over $1,000,000 in sales since inception.
TUXE is built on the Shopify platform and has 50 uniquely designed clothing products, with hundreds of SKU’s across various sizes and color schemes. In addition to the Shopify store, the business has a customer list of 9,000+, as well as social media accounts with over 11,000 followers. Noticeably the business has 2,000 Pinterest followers with 1.9 million monthly views.
TUXE has relationships with several large premium retailers such as Nordstrom and Bloomingdale’s, to name a few. In addition to these retail contacts, Tuxe also has relationships with several celebrity stylist’s and high-profile influencers. The brand has been featured in some of the largest entertainment and fashion publications such as Vogue, Refinery29, People.com, KimKardashian.com, amongst others.
The Seller of this business is looking to exit her investment because she is satisfied with the brand she has built and the growth she has achieved and is ready to move on to other ventures. This business is extremely attractive to anyone with women’s fashion industry experience or online marketing experience as we believe there is a lot upside to utilizing and optimizing digital advertisement – an area this brand hasn’t focused much on historically, with the majority of growth having been generated organically.
Investment Merits• Strong brand presence & value
• Blue-chip retail industry relationships
• Custom designed, high quality products
• Backlinks from top entertainment sites
• Huge opportunity to ramp up marketing
• 9,000+ customer email list
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Traffic Audit
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TTM Traffic Statistics
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Unique Visitors & Pageviews Traffic Metrics
1.35Sessions
per Unique
7.26Pageviewsper Session
1:58AverageDuration
0.56%Bounce
Rate
Visitors by Country Acquisition by Channel
Top Social Channels• Pinterest (39%)• Instagram (28%)• Facebook (27%)
Top Referral Sources• ShareASale (25%)• People.com (6%)• Dailymail.co.uk (6%)• Yahoo.com (5%)
1,2033,880 1,924 2,345
14,935
3,875 2,1937,725
2,855 3,012 4,302
16,07613,323
55,904
18,455
30,810
117,676
37,163
23,642
73,346
25,49830,004
41,855
127,560
0
20,000
40,000
60,000
80,000
100,000
120,000
Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18
Unique Visitors Pageviews
Profit & Loss
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Historical Revenues
SaleAway, LLC
FinancialsTuxe has historically generated revenues from three sources: it’s Shopify store, pop-up retail stores in the Pennsylvania area, and through Amazon. Revenues YTD have primarily been driven through the Shopify store, with a small percentage coming from Amazon.
The business consistently achieves $5-9k in net revenues on a monthly basis with frequent sales spikes in the $30-50k range. The majority of these spikes are caused by Tuxe being featured in a popular fashion article. For example, a significant portion of September revenues occurred after Tuxe was featured in a People.com article about Meghan Markle’s favorite Fall outfits.
*Revenues have been verified by the SaleAway team, but profit numbers are provided by the Seller and cannot be guaranteed by SaleAway*
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TTM Total Sales Revenue
Total Sales Revenue by Year
Sales Channel Breakdown
$82,229
$17,205
$5,608 $6,607
$29,377
$9,238 $7,192
$50,086
$7,132 $12,002
$6,024
$36,596
$13,073
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
2013 2014 2015 2016 2017 2018 YTD
Shopify Sales
Orders 52 736 1,327 1,146 821 731
Gross Sales $6,364 $102,778 $213,420 $181,301 $150,778 $212,141
Discounts (1,433) (20,836) (31,437) (38,667) (59,630) (25,982)
Returns (1,753) (15,362) (22,792) (16,103) (6,279) (34,653)
Net Sales $3,177 $66,580 $159,191 $126,531 $84,870 $151,506
Shipping 62 2,183 3,734 3,258 4,240 5,880
Taxes 74 558 298 126 59 56
Shopify Income $3,314 $69,320 $163,223 $129,915 $89,169 $157,442
Retail Sales TBD TBD TBD TBD 276,819 19,883
Total Sales $3,314 $69,320 $163,223 $129,915 $365,988 $177,325
2013 2014 2015 2016 2017 2018 YTD
Shopfiy $3,314 $57,733 $113,510 $103,644 $84,991 $151,646
Retail Sales TBD TBD TBD TBD 276,819 19,883
Pop-Up - 11,587 49,714 25,021 1,985 -
Amazon/Other - - - 1,249 2,193 5,796
Total $3,314 $69,320 $163,223 $129,915 $365,988 $177,325
Retail Sales
SaleAway, LLC
*Revenues have been verified by the SaleAway team, but profit numbers are provided by the Seller and cannot be guaranteed by SaleAway*
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2017 Retail SalesTuxe drove over $275,000 in retail sales in 2017, primarily driven by Net-A-Porter and Bloomingdales. Retail sales tend to take place quarterly and in conjunction with the changing of seasons.
2017 & 2018 Retail Accounts
2018 Retail SalesBrown Thomas has been the largest retail account in 2018. As the Seller has been planning to exit this business for the past 6-months, retail sales have fallen off asthe Seller has primarily been focused on liquidating existing inventory, and hasn’t spent much time furthering retail relationships.
We believe there is significant opportunity to re-establish meaningful relationships with these existing retail stores and drive large orders, as well as diversify and develop new retail relationships.
2016 & PriorTuxe has had relationships with these retailers for years prior and has generated retail revenues in these prior years. However, we have not calculated historical retail sales prior to 2017. $7,769 $5,370
$104,930
$81,993 $76,757
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17
2017 Retail Sales
Profit & Loss
SaleAway, LLC*Revenues have been verified by the SaleAway team, but profit numbers are provided by the Seller and cannot be guaranteed by SaleAway*
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COGS/Product PurchasesCost of goods sold/product purchases are expensed in the month purchased rather than matched with the revenues they generated. Negative profit months are driven by large product purchases.
Addback DiscussionPlease see the following slide for addback justification.
Advertising/MarketingApprox. 95% of advertising and marketing expenses are related to professional product photo shoots. There is opportunity to reduce these costs and shift spend towards revenue-generating channels such as paid ads.
Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 Jul 2018 Aug 2018 Sep 2018 Oct 2018 Total YTD
Shopify Income
Gross Sales 6,164 36,323 11,458 9,274 51,843 11,699 9,956 7,426 50,200 17,800 212,141
Discounts (47) (1,528) (564) (1,855) (2,491) (154) (2,468) (186) (12,289) (4,400) (25,982)
Returns (183) (6,067) (2,567) (470) (4,027) (7,292) (2,028) (2,861) (4,925) (4,234) (34,653)
Net Sales 5,935 28,728 8,327 6,948 45,325 4,253 5,461 4,380 32,986 9,166 151,506
Shipping 672 649 208 244 881 322 183 409 1,688 623 5,880
Taxes 0 0 0 0 0 0 13 40 0 3 56
Total Shopify Income $6,607 $29,377 $8,535 $7,192 $46,206 $4,575 $5,657 $4,828 $34,674 $9,792 $157,442
Retail Sales 0 0 703 0 3,880 2,557 6,345 1,196 1,922 3,280 19,883
Total Income $6,607 $29,377 $9,238 $7,192 $50,086 $7,131 $12,002 $6,025 $36,595 $13,073 $177,325
Cost of Goods Sold
Product Purchases 11,901 1,701 5,239 0 27,694 7,980 0 6,599 5,000 0 66,114
Shipping and delivery expense 1,494 1,546 1,232 596 12,170 669 4,545 500 700 813 24,264
Total Cost of Goods Sold $13,395 $3,246 $6,472 $596 $39,864 $8,649 $4,545 $7,099 $5,700 $813 $90,378
Gross Profit ($6,788) $26,131 $2,767 $6,596 $10,222 ($1,517) $7,457 ($1,074) $30,895 $12,260 $86,947
Expenses
Advertising & Marketing 1,956 2,090 5,557 6,181 4,779 1,508 210 100 2,237 750 25,368
Bank Charges 188 128 54 83 128 83 75 75 (0) 21 835
Dues & Subscriptions 367 160 971 345 391 508 580 366 571 135 4,396
PayPal Fees 376 387 226 38 556 112 52 39 439 118 2,343
Payroll & Payroll Taxes 1,289 1,939 1,243 1,244 1,190 1,169 1,346 2,749 2,197 2,059 16,425
Taxes & Licenses 0 329 0 0 0 0 0 0 0 0 329
Website Development 53 3,000 3,110 49 0 0 0 0 0 0 6,212
Total Expenses $4,229 $8,033 $11,161 $7,940 $7,045 $3,379 $2,264 $3,329 $5,444 $3,084 $55,909
Net Operating Income ($11,018) $18,098 ($8,395) ($1,344) $3,176 ($4,897) $5,194 ($4,403) $25,451 $9,176 $31,038
Addbacks
Payroll & Payroll Taxes 1,289 1,939 1,243 1,244 1,190 1,169 1,346 2,749 2,197 2,059 16,425
Website Development 53 3,000 3,110 49 0 0 0 0 0 0 6,212
Total Addbacks 1,341 4,939 4,353 1,293 1,190 1,169 1,346 2,749 2,197 2,059 22,636
Seller Discretionary Earnings ($9,676) $23,037 ($4,042) ($51) $4,367 ($3,728) $6,540 ($1,654) $27,648 $11,235 $53,675
Profit & Loss
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*Revenues have been verified by the SaleAway team, but profit numbers are provided by the Seller and cannot be guaranteed by SaleAway*
12
Payroll & PayrollThe Seller has outsourced all order fulfillment and customer service to a part-time employee. The Seller only spends approx. 15 hours a week working on this business, with the part-time worker spending 22 hours a week. Because the total required hours per week to operate this business is below a normal 40 hour work week, we have added back the part-time workers salary as the new owner will have the option to perform these tasks themselves.
Addbacks
Payroll & Payroll Taxes 1,289 1,939 1,243 1,244 1,190 1,169 1,346 2,749 2,197 14,365
Website Development 53 3,000 3,110 49 0 0 0 0 0 6,212
Total Addbacks 1,341 4,939 4,353 1,293 1,190 1,169 1,346 2,749 2,197 20,577
Website DevelopmentThe Seller hired a freelancer to make some improvements to the Tuxe website for approx. $6,000. These expenses are one-time in nature and therefore are added back as they are not ongoing in nature.
Products
Product Overview
The Tuxe brand currently has 50 unique designs across its product lines, with hundreds of SKU’s inclusive of the various sizes and color schemes for each design.
The Owner and Founder of the brand currently handles all of the new product design and development herself, and then outsources the tech pack preparation, which includes fit comments and measurement spec’ing to a freelance fit consultant. Once a product has been fully designed and manufactured, the business works with a model and freelance photographers to get professional product photos taken.
The Owner currently designs approximately 10 new styles a year, but suggests the new owner cuts back on this and focuses on the current best-selling products, which she believes are evergreen and will be “in-style” for a long period of time. The business invests heavily in look books and professional marketing materials to present the brand and product lines to retailers and consumers online.
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Example of TUXE’s Fall Look books
50 Unique Designs
Product Reviews
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With an average review of 4.3 on ALL of TUXE’s products, TUXE has a great brand perception when
it comes to quality and fit of their products.
4.3
Supply Chain & Retail
Suppliers & Day-to-day Operations
SaleAway, LLC
Owner Hours per Week: 15 hours
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• Communicating with corporate buyers• Collecting payments (from corporates)• Scheduling marketing campaigns• Overall strategy• Managing suppliers & manufacturing
Part-time Employee hrs/wk: 22 hours
• Order fulfillment• Customer service (phone, email, Facebook)• Product returns• Marketing and some sales
Day-to-day Operations
Order Fulfillment
The business currently has one part-time employee (PTE) who is responsible for managing order fulfillment, customer service, return handling, etc. The PTE works 22 hours a week and is paid $1200/month plus 10% of any revenues she generates through her own marketing/sales initiatives. She is willing to stay on with the business post-transaction, which would require all inventory to be physically kept with her in Pennsylvania.
Supplier Relationships
Tuxe currently has two suppliers whom have been manufacturing their products since the inception of their business.
Payment terms can be negotiated with the supplier, but is commonly 30% upfront with the purchase order, and the remaining 70% one week after receipt, subject to inspection and them passing quality control. The down-payment is typically waived for smaller orders, with 100% of the payment being made upon receipt and inspection of the products.
There is significant opportunity to scale this business and receive discounted manufacturing costs with bulk orders.
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TUXE has been on all of the above retail stores, and have contacts with all of these. Contacts will be transferred to the buyer of the business.
Retail Relationships
SaleAway, LLC
Marketing & SEO
Brand Value
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Meghan Markle, Duchess of Sussex, sporting TUXE’s ‘The Boss’ bodysuit
TUXE as seen on Oprah’s website, Kourtney Kardashian’s website and on the Huffington Post
Brand Value
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TUXE as seen in
Search Engine Optimization
High Profile Backlinks
• Huffington Post• Oprah.com• Vanity Fair• KourtneyKardashian.com• Vogue• Refinery29
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Domain Authority
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Moz Link Explorer Stats
LinkingDomains
223
InboundLinks
736
RankingKeywords
55
Page Authority
33Top Ranking Keywords
• Tuxe• Tuxe Bodywear• Meghan Markle Bodysuity• Coach Sample Sale• Jordan Porter Pacesetter
Customer & Order Data
SaleAway, LLC
eCommerce Conversions
SaleAway, LLC
3,879Visitors that added a product to their cart
1,592Visitors that made it to checkout
922Visitors converted
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4.94%of visitors
2.03%of visitors
1.17%of visitors
1.8%
2.5%
1.4%
2.8%
0.6% 0.6%
1.1%
1.5%
1.1% 1.2% 1.0% 1.1%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18
TTM Avg. Conversation Rate: 1.17%
Conversion Rate by Month
The strong Oct. 2017 – Jan. 2018 conversion rates are caused by an error in Google Analytics tracking caused by
AdRoll, a marketing tracking app. Conversions were double counted in various instances, however, the TTM Average
Rate of 1.17% is correct.
TTM Conversion Funnel
$5,580
$17,267
$5,789 $6,117
$34,795
$10,893 $7,418
$49,352
$11,545 $7,488 $7,240
$37,911
($298) ($792) ($359) ($183)($6,067)
($2,567) ($470)($4,027)
($7,292)($2,028) ($2,861) ($4,925)
($20,000)
($10,000)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18
Gross Sales Less Discounts Returns
Orders & Returns
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20%Average eCommerceProduct Return Rate
13.8%TUXE
Return Ratevs.
Return rates significantly below the industry average due to superior product quality
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TTM Product Returns
Lifetime Orders by Country
Country Orders % of Orders Sales ($) % of Sales
United States 4,482 93.8% $518,492 89.5%
Canada 89 1.9% $15,366 2.7%
Australia 42 0.9% $9,029 1.6%
UK 46 1.0% $8,964 1.5%
Singapore 22 0.5% $4,306 0.7%
Israel 17 0.4% $3,437 0.6%
France 11 0.2% $2,038 0.4%
Mexico 3 0.1% $2,317 0.4%
Germany 11 0.2% $2,038 0.4%
All Other Countries 54 1.1% $13,416 2.3%
Total 4,777 100% $579,403 100.0%
TTM Orders from Discount Campaigns
Name Discount Total Uses Promo Duration Occasion
SPARKLESEASON 70% Off 133 7 Days Thanksgiving
Welcome10 10% Off 80 Always Email Subscription
FALLFLASH 70% Off 43 1 Day N/A
HAPPYFOURTH 40% Off 30 6 Days 4th of July
WITHLOVE 40% Off 28 8 Days N/A
TREATYOURSELF 30% Off 11 3 Days Valentine's Day
BESTDRESSED 50% Off 11 4 Days N/A
FLASHSALE 70% Off 10 1 Day N/A
Net Sales Generated from Discounts & Promos $48,074
Customers & Orders
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1.62Average Products per Order:
Average Order Value by Month
$186
$112
$153
$70
$265
$285
$202
$275
$233
$165
$140
$186
$0
$50
$100
$150
$200
$250
$300
Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18
TTM Avg. Order Value: $191.2364.5%
49.7% 53.8%
60.8%
19.4% 15.4%
47.4%
12.6%
23.5%
61.7% 60.0%
32.7%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18
TTM Avg. Return Customer Rate: 41.8%
High returning customer rates are usually driven by email marketing campaigns. This business has only run email campaigns in 7 out of the previous 12-months, which represents an opportunity to increase return customer orders.
The months with low return customers rates are typically months where the majority of orders come through organic brand exposure, primarily articles from bloggers, influencers and popular fashion websites such as Vogue, Vanity Fair, Refinery 29, etc.
Returning Customer Rate by Month
3,340Total Lifetime Unique Customers:
702Total YTD Unique Customers:
*This only represents customers who have purchased the product directly through Tuxe’s Shopify store and does not include any customers from Amazon, retail stores, etc.
Growth Opportunities
SaleAway, LLC
Growth Opportunities
SaleAway, LLC
Paid Advertising
Reach Out to Influencers
Drip Email Campaigns
Focus on Retail Relationships
Expanding Product Lines
Opportunity Difficulty Implementation
An avenue that the business hasn’t explored is reaching out to relevant influencers on Social Media (Instagram for example) and offering either free products for promotion, or paid promotion. This could get the Tuxe
brand in front of fashion-conscious females who are otherwise unfamiliar with the Tuxe brand.
The business has a 10,000+ buyer email list is currently under-utilized with the Seller only sending emails for promotional sales events. Implementing a drip email campaign could boost revenues as the
business has a 2.08% conversion rate on emails.
The business was previously in a number of retailers to get more exposure and provide more outlets for consumers to purchase their
product. A big opportunity for the buyer would be to re-engage these retail relationships, e.g. Nordstrom Direct Drop Ship Program.
Currently Tuxe only has products in the body suit category. The seller believes the buyer can expand the brand by going into other categories,
such as hosiery or socks.
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The Seller has attempted paid advertising (through Facebook) in the past but has been unable to find a consistently profitable method due to
changing policies and algorithms. Re-engaging paid ads and focusing on ad optimization is an easy implementation to boost sales.
Easy
Easy
Intermediate
Intermediate
Hard
Investment Consideration
SaleAway, LLC
Investment Considerations
SaleAway, LLC
The high-revenue months for this business are typically influenced by high-publicity content published on popular entertainment and women’s fashion blogs and websites. However, this is also an opportunity. All online publicity the brand has received is organic – reaching out to online bloggers and influencers to promote the brand can drive significant sales, as the business has experienced in the past.
Influenced by high-profile publicity
The Owner of this business has historically done all of the new product design/styling herself. Buying this business without prior clothing design and styling knowledge would lead to either a learning curve or the necessity to outsource design, which would be an additional expense not historically seen on the financial statements. Having a keen eye for style and women’s fashion trends would be a significant advantage.
New product development requires design skills or outsourcing
Women’s fashion is naturally a high-return-rate industry
Due to the nature of women’s fashion, the online industry itself commonly experiences above average return rates compared to other industries. Historically, Tuxe has experienced well below average return rates compared to the industry, due to extensive consulting with a freelance fit consultant, high quality materials, and a focus on customer feedback.
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There are a lot of player’s in the women’s fashion industry and getting in celebrity’s and influencers closets is difficult. However, having been in existence for nearly 6 years, the Tuxe brand has a strong footing in the industry and has several high-profile contacts with celebrities and popular retailers which can be utilized day 1 to drive further brand recognition.
The women’s fashion industry is competitive
Assets Received in Sale
SaleAway, LLC
Assets Received in Sale
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Domains, Websites & Products
Social Media Accounts
Industry & Freelance Contacts
• TuxeBodyWear.com• Existing Shopify Store• All Product Designs• All Photos & Marketing Materials
• Look-books, catalogs, etc.
2,850+ followers
6,000+ followers
2,000+ followers1.9mm monthly views
750+ followers
9,000+ email list(affluent & loyal customers)
• Professional Freelance Contacts• ShareASale Bloggers & Influencers• Stylists, Models, Directors• Photographers
Supplier Contacts
• Access to the two primary product manufacturers who have been with the brand since inception
Retail Industry Relationships
The business has relationships with buyers from these corporate stores which will be transferred to the new owner
Industry & Freelance Contacts
• Tuxe has relationships with a number of celebrity’s personal stylists (people who dress and buy outfits for them). Due to the highly confidential nature of these relationships, they will only be disclosed to potential buyers once an Letter of Intent (LOI) offer is made.
Seller Q&A
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Seller Q&A
SaleAway, LLC
General
What season is the best for your business? Is there any cyclicality?The Fall and Winter are best. September historically has been most organically strong for selling through full priced goods although sales have always performed well for ‘back to school’, pre ‘black Friday’ ‘holiday rush and Jan. clearance.’
Who are your main competitors?Wolford & Alix
Have you experienced legal issues with the business?No
What are the primary growth opportunities for the business going forward?To expand into other categories, such as Hosiery and socks, to enter in to white labeling or licensing.
Do you have employees or contracts with freelancers? If so, are they willing toContinue post-transaction?Yes & yes
What assets are included in the sale?Mailing list of affluent and loyal customers (9,000 people). Buyer and editor warm relationship list. Vetted factories who know how to make our products. A network of great freelance professionals to work with.
Will the inventory be included in the sale of the business? If so, what is the approximate value of the inventory (at retail value) that will be included?Depends on the timing of the sale. We can include a ‘starter pack’ valued at about $50,000
Does the new owner need any specific skill or experience to successfully run this business?Yes- an attentiveness to trends, relationship building.
Will you provide 1-3 months of post-sale support & training, in order to ensure that the buyer is able to fully take over the business and its operations?Yes, in exchange for monthly salary.
Why are you selling the business?I am a start up girl, and love building from the ground up. The business is at a growth stage and needs an experienced retail business professional to expand.
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General Transaction
Seller Q&A
SaleAway, LLC
What have you done for marketing in the last 3 years? What has worked well, what hasn’t?The best things for us has been investing in celebrity seeding (giving away products to high profile individuals) and doing our own PR outreach (making press packages and gift packages with beautiful lookbooks and getting in touch ourselves frequently with strong follow up. The other good thing hasbeen doing Giveaways with brands with similar but non competitive followings, we usually use a software called hive, and people have to give us their email address or follow us on Instagram to have a chance to win a store credit or bodysuit.
How do you utilize your email marketing list? How frequently do you send out emails?It goes in phases. We send emails to notify people about new product launches, to promote exciting press or upcoming events and of courseto announce a sale.
What noteworthy publications has your brand been in?Vogue, In Style, O the Oprah magazine, Vanity Fair, Fast Company, Racked and Harpers
Do you use, or have you experimented with paid advertising? (Adwords, Facebook, etc.)We have experimented. Never found a consistently profitable method because FaceBook’s policies and algorithms are constantly changing.
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What retailers are/were you in?Moda Operandi, Nordstrom Pop in, Bloomingdales, Brown Thomas, Netaporter, Rue lala, Zulily
Discuss your relationship with celebrities.We have a network of celebrity stylists who request garments gratis routinely. However these don’t always get photographed or credited correctly in the press. Stylists with these celebrities will only be disclosed to serious buyerswho present a LOI.
Discuss your relationship with any department stores or contacts/buyers within the department stores. What direct relationships can the buyer expect to inherit?We have conversational relationships with the buyers in the above mentionedstores. However be aware that these positions turn over frequently and we have to work to maintain our rapport and to be top of mind. We send out lookbooks seasonally, as well as packages with free samples to pique interest.
Social Media/Marketing Industry Relationships
Seller Q&A
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Do you currently outsource any tasks related to the design and launch of a new product?Only to our network of freelancers. We work with stylists, photographers, models, hair and makeup, post photo editing, Fit model, Fit director, etc.
Approximately how many new pieces/products do you develop in a fiscal year?Have been cutting way down on this but up to 10 new styles per annum. Would recommend for new owner to cut way down on product development as its expensive and rather to iterate on bestsellers.
What is the process for getting new products designed and manufactured?We hear from customers what they want more of in our Yotpo review app, and if we see consistent feedback we will take it in to account. We’re also monitoring current trends and reviewing our best performers. I am working on selling through old stock and maintaining ‘evergreen’ classic styles which stores and customers want to buy on repeat. Eg a black turtleneck basic.
How long in advance do you need to plan for a season? i.e. It is Fall 2018, when would you be planning for new products for Summer 2019.For totally new style, one year ahead. For a version of something we’ve done, it can be tweaked, produced and shipped within three months.
How many hours do you spend running the business per week and what are your typical duties?About 3 hours a day, communicating with buyers, chasing payments, overseeing customer service, strategizing sales, scheduling marketing campaigns, communicating with factory and conducting fittings.
How many hours does each active owner spend working on the business per week?I am the only active owner. Olivia, our part time employee, spends about 22 hours/week.
How many manufacturers do you currently work with?1-2
What is the process for getting product photos (including the models)? What does this typically cost?A photo shoot costs about $5-10k per quarter. We have photo samples made, book a model, a studio, a photographer, a stylist and hair and makeup and buy accessories and accompanying clothes forthe shoot. Then we choose the best images for retouching and put them online and in our lookbooks.
Products / Operations
Seller Q&A
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What are shipping costs?Customers in the US are charged a flat rate of $7 and international customers are charged a flat rate of $20. Returns are free for US customers within 2 weeks of receiving the order. YTD monthly shipping cost average is $1213.42.
Does the store offer free shipping for orders above a certain price?Shipping is free for orders over $100.
Can you explain the logistics from a customer ordering to getting a product to their door?- orders are placed through Shopify- shipping label is created and printed using ReadyShipper- order is packaged and taken to post office- tracking number is uploaded to Shopify site- customer receives shipping notification email with tracking number automatically when uploaded to Shopify
Where is the physical inventory being stored? Are you doing it from home or using a third-party logistics provider?Inventory is stored locally with us, we package all orders for shipping.
Order Fulfillment/Shipping
What is the process of handling customer complaints? Who is responsible for this?Olivia handles all customer service which comes in through email, phone and FB. Our policies are written on our site and in each and any sale email and she upholds these policies and handles shipping, returns and refunds/exchanges.
How are returns handled?Customers can return clean looking items within 14 days of their receiving them we pay for the return shipping label. They can request an exchange or a refund.
What is the most frequent reason for return?Price Adjustments
Order Fulfillment / Shipping Customer Support
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Financial
Do you have a spreadsheet of profit margins per product?No but we can make one should a potential buyer request.
What are payment terms with the supplier/manufacturer?Depends on what’s negotiated. For the factory we pay 30% upon sending the Purchase order, and the balance one week after receipt of the goods subject to them passing quality control. When the order is smaller, they often waive the down payment and we pay the whole thing after receipt and inspection of the goods. Stores each have their own terms, net 60 or 90 is frequent, and even then they have to be chased to pay.
Discuss your ShareASale affiliate program and any other affiliate programs. How many websites/businesses use your affiliate program and approx. what % of orders are through ShareASale?We haven’t done the math on the % of orders which come through ShareASale. ShareASale is the main affiliate we use and it caters to a variety of bloggers and influencers. It’s been a good system for us. There is opportunity for growth here to do more with working with bloggers and incentivizing them to drive our sales. What traction we have through here is organic and we don’t pay for it except the affiliate fee which can range from 10% to 30%.
Financial
Request More Information
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Jake MayockHead of Acquisitions(832) 865-5063Skype: [email protected]
Trey JonesHead of Marketing(713) 533-2935Skype: dealteam_1 [email protected]
If you would like to request more information or have a walkthroughof analytics, profit and loss numbers, or any other information regarding the business, please reach out to us directly.
