You can’t see me or hear me on this side of the keyboard, but I am taking a deep breathe and letting it all out right now. Where should I start in this recap? If you haven’t read these three posts as to my journey so far, I would start here as it gives more of the back story. Don’t worry, I’ll wait.
Oh, good – you’re back! Let me take a second to set up what I am going to share with you today. I’ve been an entrepreneur and small business owner for 22 years. In each of my businesses I have had a 100% transparency policy when it came to financials with my staff. I am not one to shy away about talking about money. It’s just money. When I first started researching LuLaRoe, I watched all the videos about how much money you could make. And then I rewatched them.
You know what 99% of them don’t talk about? Their expenses. Or their true Net Sales and not just Gross Sales. Yep. I’m not sure why I didn’t catch that early on, but most of the consultants just gloss right over that little fact. This business definitely operates on the tenet that you have to have money to make money. Investing in LuLaRoe starts at about $5k, depending on when you Onboard. I started with about $7,000 in inventory, which I quickly found out, most people think is a really small inventory.
You see, that is about 400 pieces of clothes. 400 Pieces! To me that was a lot! Most consultants have inventories that are typically around 800-1000 pieces. The sweet spot for this business is to have 700-800 pieces. I’ve reordered twice in my first month and I still don’t have enough of what everyone is shopping for. With LuLaRoe, you have to order 33 pieces at a time. You can’t choose the print, only the size and style. That is what makes the company so unique and fresh – only 5,000 (it used to be 2,500) pieces are made out of each fabric. That’s 5,000 pieces over a dozen styles and then across all the sizes. Finding what you are looking for is like hunting for your Unicorn.
Let’s Talk About TC Leggings
Tall & Curvy Leggings have been out of inventory for most of late summer into early fall. Trying to get your hands on a new pair is next to impossible. I’m constantly asked if LLR is oversaturated and is it a fad? Let’s take these TC Leggings as an example – LuLaRoe has no way near hit the oversaturated mark or there wouldn’t be such a demand for those crazy, addictive leggings.
Two weeks ago, 400,000 leggings were up for us to purchase. They sold out in under 5 minutes!!! I kid you not. Just this past week, another 375,000 leggings hit our sales portal. I was out buying coffee and creamer (please for the love of my sanity, someone send me more – lots more!). If there is anything to ever make me switch over to an iPhone it will be LuLaRoe. You see, their system does now play well with Android. As I’m trying to pick out my coffee for the week (I try a new variety every week), my text alert goes off telling me that TC Leggings are up!
I frantically go to their website on my phone and it won’t recognize any numbers being pressed into the Quantity field. I say to myself, Eff That Noise, and frantically call my roommate Sara. She jumps on my Mac at home, which she has no idea how to use, and gets onto the LuLaRoe site. In what were the longest 90 seconds of my life, she says to me the sweetest words – Your Order Was Received. At this point I need to apologize to the people at Fred Meyer in the coffee aisle for my terrible dance moves.
I had quite a few issues with my LuLaRoe account. Good thing I had to go on a press trip to California. I just popped by and we were able to get everything fixed. Loved seeing the Corporate offices!
The Good and The Bad
There have been some challenges for me so far. The first was that I wasn’t ready – I didn’t have any social accounts, business cards, hangers, nothing really when I started. Most people take a full four weeks to get everything prepped. In my first week, I was bedridden sick for 5 days which threw the idea of doing Live sales right out the window. On day 7, I said goodbye to a man who was incredibly special to me and watched his plane leave Alaska feeling heartbroken. On Day 12, I flew down to California for a 7-day press trip. So all in all, I only had 14 days of true LuLaRoe time. The numbers I’m going to share with you reflect that.
Would totally appreciate some social love! 🙂
Social Accounts: LuLaRoe Shenanigans by Kristi Trimmer – My Facebook VIP Group
Other challenges included overcoming the quality of the pictures I took when my inventory arrived. I’m currently reshooting the pictures to make the clothes shine. I bought the Cowboy Lighting Kit for $54 and am using my Canon Rebel T3i.
The other challenge is the old Green Eyed Monster. I want to do a great job with this, not just be average. I’m still figuring out what works with my community and what doesn’t. I have a lot to bring to LuLaRoe and I have to let myself blossom in my own sunshine and not sit in the shade of someone else’s.
Some of the good has been the incredible support I’ve received from my friends and family! I knew a couple people would give me the side eye, but the majority of people have been very encouraging and uplifting. I’m also working very hard to make sure I give excellent customer service and treat my customers like how I would want to be treated. You want to exchange something? No problem! There was an issue with what you purchased? Let’s switch it out! I ship within 48 hours and a shipping confirmation is emailed for each purchase. I want people to trust me with their business.
October 2016 By the Numbers
Here are my totals for October 2016. Remember, I started on October 7th and was gone for 10 days, so these totals to me represent 14 days.
Cassie Skirt: 13
Classic Tee: 6
Irma Shirt: 8
Julia Dress: 8
Kids Leggings: 22
Maxi Skirt: 7
OS Leggings: 44
Patrick Shirt: 5
Perfect Tee: 8
Randy Shirt: 3
TC Leggings: 11
Tween Leggings: 11
In my 1st Month: Sold 154 pieces for $4,716
Here is where they sold
Facebook Live Launch: Sold 16 pieces $415
Accidental Pop-up: Sold 13 pieces $303
Album Sales: Sold 28 pieces $914
Multi Consultant Sales: Sold 24 pieces $874
Hosted Online Pop Ups: Sold 30 pieces $855
Pick-A-Pumpkin Giveaway: Sold 19 pieces $638
Weekly Giveaways: Sold 6 pieces $ 0
Family: Sold 11 pieces: $312
Buffer Wall Sales: Sold 1 piece: $35
The above numbers are Gross not Net. Big Difference. There are a few things missing in the above numbers but are as close to accurate as I’m going to get here.
Gross Sales: $4,716
Net Sales: $3,847
Expenses: $2,908 (Does not include starting inventory)
Net Profit: $938
So there you go. There are a few nuances in those numbers, but basically a $1,000 profit. When you are considering a new business, whether it is LuLaRoe or anything else, don’t just look at your gross numbers! If you do, you will be in a world of hurt when you try to figure out whether you are doing well or not. Personally, I know a lot of those expenses are one time only expenses. Although, I easily could spend another $500 today on things that I need. Unlike other LuLaRoe consultants, I have to sell through and then use that money to buy more inventory. I don’t have a spare credit card hanging around to use when inventory pops up.
Pure basic speaking, my goal is sell 10 pieces a day or 300 pieces a month. That is double of what I did my first month. I have a few things I’m working on for this month, and I am working my plan every day.
If you are interested in earning free clothes and want to work with me to host an online Pop Up, contact me today!
If you are considering investing in LuLaRoe and being a consultant, I would love to sponsor you and help you with this crazy awesome business!
Comment below with what questions you have about LuLaRoe or what blog topics you would like to see me cover with this new venture. One lucky Commenter will win a FREE pair of leggings!
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