Published: 11/02/2016 Update: As of January 2018 I am still with Lularoe but have chosen not to write updates about this rollercoaster ride on my site. You can join my group where I am happy to talk about it: Lularoe Shenanigans
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.
To Roe or Not To Roe That is the Question. Should I Join LuLaRoe?
Video: I Have a Big Announcement to Make and the Aftermath
What a First Week Truly Looks Like With LuLaRoe I Call Shenanigans.
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 800-2000 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 30 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 six 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 in 2016. 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. {I did switch to an iPhone in 2017 because the Lula app worked best on it.} 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 Macbook 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. {Thankfully all legging sizes are now regularly in stock.}
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
Kristi Trimmer on Instagram
Kristi Trimmer on Pinterest
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 {it’s ok just not awesome, buy a Ring Light instead} 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.
What Sold:
Carly: 2
Cassie Skirt: 13
Classic Tee: 6
Irma Shirt: 8
Julia Dress: 8
Kids Leggings: 22
Lindsay: 5
Maxi Skirt: 7
Mimi: 1
OS Leggings: 44
Patrick Shirt: 5
Perfect Tee: 8
Randy Shirt: 3
TC Leggings: 11
Tween Leggings: 11
In my 1st Month (14 days): 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
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.
Goals
Pure basic speaking, my goal is sell 10 pieces a day or 300 pieces a month. {After a year, my average was about 175 pieces/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 considering investing in LuLaRoe and being a consultant, I would love to sponsor you and help you with this crazy awesome business! {At this time, I am currently not building my team. It is a ton of work and a lot of money. Unless you have previous business experience, ready to work 50+ hours a week, and can keep reinvesting your money, then contact me. Just being real.}
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Can you address unsold inventory? I am interested in the amount of inventory that consultants end up “stuck with” because it is a pattern and size that no one wants. I think this could be one of the biggest problems.
Very true about having to look at what you CLEAR and not just the total retail of product sold. I cringe when I see ‘reports’ for any business that do not address the question of what is really left when all is said and done.
Also, I know that while there are benefits for their model, I would be very worried about getting saddled with product no one wants to buy. Do they let you fire sale it after a certain period of time?
I have been looking into LLR as well, and am curious when you list $2900 in expenses for one month. What exactly are those expenses, if you don’t mind sharing? Thanks!
I was going to ask the same as Brook, but also when you mentioned net I thought that meant after expenses, but then you took more off for that. So what are you using as your net profits?
Thank you! I really appreciate the honest breakdown — that’s rare and fantastic.
I have some friends doing this and I had no idea what went into it! You gave me a whole new appreciation! I thought they just caused a whole lot of notifications on my news feed for their parties..haha
The sad part is, they pay a $1 per leggings and then them to consultants for $17 and then the customer pays $35
Shay – your math isn’t correct. A customer pays $25 for leggings and we purchased them wholesale for under $11. I don’t know what their manufacturing costs are, but typically in clothing there is a large margin.
Manufacturing costs around $1 and them
Special prints are actually scrap material.
My fault on how much the consultant pays. Regardless, these leggings come with holes and are over priced.
Good luck to you tho.
Well, most clothing manufactured overseas is $1-3 per garment, that is standard for the clothing industry. That isn’t exclusive to LLR. Some leggings have had holes, that’s true and it is frustrating for all involved. Thanks for wishing me good luck! It is a good side business for me, I enjoy it. Writing though is my love.
I have been really thinking hard about joining LuLaRoe for a while now!! I am curious about what all your expenses were for your first month. I am also wondering if this is somethinges I can take on with my 2 boys one is 3 one is 3 months.I am also wondering what I should do to prepare myself for starting that journey. Like what things should I already have bought and other things I should do in advance of actually launching.
Hi Kristen,
Starting expenses will be different for everyone. I had just come off the road from full-time traveling so needed a few more things. On average, expect to spend $1000+ on getting your business ready to go. I know many women with families who do Lula! A lot of them have the help from their kids or wait until the kids are tucked into bed. When you choose a sponsor, they will be able to help you with how to get ready to launch. If you are looking for someone, let’s connect and see if we are a good fit together. I recommend waiting until you get the call before going out and buying a bunch of things though! Let me know if I can answer anything else for you.
How is your net profit now after being in for a few months? Do you find it still worth your investment? My husband found this and now questions how good of an investment it is.
Hi Renee,
I am able to live comfortably and have all of my bills paid off from what I make with Lula. I’m different than a lot of consultants as I live directly off of what I make and didn’t start with a lot of money in reserves for this. It was worth my investment for sure! It enabled me to make a living while I had a physical disability. It was a lot of work though! Writing is my true passion and Lula has enabled me to have an income while I healed. Now I will do both. 🙂
Hi Kristi. I enjoyed reading your blog. I am currently in the queue but still can’t decide to do it or not. I currently have a 9-5 job so I would do LLR on weekends and evening. Can you tell me how many in home pop ups vs online pop ups you do each week? How many album sales? Do you still find LLR to be worth it? I am worried I won’t be able to sell enough.
Thanks
I would wait until 7/1//17 before onboarding. They are changing a bunch of stuff in June and I personally would wait. I do 0 in home pop-ups and am 90% online with 10% in vendor events. I do things daily in my group and tend to take Saturdays off. I do mostly Live Sales and do them around Alaska as it ties together well for me. I would do a lot of things differently if I were to do it again. It is a lot of work and it can be profitable. I use it to supplement my writing – I think of it like this… Lula is my job and Writing is my career. It is a step for me to get where I want to go. It has never been my end all to be all.
I am still waiting my call but have a big concern for having followers and time, I have no kids at home and wk full time, varied shift, love the clothes but fear no byers. do you feel it just a fad and not worth the investment.
If you don’t already have an online following, look first at your in-person friends and family. It is easier to start with in-home pop-ups than online. I had an online community that I was able to tap into in the beginning that helped me. Online sales right now are down compared to when I started as well. It is hard to say if it is just a fad. I think with the collaboration with Disney it has added a new spark that was needed. I spend a lot of time on my Lula business as I needed a break from writing. I’m ready to write again though so not sure yet how much time each will take. Good luck and let me know what you decide!
Thank you!! I’m looking into this… just starting. It’s more of a realistic possibility next calendar year, to partner with a long time friend so we can split some of the time we’d have to invest in ordering/promoting etc. With all you’ve mentioned, I’m thinking if I stick to making an actual move next year, I should start picking up the supplies “here and there” and hope that when investment time comes I can focus more on inventory costs.
Do you know if there as small business grants/loans that might help with this, or ones for single working mom’s who are also students? if so, can you point me in the general direction? (anyone for that matter?)
Thank you for all the info!
One thing I will say right off the bat, if you do a partnership, please make sure you have a Buy/Sell Agreement in place BEFORE you start. Partnerships in Lula are hard. Partnerships in any business are hard – read my Catholic Charities post for more on this: http://www.kristitrimmer.com/we-built-a-dream-10-years-ago-catholic-charities-destroyed-it/
The investment for LLR is typically too low of a dollar amount to get a traditional business loan as you need roughly $10k, most loans start at $25k. You could look at organizations such as NAWBO or other women’s organizations to see if they offer scholarships or such. If you are a student, see if your college offers business grants in their business departments. Some entrepreneurial degree programs have money to help start companies.
Unless you know a 100% that you are in, I wouldn’t purchase anything for a company you haven’t yet created. You could create your business entity and then start to work to populate what you need to launch. Reach out if you have other questions. Good luck!
I am considering selling LuLaRoe and appreciate how honest you are when you say wait until July things are changing do you know what that is and are they good changes?
I think they are good changes. We all moved onto the new Bless system which fixed the sales tax issue. There are also a couple bonus programs for those onboarding. If you are looking for a sponsor or have more questions, please feel free to reach out.
Love your article! At what point did you actually start profiting from the business?
Really debating signing up but I want to know what I’m getting myself into and what to possibly expect.
Turning profit will be unique to your business. I made enough right away to live off of and to purchase more inventory, which was my goal. I pulled more profits out in the beginning than most. I would recommend though not to pull out any money if you can for the first few months and keep reinvesting it. Please reach out if you have other questions. I am happy to talk to you about it more.
Just wanted to echo everyone else’s comments: thank you for your honesty! It’s funny how many parallels we share in life. My passion, too, is writing. I freelance and blog, and stay home with my daughter. I recently discovered LLR, and am 1000% addicted, and am seriously considering selling it. – even this “late” into the game. Thank you for giving me so much to think about!
I think it is a good time to get in the game, honestly! A lot of people have left, 8 new styles were introduced… you can really make this business your own any where you might live. Ping me and let’s talk. 🙂
I am in the queue and appreciate this article. I found lots of bashing types of articles and they all seemed to be from MLM haters, not people who had sold Lularoe. I appreciate hearing your honest experience since you have done it first hand. Thanks!