LulaRoe Pros and Cons
So you’re lurking around the internet trying to find the pros and cons of this company called LuLaRoe everyone is talking about?? Been there. Let me help add to your list by giving you mine. I promise to not turn every con into a pro the way it seemed many of the lists did when I was researching and trying to decide. That’s frustrating. Here’s how I see it, coming from a 30 something who has been a direct sales jewelry lady for over a decade. The cons carry weight and are worth really taking some time to consider. It’s a serious commitment, at least that’s my opinion.
- Let’s state the obvious! It’s EXPENSIVE to get started (over $5,000 for inventory alone, not to mention clothing racks, hangers, marketing materials, etc. )
- It’s labor and time intensive. Clothes are heavy. You touch literally every item you sell. (unlike many other direct sales companies where the home office packs and ships direct to the customer or host and you don’t have to package every item you sell)
- The company is young (about 3 years old-you’ll commonly hear in business circles that the statistic is 50% of new companies fail within their first 5 years)
- No control over type of prints you receive (only size and style)
- No unified ordering system between consultants to their customers (most use a private facebook group to direct their customers, BUT then each group has a different set of rules and policies for how to shop. Sometimes it requires a “sold” comment on a picture, then filling out a google doc, and then paying an invoice that you receive via email. Some use a third party software system which also requires a checkout process.)
- There is a 6-8 week queue wait to “onboard”-the company’s term for saying you can purchase your initial inventory.
- Takes up a lot of space in your home. (you must have a residential location, no business locations allowed)
- You will spend your profits “reinvesting” in building your inventory since you only start with about 350 items. Consultants seem to encourage an inventory of hundreds more than your initial inventory (in my research it seems to depend on how serious you want to run your business but consultants making money at it seem to carry between 800-1300 or more items)
- A per transaction fee is taken for each customer credit card processed through “Audrey” the ordering system LuLaRoe requires their consultants to use. (it is frowned upon if you use paypal or your own system-although they say their Audrey system can be down at times so it is a good idea to have a “back up plan” when the system is down.)
- Cutting edge and unique business model that is taking the United States by storm (with plans to expand internationally).
- LIMITED edition prints so there is a “get it now” pull on customers to buy.
- No catalog so there is always something NEW for people to see (no waiting until the new season’s catalog comes out since “I’ve already bought everything from this catalog” issue.)
- New styles are continually being added and the line of clothing is expanding and changing so there’s always something for everyone no matter their taste or fashion style.
- It’s been said it’s well on it’s way to being identified as a unicorn company (click here to see the current list and what signifies a unicorn).
- Utilizes social media in an effective way so you can make sales and never leave your home (although you can take your items to vendor events and other people’s homes for people to shop your inventory in person.)
- Flexible in making your own hours and deciding your own goals.
- Company will buy back your inventory (for a small percentage restocking fee) should you decide the company’s not for you.
- The profit margin is good (50-60% or more depending on the style).
- There are NO shipping costs when you place wholesale orders from the home office (only requirement is that each order you place must be 33 pieces or more).
- There are no territories. You can sell to anyone in any part of the U.S.
- Should you move, you can easily take your business with you (unlike a brick and mortar store it would be far more difficult to transport your store).
To me, the cons carry more weight than the pros and I strongly encourage anyone considering this business to take the decision making process very seriously. For me, my journey to lularoe has been far beyond one that a cognitive pro and con list can contain. Sometimes the cognitive part of a decision making process doesn’t win, as was the case for me. It has been spiritual, emotional and of course a mental battle, something that I prayed would be taken off the table because the thought of something like this terrified me, but my heart (and God’s plan for me) overrode many of these cons. If you’re curious about what I decided and my LuLaRoe story, click here.