Selling an endless supply of boutique clothing could possibly seem like a good idea. Right? And after all, earn a commission in your spare time. So, why not? LuLaRoe Clothing is a Multi-level marketing business famously known for its bright and cheerful patterns, including the famous “Buttery Soft Leggings”. The luLaRoe line of apparel isn’t sold through retail outlets, but instead to independent “consultants,” who in turn sell the clothing at house parties and on social media. But, what you’re probably not taking into account, the amount of work and financial commitment that it occasionally takes to get started, and well before you can earn a commission; And, besides that, there is no guarantee of making money anyway. Throughout this LuLaRoe clothing review, I will look at the apparel, and reveal what your possibilities are of earning a few dollars.
Who is LuLaRoe?
LuLaRoe Apparel was founded in 2013 by Deanne Brady and husband, Mark Stidham, with a vision to succeed, while helping others do the same. It’s a Multi-level marketing business who supply a collection of unique clothing; And, their headquarters are located in, Corona California.
The face of the LuLaRoe foundation is Deanne Brady, and her husband Mark Stidham holds the position as CEO. Brady is the most unmistakable figure who is recognised for her acclaimed style of leggings throughout the social media outlet.
The centrepiece of the company is focused on boutique apparel with a uniqueness that is unparalleled anywhere else in the clothing industry.
LuLaRoe carries a variety of clothing in designs and styles to suit all family members. With an unusual form of ladies, brightly patterned and coloured leggings, dresses and shirts.
Their Morman religious beliefs have a partial impact on the clothing, as they tend to be on the side of modesty. Just the same, they do have quite a uniqueness of colour design and style.
The showcase of the LuLaRoe line of apparel is the ladies buttery soft leggings. Some customers swear by them because of their buttery-soft touch. Whereas, many others have claimed that after a few wears holes begin to appear or they tear very easily. But customers still buy them because of the feel and touch they provide.
Amazon doesn’t have the LuLaRoe product. However, there is another available style that is almost of an identical. Ordering this product through Amazon, you more than likely be buying from the seller, who has their line of products listed with Amazon.
Is LuLaRoe Clothing Value For Money?
LuLaRoe makes around 5,000 garments of anyone pattern for release, and when it has sold, generally, it’s not reissued. As a consultant, you’re able to choose particular styles, including sizes, but, not patterns.
The monthly inventory shipment includes a combo of products. What seems to be more popular patterns with buyers are those labelled as “Unicorns”.
Usually, most of the clothing range from $18 – $70, that, of course, will depend on a specific style and design.
Prices seem reasonable, and they do carry a warranty, so refunds shouldn’t be an issue, should a garment be faulty.
The Jewell in the crown are the leggings, and what appears to be the main attraction is their soft buttery feel.
This particular product does attract lots of criticism with complaints hinging on the poor quality as holes becoming apparent soon after a few wears. Claims don’t seem to get a quick or at least a reasonable response in a reasonable timeframe. And customers are left waiting for lengthy periods for refunds.
No-the-less, ladies still like them, so they remain the flagship of the LuLaRoe apparel. Even though the complaints are real.
MLM And The LuLaRoe Opportunity
As a consultant with the LuLaRoe business, you’ll become a member of their consultant network. Your responsibility will be to promote and sell apparel through the median of house parties, friends and family, also utilise the social media outlet for selling online.
What Is The Cost To Be A LuLaRoe Consultant
Getting started will attract significant capital investment. As the initial inventory purchase will set you back, somewhere between $4,925, and $9,000, with a recommendation that the regular inventory holding is around the $20,000 mark.
Inventory purchase prices quoted are at wholesale rates.
There are two streams of potential revenue. They are “Direct Sales” (customer sales) and commission derived from “Downline”. Other consultants, you have recruited into the business.
Your business success will be reliant on the amount of time you’re able to devote to building your business.
To offset your monthly auto-shipment costs, direct sales, and recruiting a downline team will need to be your priority. So, you will need to prepare yourself for lots of hard work, and whatever else may lie ahead.
Startup Fees To Join The LuLaRoe Group?
LuLaRoe is somewhat different from the general run of the MLM industry because there are no fees connected or for that matter, there’s no starter kit required either.
Before you can become a consultant, you’re required to complete and submit an application for approval, which can take a while before it is approved. This is the catchy bit, given there is no signup fee, there is, however, an inventory of stock to be purchased as part of your conditions relating to your application approval.
The initial inventory consists of 275 to 300 garments that are a variety of the LuLaRoe range. Now, that can set you back anywhere between $5,000 – $10,000 dependant of what your initial choice includes. But, the typical rule of thumb pans out to be around the $7,000 mark.
You read right, and it’s no typo error, the initial startup will be around the $7,000 mark.
And, you have no say in the design selection, that is all left up to LuLaRoe.
For you to remain active, the minimum monthly order has been set at 33 garments for you to qualify for any commissions on sales. And, that’s the lowest position.
The minimum order has to be no less than 175 garments for earning any commission from the personal sales and, one personally referred member in your downline team.
This level must be maintained every month to qualify for the bonus.
The minimum order takes a significant leap as a total of 250 garments per month. Plus you’ll need to have referred three direct members personally. And, on top of that, you will need to have at least ten in your downline. That means that your overall team volume must be at least 1750 garments. Oh, and by the way, your personal volume amount is not counted in the total.
Consequently, you’ll continuously urge and encourage your downline team into making sizable inventory purchases; And, with recruitment being the ultimate aim, pushes lots of focus back on you to motivate them. Not quite so easy, especially if they are new and haven’t any genuine contacts, other than family. As a trainer, that is some challenge.
There are a further two levels that are higher than what’s mentioned, coach and mentor, but, to reach those two points, it almost seems impossible to achieve.
CEO Mark Stidham Interview
Stidham claimed, in August 2016, that the business was expected to exceed sales of $1 billion. April 2017, there were more than 80,000 consultants.
Can You Earn Money With The LuLaRoe Business?
Like many other MLM businesses, how much you can potentially earn, rests entirely on the amount of time you’re able to commit to selling and recruitment.
In the terms and conditions, LuLaRoe makes it quite clear there is no guaranteed income. However, the incentive to sell is vested in the amount of stock you are required to carry. Naturally protecting your capital investment and the monthly auto-shipment, growing your business will be your number one priority. Then “YES” you will earn a commission; However, on the flip side, if you fail, then you will quickly slip onto severe debt.
Once you become a consultant, you have the benefit of purchasing the garments at wholesale prices. You then onsell at retail prices directly to customers, or you may decide to keep some for yourself. That’s up to you.
There is a further 5% discount on all orders you place, provided you maintain the current consultant requirement; Also, all standard shipping requirements is free of charge.
Selling Online Or Offline
When first starting out how you want to sell is your choice. Some consultants choose the online method as it is less confrontational, and seems as though it is more convenient to customers, less hassle and easy to manage inventory. Whereas others prefer to sell offline because they do enjoy personal contact and find it’s the best way to develop customer relationships; And, there is the opportunity of splitting the two options.
Choosing Your Initial Inventory Shipment
You are given a chance to select the inventory of your choice to get started. The selection consists of skirts, dresses leggings, kids clothes and to a lesser degree men’s clothing. Each garment carries a limited production threshold, making them unique in lots of ways; Also provides style changes regularly.
In-Home LuLaRoe Clothing Parties
An opportunity to arrange hostess clothing parties, and reward the hostess with FREE items based on sales generated. Naturally, the more you can sell means extra bonuses for the hostess, so it’s a win-win for of you. The rule of thumb generally seems to be for every 10 garments sold the hostess receives one free item.
Plus there is a possibility of recruiting new consultants into the business, and that will help with building your downline.
The minimum purchase for the initial order must be no less than $2,500; otherwise, you will be denied. Typically, you’ll find the order will be much higher than that; And could quite easily climb as high as $10,000.
Why is that? LuLaRoe doesn’t put any limitation on first orders, and with such a variety to choose from, it could be elementary to lose sight of how much you have ordered and its total value.
Given that the initial order threshold is lower than days gone by, it’s still significant in comparison to getting started among other MLM opportunities.
Selling Is Lots Of Hard Work.
Experienced consultants can make it look easy and give the impression that it’s reasonably straight forward, rather than what it actually is.
Selling is an art and requires lots of hard work mixed with trial and error in establishing yourself. If you are reluctant, unwilling or just, don’t have the time to sacrifice, then more likely this MLM business most probably won’t give you the success you are after. So, don’t let yourself be told otherwise, because this is not an opportunity where you can earn easy money.
Inventory holding or stock on hand most likely will mount as each month passes. Every month you will receive your auto-shipment, and undoubtedly, you’ll have a carryover of clothing from the previous months. Therefore, as the months pass the holding will increase, so, unless you have ample space, this could become concerning. In respect to the LuLaRoe recommended inventory holding you may well have a, 1,000+ items of clothing to store, and that requires a reasonable amount of room; Space that may not be at your disposal.
The tracking system LuLaRoe use will assist with the management and is quite helpful. However, this is something else that will demand adjustment, especially if you haven’t in the past been exposed to the aspect of retail inventory systems.
Because your current stock needs to stay fresh, it means that you will continuously be refreshing the turnover of all clothing. And that process suggests funnelling profits back into the system. Not a good situation for those starting out, because more likely than not, you will be dipping into your own money; And that may lead to unwanted debt.
Maintaining Minimum Orders
The minimum monthly order is 33 items, and if you find yourself struggling to reach the sales quota then you will lose the commission on what you have sold; Plus your active status in the business is also removed.
When it’s all said and done, LuLaRoe has no interest in whether you find the customers. The bottom line, selling the inventory all rest with you; And that can be very difficult if customers are not so easily found.
Every month there are thousands of consultants active, and, only about 30% earn a gross commission above $5,000 in sales. So, that figure will be much less as a net profit.
Is LuLaRoe Worthy Of Joining?
Working as a LuLaRoe consultant will demand lots of time, in fact, the hours required, are equal to that of having a fulltime job. Then there are the upfront costs in setting yourself up before making a sale. And, then there’s the balancing act of family life and work; So, there is plenty, which deserves consideration, especially those mums with young children.
The upshot here, there two substantial fronts to digest. The initial startup money and the balance between family and work. Then there is the uncertainty that you won’t earn any income until such time that the sales start rolling in. Without customers, there is no commission, and the ongoing debt will continue to mount.
LuLaRoe is a full-on recruitment business, so recruitment will become equally as crucial as selling as far as LuLaRoe are concerned. And that’s not going to be a walk in the park, because you’ll need to demonstrate some sort of success before others are willing to become part of your team; And, that will all take time.
Also, when you do get started, will the commission cover the auto-shipment costs plus any other out of pocket expenses required as you move forward. There are lots of grey areas, so I suggest that it’s not worth the hassle in joining.
Any MLM business is tough work when you consider all the startup cost, family life and heaps of personal time thrown at the venture. And, that’s even without making a sale. Given, you are fortunate enough to build a team, then you will start to earn some commission. But, you will be still obligated to service existing customers and continue to find more avenues in attracting new customer business.
The new team members will also want to start making money, because if they don’t, they will then quit, and that impacts on the extra income streams you worked so hard to build.
Put it this way with so many variables you’ll need to undertake, you must weigh up all options before committing. It’s a hella lot of eggs to have in one basket without any assurances you’ll be a success.
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