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Two businesses that I am a big fan of have made some big changes...

Posted on 7/26/16 at 8:19 am
Posted by GFunk
Denham Springs
Member since Feb 2011
14966 posts
Posted on 7/26/16 at 8:19 am
and I'd like to see if anyone here wants to discuss them. They're as disparate as they are fascinating to me in terms of what they do. But they've both made huge decisions regarding their business and I'm curious as to how it affects their sales (of course), the community that's built around them, their brand and-ultimately-their business.

#1 Meh.com - I'm not sure anyone here has ever heard of them but me. Some dude that used to sell electronics in Houston or DFW got the bright idea to sell one product per day at closeout, rock-bottom prices online. One day it'd be a Memory Foam Mattress. The next day its a Sansa .mp3 media player. The next day it was a Ginsu knife. The next day it was an Onkyo receiver for home theater setups.

He started a website where he could sell one product per day, and when it sold out, that was it. He called it Woot. The social community that grew up around it and the ridiculously humorous product descriptions that appeared every night build a hugely loyal brand.

He eventually sold out to Amazon for about $180 million, had a bizarre breakfast with Jeff Bezos and signed a non-compete. When it was up, he started meh.com.

Same deal-a-day premise, but he's recently made changes to when the products go on sale, they will now "pause," deals, provide select stock to folks who have their "VMP," membership so that they are in some ways guaranteed stock. To me, this is destroying the deal-a-day model and blasphemous to the community they were allegedly trying to develop once again using meh.com.

I don't understand changing a model that-while it took almost a decade to build up-became wildly successful with consistency and time.

Has anyone followed that and what do they think about the Rutledge CEO/Brainchild and his recent changes?

#2 Saddleback Leather - I'm sure a lot of folks here are big aficionados of Dave's products. I only own two wallets. My wife bought me a bag and it was so expensive I returned it on general principle. I just can't see us justifying the expense of their products.

But geezus do I covet said products. Looking at what they do, how they do it and the products that emerge from Saddleback, if I were just one tax bracket above where I am, I'd own many of their products.

Yet yesterday, he comes out and announces an across-the-board price increase, citing finally hiring money folks to review his business who showed him how much money he was losing, how wasteful he was, how underpriced he was, and how much more he could do as a business owner for his employees, his customers and his life by increasing the price point. Significantly.

I was-honestly-shocked at why he'd announce something like that so suddenly. Now, on the one hand, he did announce that the increase would occur one month prior to right now. So perhaps he's really trying to clear out old stock or leftover stuff from Christmas. Then again, he may be paying for his obsessive attention to detail and quality finally.

Or maybe he's just a bad business person. I don't know.

Just curious as to sudden business pivots from folks who either have A - Incredibly successful brands or B - Innovators who literally created a retail segment that is now copied and imitated the world over.

Any biz guys in here seen it or done it or have an opinion? Or should I switch to decaf and stop staying up so late at night and getting up so early in the morning?
This post was edited on 7/26/16 at 8:21 am
Posted by baldona
Florida
Member since Feb 2016
20481 posts
Posted on 7/26/16 at 8:29 am to
Capitalism, it either works or they'll go back to an old way. Both those are things I'm not really interested in so I don't know anything specific about them.
Posted by MsState of mind
State of Denial
Member since Aug 2013
2641 posts
Posted on 7/27/16 at 8:35 am to
Well I know I just bought a crock pot on meh.com
Posted by broadhead
Member since Oct 2014
2110 posts
Posted on 7/27/16 at 9:37 am to
Saddleback leather is a great product and I think he is getting enough name recognition that he can raise the price to what he wants. His business so he can do whatever.
Posted by GaryMyMan
Shreveport
Member since May 2007
13498 posts
Posted on 7/27/16 at 9:57 am to
quote:

Just curious as to sudden business pivots from folks who either have A - Incredibly successful brands or B - Innovators who literally created a retail segment that is now copied and imitated the world over.

Change inevitably happens to all your favorite brands. I buy a lot of Filson stuff, mainly luggage. Their prices have increased at least 20% in the past few years (a medium duffle went from $295 to $395). It's owned by a group who, rightfully, want to capitalize on their current popularity. Is it at the expense of quality? Probably, but only time will tell.

Similarly I used to only buy Polo Ralph Lauren suits. They were made in Italy by Canali & Corneliani. It was the perfect suit for me. Then Ralph decided to drop the prices and quality and move the manufacturing to Slovenia.

Regarding Saddleback: Have you looked at Colonel Littleton leather goods? They're not cheaper but a little less over-wrought than Saddleback. Compare two folio cases: Col. Littleton version, Saddleback version.
Posted by hungryone
river parishes
Member since Sep 2010
11987 posts
Posted on 7/27/16 at 10:18 am to
Saddleback's prices don't seem so lofty...have you ever priced women's handbags? Now those are crazy prices, especially when few of those designer bags will be carried by their owners for more than a few seasons.
Posted by GFunk
Denham Springs
Member since Feb 2011
14966 posts
Posted on 7/27/16 at 5:16 pm to
I am but a fiscally conservative OT Poor. Took me three days of looking at a printer for my side business which I've already got double the cashflow to cover put away with double that in already completed work before I bought it.

By the time I am confident enough that I can treat myself to a bag of Saddleback's quality, they will have probably already gone up in cost pat where I am comfortable.
This post was edited on 7/27/16 at 5:17 pm
Posted by VetteGuy
Member since Feb 2008
28191 posts
Posted on 7/27/16 at 7:57 pm to
came here to post about the Colonel...

Excellent products and great customer service.
Posted by ManBearTiger
BRLA
Member since Jun 2007
21851 posts
Posted on 7/27/16 at 10:09 pm to
WUPHF.com is white hot right now
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