Before we delve into numbers. Please note that this article is not affiliated with LuLaRoe corporate. This blog post was not to mislead anyone into believing this is a get rich quick scheme but to help those who may be struggling to understand how to pay back their initial costs. I hope you find this information useful but keep in mind, though this business is simple, it does take A LOT of hard work. Some of which is literally heavy lifting!
So, you're considering becoming a Lularoe retailer? To start this business you will need to purchase your initial inventory. The cost is approximately ~$5,000-$6,000. By making this initial purchase you are making a huge step towards the freedom that comes from owning your own business. With LuLaRoe, in a matter of a few months, you can completely repay your initial purchase and have money in the bank. What determines your success is the effort you put into your business & how aggressive you are in booking in home & online pop-up boutiques.
The examples that are shown below assume a $5,500 initial cost ($4,941 initial inventory and $500** for miscellaneous startup expenses) and an $18 average profit per item. The retail value of these items is approximately $12,500*. The clothing items in this example include the following (your cost and items may vary depending on the products you select for your initial order):
● 75 Cassie Skirts
● 58 Julie Dresses
● 75 Irma Tops
● 78 Classic Tee's
● 70 pairs of Leggings
● You will also receive 25 items of your choice FREE when you purchase 300 items or more in your initial inventory (I suggest choosing the Lindsay Kimono as it’s a great up-sell piece and you will profit $1100)
● You will have a total of 381 items
Each time you sell items, you need to replenish your inventory. I suggest that, as you pay yourself back, you consider investing money back into your business to increase your inventory. Many of the most successful consultants have 600-800 pieces in their inventory. The minimum order with LuLaRoe is 33 pieces. If you sell 25 pieces, then order 33 pieces to slowly increase your inventory. Your repayment will not be quite as fast but you can increase your sales with a larger inventory.
A few things to consider:
● The chart above does not include the sale of the Lindsey Kimonos. Selling all Lindsey's would be an additional profit of $1100 in your pocket
● The average number of pieces sold at a popup boutique is ~25. By doing one in person or online popup per week (5-6 hours total per week) you can pay yourself back in 4 months. By doing 3 popups per week (or 12 large online events) you can pay yourself back in approx 1 month. Remember, this takes work. The amount of effort you invest will directly correlate your opinion of success.
● The above scenario is considering you are doing your business part time (but working it as a business).
Before you take the LuLaRoe plunge, let's set up a time to chat!
We'd love to get to know you and help you decide if LuLaRoe & Lula in Love is the right fit for you.