💸 This company makes $25M/yr

here's how you can create the same business

GM. This is Work "After" Work, the newsletter that gives you the answers to trends and business. Like a Chegg account, but we don't charge $15/mo.

Happy Hump Day! Let’s jump in:

  • 🤝 Help e-commerce brands

  • 😂 Meme of the day

CLEAR THE CLUTTER

Name something every fashion e-commerce brand has to do. Ding ding ding: take photos of all their clothes to upload to their site.

Meaning whenever a fashion brand is launching a new clothing line they order “product samples” to model the clothes.

Now think about how many SKUs a fashion brand can have and all the variations in sizing. You have sm, med, lg, x-lg, xx-lg… you get the point.

That’s hundreds, and for some, thousands of product samples ordered before they officially launch a product.

Well the little-known secret about these product samples, is for the most part, they’re just left to the waste side. And you can imagine how over the months and years e-comm brands have a ton of these samples lying around piling up.

Well there’s a pretty cool business I’ve found that solves this problem and makes not only themselves but the e-comm brand money as well.

Here’s how it works:

  • 260 says “hey brand, send me all your product samples that are just lying around”

  • I’ll sell them at a pop-up store event

  • And give you a cut for every item we sell of yours

It’s a win-win for both parties.

The e-comm brand gets more space by removing all the old product samples they don’t need and makes a little bit of money on what would have been garbage or donated.

On the other hand, the company (260 Sample Sale) gets high-quality brands to sell at a steep discount to get customers in the door.

I can’t find exactly what they make but I’m seeing anywhere from $25M to $29M. Regardless, they have 95 employees on their LinkedIn page so they’re definitely in the millions.

And I think you can start doing the same thing.

There’s two ways I’d go about it:

  1. Do the same thing in different locations

260 Sample Sale only has 3 locations, and one in the works:

  • NYC

  • Beverly Hills

  • Miami

  • Chicago

Run the same operation in different parts of the US or Canada. Texas, Tennessee, the Carolinas you name it.

Since this business is run by pop-up events it’s very location driven and 260 can’t be in all places at once. They’re also not that large of a company and not that well-known yet. A perfect time to start competing with them.

  1. Spin up a new vertical

Ditch fashion and hop into the beauty or health and wellness space. These companies also have a ton of product samples. Think makeup, eyeliner, lotions, vitamins, etc.

Keep marketing the same “Your secret source for designer deals.” and run pop-up events targeted at this niche.

Now the hard part - getting customers.

Remember that everyone starts somewhere.

Here’s Bezos working on Amazon back in the day..

Pick the city you’ll be doing the event. Rent a space that has foot traffic and start running some local FB and Instagram ads to get users interested.

Use the brand names that going to be at your pop-up to lure customers and show the products off. Lucky for you, the brands already have nice pictures for you - use them!

For every person that buys something get their email and enroll them in a monthly newsletter that you blast out to inform people of your upcoming events.

You can also experiment with running Facebook ads to collect emails. Tell interested folk if they input their email you’ll notify them of your next event and what brands will be at it!

This not only helps with the turnout but can also turn into another income stream down the road with ads in your newsletter!

How to get brands 

Look somewhat legit. It’s okay if you don’t have everything mapped out. As long as you have a plan for how you’re going to sell the brand’s product samples, they might give you a shot.

Create a website where people can go to see your upcoming events. Just like 260 Sample Sales and start reaching out to brands with your proposal.

You’ll be surprised by how many e-comm brands have this issue. Some brands are just a 2-3 person team behind the scenes aka they don’t have time to do this themselves.. and that’s where you come in!

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MEME OF THE DAY

honestly not a bad idea 😂😂

That's a wrap ladies & gents!!

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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