How many styles do I need to carry?
LuLaRoe has a variety of options for you when you are starting your initial inventory. I do recommend you pick a variety of six styles which is a great starting point. It is better to carry more in each size of only a few styles rather than trying to carry every style that LuLaRoe has to offer with only a few in each size. Remembering to always restock the items that you sold is key. NEVER let your inventory diminish. As your business starts to take off, you will want to reinvest and add more styles to your inventory. Try to add about 5 items in each size when bringing on a new style and add to that with each order to build up your variety in that style. The more variety you have within each size, the better the style will sell! Make sure to contact your sponsor for advice on which items might sell best in your area and how many items to carry in each size and style.
What rewards and incentives does LuLaRoe offer us?
Besides this amazing opportunity?! First – we get 5% off of all wholesale orders and free UPS ground shipping! This is a huge benefit to help offset the costs of our hostess rewards and reinforces the giving mentality LuLaRoe is founded on!
The LuLaRoe Cruise is an amazing reward incentive currently based on your sales volume during a fiscal period! Cruise fee paid for, paired with a Cruise Cash bonus it is a fabulous way to get your significant other “on board” with your business goals!
There are also rewards and incentives for building a team from Leadership Bonuses to exclusive training opportunities complete with pulling your own order from the warehouse. What can we say? LuLaRoe is AMAZING and spoils us!!
How do you determine how much money to keep from sales and how much to reinvest?
You should always – at a minimum – plan on reordering items as they sell! The wholesale cost of the item should be set aside to replace your inventory to keep your revolving stock replenished. Never use your “inventory money” as profit.
You can pay yourself the difference between wholesale and retail as profit – although the finance teacher in me does not recommend that entirely. You really need to keep a cushion in your account for new launches, business expenses, vendor event fees, etc. You can also choose to pay yourself a flat rate per item – say $5 – so you have an income while you reinvest the rest to grow your inventory or introduce a new style! A third option is to reinvest all of your profit until you hit your goal number of pieces! There is a definite tipping point in income when your inventory doubles (about 800-900 pieces), but the rate at which you reach that point is completely dependent on your needs. If you treat your business like a business it will pay you like a business. This business works for YOU not you for it! There is no wrong answer to how you invest – just keep in mind your initial inventory numbers are there to support your business minimum!
I don’t have the money right now to start my LuLaRoe business. What options do I have?
Traditionally most of our retailers who seek financial assistance have been directed to go with a 0% interest rate credit card for 15-18 months. If you have good credit, this is seriously a cost-free way to finance your initial inventory and supplies. But this is a decision you need to make. Sometimes retailers will save up for 1/2 of their initial investment and finance the rest with a 0% credit card. MANY retailers make back their initial investment in just one to two months! No joke! Those retailers that have found 0% interest credit cards have looked at products from Chase, Citi or Capital One. If you are working your business like a business you should be able to have your initial investment paid off WELL before you have to start paying interest.
Other options would be to check with your bank about a small business loan, finding a private investor, or partnering up with a friend/relative. Get your creative brain flowing! If you want to make this happen, you will find a way. Keep in mind that paying off your investment can happen quickly!
How much does it cost to start LuLaRoe?
LuLaRoe is so different from any other direct sales company in that you are starting your own business. There are no “fees” to get into the company. LuLaRoe has an aligned initial inventory package to help get your business off the ground. This package is designed to give you a great amount of inventory to see success right from the start. In your initial inventory, you will get between FIVE and SEVEN styles that LuLaRoe has put together and you an add on leggings. Depending on what styles you choose to start with, the cost ranges between $5355 and $9830. This gets you 100% wholesale product. Where else can you buy your own business for that price?!
What is the best type of Facebook and IG pages to have?
The best Facebook page to have is a “closed group” where you are able to add people and the members of your group can add friends too. You can also make a public Facebook Business page and Instagram account. Make sure that the name of your Business page includes LuLaRoe and your first and last name (ex: LuLaRoe Jane Doe) to be distinguishable from the other retailer's accounts. You are able to link your Facebook group to your Instagram account. That will aid in your Instagram followers finding your Facebook page, where obviously you will have a link to your private closed group where you can do online sales.
Can I create a website to sell from? What about Craigslist? Ebay?
LuLaRoe was first designed as an in-home party based company, but have since evolved into selling online as well. Retailers are strongly encouraged to make personal interaction our priority in our business whether at an in-home pop-up, vendor event, or online. The only place you are able to sell online is through closed groups such as Facebook groups and Instagram. You are not able to sell on personal websites/blogs. No sites with a shopping cart/payment function are allowed. We are also not allowed to sell on auction sites such as Craiglist and Ebay.
Can I order specific prints?
The prints that LuLaRoe curates rotate very quickly. When a print comes in, there are only roughly 2500-5000 pieces TOTAL that are made out of that print. Therefore, everything you receive is unique, one of a kind, and fashion forward. When we place an order, we specify the size and style that we need, but prints are chosen at random. They do their best to offer you a great variety. And trust me… EVERYTHING sells!
What happens if I can’t sell something?
Do not be concerned with not being able to sell these clothes! They are amazing, and seriously sell themselves. If for some reason you feel like your sells are low, then go back to the drawing board. Wearing the product EVERYDAY is the best way to sell something. If you have a pattern in your inventory that has been there for a while, throw it on and wear it to you pop-up. Ladies will literally buy it right off your body. Reach out to your sponsor and brainstorm ideas to help your sells and business succeed! Sometimes all you need is a little creativity!
How do returns to LuLaRoe work?
LuLaRoe will take back damaged items no questions asked as long as they are unworn, unwashed, and with tags on. Whether you find the damaged item in your order or a customer contacts you with a damaged item, LuLaRoe will allow you to send that item back to them and they will replace it with the same item (size and style).
If you are a retailer selling out of the business or have a style that is just not selling, you can send it back to the warehouse for a small restocking fee.
How many items do I bring to a pop up?
Pack your vehicle up!!! The more variety you bring, the better your sales will be! At a minimum, you should bring the number your initial inventory came with! However, as you invest and build up your inventory, some retailers get upwards of 1000+ items in their inventory. Don’t stress yourself out and think you have to take EVERYTHING! Just make sure to bring a good variety in each size of whatever styles you choose to take.
How do you process payments?
LuLaRoe has its very own point of sale system called Audrey's BLESS (similar to PayPal or Square). Low processing fees are attached for credit/debit cards. You will use this everyday in your business. You use the back office (BUILD) to send invoices to customers if they purchased online too. There is also a LuLaRoe app that you can download onto your phone to process your payments through when you are doing face-to-face sells. Cash sales are accepted too but the transaction still has to be recorded through BLESS for tax purposes.
What’s your average monthly cash flow?
That all depends on your personal sells for the month! The average profit off of one item is $19.00. So if you sold around 10 items a day you would be profiting around $190 for that day. The average retailer sells 25 items at an in home pop-up boutique. Multiply that figure by the number of parties you have scheduled and that’s your magic number. You will also have income coming from repeat customers who fall in love with the product and come to your (either your house or even via Facetime, ect.) to buy more. LuLaRoe retailers are also seeing HUGE success from online sales! The more driven you are and the harder you work, the more you will make!
Can we sell our items in a brick and mortar store?
No, we may not sell our items in a brick and mortar store. If we want to host a pop-up inside of a store that is totally acceptable, but we need to be with our inventory during that pop-up. Basically, you can not set up a store for people to come for that is there permanently. Yes, set up at the salon, school, hockey rink, or where ever, but no, you can not open a LuLaRoe store.
How much does it cost for shipping when I order from LuLaRoe?
As mentioned previously, everything ordered from LuLaRoe is shipped FREE to via UPS! Expedited shipping is an option if you need your product in your hands faster for a small fee.
Who pays for the shipping when sending items to customers?
When shipping to customers, you decide if you want to charge a shipping fee or absorb that cost. It's really up to you! Typically, retailers will ship single item purchases via USPS First Class Mail. And then, orders of 2+ items are shipped using USPS Priority Mail and comes with insurance and tracking. All Priority Packaging is free through USPS.com or you can find it at your local post office. This costs from $6.90 - $24.00. In most cases, retailers do not make money on shipping. Some retailers offer free shipping to their customers if they order over $150 worth of product. You can choose if this is something you want to offer.
Where do you order business cards from?
There are LOTS of options for ordering business cards. Once you have on-boarded and have set up your email address, you can order your business cards. Many retailers order custom designs from other small business owners on Etsy, etc. If you are on our team, Molly will custom design a business card for you free of charge! You can choose to print those where you want, but we also have access to a trade professional printer and get our cards printed at cost. Alternatively, you can design your own using LuLaRoe graphics and upload/print from a site like Vistaprint.
If you happen to choose me as your sponsor, I'm happy to help you order through a company I have an existing trade account with for all your business literature including business cards. I get them a wholesale cost and I have some graphic abilities and I'm happy to help you design something custom too. :) I do not offer this to other retailers unless they are on my team. ;)
Are you afraid of so many people joining LuLaRoe that the market will become saturated?
NO!!!!! LuLaRoe is still at ground level and has so much room for growth! Even if you have another retailer right in your neighborhood you will find that you both carry different styles and you will both have different prints to offer. It is actually nice having someone in your area to be able to trade product with and find things for your customers. Build great customer relations and they will stay loyal to you (meaning they will always come to your first to find what they need before shopping others). With online sales as well, we can market and sell to people all over the U.S.
How do you find people to host pop-ups if you don’t know anyone local?
Create a list of everyone you do know. They do not need to be close friends. School teachers, sports moms/coaches wives, dance teachers, your real estate agent, dental assistants, bank tellers, religious contacts, gym buddies... all are great people to contact about hosting pop-ups for you. Be sure to host a launch party at your own home inviting ALL of your neighborhood. Take flyers around to local salons, schools, businesses... Letting them know what you do and asking if you can host a pop-up there. LuLaRoe also has an awesome fundraising program. And lets not forget about those amazing online parties!! See…you know more people than you thought you did. Nothing to worry about!
Do I need a business license?
It all depends on the state you live in if you need a business license or not, but with the majority of states you don’t. Be sure to look on your state website to find this information.
How do I file my income taxes?
With LuLaRoe, you are self-employed. Most retailers file as a sole proprietor when they are beginning their LuLaRoe journey. This is done by filing through your personal name and using your social security number as your Tax ID#. As you grow your business you will want to look into LLC and S-Corp entity options. Be sure to consult with an accountant as this differs depending on your personal income, spouse's income, dependents, etc. You will only receive a 1099 from LuLaRoe if you receive compensation checks from building a team or from customers ordering off of lularoe.com and entering your name in.
Be sure to keep track of EVERYTHING you spend on your business and track your mileage. You will want to be able to apply all the applicable write-offs that you are eligiable for. Your account will be able to give you an idea of all eligible write offs.
Am I responsible for keeping track of and submitting sales tax?
Sales tax is collected through our point-of-sale system, BLESS. It is held on to by LuLaRoe and submitted to the state where the sale was processed by LuLaRoe on your behalf. Yay! This should be a huge relief for you.
What do you give your hostesses as an incentive for hosting a pop-up?
LuLaRoe has asked us that we offer one (1) free item of their choice for every then (10) items that are sold. Most hostesses will choose a variety of items as their free items, but even if they chose all Amelia dresses ($65/each retail), don’t get hung up on that. They are inviting all their friends/family to shop with you, bringing you new sales, new customers, and more potential hostesses.
Who pays for the items you offer to your hostesses for free?
As mentioned above, LuLaRoe gives us 5% off of our orders. This money is used to compensate us for the free items that we give to our hostesses.
What support do I have once I have joined? Who will answer my questions? Where do I go for help?
Well first off, I am part of the BEST LuLaRoe team, period. For REAL! When you sign up with your sponsor you are partnering with her in a sense. She will be right by your side to help you every step of the way. You will also be added to your sponsor's team Facebook group, as well as our main team Facebook group. There you will have the support of over 100s of retailers doing the exact same thing you are. A lot of great tools are available on these pages and you can ask any question and get a variety of responses and then decide what you want to incorporate into your business. There are a lot of fun challenges and training information offered on there to help take your business to new levels. Also, our team does conference calls and webinars weekly on a variety of subjects that you get to be a part of.
LuLaRoe offers home office calls every Tuesday morning, weekly trainings, styling series, and more! LuLaRoe also does tours in all the major cities as well as leadership trainings and national convention.
Support? Something you won’t to even worry about! I've got your back!!
What quotas do I have to meet in order to stay active with LuLaRoe?
An Independent Fashion Retailer will be considered inactive in any month that they do not produce a minimum sales volume of 33 units. Independent Fashion Retailers that do not produce sales totaling at least 99 units in a period of three (3) consecutive months will be considered inactive for that three month period. Inactivity for two consecutive three-month periods will result in the cancellation of the Independent Fashion Retailer’s Independent Fashion Retailer Agreement. There are exceptions due to maternity leave, military deployment, etc…
Can I sign up as a partnership?
No. LuLaRoe has updated their policies and procedures and no longer accept partnerships when signing up to be a retailer.
How do you balance work and family?
Do your best and know that this will be an ever-changing balance based on your family’s needs! Your family should come first and the best thing you can do is set a schedule! Might it change from month to month? Sure! But if you set boundaries for yourself you will have systems in place for your family so you can focus 100% on your business during “business hours” and 100% on your family when it’s family time! This will also help your customers to know what to expect when shopping with you. If you don’t schedule yourself for these different aspects – you will find yourself trying to do everything at once, and doing everything less than 50% effectively!
Delegate things that YOU do not have to do to free up time for your business and thus, create more time for your family! House cleaning, inventory photos, mailing, meal prep, kid coverage for a few hours during “work days”! Whatever takes up your time away from your family that is not an income producing activity can be delegated!
How do I get my spouse/partner on board?
If your spouse/partner is worried about the financial aspect of the business, we have a great financial tool that you can utilize and input your inventory and it will calculate how many items you need to sell in order to have your initial investment paid off. Be sure to ask your sponsor to email this to you.
You can also call the home office or ask your sponsor for updates on company statistics (sales, averages, growth, retailers, etc…)
Get your partner involved on the opportunity calls offered by DeAnne, the owner of LuLaRoe, every Tuesday and Thursday. This is a place you both can ask questions and get the answers you need. You can also set up a personal call with your sponsor and her partner to help ease their fears.