LuLaRoe Made In The USA [Everything You Need To Know]

LuLaRoe is a multi-level marketing (MLM) company in the United States. It sells women’s clothing, including shirts, dresses, skirts, and leggings through consultants who sell out of their homes. Each consultant can earn money by selling clothes to customers before moving on to other customers.

History of LuLaRoe

The company was founded in California in 2013 by DeAnne Stidham. The name is based on her three grandchildren – Lucy, Lola, and Munroe – who are referred to as the ‘LuLaRoe girlz’.

People who start this business usually work from home so they can also look after their families at the same time. Herbalife distributors were used as consultants for LuLaRoe when it started so it would have a foundation within the United States. This helped the company grow quickly when people chose to start it up in their own homes, joining the business with their friends and family.

They sell clothes for women who are size 12 to 26, which is why they describe themselves as ‘the perfect fit for every woman’. LuLaRoe’s clothes look like something that has been bought in a boutique and cost between $25 and $35 per item. They account for around 75 percent of sales and they only launch new clothes twice a year – this helps them keep their prices high by adding to demand.

The company started because DeAnne wanted to get back into fashion design after raising her three children. She didn’t have enough money to get into retail so she started selling clothes through a website. She also wanted to set up a business that was run by women for women, which made LuLaRoe perfect because she runs it from home and all of her employees are female – the only men working in the company are those dealing with finances. The name is based on her three grandchildren – Lucy, Lola, and Munroe – who are referred to as ‘LuLaRoe girlz’.

Originally DeAnne Kersey ran the company from her kitchen but now she has people employed in a warehouse next door who package items to be sent out to consultants around the country. They have over 80 stores across the United States and they’re available to buy online or from an independent consultant near you.

Advantage of LuLaRoe :

1) LuLaRoe is a multi-level marketing (MLM) company.

2) LuLaRoe sells clothes for women who are size 12 to 26.

3) They only launch new clothes twice a year and account for around 75 percent of sales.

4) All employees of LuLaRoe are female, with the exception of those dealing with finances.

5) LuLaRoe started because DeAnne wanted to set up a business that was run by women for women.

6) The name came from her grandchildren – Lucy, Lola, and Munroe – who are referred to as ‘LuLaRoe girlz’.

7) Initially, DeAnne ran the company from her kitchen but now she has people employed in a warehouse next door who package items to be sent out.

8)  In the past year, the retail price of LuLaRoe clothes has been cut from an average of $25-$35 per item to between $20 and $24 per item.

9) In order to become a consultant, you don’t need any prior experience in fashion design or sales. All you have to do is pay a startup fee of $5,000 and buy enough product within two weeks for your storefront. (to attract customers).

10) Consultants make most of their money by selling clothes but they can also earn money through recruitment. This goes back up to three generations so there’s potential to make an unlimited amount of money.

The disadvantage of LuLaRoe :

1)  LuLaRoe is a multi-level marketing (MLM) company so consultants have to sell clothes in order to make money.

2) Consultants also have to pay a startup fee of $5,000 in order to start their business.

3) If consultants don’t sell enough clothes, they’ll lose money on buying stock, which is different from other businesses where you only pay the cost price when the item is sold.

4) The more people you recruit as consultants, the more money you can earn but this goes back three generations so there’s potential for an unlimited amount of recruits.

5) The company started with DeAnne running it from her kitchen but now she has employees working in a warehouse next door who package items that are then sent out to consultants around the country.

6) LuLaRoe has over 80 stores across the United States and they’re available to buy online.

7) There’s no limit to how many people you can recruit into the business, with each additional person costing more money for training and product. Once you’ve paid off your initial investment in stock, most of your profit will come from recruitment. This means that there are some consultants who are earning less than minimum wage because most of their income is being spent on buying products so they can sell them.

8) LuLaRoe sells clothes for women who are size 12 to 26 but not everyone believes this is an advantage because if you’re naturally a different shape or size then what you’re wearing will obviously fit very differently.

9) The clothes are sized from 12 to 26, so it’s limited in what shapes and sizes they do cater for.

10) LuLaRoe launched last year with a collection called the leggings class which were all sold out within one hour of launching – people rushing them online meant that some didn’t manage to get their hands on any before they were gone for good. On the other hand, the founders say that this is a good thing because you can no longer buy them and will never be able to buy them again (like Gucci).

Conclusion:

LuLaRoe can be a successful business but it’s not one that will work for everyone. It is very focused on recruitment and you’re only limited by how many people you can recruit who can then recruit others, which means that some consultants are earning less than minimum wage because they have to buy so many products in order to get more recruits. If you do want to become a consultant, research the company thoroughly before signing up because there are advantages and disadvantages of being part of an MLM.

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