Becoming a LuLaRoe Consultant
Questions and Answers for becoming a LuLaRoe Fashion Consultant:
Q: How much does it cost?
A: The initial investment varies depending on what styles you wish to start with. Lularoe requires each new consultant to choose four styles (a skirt, a dress, a top, and the 4th is your choice!) and leggings. The styles you choose for your initial order will determine your initial cost. Average is around $5,000 and that will buy you 300-400 pieces.
Q: How much extra do you need to invest as far as racks, mannequins, business cards, etc. In addition to the inventory?
A: This is going to depend on what items you already have and what style (example: velvet hangers vs plastic) of items you wish to purchase. You’ll want to start with 3 racks (make sure they are collapsible so you can take them to pop ups easily) I ordered mine on amazon for $59 each, 250-300 hangers (I personally like the look of the velvet hangers, but you can do plain plastic hangers for cheaper if you wish), a dress form (I got one on sale at Joann fabrics, amazon also has great prices), business cards (I order 500 at a time via vista print), a full length mirror for pop-ups, shipping scale and shipping labels (that fit your printer) are the things you need to start. I also suggest investing in some photography lighting ($50 on amazon) if you plan to do online sales, as the photo quality will really help your sales. And if you wish a photo backdrop, however if you have a plain wall that works just as well. I had roughly $1,000 of extra expenses in addition to my inventory.
Q: How do I come up with my initial investment?
A: Yard sales, personal loans, a credit card with 0% interest for 12 months (most common), a family member. People always find a way when they get bit by the LuLaRoe bug! For me, the interest free credit card was our choice of financing.
Q: How long will it take to make back my initial investment?
A: The average is 3-4 months. I was able to earn mine back with my first month of sales
Q: How much do you have to work?
A: In the beginning you will work a lot because you are figuring out your business, but you will find your groove and a schedule that works for you! You decide when and where you work, and what works best for you and your family. You can make it a full-time job or part-time...it's really up to you and how fast you want to grow your sales.
Q: When our orders from LuLaRoe are shipped to consultants are the boxes insured?
A: Items are not insured. You'll want to sign up for My UPS Choice and that will allow you to see all the items that are scheduled for delivery to your home and get a text message the morning it's supposed to be delivered.
Q: I know your initial investment you get roughly 300 pieces, is there a minimum to the amount of inventory you have to have for each sale? And when you refresh inventory do you have to pay an additional 5k each time or do you purchase just a set line/style?
A: After your initial order, you can order whatever you want as long as you have a min. of 33 pieces with each order. LuLaRoe ships for free, so that is why they require 33 pieces or more with each order. If you are adding a new style to your collection, you can also order whatever quantity and sizes you want.
Q: What kind of a contract are you under? Do you have to pay a monthly fee to be a consultant? If it’s something that doesn’t work out can you quit being a consultant, etc.
A: You do not have to pay a monthly fee, but you are required to place a minimum order every month for 33 items (leggings come in sets of 2). If it doesn't work out for you, you can always quit. You own the inventory so you will be responsible for selling it off or you can send it back and they take out a restocking fee. You'll get back 85% of the wholesale price.
Q: How much money can you make selling LuLaRoe?
A: Your total profit is dependent on you as an individual and how many sales/pop-ups you have! The more pop-ups you have the more you can make! As a consultant you buy all items at wholesale and sell retail, so you average a profit of $15 per item.
Q: Once you place your initial order, how long does it take to receive your inventory?
A: LuLaRoe asks that you allow them 1-2weeks to receive your initial inventory, remember you ordered 300+ items, so it will take a while to package and ship them all. However many consultants receive their items much faster. Also going forward your orders will come within 3-4 days of ordering.
Q: I know it’s a sponsor based company, so what kind of kickback do you get from having consultants on your team?
A: When you sign people up under you, you get 5% of what they order from LuLaRoe. When they sign someone up under them you get 3% of what they order as long as YOU order 175 pieces that month. When you get to a Trainer level, there are more complicated rules
Q: Are there rules to selling? Are you allowed to clearance your items that have sat for a while (I know you said that there are set sales prices now so does that mean no more clearance?)
A: Any publicly listed prices must be the set prices as determined by LuLaRoe. However, we are allowed to offer discounts and specials in one-one-one communication. When you do in-home pop-ups, you can use different pricing (although they still recommend a price range) since it's not a public event. You can also use giveaways to move some of your inventory, or try swapping it with another consultant to keep things fresh.
Q: How do you do your mailing? Do you print labels yourself then drop off? Where do you get all the envelopes, and boxes, etc.
A: PayPal Multi Order shipping is the primary resource for consultants, but there are also other sites (example stamps.com) which you can use or even go to the usps.com directly and so it that way. I order all my labels on Amazon, along with the poly mailers. The Priority bubble mailers you can order in lots of 10 (or a box of 100) for free and you can also get the flat rate boxes for free. Just go onto USPS and order them...they'll deliver!
Q: I know you don't charge people shipping so I was wondering what the average cost Shipping is as it will be deducted from your total profit?
A: Shipping one item first class runs around $3.50. And then Priority Flat Rate is about $6.
Q: If you decide to keep an item (because lets face it I'm sure it will happen) do you buy it from yourself?
A: Yes, you will definitely keep items. You'll want to wear LLR whenever possible to help advertise your business. You can track this in whatever way you want. You could invoice yourself as a cash sale and then put the money from your personal account into your "purchase inventory" account or however you want to do it.
Q: My biggest concern is the book keeping as far as taxes, should I hire a consultant?
A: I highly suggest hiring an accountant or at least paying for a consult with an accountant. They can tell you all the things you should track for tax purposes (mileage, giveaways and other promotional products, etc.). If you aren't an accountant and not comfortable doing bookkeeping, then I feel like it is worth the expense and peace of mind. And it will save you a lot of time in end. You should be able to find an accountant to do your books for $250-$500.
How do you sign up?!
Start by filling out this short application, https://mylularoe.com/join/saracha
Then email a signed contract, voided check (so they know where to send your sales deposits), and the onboarding checklist to firstname.lastname@example.org. If you don't have a scanner, you can take a picture of the signature pages and the voided check. Finally, call LuLaRoe at (951) 737-7875 to make sure they received your email, and schedule a time to place your initial order (usually a few days after you submit your application). Once you do this, let me know so I can send you a "to do" list that you can start working on while you wait for the call to start!!!
*****I hope these Q & A’s were helpful to you, if you have any additional questions don’t hesitate to ask! You can message me on Facebook: LuLaRoe Shopping Sara & Elizabeth, or via email: email@example.com
Want to learn more?
There's an opportunity call every Tuesday and Thursday at 4:00 p.m. (PST), where the owner of the company, Deanne, gets on and talks about how the company started, etc. and leaves it open for all questions at the end. The number for the the call is (712) 432-1500 and the access code is 778659.