Tuesday, May 23, 2017

Updates

DeAnne: Good morning! Today is a fabulous day! I am excited about the great things happening with LuLaRoe. Many of you know there was excitement and thrill going on. There is just so many great things with this company. We are going to stay and we are strong. We want you to succeed the best way possible. You can count on us. We have this new launch that happened over the weekend, the new collection for Disney happened last weekend. We have been anticipating this for a good year or more. Mark can tell you more details if he feels it is necessary, but there are going to be so many amazing prints. I am wearing a classic T right now. We are the only company producing these prints from Patrick's team in things like Carly's and Irma's as well as leggings. You are going to see a lot of mickey and Minnie right now. We can't launch it all at the same time but amazing things are coming your way. They will start with the fabulous 5. But there is much more to come. This is a collaboration available for the next 2 years. So be a part of every conference call so you know when new things are being launched.

We have all kinds of other amazing styles you get daily in your shipments. Be ordering every week, or 2-3 times a week. This is your business and your opportunity to be creative on getting the word out. Get out and talk to people in your communities and do fund raisers and talk to teachers. Now is a good time to reach out to teachers and think about what you can do to offer them some gratitude leggings and give them a card that gets them to come to your LuLaRoe room and shop your merchandise, and they get leggings when they do. Remember during the summer months you should be preparing for events out there in your community. Things like expos and gun expos and different things that create an atmosphere of people gathering where they can get to know what you are offering.

I want Mark to tell you about the new launch for Americana. How did that go and what does it look like? We are Americans and are excited!

Mark: The exciting thing is that the Americana launch was the 2nd highest sales day we have had in LuLaRoe. Last month we terminated the use of credit cards, so that means you bought the product from your proceeds and that creates a solid business for you. We want you as small business owners to be more efficient and focused and thriving. As we have done that I have heard some concerns, but I have thought about something the last few days. There is a single answer to every problem you think you have in LuLaRoe. Give me a problem. "I don't have money to order the new product." The answer? Get out and sell the product you have. Book parties and do pop ups. "My inventory is stale." Go book parties and do pop ups and sell product and use that money to order fresh product. Any problem that you can come up with I am going to tell you the answer to that problem in LuLaRoe is solved by booking parties and having sales. Use the discipline in your sales and organization to keep money in your business and keep money on your LuLaRoe card so when it is time to order you have that resource and when we come out with a new collection you have cash in your business ready to order. When we have new Disney you will be ready to buy them.

If you are fearful now about having the money for the Disney to come - get out there today and sell product and leave that money in your business! Continue to turn that money over and freshen your inventory.

DeAnne: Use the new Americana inventory to encourage people to come and your business will grow. Use this as a time to reach out to hostesses and ask them if they want free clothes. Use the hostess to reach out to her database of friends and family to invite them to your home and let that be a fun opportunity to get together and collaborate ideas on how to style an outfit and use that to meet new people. It is more fun and positive for you to do that together and show each other things.

The other thing we want to encourage, not as a requirement, but use the opportunity with the Disney collaboration to not just sell a single piece. The biggest thing that would be hard for you, but an asset, would be to use Disney to put an outfit together. Most women I know, me especially, like it when someone gives me an idea or a suggestion or how to put things together. I was happy when someone at the home office suggested I put my classic T with a Nicole. So I encourage you not to sell the Disney items singly, but as an opportunity to upsell. Then you will have more opportunity to turn over your merchandise in a good way.

Mark: One of the things is that Disney is one of the largest and most iconic brands in the world and they are fierce in defending their brand. There are some terms and conditions on how we can sell theirs brand. You will be required to read them and follow them and this is from Disney protecting their brand. I want you to understand that selling the Disney collection is a privilege and not a right. You don't have an absolute right to do that. You have an opportunity and you will have to buy into those terms and conditions. So be aware of that and become an active participant in this collaboration and then you will have more success and the brand will have more success. We are asking you as retailers to educate yourselves. It will all be posted in the back office.

Some other information to bring to your attention: we have some assets that will be released today for a full picture, but for those of you using the old Audrey system, we will be sunsetting it by the end of this month. The last day of May will be the last day you can process through that system. There are several reasons for that. Primarily is that that database has never been a solid platform for us. We have held it together with tape and chewing gum and made it work, but it creates a lot of extra work for IT to keep it working. So it is shutting off the end of the month. So that means you need to switch to another point of sale system. Let me be clear. There are times we have to make choices and decisions about the stability of this company and the obligations we have. If I don't take care of the company as a whole, none of you can leverage what we have here. So there are decisions made to stabilize the whole company. We are obligated to pay sales tax. We as the corporate office are obligated to pay them. I thought that we would have 50 tax rates, we have 50 states. But there are over 20,000 independent sales tax jurisdictions in this country. You have cities, counties, school districts, fire districts, all kinds of things attached to that. It is incredibly complex and so now in the new Bless system there is a geolocator that identifies where the party is held and charges the correct sales tax at that location. And if you ship a product it calculates based on the shipping address. So any system you use will need that component. And it will also need to identify retail sales so we can track them because we are going to a retail based compensation plan.

The new Bless system meets those criteria. If another system were to meet those criteria we can be willing to allow them to be used, but let me be clear - our IT and legal department are the determiner if your system meets those requirements. It has to geolocate, report, and identify sales and report to our system. I am going to encourage you, rather than looking for that system, move yourself to the new Bless. The Possum system. If you don't know how to do that, there is a website "retailsuccess.com" and they have a menu there that has all kinds of assets to teach about the new system and getting set up.

Let me be clear - this is a preparatory announcement. We will have the month of June to work through these systems. Come July 1st, if you aren't using a system that meets those requirements, we won't sell you product. We have corporate obligations and we have to have that information gathered and accurate so we can meet our obligations. If you can't help us meet that, we aren't willing to help you be in business with us. I hope that is clear and simple enough for all of you that are fearful. The bless system will take care of the issues we are concerned about and it gets you paid instantly. There is not reason not to use the system. So I heavily encourage you to use it and to understand that if you aren't using it or something that meets the requirements, we won't sell you product.

The other thing as we talked about a sales based compensation, I want you to understand that there are 5 different ways to get paid in this business. We don't care which you choose. We don't care how successful you want to be or relaxed you want to be, or the work you want to do. We want you to work to the level you are comfortable with. The first way you get paid in this business is retail sales. 70% of this company only does retail sales. So 70% of the sales force isn't interested in building a team. They just sell product and make money. That is a wonderful business.

The 2nd way you get paid is through sponsorship. You bring people in and build a team. 3rd way is through leadership and points in the leadership pool. And we have 2 new ways. 2 fast start programs and I won't go into the details, but if you sponsor someone into the business and they sell 175 pieces a month for the first 3 months, you as their sponsor get a 500 dollar cash bonus and the new recruit will get a free 50 piece order. So 175 pieces sold for 3 months in a row the first 90 days gets that bonus.

The next one is that if you sponsor someone that cruise qualifies the first 6 months they are in business, they will get a $2000 cash bonus and you as their sponsor, if you are also cruise qualified, will get a $1000 cash bonus. So these are aimed to direct your behavior at getting them up and going. If you sell product you will succeed. If you are organizing inventory and sharpening pencils you will be busy but maybe not succeed. You need to be handing out product and taking money.

The last thing I want you to know is that when we suspended credit cards we still had the 2nd highest day of sales in the history of this business. That says something about the decisions that we make here at corporate, maybe unpopular at first, but we are committed to being wise stewards and having programs to incentivize behavior for you to have a strong business, and that rising tide lifts all ships. We can't succeed with you and we need you to be successful. So our decisions are about how to make you more successful. Some things that might feel uncomfortable, instead of being fearful, be excited and embrace them and make the assumption it will work. Take that attitude and your business will grow. We love you and back to Deanne.

DeAnne: First, I am so excited about the new bonus thing. I am listening to this because I missed some of this. I am so excited about it. It inspires you as the sponsor to get out and work with your people. It isn't fair to sign up someone and not spend time with them and help them with success. People leave because of expectations that weren't met or they feel they aren't getting the right support. It is important that we take responsibility to help our new retailers that join LuLaRoe to feel comfortable and the excitement you are feeling. I am talking to the leaders here. That you are making sure they are succeeding. I am excited you came up with that idea. Mark, you are amazing in wanting to make sure that is who gets rewarded. That is the right thing to do. Helping your people succeed.

Now over to Kenny and Art here in my office at the new office building. It is so nice here.

Kenny: Thank you so much mark and Deanne. If you can hear my voice and you weren't at leadership, you need to talk to your leaders and find out what they learned. They have a strengthened view and commitment to LuLaRoe. So talk to your leaders about these things and ask them to share their experiences with you. You will be in their seats soon. As you start selling the product and getting out and connecting people to product and other people, they gravitate to this business. So much about this business brings joys to peoples lives. It helps people achieve their dreams. We are thrilled and we are here and excited for the future with LuLaRoe and especially this collaboration with Disney. We have so much in store for you.

We are going to be on the road this week. The On Purpose tour. This Thursday in the morning we are in Provo, Utah. Then in the afternoon Colorado Springs, Colorado. If you have anyone in those areas make sure they register and get there. We want to sell out these events. Deanne and the home office will be there and ready to teach you ways to help your business succeed. Also, the end of June, on the 28th, we will be in San Diego and Los Angeles, California and on the 29th Las Vegas and Tucson, Arizona. These are places for you to get energy and to learn and to be rejuvenated and to be around like minded people for a whole day.

I know there are super Saturdays going on all around the US. See if there is something in your area. Look on the events app. Leaders are posting things there. Be a part of those things and participate. I do say a rising tide lifts all ships, but only if you are there and involved.

Art: If you are listening to this call and you are anxious to change your current pathway - you have leaders that have just left leadership training and they have new techniques ready. Reach out to them. They are assets to you and they have a desire for you to succeed. If you want a new set of results, connect to a retailer and a leader and they will help you succeed to help you change your life for what you want. What a wonderful time to be in this business. So much happening and wonderful product coming out.

Kenny: We want to turn the time back to Mark for a minute here.

Mark: I just wanted to add something. There is a piece to this process of moving to the new Bless system I may not have communicated clearly - I wanted to let you know the litigation with one of our former vendors that help up our movement to Bless has been settled amicably. Neither side admitted wrong doing, it was a misunderstanding and we negotiated a settlement there and we are going our separate ways. We are free to pursue fully our new BLess system. So incase there was any confusion, that litigation is settled and we are free to pursue Bless as we choose.

Justin: Hello everyone! Thank you everyone. What an amazing call so far today. I want to tell everyone what an amazing event leadership was. I wish every one of our retailers could have been there at Disney with us. What an amazing opportunities to work with this brand. I want to clarify a few things - some information is kind of getting scattered. So I have good news. We are creating a marketing toolkit for you for the Disney collection. We haven't released any products yet, and everyone will have the same opportunity to order. We have this toolkit that will have photos, phrases, assets, things you need to market the LuLaRoe Disney collection. We have amazing guidelines with the Disney company and we look forward to having some really fun times with this collection. This marketing toolkit, you will need to sign a terms and conditions and you can't create your own assets or phrases. It needs to be a collective and unified voice on this. This will all be coming your way shortly. Look for that. This will be available to you prior to the products releasing. We are getting it all prepared and ready. We will be sending out something with the information you need and the ways this will benefit you as a retailer. And look for more information about the movement to Bless. It is a cool tool and platform. Look for information on all those things from the marketing team through Build and Fashion Fun. We want you to have the information you need to stay informed. We have a fun social campaign that got all the retailers together and as Mark and Deanne mentioned, we launched the Americana capsule collection. You can wear it year round. My dad is a Vietnam vet, and I am grateful for all servicemen. So thank you everyone. We love this collection.

We are doing a photo shoot for this collection today and you will have it available to you. You will have information in your back office, more is coming. There are limited numbers of kits available, but it came in Carly, Irma, Randy, Scarlet, leggings, etc. I want to give a thank you to all of you for the magic you are making. If you are in the business to make a few hundred dollars or higher goals, this is an amazing opportunity for you to achieve what you are looking for. We are here for you and to provide you with the assets you need for success. If you are selling $1000-2000 a month, that is rad. You are all amazing parts of the LuLaRoe team. We are helping people grow and develop as individuals. The more we can be friendly and positive the better. Don't give people a reason to say anything bad about you. "If you can't say something nice, don't say nothing at all" - Thumper, Bambi. So just keep making the magic happen!

Patrick: Alright thank you Justin. So excited to be here with you all. We had a great time at leadership this weekend. I am sure you all had photos and leaks about what we are cooking up. So happy this doesn't have to be a secret anymore. Over a year we have had to keep our mouths shut. So limited Disney prints and our Americana collection. Glad to be serving you with these styles and prints. There are some prints that we did very low volume to keep that limited edition look at feel.

A phrase I want to share with you is "the more you learn, the more you earn." My challenge is for you to be more knowledgeable about our mindset and why we do what we do. Such as limited edition prints. And not to see your business through the eyes of a consumer, but as a business owner and doing what is needed to be successful. You all looked awesome over the weekend with your styling. Justin and I are here at a special meeting for some upcoming goodness that you might see soon. We are going to get back to that and thank you for all you are doing. Back to Deanne.

DeAnne: Wow. So many exciting things happening. Just get ready. This is so good. As Mark said, if you are here to do a little bit, don't compare yourself and get down - you are in this business to do what you want to do. If you are here for an extra $1000 a month, then hooray for you! Embrace that and give yourself a pat on the back for doing it! It confuses me when people say they are thinking of changing and not doing it because they aren't succeeding like some other person. But you are succeeding! You got in here to bring in extra money and eliminate finance stress. And if that is what you are doing, then give yourself kudos and say "I am awesome!" If you later want to stretch, you can stretch. Maybe add an extra Facebook sale or Periscope if you want to, but be you, be genuine, be down to earth and embrace the good you are doing. THAT is what LuLaRoe is about. We created this business to give you an opportunity to find more friends, talk to people, and get to dressing yourself better and feeling better. The money is a perk. A huge blessing. And we will embrace the good we have and we are going to learn and earn. We love you and care about you and are excited about things to come. It will just get better. "If it is to be, it is up to Me." So get out there and challenge yourself. Maybe add one or two more items.

Use this Disney collaboration to instill an opportunity to get more things on the books especially if you are struggling. Post, tell people you have things you want to sell, and watch for how soon everything will be laid out to you with assets and advertising and things ready to be used. So get out there, have a great day, and make it happen. Spring is in the air. Get out there and hustle now and you can have a better, more relaxed summer. Start dreaming about building your business. Have a great day and thank you for doing what you do. It is appreciated. Talk to you later. Bye bye.

[End of webinar]


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