JUST IN TIME: San Francisco e-tailer Lyon and Post is set to make an aggressive splash into the upcoming Black Friday weekend with some heavy discounting.
The online, try-before-you-buy business sells contemporary labels such as Frame Denim, Show Me Your MuMu, Mother, Joie, Current/Elliott, Paige Denim and Elizabeth and James among other brands. The company’s “Name Your Price” sale looks to clear out inventory, while also taking a different tact on promotions around the kick-off to the holiday selling season.
For select merchandise offered on the site, Lyon and Post has set a starting bid. Shoppers can then make offers on anything above that price floor. The winning bidders will then be shipped their merchandise.
Lyon and Post founder Lawrence Wisne explained “we wanted to do something different and innovative.” It’s also a way of addressing the challenges in marking down merchandise in the try-before-buying model, which Wisne explained can only be discounted so much.
Unlike the rest of the merchandise on Lyon and Post shoppers test before actually agreeing to purchase, the Thanksgiving week sale running Nov. 20 through Nov. 27 will be final sale merchandise.
Lyon and Post has also introduced a loyalty program that will provide repeat shoppers or those who refer others to the site incentives, such as access to insider events and sales. The program’s benefits vary depending on what tier a shopper falls within.
Wisne, who started the company in 2015, said Lyon and Post counts nearly 100,000 members and closed on a seed round funded by area angel investors last year. The executive declined to say how much the raise amounted to, but said he is conservative about funding, pointing to Revolve as a good example of an e-commerce company that’s grown without loads of capital raised.
“We’re trying to stick on that path because there’s been a lot of good in bringing in the huge rounds, but there’s some baggage that comes along with it,” he pointed out.
Wisne declined to say where the company will land on revenue by year’s end, but confirmed it would notch a gain from 2016. He also, when asked about profitability, said the company was nearing that milestone.
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