Clothing subscriptions

Are they really a smarter way to shop? 🤔

How do they work?

There are two business models –

1/ Pay a monthly fee to be sent clothes + you can purchase those items at a discount – e.g. Vince Unfold, Le Tote, Rent the Runway (limited ability to purchase items).

Shipping, returns and cleaning are free. Send back the items you don’t want to keep, they’ll send you a new group of items. Depending on the company and the plan, the number of items ranges from 4 per month to unlimited.

2/ Get sent items to purchase, potentially at a discount. If you don’t want to buy, you’ll be charged a stylist fee – e.g. Stitch Fix, Trunk Club, Frank and Oak.

This is personal styling. So no real business model innovation here 🤔


As a consumer, which option should I pick?

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ROI

“Return on investment is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.”

Thanks Investopedia 🤓

The concept of ROI is simple –

but it’s really the implications that are fascinating. For example…

“I wore this dress once but that’s ok, it only cost me $20.”😅

Compared to…

“I wore this dress once and I spent $200.” 😟


It’s so much easier to accept mediocre returns when the initial outlay is small. Hence why you are more likely to impulse purchase clothing & beauty products, then say, a car.


So how can one make better decisions when it comes to maximising ROI, especially for small purchases?

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Why Glossier Play is smart business strategy

At first the concept of Glossier Play confused me. It seems to be (and pretty much is) the polar opposite of the Glossier philosophy of pared down essentials.

But from a business strategy perspective, it makes sense.

Why?

A. It’ll increase the average value of the existing customer

Will it alienate their existing customer base? Unlikely, if you’re like me and lean toward the no makeup makeup side of the spectrum, it’s pretty easy to just not buy the new stuff. The new stuff doesn’t affect the quality of the old stuff.

However, if you already love the Glossier brand, there’s a high chance that you’ll buy a couple of items to try out. And don’t we all know how often just trying something out leads to repurchasing…yep, looking at you Boy Brow.

B. It’ll expand the audience

Not a fan of the original Glossier’s no makeup makeup look? No problem, now there’s glitter and bright colours too! Plus why wouldn’t you target a highly engaged segment of the beauty market? (No one accidentally decides to buy a yellow eyeliner, not least someone who isn’t already a makeup person).

Glossier Play isn’t really my cup of tea, but I wouldn’t be surprised if it turns out the new big makeup thing for 2019.

Sharing is caring, spring 2019 edition

A new season is a good time to review your finances. If you ‘Spring Clean’ your house, why not do the same with your money?

Credit cards

How do your fees compare? 🇺🇸 https://creditcards.usnews.com/articles/fee-survey

Credit scores

Useful to know if you’re looking to get a loan 🇺🇸 https://www.creditkarma.com/

Retirement planning

🇺🇸 401k https://alpacacap.com/sort-out-your-retirement-401k-usa/

🇦🇺 Superannuation https://alpacacap.com/sort-out-your-superannuation/

What is the point of budgeting?

Budgeting comes up as one of the ‘must do’ items if you want to be good with money. You must have a budget. You must stick to a budget. Whatever your budget of choice, there’s a zero based budget, a 50:30:20 budget, a 74:26 budget (really, in case you couldn’t tell, you can have any type of budget you want…).

But what problem does budgeting actually solve? 🤷🏻‍♀️

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