I originally decided not to buy SFIX when it was recommended. It sounds like a great company but I was concerned about my lack of understanding of a particular metric. Maybe someone on this board knows the answer to this. What is the average length of a customers life for this company? For example, how long does a customer continue buying from the company after her/his first purchase? My concern is that if the number of purchases is very few or the relationship is very short, once all of the customers that are inclined to buy in this way make their purchases, the volume could decline. I saw this phenomenon take place with a weight loss company that grew very rapidly but only kept their customers for 90 days. The company grew from 10 mil to 500 mil in sales over a 2 year period and then shrank. It was a good company but the stock price went very high and then crashed. Once the target customers tried the products based on the initial hype and it ran through the population the sales volume settled at a lower level. I’m not here to say bad things about the company because I think it’s a great idea. Just expressing a concern that I thought could be addressed here.
kenmfoolYou should be aware that you are on the public SFIX board. If you bought it as a recommendation of one of the subscription services, there is a Premium discussion board here:https://boards.fool.com/4056/-stitch-fix-sfix-122448.aspxJohn
I also had similar thoughts about Stitch Fix and the business model. I don't own the stock, but considering a buy. I decided to try to conduct my own market research first to better understand the business model. I sent a request to FaceBook friends asking anyone who had used the service to message me with their feedback. I spoke with one friend who is rather tall for a lady. They had a hard time fitting her, however she said she liked the accessories they sent and said it was very easy to use and make returns. She ended up cancelling after a few months. I decided to visit the website and ended up signing up for a Fix. I am not one who likes to shop a lot for clothes, however, I am rather particular about my clothes and appearance. After filling out my personal profile and scheduling my first Fix, I was sceptical. I'm also not one to "join" unless it's a Motely Fool subscription, then I'm a sucker!I have now received two Fixes. With both orders I received 4-5 items and had the opportunity to keep or return. If you buy all items you get a discount. If you buy one you get the $20 stylist fee credited for the shipment. I kept items from each shipment. I was rather sceptical at first. However, I have to say I was really impressed with the items that were shipped and how close to my personal "style" they were. I've decided to continue the monthly deliveries for now and will probably make room in my portfolio for a small purchase of stock.Glennaaka, realtorgal.
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