The beginning of the end.. of Lularoe?

Please post anonymously:

I have a master’s degree in business management and have owed/operated 3 successful businesses. I have been fascinated by LLR for a while now because I have never, in all my studies or business experience, seen anything, not anywhere close, to a complete business disaster as LLR. I am sure it will be used for case studies for many years to come. Anyway, I feel obligated to provide due warning to those involved with LLR in light of the recent announcement.

Every single blaring warning sign that LLR is in desperate times is right in front of your face. Let’s go over some of the last few months. These are not necessarily in chronological order.

1. The Disney launch that was promised to be a game-changer fell flat and wasn’t the game-changer promised. Know that Disney is THE single largest global licensor….Number 1….has been for years. Nothing was ever unique about LLR’s license agreement. It’s what hundreds of companies do. But it was sold to consultants that way…..to sell kids clothes to women. Ever see any market research LLR did on this (or anything else for that matter)? Didn’t think so.

2. Mark announced in a home office call that 87% of consultants were still in the business. This just weeks after LLR sent birthday leggings to hundreds of consultants that were no longer in the business, indicating LLR has absolutely no clue who their consultants are. Remember that consternation?

3. The Americana launch fell extremely flat, leading Deanna to prompt consultants to give away 10 pairs of Americana leggings to “bless people”. This is standard for LLR, to encourage consultants to give stuff away at the consultant’s expense when things don’t go well. Remember the same thing with Valentine’s leggings? Give them away to school teachers, right? Bless lives, right?

4. An email claiming a 0.5% defect rate went out to consultants in response to negative articles published about defective clothing. Then consultants, eager to support this claim, posted their testimonials…..every one I saw was well above 0.5%….EVERY SINGLE ONE! And the consultants didn’t even realize they were contradicting the claim by trying to support it. Laughable.

5. The sales tax lawsuit: LLR operated for over four years on a system that inaccurately charged sales tax, leading to a class action lawsuit by consumers. On the heels of that settlement, LLR launched their new point of sale (POS) system, New Bless. The new system, lauded by home office, mentors, coaches and trainers, experienced frequent outages, placed multiple pending charges on consumer credit/debit cards (which is withholding access to the consumer funds/credit lines), and has numerous failures to process sales, causing consultants to delete and re-issue invoices. In short, New Bless is so far behind industry standard for POS systems it is remarkable, yet lauded as “amazing” by LLR leaders.

6. LLR implements the Make-Good and Happiness policies. A huge response unveiled LLR’s inability to grasp the magnitude of their defective products. They did not have a viable system in place to deal with these policies. These policies were implemented unannounced to consultants, but held consultants responsible, in part, to terms of the Happiness policy, a complete blindside to consultants. No training or standardization to affect the implementation of these policies was (or ever has been) provided to consultants, leading to wide-varying interpretations and execution of these policies. . LLR did not have a viable process to receive and track claims/refunds. They cancelled checks, causing non-sufficient funds charges to those to whom they were issued. LLR issued checks from at least three different accounts (that I can account for). This is a HUGE red flag. They issued multiple checks for a single claim (because they have no clue what they are doing). They have yet to resolve all claims, despite being well beyond the end date of the Make-Good policy.

7. LLR opens an east coast warehouse, investing a large sum of money in facilities and employment on something that frankly I can’t see possibly being justified, particularly amid the huge refund expenses they are incurring. Huge mistake.

8. LLR holds a conference in Canada, hoping to expand its market there. The conference is poorly attended and executed.

9. LLR holds “Vision 17”. Despite selling a known number of tickets, they fail to provide adequate food and transportation at their event(s) while paying Katy Perry and Anaheim stadium ridiculous amounts of money for a feel-good event.

10. LLR announces release of additional styles at Vision 17. Immediate quality issues are exposed with shirts that have sleeves of different lengths and jackets that have buttons falling off and rocks in the pockets (among other things), once again exposing quality control issues.

11. LLR announces 100% buyback and free shipping of consultants going out of business (GOOB). This immediately becomes a big mess because LLR (once again) met an overwhelming demand and response that I’m sure they weren’t expecting. LLR (once again) did not have a viable process to receive and track resignations/refunds. The process of returning inventory is taking months, when it takes a normal wholesale provider a matter of a couple days to a week to resolve.

12. A print with an artist’s watermark is discovered on leggings sold by LLR. LLR issues a statement claiming an individual was responsible and was terminated and that they would appropriately compensate the artist. Keep in mind this wasn’t the first instance of theft of intellectual property by LLR. Then consumers start looking for other instances and literally hundreds of LLR prints are discovered to be from clip art, books, websites, and various other media. Keep in mind LLR has led consumers and consultants to believe their prints were “original”. Yeah, ok.

13. Waiting time for those in the “queue” has dwindled to hardly any time over the last few months. This is a very clear indicator that LLR is desperate to gain liquid funds that they can use to cover the policies for Make-Good, Happiness, and GOOB consultants. It is also a huge indicator that they don’t give the slightest crap about how long a potential consultant receives training and preparation to become a consultant.

14. Two weeks ago, LLR holds a meeting with senior mentors/coaches and insists the inventory buy-back program is not going away. TEAM leaders plaster this on their TEAM pages.
15. LLR hires a social media guru, to try and put out some of the firestorm.

16. Yesterday, two weeks removed from lying to their most senior leaders, LLR rescinds the 100% buy-back and free shipping offer. They lied, right in the faces, to their most senior leaders.

17. LLR announces postponement of their training tour. Hmmmm.

18. LLR announces delay in bonus checks because Mark and Austin are in Russia.

Ok, this is just a brief recap of some recent events. Along with that, LLR has an F-rating from the Better Business Bureau. LLR’s Dun and Bradstreet (DUNS) report indicates LLR is considered high risk for severe financial stress. This is a staple report in business. These are blatant indicators that LLR is a very, very, very bad business. These are staples in business reporting.
The Federal Trade Commission (FTC) has reported that 99% of MLM consultants break even or worse. This is true for LLR or any MLM. 1% will be successful……1%.

You will hear consultants say LLR is a billion dollar business. It is not. A billion dollars in annual sales doesn’t make a billion dollar business. A business’ worth is based on its liquitable assets, not its sales numbers. LLR isn’t anywhere ever remotely close to a billion dollar business. All indicators are that they are much, much closer to a business worth $0.

What you should do:

Consumers: Stop buying this crap. The quality is poor with sizing and craftsmanship issues apparent everywhere. You have been duped into the mindset of “winning” the opportunity to buy a “unicorn”. It is more about the “winning” than it is about the piece itself. Auctions and casinos have used these mental tricks for years. LLR merchandise is poor quality and way overpriced. You just feel good when you “win”. Also, you are perpetuating the problem by allowing more and more women to be lured into a near-certain losing situation as a consultant. Just stop. Don’t contribute to the problem.

Consultants:

Get all of the money off your LLR card NOW. It is a matter of time before you won’t get it. Start processing transactions as cash sales in Bless and receive your payments through a reliable POS system like PayPal or Square. These systems offer protection for buyers and sellers that Bless doesn’t and, again, it’s a matter of time before your LLR card gets frozen with your funds. REDUCE your inventory NOW! LLR will be gone, just like they do everything else, with absolutely no notice. You are already now competing with more and more GOOB sales because nobody in his/her right mind would send inventory to LLR now. Which leads to DO NOT send your inventory back to LLR. You will certainly lose in that situation. You are now stuck with liquidating your inventory yourself.

Sponsors/Trainers/Coaches:

DO NOT prey on others and recruit any other consultants…..NONE. Take a moment and reflect on the path of destruction for so many consultants behind you. Don’t do that to anybody else. Have some ethics and morals. Stop pursuing your next bonus check at the expense of a person/family. It is unethical. It is selfish. Stop perpetuating the problem. Reduce your inventory too. As you just saw, LLR will lie right to your faces too.

Those in the queue:

STOP! Don’t do it. Don’t under any circumstances be lured into this disaster. I promise you will not be successful. Only 1% of you will prove me wrong…..1%. However much you’ve invested at this point, stop and accept those losses. LLR does not, nor will they ever, care about anything other than your wholesale purchases. They will not care about your success…..EVER. Just stop. PLEASE!

[sources shall remain anonymous]

Let’s face it. I am scared. I watched a couple of youtube videos and sat it on webinars where you were told that Lularoe could change your life.

But, who said it would be for the better?

I am sitting on thousands and thousands of dollars that are incurring interest on my Bank of America card (the ONLY upside to that, is that I got airmiles on that and will be taking a much deserved trip once this is over and done with).

As the days pass, where I am still being ignored by Lularoe and whoever it is that was hired to deal with consultants leaving the business -the more angry I get. Which is completely against my newfound ideals of HIGHER VIBES.

There is just no going around it – I will have to suffer through it.

The ignoring is the worst part of this entire situation for me. I think I should start somewhere in the middle, in case you have no idea what’s going on LOL.

Facts:

  • I signed up to be a Lularoe Consultant in February
  • I decided to leave Lularoe around June
  • I announced I was leaving Lularoe while at the Lularoe Convention
  • I sent in my contract cancellation in August
  • I sent my contract cancellation 3 times before I received any response

The Middle

In April of 2017 – LLR announced they were going to implement a new return policy for consultants who were GOOB (going out of business). Previously, you were refunded the wholesale cost -5% (when you purchase WS from the home office, you got a 5% discount). The new policy stated that you would get back 100% of your refund, and they would even provide you the shipping labels!

Now it’s been quite some time since I sent in my contract cancellation. I was not FULLY actively trying to get rid of my inventory WS because, I felt I was doing a disservice to my friends who are also consultants. As my credit card due date was coming up, I realized I needed to get this *shit* out of here.

Wednesday, out of the blue, Lularoe sent an email stating there were changes to the Policies and Procedures regarding GOOB refunds. Except, with the cancellation of my contract – they revoked all access for me to view it. I had to find someone, to go on and pull it for me.

As of September 13 – they were no longer offering 100% refunds. They were offering 90%, and you had to ship it back on your own.

Now, regardless of the actual changes – the fact that this company – who will ignore your communications for weeks (and in some consultants cases, MONTHS) to just drop a change out of the blue? Reprehensible.

My anxiety is through the roof. I have to sign off now.

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