Let me be clear, I love me some leggings. But it’s no secret that I’m not a fan of LuLaRoe’s shady business practices. Complaints about shoddy fabrics ripping with the first or second wearing, questionable issues involving tax fraud by the company’s financial system, and the fact that consultants have to pay $6,000 for their introductory inventory all point to a company that only looks at their own bottom line.
Oh, and in their spare time, LuLaRoe sues mom bloggers.
Among the company’s sketchy business practices are its misleading impressions that their consultants were making money, hand over fist, peddling (arguably) overpriced leggings in Facebook groups. Eager consultants added their entire friends list to specialized Facebook groups and bombarded the members with sales and excited utterances about LuLaRoe quality using far too many exclamation points. On the surface, LuLaRoe consultants were #blessed and #rollingintheLuLaDough.
But as we’ve learned in recent months, LuLaRoe consultants are leaving the company in droves, thanks in part to market saturation, confusing return policies, and waning interest in leggings emblazoned with owls and slices of pizza. And GOOB sales are about to flood the internet as frustrated consultants do whatever they can to recoup a fraction of their onboarding fees.
For those not in the LuLaKnow, “GOOB” stands for “going out of business,” and consultants have been organizing these sales because LuLaRoe has made it next to impossible to go out of business through the proper company channels without going completely broke. These consultants are marking their inventory down to door-busting discounts in hopes of recouping some of the thousands of dollars they invested.
In April, the powers that be at LuLaRoe caused an uproar among consultants when they announced their new “Happiness” policy, aimed at increasing customer satisfaction. The company announced they had relaxed restrictions on customer returns by allowing customers to return defective leggings to any LuLaRoe consultant, regardless of from where or whom the defective leggings were purchased.
But since consultants have to buy and maintain their own inventories, naturally, cries of “LuLaNOPE” could be heard across the country. Because under the Happiness announcement, consultants were now expected to deal with pricey returns and customers they’d never even met. They were saddled with defective inventory they couldn’t sell, and they had no way to recoup the lost revenue.
LuLaRoe, to their credit, listened to their consultants and offered a 100% wholesale price for anyone who had defective merchandise. And LuLaRoe also agreed to pay the shipping costs which made everyone happy.
But not for long.
In late August, LuLaRoe unexpectedly reverted back to their old returns policy and procedures, leaving consultants with piles of inventory and mounting questions. Consultants are now on the hook for shipping fees, have to individually pack each piece of inventory, and will only receive a 90% refund for their troubles if the item is deemed “resaleable.” Oh, and don’t bother sending anything holiday-related or stuff that’s older than a year. Those items are dead to LuLaRoe.
With their recent PR nightmares, it seems the LuLaRoe ship may be sinking, and of course, the consultants in steerage are the ones taking the biggest hit. The consultants who just started with the company and thought they had the safety net of a 100% buyback policy are now scrambling to unload inventory before it’s too late.
As we all know, leggings are a wardrobe mainstay and LuLaRoe leggings are a guilty pleasure for many. No one is judging you because you are obsessed with unicorn patterns and that elusive pair of leggings that you haven’t been able to find in the 200 groups you’ve joined.
So if you’re going to buy LuLaRoe, you should definitely buy from a consultant who is hosting a GOOB sale. Because that buttery softness will feel even better when you’ve helped throw a life vest to a mom who is floundering because she joined a company that failed to come through on their promises. Those leggings will feel softer because not only did you buy them at a discount, you also gave LuLaRoe the middle finger by buying from a woman trying to get out from under a company that doesn’t care one iota if she sinks or swims.
Just search “LuLaRoe GOOB” on Facebook, if you’re interested. You’ll be able to find hundreds of options. Trust.
So, go ahead. Feed your obsession for leggings emblazoned with doritos and giant strawberries. Like I said, no judgment here. Snagging your favorite prints on markdown really is a win-win for everyone involved.