Case Study Of A High-End Table Lamp Company

After spending years as a buyer for a large off-brand retailer and then designing lighting for other companies Todd decided it was time to go out on his own. In 2012, he started a high-end table lamp company.

KEY OBJECTIVE:

Create an E-Commerce Sales Channel that wouldn’t compete with Todd’s retail stores and interior designers.

ACTIONS TAKEN BY RSG:

Step 1: Spell: Todd shared with us the names of the premium retail stores and interior designers that he worked with. Within 12 months of launching the company, he had built a very solid high-end brick & mortar base of business. We decided his E-Commerce partners needed to reflect that same high-end feel as his brick & mortar clients. We selected to only sell to Wayfair and One Kings Lane.

Step 2: Probe:  After examining the current merchandising, we decided it was necessary to completely reshoot all of the imagery and life-style shots. The current images did not reflect the craftsmanship that went into the lamp designs. The new images supported the luxury price point of these artisan-crafted lamps.

Step 3: Analyze: In 2014, with a desire to build a life-style brand, Todd expanded into accessories and small furniture pieces. However, by 2016, the lamps remained 80% of the sales. Following a sales assessment, we recommended cutting the line in half to focus only on the lamps. Additionally, we shared feedback from the buyers with Todd. This resulted in, Todd decided to invest in new products with a slightly lower price point while still maintaining the unique look and feel of the brand. These lower price point lamps continue to be among the top sellers in the line.

Step 4: Revenue: When the company went back to its roots and focused on lamps it freed up inventory dollars to be put back into the lamp SKUs. We were now able to remain in stock on the top sellers. Our strategic methods have grown the company’s E-Commerce Sales Channel into a just under $500,000 a year with only 2 accounts.

Step 5 Key: The combined strength of the brick and mortar business and the extremely profitable E-Commerce business allowed the Founder, Todd, to successfully sell the company giving him the financial freedom he desired.