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DressRush Pitch Deck

investors.dressrush.com

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Re: DressRush Pitch Deck

#41

Post by ig1 »

aaronblohowiak wrote: post #5

31% conversion rate? That seems very high to me -- is this just in the bridal niche? Also, the LTV is 5-7x the CCA, which it says is 0.55, so that means the LTV is about $3 ? That seems very low given their market. I wonder if they are counting "converted" as something other than "sold a product."

Their advertising costs are low too, wedding related keywords are more expensive than $0.17 and even on Facebook. A lot of retailers have got savy to the fact Facebook lets you target people who are engaged.

I'm not sure the figures add up.

Re: DressRush Pitch Deck

#42

Post by tptacek »

apaprocki wrote: post #36
tptacek wrote: post #31

The average price of a wedding is $28,000? That doesn't sound right. I know many do cost that much, but the average ?

It seems from their pitch that they're including the entire cost of the wedding party. So even if the couple isn't paying for the expenses of the wedding party, perhaps that figure adds them in. From personal experience, any kind of normal venue used to hosting weddings that would fit 100+ people in NYC is in the ~$10k range alone before you add anything else in.

I really want to find a way to refute this number, but I can't. The only mitigating factor I've found is that it appears to include people's crazy expensive engagement rings.

(Obviously, I'm biased because of how me & Erin got married).

Re: DressRush Pitch Deck

#43

Post by craigmc »

anthonyb wrote: post #10
JoshTriplett wrote: post #7

The "Market" slide makes a very effective point. On the "Problems / Solutions" slide: "save ... up to 100% off retail" says absolutely nothing, except perhaps that the author doesn't know how percents work. "save ... up to 100%" means "save somewhere between nothing and everything". On the graph in the "Customer Acquisition" slide, the "reduce customer acquisition cost through SEO" point implies a lower cost to acqui…

My biggest problem with it was at the bottom of the fourth slide. The problem that they're solving is apparently that brides can't afford their perfect wedding, but their picture has Vera Wang dresses at $1500. Nice looking deck though :)

Do these discount dresses come with the same rw social experience that tends to accompany bridal shopping? Glasses of champagne at (multiple) fittings, long lunches afterwards? Even where a bride doesn't have the budget for a designer dress, this experience can be replicated with off-the-peg versions.

I know that lots of rw shopping experiences have translated very well online, but this one is so social (indeed it is pretty much a rite of passage) that I imagine it is going to be challenging to replicate online.

Also, forgive my stupidity, but $90k of product 'moved' (sold?) / 2803 = $32 means not just dresses and if so, is the name totally appropriate? Plus with weddings taking 12 months+ to arrange, what is the rush...

Re: DressRush Pitch Deck

#44

Post by bigurn »

jules wrote: post #39
JoshTriplett wrote: post #7

The "Market" slide makes a very effective point. On the "Problems / Solutions" slide: "save ... up to 100% off retail" says absolutely nothing, except perhaps that the author doesn't know how percents work. "save ... up to 100%" means "save somewhere between nothing and everything". On the graph in the "Customer Acquisition" slide, the "reduce customer acquisition cost through SEO" point implies a lower cost to acqui…

Their market slide: http://investors.dressrush.com/#slide4 Their math doesn't compute? 2.7M weddings * (14+152) people per wedding = 445.5 million people * 28k $/wedding = 75.6B $ They probably mean: 2.7M weddings * 28k $/wedding = 75.6B $ But surely they're not trying to pocket $28k per wedding just for clothes? It certainly looks beautiful, but the information is lacking. Also, 31% conversion rate?!!

I'm sure they are going to be going local and adding services soon. That way they can get at the whole 28k. Probably expand to babies and home to keep the customer after the wedding too...

Re: DressRush Pitch Deck

#45

Post by deyan »

To be totally honest, I really wonder how long it took to create this and whether it was really a good use of their time. It is beautiful, full stop. But it also appears as if it took a ton of time to create and put all the bells and whistles in, which would make me at the very least question their judgement of how they spend their time.

Re: DressRush Pitch Deck

#47

Post by tylerneylon »

tptacek wrote: post #31

The average price of a wedding is $28,000? That doesn't sound right. I know many do cost that much, but the average ?

Some people are suggesting this number is too high. If anything, it seems low to me - at least based on my personal experience. Imagine throwing a big, elaborate party. How much would that cost you? Maybe $3k, including renting a space, maybe a DJ, a bartender, etc? Everything for a wedding is 10x what it should be. So if a reasonable price is $3k, you're paying $30k.

This is without the price of the ring and honeymoon.

My source is personal experience, and that of my friends, but also see: http://www.costofwedding.com/

Re: DressRush Pitch Deck

#48

Post by patio11 »

tptacek wrote: post #42
apaprocki wrote: post #36

Earlier quoted context omitted.

It seems from their pitch that they're including the entire cost of the wedding party. So even if the couple isn't paying for the expenses of the wedding party, perhaps that figure adds them in. From personal experience, any kind of normal venue used to hosting weddings that would fit 100+ people in NYC is in the ~$10k range alone before you add anything else in.

I really want to find a way to refute this number, but I can't. The only mitigating factor I've found is that it appears to include people's crazy expensive engagement rings. (Obviously, I'm biased because of how me & Erin got married).

More startups need to use the pricing anchor "How else could three month's salary last forever?" Seriously, phrase your software in terms of man-months and no matter how much you charge it suddenly seems cheap!

That's one of the bridal-industrial complex's best coups ever. (The entire notion of surprise engagements and diamond rings was pretty much created out of whole cloth by De Beers in the 1920s. See this excellent article by Atlantic Magazine -- one of the best pieces of journalism I've ever read, and as relevant today as when it was written nearly 30 years ago. http://www.theatlantic.com/magazine/archive/1982/02/have-you... )

Re: DressRush Pitch Deck

#50

Post by sudonim »

The numbers for acquisition look way off.

$.17 per click X 33% conversion...

I just ran an experiment with google ads for dating keywords. There were a few gaffs with hugely expensive keywords but overall, $2.45 CPC. We spent $200 and ended up with 1 conversion. Totally amateur, I know.

From other research I've seen, I think conversions tend to be way lower than the double digits. Like people first click on your ad and then check out and pay you money. From the per click of your ad they are often in the single digits or fractions of a percent.

It's a great looking pitch deck. Im concerned that they skewed their focus a little too much on looks over sound information.

Edit: Seems the company is live and moving product to real customers? If those are the numbers they're actually acquiring customers at, I take it back however improbable from my limited experience.

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