Flash Sale Sites vs Naked Wines…what is difference?
Lot18’s UK launch and sudden closure has got a lot of people asking…How have Naked Wines built a $40m business in 3 years when a well funded Lot18 closed their London office after just 4 months, claiming “supermarket stranglehold”
The answer is this:
– No winemaker ever woke up dreaming of creating a wine to be discounted through flash sales site
– EVERY self respecting winemaker dreams of setting up their on own
And that is what Naked Wines do. We fund talented winemakers who want to set up on their own. In exchange we don’t ask for equity, or dividends or interest – we ask for preferential prices, which we pass back to our customers.
See for yourself
Here are two comparable offers. One from us, and one from Lot18, the most successful of the flash sale sites
Can you spot the difference?
Lot18 charged $18 for a wine you can buy for $14
If you don’t believe it, take a look http://www.67wine.com/sku043725_SOHO-SAUVIGNON-BLANC-750ML-2011
And 2,000 Naked Wines customers got together to launch a new winemaker
Rod Easthope has won more medals than Usain Bolt at his schools sports day. And like all talented winemakers, he dreamt of setting up on his own, and making wines free from marketing people, accountants, shareholders etc.
BUT, being a bright guy, he saw that there is something horribly wrong with the wine market. The most successful winemakers are not the ones making the best wines. They are the best salesmen. And some of the best winemakers were broke.
Angels tread where fools fear to dare…
2,000 complete strangers changed all of that. 2,000 people who have never met clubbed together to invest £140,000 to set Rod up in business.
What is new is that companies like Naked have made it possible for people to achieve TOGETHER what they could never achieve on their OWN.
Our 2,000 Angels not only gave Rod the cash he needs. They also provided him with a market. That means that Rod doesn’t have to waste his time or his money selling his wines.
Instead he can invest every ounce of his being making them taste delicious.
And his investors, our Angels, get them exclusively. At a price 70% lower than Lot18’s price for their offer.
The ultimate acid test
If the flash sales sites did not exist, not a lot would change. Someone else would sell those bin end wines.
If Naked Wines’ 100,000 Angels did not exist, a whole bunch of independent winemakers would not be in business. Over 100 wines would not exist. And that really would be a shame.
There’s nothing flash about us…
Crowd powered funding is an idea who’s time has come. I would love to claim that Naked’s success is down to brilliant management and inspired leadership, but the truth is much more attractive…people are tired of paying to be sold to, and now they don’t have to any more.