Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
i totally understand how innovative businesses make losses to start and investors buy into scalability and uber is phenomenal - but eve is not scalable
anyone can convert sales/turnover at a loss, you give me 10 and ill give you 5 back, this model is not scalable or even close to it
ok hugo - who wins out of the tie-up with Dreams?? - Dreams are using eves marketing budget to bait and switch.
customer comes in to a dreams store on the back of eves marketing budget ( that is not sustainable ) the customer is then shown an eve mattress but guess what they buy the one either side of it that is strategically placed to do that and is superior at that £499 price point
Dreams love love love that
THE NUMBERS AND THE CPA DONT LIE INVESTOR1986
sound familiar https://news.sky.com/story/mattress-maker-simba-slashes-value-amid-funding-turmoil-11558690
kick break even down the road and keep asking for more
BREAK EVEN IN 2020?? Realistically VS Hypothetically
sounds like the Irish backstop
coming soon to the UK
https://edition.cnn.com/2018/10/31/business/amazon-mattress-casper-beds/index.html
i work with CPAs all day every day and to lower it by anywhere near the amount they need to in my opinion is impossible - at best you can shave it by 5/10% never in a million years half it
The document also has some other interesting stats. In the two years Eve has been operating, the company's conversion rate — the percentage of people who actually make a purchase when they visit its website — has fallen from 0.9% to 0.6%. The average order value has fallen from £465 to £445 (down to £423 in the second half of 2016) and the cost of acquiring each customer has risen from £176 to £245. The company offers free returns of its mattresses for up to 100 days and 15% of sales are returned.
The document also has some other interesting stats. In the two years Eve has been operating, the company's conversion rate — the percentage of people who actually make a purchase when they visit its website — has fallen from 0.9% to 0.6%. The average order value has fallen from £465 to £445 (down to £423 in the second half of 2016) and the cost of acquiring each customer has risen from £176 to £245. The company offers free returns of its mattresses for up to 100 days and 15% of sales are returned.
YOU CANT TURN AROUND A 250£ CPA WITH A 500£ AOV - Even Donald Trump would struggle here
there maybe money in the bank but the CPA ( cost per acquisition ) is way wat to high
this is the same as me given somebody 10$ and they give me 5$ back - simplistic but true
Simba is in john lewis and furniture village so v close in terms of marketing cost overheads etc
SIMBA - same model books 28m loss https://www.thefurnishingreport.com/
down another 5% today - heading towards single figures
https://www.emma-mattress.co.uk/
casper
simba
emma
https://www.ergoflex.co.uk/
a few like for like brands all bed in a box products all same price point exact same spec of mattress all next day delivery
what is eves USP ?
the share price dont lie moony
v surprised the Dreams sales guy who is on commission would recommend them
You say the brand awareness increase WILL express itself in sales ? - this is your opinion and i disagree as i do not believe bed in a box products stack up against conventional mattresses this will be even more evident in store when the consumer can see and feel the difference
i do not have this stock, im a product guy thats been selling mattresses for 30 years and understand the market and competition, so i can say with some knowledge that rolled bed in a box products dont sell in store at that price point ( simple )
You may know the numbers but i know the industry
Brand awareness is great if the product backs it up - go in dreams and look at the products at the same price point
£499 ( for a double ) aesthetically the other mattresses look far better as they have not been designed to go in a box
other rolled mattresses sell for between £ 200/300 with like for like spec