Niche Biz: Tie-Of-The-Month Club
The Wall Street Journal Online:
As a former lawyer who dreaded tie-shopping, Greg Shugar knew other businessmen probably shared his feelings. So not long after founding an online store called the TheTieBar.com with his wife, Gina, in 2004, he added a service to make shopping more convenient for customers — not to mention, lucrative for his own business.
He started a Tie-of-the-Month Club.
For $199 a year, customers signed up at the web site to receive a silk tie each month. So far, the Tie Bar, which designs the ties and has them manufactured in China, has more than 150 subscribers, with more than a dozen on their second year.
Aided by the Internet, a growing number of small businesses are offering clubs that provide goods to subscribers monthly, either as an add-on to their existing business or as primary means of sales.
For entrepreneurs, it’s a way to cut the costs of starting a business as the rise of online shopping has erased the trouble of setting up a brick-and-mortar store.
Damon on December 8th, 2006 1:27 pm
This is a great article, and it’s great for business. I’m going to speak to some of my managers on this issue today.
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