Vision: Number 1 daily deals site for the family and goal to take the business to $500m USD

in 5 years.
HQ in Minnesota and 100-110 employees.

Goal: Expand to West Coast

They are testing out by selling brands and seeing how the consumers react to it based on their data.

Always looking for partnerships. For instance, their partnership with the hospital is to give back.

QNA

Q: How did They Start

A: Initially sold golf items but since it was niche, they moved to sports retailing. He previously partnered
with Groupon and copied them when starting Proozy

Q: Process of Coordinating Events

A: They do events with local communities. Trying to get local market, influencer, athletes and
ambassadors to grow their brand. They currently want to grow locally.

Q: Who’s their customers

A: Their customers are mainly the “Moms” not the athletic people shopping for many people. The items
they mainly sell are like hoodies. They coined themselves as the active lifestyle, but it was mainly for the
family.

Q: Characteristics of Proozy Customers

A: Target audience is 35-50 yo moms who buy things for the family. They are deal hunters based on their
data. There’s 2 income level, one who can’t afford and one who can afford but are still looking for best
deals.

Q: Most concerning part of business

A: People. They need good quality employees. From a business model standpoint, they are focused on
buying different inventory, they are ensuring they offer their customers a good variety of name-brand
products

Q: Why Proozy Doesn’t have an app

A: Proozy is currently developing an app (cost about 200-300k) and will probably be out in 90 days. The
app is supposed to be personalized to the user based on what hobby, size etc. There are 5 different
levels based on how active they are on their purchases. They get rewards and exclusive products.

Q: Are they straying away from the golf brand

A: Trying to go towards a more apparel brand than the golf equipment brand

Q: Inventory Turnover Ratio and what they do with items hard to sell
A: 4.0-5.0 a year ideally. They sell “hard to move” items through other channels like Amazon, Groupon
etc. Might do a warehouse sale of up to 90%. Their ability to move inventory is how they’ve survived

Q: Country-wide Sales record

A: They didn’t market through Minnesota, so their biggest states are in the big cities like Chicago and
New York. Minnesota is one of their worse states surprisingly.

Q: Will they diversify

A: Yes. They are experimenting with hard goods like electronics and appliances. It will be on a trial basis
and if they have success, they might transition to it. But they probably won’t leave their core image of
the athletic-wear company

Q: Pros and Cons of expanding to west coast rather than overseas

A: Best move is to add a fulfillment zone in the West. They can save shipping cost. Labor is cheap but
real estate is expensive. The market is less competitive than the Midwest.

Q: How do they determine the price of the product (how much discount they give)

A: Takes experience of trying many times. They mainly look at data and how much traffic you’re driving,
seeing which price point work. They use their past data and look at their competitor’s prices.

Q: What is sold on clearance

A: They sell clearance if their inventory days is very high or if they have a very low quantity

Q: Opportunity in streetwear?

A: They have streetwear partners already and if their consumers like it, they would do it.

Q: They have 2 websites and what’s the difference between those 2 (Proozy and Proozy Fit)

A: Proozy wanted to be the daily deals site and Proozy Fit to be the in-line items harder to get.

Q: Why they haven’t used as many Influencers

A: Expensive. They tried to give ambassadors commission based on people who go to Proozy through
them.

Q: Why are their ambassadors mainly females

A: Their ambassadors are mainly females since they’re targeting to moms

Q: What are they trying to do with their customer experience

A: Try to find the middle ground between high quality and good prices

Q: Customers age range?

A: 35-44 is main one and 35-54 is main coverage for female. Over 54 is stronger than the 18-24 range.

Main reason behind that is because they devoted their resources through their older customer base (no
app, no social media presence etc.)
Q: Why they don’t do drop-shipping

A: It didn’t make sense economically since it was too labor intensive, and they couldn’t control the
customer experience since they can’t control whether the goods are shipped right away. Poor margin
and bad experience.

Q: Direction regarding sustainability

A: They are approaching towards sustainability with cost marketing (consumers will know where the
products come from)