Newsletter #8 - Is Runly Profitable?

Welcome to the 8th edition of the Runly newsletter! If you haven't met me before, I'm Robbie, the Founder of Runly.

 

Every week I send this email out to the Runly community (you) to give you an honest update on what's happening with the brand.

 

It's been a whirlwind first half of the month. One of the biggest challenges for me personally as a brand owner, is trying to manage the highs and lows. There are many.

 

From the highs of big days with lots of sales, chatting to lots of great customers and runners, to low days of few sales and things going wrong. It's a challenge, for sure.

 

But.

 

On the balance of things. We're on track for our biggest ever month in 18 months of business. Awesome! 

 

It's always funny when you look back at how far you've come. How far this community has come. 

 

From this crazy idea more than 18 months ago. To actually seeing someone wearing your idea out on the track. It's magnificent. Yet only the beginning.

 

 

 

You may know that I placed our biggest ever product order which arrived at the end of last month. We have already sold 60%! A great milestone and as of yesterday, I've put a deposit down on the next order which is expected to arrive in a couple of months time.

 

You may wonder (or perhaps you don't). Is Runly profitable? Does that guy Robbie make any money from this?

 

The short answer: not yet.

 

Currently Runly isn't profitable. We're about breakeven. Until we start doing bigger volume of sales and economies of scale it won't be profitable. I don't and haven't taken a single cent from the business. Everything is reinvested to order more stock, make stock improvements and work on future product development.

 

Every single cent.

 

Hopefully I can make a post in the near future where I'm able to pay myself a small wage from the business. But until then, I'm happy and excited to keep growing this thing and see where it takes us!

 

 

 

You might notice over the next few days your email inbox will be slammed by brands showcasing their 'Afterpay Day Sales'.

 

We won't have a sale. Not this time.

 

Why?

 

Because we don't need to. 

 

Let me explain.

 

We're down to 40% stock level. If we were to run a big sale and get down to 20% stock, what's the point? We haven't got more stock arriving for possibly 2-3 months.

 

By discounting now, sure we'd make some quick sales. But we're also damaging our ability to turn a profit and reinvest it back into the business.

 

I'm all about 'growing slow' and doing it right.

 

For the record, I'm not against sales.

I think they're a good way to generate some interest in a brand. As a consumer, I look forward to when my favourite brands have a sale event - it's fun!

 

I'm hoping that when Black Friday rolls around this year, we'll be fully stocked up, potentially more new products on the shelves and we can all enjoy a really fun sale campaign then.

 

 

They say there’s always someone one step ahead, and one step behind you.

I’ve started helping people one step behind me on running groups who need some advice.

Whether it's on their couch to 5k program, managing injuries or advice on equipment.

That’s the beauty of the running community.

A quick search before revealed Facebook running groups alone amassed literally millions of people engaging in online running communities every single day.

 

Wherever you are in your running journey, can you help someone who's one step behind you?

 

Join our own Team Runly Facebook Group.

 

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That's all for this week. I hope you've enjoyed my really honest reflection of the week and brand update.

 

If you've got a question, any feedback or if there's something you want to read about next week just reply to this email :)

 

Run well,
Robbie.

 

BTW if you haven't got yourself a Runly Vest yet, head over to our website and pick one up.