VoyForums
[ Show ]
Support VoyForums
[ Shrink ]
VoyForums Announcement: Programming and providing support for this service has been a labor of love since 1997. We are one of the few services online who values our users' privacy, and have never sold your information. We have even fought hard to defend your privacy in legal cases; however, we've done it with almost no financial support -- paying out of pocket to continue providing the service. Due to the issues imposed on us by advertisers, we also stopped hosting most ads on the forums many years ago. We hope you appreciate our efforts.

Show your support by donating any amount. (Note: We are still technically a for-profit company, so your contribution is not tax-deductible.) PayPal Acct: Feedback:

Donate to VoyForums (PayPal):

[ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, [3], 4 ]

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Date Posted: 11:12:16 02/26/08 Tue
Author: Mike
Subject: Re: Bidz.com a Real Gem !
In reply to: Lisa 's message, "Bidz.com a Real Gem !" on 11:10:35 02/26/08 Tue

>Bidz.com (BIDZ) >HREF="http://www.usaybid.com"> Click here to visit
>Bidz is a leading online retailer of jewelry,
>featuring a live auction format. The Company offers
>its products through a continuous live format,
>featuring “no reserve” auctions, a $1 minimum opening
>bid, and a unique 15-second auction extension period
>that allows its auctions to continue until all bids
>are received. The majority of its auctions are
>short-term, often lasting less than one hour,
>providing immediate gratification to the customers and
>encouraging frequent visits and active viewing of our
>website. BIDZ product inventory includes gold,
>platinum, and silver jewelry set with diamonds,
>rubies, emeralds, sapphires, and other precious and
>semi-precious stones; and watches. The Company offers
>to sell products through their website. In 2006, BIDZ
>sold over 2.9 million items at an average price of
>$139. Headquartered in Los Angeles, the company has
>approximately 200 employees.
> >HREF="http://www.usaybid.com"> Click here to visit
>Bidz >HREF="http://www.usaybid.com"> Click here to visit
>Bidz
>Key Highlights
>
> # Fragmented market with top 10 jewelry stores
>controlling less than 20% of the domestic market.
> # The BIDZ model provides a unique customer
>experience and value proposition.
> # Leading online jewelry retailer ranked second by
>Hitwise behind QVC in the online jewelry category.
> # BIDZ was ranked 6th amongst auction sites by
>number of unique visitors according to Ranking.com.
> # BIDZ is enjoying significantly improved Web site
>traffic and dramatically better trends than other
>jewelry oriented web sites such as Blue Nile (NILE),
>Zales, Tiffany (TIF) and Diamond.com.
> # BIDZ ranked 85th in the Internet Retailer Top 500
>rankings and at par with Blue Nile on customer
>satisfaction rankings as recently measured by Foresee
>Results.
> # BIDZ more than doubled operating profit in 2006
>and, with continued good merchandising and effective
>marketing, should lift sales by about 33% this year,
>and lift operating profit by 66% this year.
> # The company says it attracted 240,969 new buyers
>in 2006, up 50% from the year before.
> # International markets represent an untapped
>opportunity for BIDZ, and the Company intends to
>create a strong presence in English speaking
>countries, including the United Kingdom, Canada,
>Australia, Ireland, and New Zealand, and introducing
>foreign language versions of its website for certain
>international markets.
>
>Unique Value Proposition to the Customer
> rel=nofollow target=_blank >HREF="http://www.usaybid.com"> Click here to visit
>Bidz
>
>HREF="http://www.usaybid.com"> Click here to visit
>Bidz
>BIDZ' auction process differs from other online (and
>offline) auctions in several important ways.
>
> # Auctions continue until bidding ends – much like a
>process at a traditional auction house. The auction
>continues for an additional fifteen seconds after the
>last bid.
> # Prices determined by customer - Auctions start at
>$1 no-reserve, assuring buyer-driven pricing and
>consumer savings. Approximately 15% of items are sold
>at a loss, so the remaining 85% sell above cost for
>BIDZ such that the Company is able to generate a
>healthy margin as evidenced by a 23.7% gross margin
>for FY 2006
> # Customers not committed to their bids – Winners
>are not held to their bids and not penalized if they
>fail to close the purchase.
> # Encourage product returns if not satisfied with
>product – As a result of its returns policy BIDZ aims
>at encouraging buyer confidence and provides for a
>stress free shopping experience. Only 4% of items were
>returned in Q1, 2007.
> # Broad product selection – BIDZ has over 50,000
>SKUs in inventory
>
>Value Proposition to Suppliers
>
>BIDZ purchases closeout inventory directly from
>manufacturers and liquidators. The Company also
>closely monitors its sales trends to assess consumer
>demand for certain jewelry styles and categories and
>purchases such non-closeout inventory directly from
>manufacturers. The Company’s sourcing model provides
>an alternative liquidation channel for manufacturers,
>for which disposal of closeout inventory represents a
>significant challenge. BIDZ has the flexibility to
>purchase a variety of lot sizes, and its centralized
>warehouse and fulfillment center enables suppliers to
>ship their products to a single location, easing the
>burden on their infrastructures.
>
>Sourcing Model
>
>Since most moderate price jewelry is sold
>promotionally and promotionally priced to yield around
>a 50% gross margin to the retailer, “original retail”
>prices are commonly multiples of “normal” wholesale.
>If an item does not sell, it may be returned to the
>vendor who now faces a choice, either to return the
>goods to the factory (usually offshore) to be melted
>and turned into something else (in which case the
>retrievable yield is the manufacturer’s gross profit,
>less the cost of processing and shipping) or,
>alternatively, to resell the item as a closeout or
>(less likely, since it didn’t sell), to another
>retailer. It is usually to the manufacturer’s
>advantage to liquidate the item as a closeout, if
>possible, and anything north of that gross profit is
>desirable. Thus, it is common for BIDZ to acquire
>merchandise below, sometimes well below, the “normal”
>wholesale price and sometimes, below the intrinsic
>value of their materials.
>
>Industry Overview
> >HREF="http://www.usaybid.com"> Click here to visit
>Bidz >HREF="http://www.usaybid.com"> Click here to visit
>Bidz
>
> # $160 billion global jewelry market; $57 billion US
>market.
> # Highly fragmented market with Top 10 retailers
>representing <20% of the U.S. market (Zales, Tiffany,
>Kay, etc).
> # Online jewelry sales were 3.9 percent of total
>industry sales.
> # Online jewelry market expected to grow between
>12-15% for the next few years.
> # While 75 percent of U.S. jewelers have an online
>presence, only 25 percent engage in online commerce,
>according to InStore magazine (April 2007).
> # The average online ticket appears to be just over
>$200 for most specialty jewelers. Despite the
>dominance of diamond sales online, this is below the
>average ticket for a mass market jeweler of $300-350
>and a guild jeweler of $850-900. Even Tiffany’s
>average ticket for online sales is $231.
>
>Competition
>
>BIDZ currently competes with a variety of online
>auction jewelry sellers, such as eBay and uBid; online
>liquidation companies, such as Overstock; and online
>jewelry retailers, such as Blue Nile. The Company also
>competes with traditional offline jewelry retail
>chains, such as Zales, Finlay Fine Jewelry, and Reed’s
>Jewelers, as well as with department and discount and
>other stores that sell jewelry at wholesale prices,
>such as Wal-Mart, Target, J. C. Penney, and Costco, as
>well as with QVC and Home Shopping Network.
> rel=nofollow target=_blank >HREF="http://www.usaybid.com"> Click here to visit
>Bidz
> >HREF="http://www.usaybid.com"> Click here to visit
>Bidz >HREF="http://www.usaybid.com"> Click here to visit
>Bidz
>Key Financial Highlights
>
> # Net revenue of $131.7 million, up 46% year over
>year
> # Net income of $5.4 million a 104% increase
>year-over-year.
> # The Company has grown revenues at a 78% CAGR over
>the 2002-2006 period.
> # Q1, 2007 revenue was $44.7 million, up 29%
>year-over-year
> # BIDZ’s average selling price per order for Q1 2007
>was $154, up 8% from $142 in Q1 2006, and its average
>number of items sold per day was up 32% from 7,173 to
>9,482.
> # Q1, 2007 net income of $3.4 million represented a
>4.3% year-over-year increase (Q1, 2006 had unusually
>high gross margins hence, year-over-year EPS growth
>appears constrained)
> # Annual operating margins have trended nicely over
>the last three years going from 1.2% in 2004 to 4.2%
>at the end of 2006
> # BIDZ management has provided guidance that
>includes sales increases of 29-37% to $170-180 million
>and pretax income of $13-14 million for the year,
>91-105% above 2006\'s $6.8 million (before special
>items).
> # Company has initiated a $5 million buyback or 3%
>of its total shares outstanding
> # Significant insider ownership with management
>owning around 55% of the shares outstanding on a fully
>diluted basis.
> >HREF="http://www.usaybid.com"> Click here to visit
>Bidz >HREF="http://www.usaybid.com"> Click here to visit
>Bidz >HREF="http://www.usaybid.com"> Click here to visit
>Bidz
>HREF="http://www.usaybid.com"> Click here to visit
>Bidz
>HREF="http://www.usaybid.com"> Click here to visit
>Bidz

[ Next Thread | Previous Thread | Next Message | Previous Message ]
[ Contact Forum Admin ]

Forum timezone: GMT-8
VF Version: 3.00b, ConfDB:
Before posting please read our privacy policy.
VoyForums(tm) is a Free Service from Voyager Info-Systems.
Copyright © 1998-2019 Voyager Info-Systems. All Rights Reserved.