Back in 2004, Kara Richter knew she wanted to start an online business and bring high fashion to the not-so-high income.
She already knew it’s possible to rent things online as a friend of hers had started a Web site where golfers can rent out clubs.
As an executive at Eat Fleet, a purchasing agency for restaurants, she got a taste of the things like trendy restaurant design. But it wasn’t until she got together with co-worker Sam Mangiere, who had previously worked in the fashion industry, that the two hit on a concept: renting out designer handbags online.
They then set out and founded From Bags to Riches (www.frombagstoriches.com) where fashion-forward women can rent Gucci, Fendi, Louis Vuitton and many other designer’s bags for periods that can last from a few weeks to a year for as little as $15 a month, says Richter, CEO and co-founder of the St. Paul, MN company.
The company began by using just pay-per-click advertising on Google and Yahoo.
“Pay-per-click is the best way to get visibility for a Web-based business,” says Richter.
On Google for example, the company ranks number two on paid listings and number four on unpaid listings using the keywords “handbag rental.” The company also uses keywords “designer handbag” and others.
So far, From Bags to Riches’ customers range in age from 15 to 85 but most are between 25 and 45, says Richter.
Most come from the east and west coasts but a surprising number come from Texas, where Neiman Marcus is headquartered, she notes.
From Bags to Riches has amassed a database of about 8,000, to whom it sends biweekly newsletters focusing on the latest trends and fashion offerings. The site also has a frequent renters club.
Going forward, the company is exploring the possibility of teaming with retailers so potential customers can actually touch and feel the bags before they rent them. At present, they can only see pictures on the Web site.
Richter thinks the company will stay with handbags because other possible rental items like jewelry don’t have as high a demand since they are generally used only for special occasions like weddings, while bags are used every day
Network
