Sosandar Share Discussion Threads

[site manager] 02/7/2021 17:37

Laughton,

Sold out last week, share price bound to go up from here.

Hasn`t that happened to the best of us.

[thetrotsky] 02/7/2021 09:41

Laughton, As I said, it will depend on what the contractual agreement permits. Even if the agreement prevents them from offering promos or items not available for sale on the M&S, JL & Next websites, the fulfillment process may still provide them with customer contact information that could be useful at a later date. What I am saying is that, if the opportunity exists, I'd expect SOS to take advantage of it and its not unheard of for large organisations to be blinded by their own arrogance; ever heard the story about IBM and Microsoft? Having said all that, consumer law may thwart SOS's ability to use all of the data they glean (those little tick boxes on websites regarding communication). So, it may still come down to what's in the box that they send to customers and even if they aren't permitted to offer promos they may still be able to include some marketing information that may enable customers to find their website if they so choose.

[laughton] 27/6/2021 21:16

In that case good for Sosandar.
Not so good for the others.

Signing off from this board as sold out last week (SP bound to go up from here).

[masurenguy] 27/6/2021 18:58

As far as I'm aware the third party supplier is passed the order and ships direct to the customer.

[laughton] 27/6/2021 18:25

1/ Ship orders direct from their own wharehouses (not from Sosandar's)

But these big operators are not in the business of bolstering a competitor at their expense so they will have thought of ways. They are definitely not interested in making a coupld of pounds on a first order to then simply see the customer go away.

[masurenguy] 27/6/2021 15:13

Well how are the likes of M&S, JL and Next going to stop them?

[laughton] 27/6/2021 15:11

"and their agreements with M&S, JL etc. don't deny them, I'd be very surprised if Sosander wasn't taking the opportunity to include a (say) 20% off discount voucher for the next purchase on their own website."

Do you seriously think that the likes of M&S, JL and Next haven't already thought of this and decided they are not in the business of diverting their customers to other suppliers' websites after a single sale?

[thetrotsky] 27/6/2021 13:24

A couple of points:

1) Margins of 38%/50% are probably not that unusual for bricks and mortar sales when you consider staffing, rent and rates, warehousing etc. but look far less sustainable for future online sales, especially if the third parties are supplying from their own warehouses. Personally, I think JL is making a huge mistake, putting short term gain ahead of long term viability.

2) JL justified the increase, in part, based on recent new third party sign ups, but I suspect, and very much doubt, that those new third party sign ups were based on a 50:50 split. It's a two-way street and, despite its name, I'd be very surprised if new third party sellers would have been queuing up, as JL suggested, to sell on its website based on a 50:50 split; JL has probably sweetened the initial deal for new third party sellers to encourage them to sign up.

3) Sosander expects to benefit from future economies of scale (additional volumes should lead to increased pruchasing power).

4) Personally, I would always try to cut out the aggregators for repeated purchases. If the goods are being supplied direct from Sosander warehouses, and their agreements with M&S, JL etc. don't deny them, I'd be very surprised if Sosander wasn't taking the opportunity to include a (say) 20% off discount voucher for the next purchase on their own website. Also, the M&S and JL websites don't carry the full range, which would be an added incentive for new purchasers to, at least, visit the Sosander website.

This at least goes some way to explaining why recent broker forecasts weren't showing a significant increase in expected EBITDA over the next 12 months despite showing a relatively significant increase in expected sales. From Sosander's perspective the foray onto third party websites should, at minimum, be considered a more directed, cost effective form of marketing to bolster long term customer numbers.

[sdmbot] 22/6/2021 10:45

boonkoh, It would be interesting if there was some kind of statistical evidence to back this up one way or the other.

Might be a good question to ask the management the next time someone sees them at a trade show / investor presentation.

I'm sure they include their brochure with the garment for first time buyers (although that would be another thing to ask to make sure)

But how many of us later on go direct to web site when we've bought through an aggregator like Amazon or Ebay etc.

[boonkoh] 22/6/2021 10:34

I see the main benefit of the third party distribution not to generate huge profits, but it's almost like free brand awareness and consideration marketing.First time customers who buy from M&S, Next, JL who then like their new Sosandar garment, will then probably buy direct from Sosandar for future purchases.So many Sosandar doesn't make much profit from that third party sale, but then they get zero CAC benefit when that customer comes back to buy direct.

[serratia] 21/6/2021 18:13

The Times had an article on complaints re John Lewis. If 3rd parties sell through them they pay a fee.
M&S/Next charge 38% of the selling price. John Lewis has put their charge up to 50% which has upset suppliers.
At 50% how many suppliers have enough gross margin to make it work for them ?

[alex1621] 21/6/2021 14:27

They've been able to sustain a loss making start up on the back of the generosity of shareholders, without whom they'd both be on the dole.

[alex1621] 21/6/2021 14:25

If they don't get it, they will just stay in bed?

[boonkoh] 21/6/2021 13:52

Both founders only gets paid £150k base a year. Hardly excessive fixed renumeration. Happy for them to have options to incentivise them to grow the business. They don't have huge equity stakes.

[laughton] 21/6/2021 12:29

Founders exchanged to be paid for options for more nil cost options. Not really what I want to see from founders who already hold loads and loads of shares and get paid a LOT of money so would have throught they were already very well incentivised.

Very happy to have sold out this morning (even more so as I actually made a profit - although have held for quite a while).

[davidosh] 21/6/2021 12:14

Any thoughts on this announcement today?

Sosandar PLC

21 June 2021

Sosandar plc

("Sosandar" or the "Company")

Sosandar, the online women's fashion brand, announces the establishment of a new Long Term Incentive Plan ("LTIP"), pursuant to which it has granted new nil cost options ("New Options") over, in aggregate, 21,431,942 ordinary shares of 0.1 pence each in the Company ("Ordinary Shares") to its executive directors and members of the senior management team. As part of these arrangements, the Company has also cancelled existing options ("Existing Options") granted over, in aggregate, 13,888,742 Ordinary Shares.

We will be looking at this and also featuring BooHoo in the Mello Monday show tonight

[masurenguy] 05/6/2021 08:24

There appears to be a resident troll on this thread !

[glavey] 05/6/2021 05:34

Still discounting product.

[masurenguy] 04/6/2021 12:47

Took an opening position here this morning.

[site manager] 03/6/2021 17:14

Yes I watched that, and agree re sales through secondary websites.
Now we have Lombard with a large increase in stake from 7 to 10%.
Interesting.

[tomps2] 03/6/2021 09:18

Paul Scott mentions Sosandar (SOS) at 14m29s in the latest piworld Interview.

Watch the video here:

Or listen to the podcast Here: hxxps://piworld.podbean.com/e/piworld-interview-paul-scott-june-2021-update/

[montynj] 25/5/2021 14:16

Nice volume on an up day...Good news...also encouraging that stock is up on a share issue which is first time here..this really tells me that the market is finally getting confidence in its business model...people need to get on-board