This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Digital Skeptic: Investors? We Don't Need No Stinkin' Investors

No Stinkin' VCs
So how does Burmeister avoid the no-win venture capital tango of death? I'll give you a hint: It starts with "In" and ends with "ternet."

Burmeister has built himself a remarkably simple -- yet devilishly effective -- direct Web sales channel. He uses no high-tech tricks or custom laser interactive measuring. He does not rely on social media. There are no Groupon (GRPN) discounts. No behavorial sales techniques a la Amazon (AMZN). In fact, he does not discount at all. Ever.

"We had a mistake on one item, so we tried to discount them as a reward. And I realized what a mistake that was immediately," he said. Customers were not happy with just 5% off, he said. They would wait for 10%. "Those items took forever to actually sell."

Keep in mind, his clothes are not cheap. Shirts start at $98. Many clothes are north of $200. A newly released jacket -- which I am not embarrassed to admit is on my buy-list once my ethical obligations with this story expire -- runs more than $600.

He simply sends out an email to about 5,000 customers and waits for them to come to his website, choose their size and plunk down their credit card.

Just smart partners
Now comes the stone cold investor dis: What would Burmeister be willing to give up a piece of his lucrative action for? That's easy. The practical knowledge of what it takes to run a private company over the long haul. In other words, partners who actually do something, not just hand out cash and expect to get paid.

"The Eileen Fishers of the world interest me," he said. "They retain a level of expertise in keeping control of their business. If I could create a single product with a partner like that, I would absolutely split the take."

It does not need to be a fashion company. A food company that was passionate about what they did could be an excellent partner, he said.

"I am not sure if you're a fan of the TV show The Wire," he said at the end of our last call. "But basically, my philosophy is like Prop Joe's: 'Buy for a dollar, sell for two.'

"If you keep it that simple, things work out."

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs