Luggerz®: Building a business around a new name in work pants.
While Michael Genotti lived in Sweden, he became a fan of locally made rugged work pants with adjustable knee pads.
“They’re very popular there, especially with homeowners,” says Genotti. He gave a few pairs to his father, who shared them with his friends, spreading the word about the tough and practical work pants.
“It gave us the idea: What if we came up with something similar for the U.S. market?” says Genotti. He teamed up with brother Ronnie (who also consults for PayPal) and friend Mattison Clark to launch Luggerz®,* tweaking the pants design to include innovative, removable tool pockets and a wider range of sizes.
To get up and running quickly, the Luggerz founders launched the company’s website using PayPal Business in a Box, with tools for website hosting and ecommerce, payments, and accounting. “We knew PayPal would have the most-integrated and easiest-to-use suite of products,” says Ronnie Genotti. “That lets us focus on what we do best, which is running our business.”
Tools in one place – and all with easy setup.Neither the Genotti brothers nor Clark had experience in the apparel business, so they spent months testing fabrics and prototyping pants styles. Since they were busy learning the ins and outs of merchandising, they wanted to launch their website without spending additional hours on payment configuration and coding. “When you’re looking at setting up an ecommerce site, there are a lot of decisions to make,” Clark says. “We really didn’t have time to look at every merchant service, and every hosting or payment or accounting tool.”
With PayPal Business in a Box, the Luggerz team launched the website from start to finish in just a week** – using the WooCommerce platform for building the online store, setting up PayPal for payments processing in just a few clicks, and tracking transactions and expenses with Xero. “Not only are all the tools in one place, which makes it more convenient, but everything’s been vetted by PayPal,” Clark says. “That saves us a lot of time.”
Adapting and adding ecommerce features on the fly.As Luggerz grows, the founders can change the website and update payment and checkout processes on their own. “In the future, if we decide to sell more than one product, it will be easy to assign different shipping categories to different products,” Clark explains. Features for adding discounts and coupons are built into the WooCommerce platform. “If we want to give out a ‘friends and family’ discount, we can do that in 15 minutes and it’s ready to go,” Clark says.
Business in a Box also makes it easy to add plugins for managing business functions like finance. For example, the Luggerz team added a plugin to WooCommerce that automates sales tax calculations. “All of the products in Business in a Box have great documentation when we hit stumbling blocks,” Clark says.
Getting a view into the business.Getting a business off the ground is one thing – keeping it healthy is another. The Luggerz founders use the Xero accounting software in Business in a Box to see all payments and returns, since Xero automatically tracks transactions and expenses from PayPal and WooCommerce. Visibility into accounting, says Ronnie Genotti, is valuable to a new business – as is seeing exactly how much Luggerz pays for payment and ecommerce services. In addition, Xero gives Luggerz real-time views into cash flow, and generates reports for tax planning.
“When pricing is opaque, it can be a nightmare to reconcile accounts at the end of the month,” Ronnie says. “With PayPal, the pricing is transparent and there are no hidden fees, so we know exactly what we’ll pay.” PayPal is currently processing 100% of Luggerz’s payments.**
The Luggerz founders trust their Business in a Box tools to help them run the business smoothly, and they believe that consumers’ trust in PayPal will help the business grow. “At the beginning, no one knows who you are,” Clark says. “But PayPal is a household name – it gives us instant recognition and gets consumers to trust us even as a brand-new business.”
Learn more.To learn about how PayPal can help your business sell more - and connect with your customers wherever they shop - go to paypal.com/business or call us at 855-787-9088.
The content of this article is provided for informational purposes only. You should always obtain independent business, tax, financial, and legal advice before making any business decision.
* The Luggerz co-founders were not compensated for their story.
** Based on the company’s internal data. Results not typical.