This E-Retailer’s Strategic Decision Led to a Hole-In-One
In 2006—before Amazon Prime existed—Jeremy Segal started a wholesale business selling golf products to mom-and-pop stores. Gradually, he added e-commerce stores. Business hummed along nicely for about eight years, but when he decided to create his own website to sell to consumers, business exploded—with annual revenue doubling in three years. Today, he’s opening a storefront, a gym and a bigger warehouse facility.
Segal’s company is Proozy, a daily deals website similar to Groupon. The company sells brand-name golf, fitness and outdoor apparel, accessories and gear at discounts. The website offers three categories of deals: the Lyon’s Deal, which features products at the lowest price on the internet; Proozer’s Picks, which are products picked by customers; and the Arena, which are all of the other products Proozy has to offer. Proozy sells over 100 brands, including Nike, Under Armour, Columbia, Patagonia and Versace. Segal says the company works directly with license holders, distributors, big-box retailers and some of the brands.
Segal launched Proozy.com in 2015 under Lyons Trading Co. LLC, the original wholesale company he created in 2006. Between 2014 and 2017 revenues doubled from $10 million to $20 million, and this year, Segal projects revenue to exceed $35 million.
“My original goal was to grow from a $20 million- to a $50 million-company,” says Segal. “But we decided to regroup and focus on building standard operating procedures and reinvest in who we are and what we stand for. Our main focus is reinvesting in our website.”
Segal attributes some of those decisions to Mike Murray, whose experience includes stints at ShopNBC and Fingerhut. Proozy brought Murray on as COO in 2017.
In addition to Proozy’s team of about 85, which Segal plans to double by October, the company has more than 50 people in its affiliate program who promote Proozy’s website. “Our company is taking off, but it’s not as well-known as it should be for its size,” says Segal. His team is also working on adding more people to its ambassador program.
To keep up with growth, Segal is moving the company’s headquarters in Eagan up the street into a 50,000-square-foot facility. The building will also house its warehouse, as well as a retail store and fitness center called Proozy Fit, both of which are slated to open early September.
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“The idea is to create a cool place to bring in new brands, host private events and how-to’s, and where professional athletes can come in and lead seminars,” says Segal. “Our mission is to get people to go out and live an active lifestyle.”