5-8 Key elements to JackThread’s business model:
5. Competitive Advantage
JackThreads were one of the first successful online discount retailer established and has quickly developed a name for themselves. While there is a large market for women shopping online, Jason Ross saw the opportunity to be one of the first to bring an exclusive street fashion club to the male market. Ross first established relationships with the brands he wanted to sell through trade shows and one on one meetings. Through these relationships, JackThreads is able to offer discounts from 40% – 80% off the original price from top tier brand names. These are exclusive deals where customers can only find at JackThreads.com.
6. Market Strategy
When Jason Ross first launched JackThreads, he and his team went out and got their name known to online blogs, newsletters, and websites who are writing about the brands JackThreads are selling. They made it a priority for people to know that they are selling these brands at prices better than anywhere on the web. They also gave out codes which allowed people to “skip the waiting line” and instantly become a member. This proved to be very successful as JackThreads grew from 0 to 35,000 members in the first year alone, without spending any money on marketing.²
Now when the name JackThreads is mentioned, discounted top-tier mens urban fashion brands, usually comes to mind. Also, with the “members-only” name, customers receive an aura of exclusivity, that they earned the privilege of finding discounts on these designer brands. This was one strategy Ross designed to bring more customers to his website. For example, when you visit JackThread.com, you are presented with an long email sign up form. Essentially, this was a form to sign up for the email newsletter. But what Ross did was he made the whole community as members-only and made this form seem like an application to be accepted into the club. This makes the viewer seem more special and more excited to sign up. JackThreads also requires a 24 to 48 hour waitlist for new customers to become members. This makes it appear that they care about whose being accepted and whose not.
7. Organizational Development
JackThreads contains a small team which includes different important roles such as, life-cycle manager, web site developer, human resources, lead android developer, and CRM marketing manager.
8. Management Team
For the first two and half years of developing JackThreads, Jason Ross worked alone. The day he launched, the website wasn’t accepting any credit card payments. That was when he hired colleague of his to help develop the website. Ross mentions that as the website grew, needs in different areas arose and that was when he would hire another specialist. While he says this may not be the best idea, because at times he would not take the time to perform an appropriate background check and it wouldn’t be a strong fit, he mentions that it is good to hire slowly to ensure you get the right people on board. Ross emphasizes the importance of a good team, one he has now for JackThreads. ³