The 5th launched back in 2014 with a unique business edge. Could you tell us a little bit about how the5th works for people that may not know?
When we launched The 5th we had 1000 watches. What happened was we sold basically all of those watches on day one of the business. But for us, production is three and a half months. We then had a problem of not having anything to sell for all this time. We had this amazing day one, but we won’t have any cash flow in the business for three and a half months. We said, “hey listen everybody, thanks. We sold out on day one, we are going to re-release on the 5th of next month but it’s going to be a pre-sale”. We released on the 5th of the next month the same amount of units but we said your product won’t arrive for three months. We released them on our site, and they sold out again. Then we upped the quantity for the next month and did 2000 units, and sold out again. We had built up this demand for the watches that we couldn’t fulfil because we hadn’t planned for it.
My plan was to sell at least fourteen watches a week because I could live off that amount of money. It just kind of spiralled. Then we ordered more and doubled our quantity again and again and again. They just all sold out all on the one day. For our first year we had only ever sold for a total of thirteen days. That’s how it kind of started and we ran with that for the first two and a half years. What we do now – it is similar in a way. We have our core products that sell all the time, but our new products are limited to 500 and are only available on the 5th. When we release things, they do sell out really fast. We only release them in limited quantities. Now you can shop with us all the time because we have a lot of other styles that are available.