Simpli Pleasures

From Accounting to 10-Figure Revenue: The Simpli Pleasures Journey

December 12th, 2024

Founded By

Ferguson Ross

Monthly Revenue

$83.3M

Founders

Profitable

Yes

Year Started

2012

Customer

B2B & B2C

Founded By
Ferguson Ross: Monthly Revenue
$83.3M

Founders
2: Profitable
Yes

Year Started
2012: Customer
B2B & B2C

Who is Ferguson Ross?

Simpli Pleasures was co-founded by Clay Ferguson, a Canadian entrepreneur who initially studied accounting at the University of Victoria. Before venturing into the e-commerce business, he gained diverse experiences as a tax accountant, internet poker player, bricklayer, and affiliate marketer.

What problem does Simpli Pleasures solve?

Simpli Pleasures solves the problem of making sexual wellness products accessible and enjoyable for everyone, allowing people to explore their sexual health and preferences without judgment, which is often stigmatized in society.

How did Ferguson come up with the idea for Simpli Pleasures?

The concept behind Simpli Pleasures began during a unique college experience when the founder's friend participated in a university project to sell a retired shop owner's sex toy inventory online. Seeing the potential in the industry, this early exposure helped plant the seed for a business opportunity. Despite the initial group's failure, the experience showed them that the industry had legitimate business potential.

Years later, influenced by the idea of creating a flexible lifestyle inspired by the "4-Hour Work Week" book, the founder decided to explore internet-based businesses. The experience gained from digital marketing and affiliate marketing provided an understanding of market trends and consumer needs. Conversations and brainstorming sessions led them to the idea of selling sex toys online, identifying a gap in the market for an inclusive, approachable brand. Through trial and error, along with strategic use of drop shipping and adept marketing, the idea was refined, ultimately focusing on making sexual wellness accessible and enjoyable for everyone.

How did Ferguson Ross build the initial version of Simpli Pleasures?

Simpli Pleasures was initially built using an e-commerce framework leveraging dropshipping to manage inventory and sales. The founders, Ross and Ferguson, began by sourcing thousands of SKUs from dropshipping suppliers. They specifically utilized inventory source tools, such as Flexpoint, to sync supplier inventories to their Shopify store, allowing them to swiftly introduce new products and scale their offerings to meet the diverse needs of their customers. Their initial foray into manufacturing was challenging, involving high minimum order quantities from Chinese factories, which led to surplus inventory. It took them six years to sell through this initial stock, highlighting the complexity and learning curve of managing manufacturing and sales in the sex toy industry.

What were the initial startup costs for Simpli Pleasures?

Initial Inventory: The founders acquired $10,000 in inventory from a local retired sex shop owner to start their business during their university project.

What was the growth strategy for Simpli Pleasures and how did they scale?

Google Ads and Microsoft Ads

Simpli Pleasures utilized Google Ads and Microsoft Ads as primary channels to attract customers. They initially learned and honed their skills in digital marketing through affiliate marketing, which provided them with valuable experience for their eCommerce venture. They focused on using these ad platforms to drive traffic to their website, capitalizing on various bidding strategies to reach potential buyers effectively.

Why it worked: Paid search advertising allowed them to capture high-intent traffic from people actively looking for their products. By mastering these platforms, they were able to create efficient campaigns that reduced costs and maximized visibility. Their ability to segment and target specific queries helped them maintain competitive advantages in paid search.

Bing Ads and Keyword Strategy

The team at Simpli Pleasures discovered an opportunity to leverage Bing Ads effectively due to the less competitive landscape and lower costs compared to Google Ads. They engaged proactively with Bing to expand the list of approved keywords in the adult sector, finding niches that they could uniquely capitalize on.

Why it worked: This unique keyword strategy allowed them to acquire traffic at a fraction of the cost. By being among the first to target these newly approved keywords, they were able to bid minimally, driving substantial traffic inexpensively. It was a clever move that took advantage of gaps in competitors' strategies, providing them with an edge in customer acquisition.

Drop Shipping and Inventory Management

Simpli Pleasures initially struggled with stocking their own inventory but pivoted to a drop shipping model, which allowed them to expand their product range without significant capital outlay. This method enabled them to list a vast array of products on their site without holding the stock themselves.

Why it worked: Drop shipping minimized financial risk and allowed them to test the market's demand for different products rapidly. By syncing with multiple drop shippers, they could cater to diverse customer preferences without the operational burden of managing inventory directly. This model helped them gauge which products had higher demand and optimize the catalog accordingly.

Customer Engagement through Humor

A unique aspect of Simpli Pleasures' customer experience was their use of humor in product reviews and customer service. They even hired comedians to interact with customers through product review replies, turning reviews into a fun and engaging feature of their brand.

Why it worked: This approach created a distinctive brand personality that resonated well with their audience, encouraging customers to engage more willingly. It helped build a community around their brand, where customers felt entertained and valued, which in turn fostered loyalty and repeat purchases.

What's the pricing strategy for Simpli Pleasures?

Simpli Pleasures adopts a diverse pricing strategy with sex toys ranging from $9.99 to over $100, supplemented by frequent discounts and promotional offers to attract customers.

What were the biggest lessons learned from building Simpli Pleasures?

Adapt and Innovate: Simpli Pleasures thrived by leveraging Microsoft's less competitive Bing ads, securing lower-cost traffic in a niche market. This adaptability highlights the importance of finding unique solutions to industry challenges.
Integrate Work and Personal Life: The founders integrated their personal and work lives effectively, leading to smooth communication and efficient problem-solving. Aspiring founders should consider close collaboration to keep all gears turning seamlessly, especially when starting out.
Focus on Unit Economics: After years of bootstrapping, the business emphasized strong financial discipline even after securing VC funds. Maintaining a focus on unit economics is vital for sustainable growth, especially in changing financial climates.
Invest in Team and Culture: Building a loyal and skilled team was key for Simpli Pleasures. The company invested in team bonding experiences and skill development, leading to long-term employee retention and success.
Prepare for Setbacks: Facing and recovering from major challenges like a Google reclassification taught resilience. Anticipate adverse scenarios and develop strategies to address them, ensuring long-term stability and growth.