She heard about on actor Jason Mewes' twitter feed. Take K'La Albertini, from Champaign, Ill. But 's business model has a higher possibility of success with younger and more tech-savvy people. Older pet owners who don't use the computer a lot are less likely to order their pet food online, said Vetere. People who spend a lot of time alone or who work from home also lavish a lot of attention on their pets. So do young professionals who delay getting married and having kids. Baby-boomer parents whose children have left home tend to dote on their pets. "Through the recession, through these tough times, people are finding that some of the most calming things are their pets," said Bob Vetere, president of the APPA.Ī few generational trends are also adding to the increasing "humanization" of pets, said Vetere. It was $17 billion in 1994 and has since risen to $51 billion this year, undisturbed by the downturns in the economy, according to the American Pet Products Association (APPA), a trade organization. While isn't profitable yet, they expect to break even in the first quarter of 2012.īig market to chase: The pet industry has been on a steady climb for more than a decade. The startup received $10 million in venture capital from Lightspeed Venture Partners, the same firm that backed daily-deals site LivingSocial and online women's shoe retailer ShoeDazzle. "When you think about starting a new business, I strongly believe that if you over think everything, you will never actually do it," said Zhardanovsky. The entrepreneurs put $5 million in seed money in the business anyway, believing that their web advertising know-how would give them a leg up. He's also a dog owner who knows firsthand how much of an inconvenience it can be to order pet food regularly.Ġ:00 / 3:21 Trading the 9-to-5 for wags and woofs ![]() "They basically shrugged it off."Įven with big box brick-and-mortar retailers PetCo and Petsmart on the scene, Zhardanovsky saw enormous room for an online pet supply company. "Their initial response was 'Sure, sure, sure, we have heard it all before,' " said Zhardanovsky. The memory of, an online pet food company that famously failed, made many in the industry unwilling to cut deals with the startup. Maybe so.įlying into the wind: When Zhardanovsky and Speiser initially met with pet food suppliers to negotiate bulk wholesale contracts, they were unable to get great rates. ![]() "It is a really small-town customer service mentality." Hiring: Yes. "They are really good, nice, kind people," said McAndrews. "It costs us about $50 to acquire a customer," said Zhardanovsky.īut once gets a customer, it works hard to keep him or her. "He goes through his food quickly," said McAndrews, so having the heavy bags of food delivered is ultra-convenient.īetween 50% and 60% of 's customers sign up for the auto-replenishment service, so each customer is valuable. To feed her furry friend, she gets a 30-pound bag of Holistic Select lamb and a few treats delivered every three weeks. She gave a try because a friend works there. Trish McAndrews lives in Manhattan with her English mastiff, Quincy Jones, which weighs between 200 and 210 pounds. Almost nine out of 10 customers are women who are not fans of hauling huge bags of pet food around.īy year-end, the owners hope to add more products for a wider range of pets. Shipping is $4.95 for orders up to $59 and free for orders that are more expensive. It offers an "auto-replenishment" system, which allows customers to get cat and dog food, treats and accessories delivered automatically on a regular schedule. They used some of the $48 million to start. In 2005, the co-founders sold 40% of their stake in, then called AzoogleAds, to TA Associates and Stripes Group, a private equity firm. He and Speiser started an online advertising company in 2000 that surpassed $100 million in annual revenues in five years. Hitting a million dollars is not a first for Zhardanovsky. Just by hitting that number, you haven't achieved much." Since May, has grown by another 30%. "It is a nice milestone to hit, but it is not a number that you focus on. Upon reaching the benchmark, "we felt that we had a lot more work to do," he said. The firm - which launched in March 2010 and took its first order in July of 2010 - has two plaques on the wall: one commemorating hitting $250,000 in monthly sales in November and another marking $1 million in sales in May.īut hitting the $1 million mark was just a stepping stone for Zhardanovsky. McAndrews signed up for 's auto-replenish service. ![]() Trish McAndrews' pup Quincy Jones, an English mastiff that weighs between 200 and 210 pounds, eats a lot of food.
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