Fine-linens manufacturer Vero Lines lost a significant amount of its business when several of its clientele of luxury-hotels stopped buying premium linens or went to other manufacturers that sold for less, reports Entreprenuer.com.
Apparently, the firm had lost its relevance or grip of the market.
With the rising price of cotton, Steve Caradano, the founder of the firm, knew that his B2B business model was not sustainable. Armed with industry reports that consumers were still buying high-end linen, Caradano opted to go directly to consumers through the Internet with an online store.
The transition was not flawless, as it took several attempts to determine how to get the attention of consumers and to maintain it. The latter is key, as the story points out that switching a business model to B2C from B2B can be challenging by very worthwhile.
….Overall, Caradano says he plans to focus more of his time and energy on online sales and less on the hotel business. "I never felt the Internet would be something where people would be buying $1,000 sheets sight unseen," he says.