BMGT 335 The History of MobleyLights2020

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The History of MobleyLights

Mary Mobley owns a business that makes geometric shaped lamps called Mobleylights.
The Mobleylights are made from plastic panels that fit together like puzzle pieces. The
pieces make lamps of different shapes, patterns, and colors. The Mobleylights come in a
variety of shapes and sizes with the largest ball lamp being 4' in diameter, or 4' x 4' square.
The largest lamp sells for $125 while the most popular model, a 15" diameter model sells
for $49.99. People who purchase more than three Mobleylights get one free. The choice can
be hanging lamps or sit on a desk or a table. Mobleylights are popular with children and
teenagers for room decor. Party planners like Mobleylights because they can set a mood in
the room and they can be used again in different ways supplementing the patterns or colors
from time to time.

Mary first started the business in the kiosk of a local mall. The overhead was low and sales
varied. She broke even almost immediately. By the end of the first year; she was making a
profit. Mary expanded to another mall by the end of the second year doubling sales.
Encouraged by success, Mary thought it may be time to open a shop. She looked for a spot
in a small strip of stores but not in a strip mall. She found a place on the main street of
"Old Town" in Ellicott City, Maryland. It was a small store with questionable parking but
a high volume of foot traffic.

Mary began doing lighting for party events and sales skyrocketed. Yearly sales went from
$200,000 to $500,000. Thrilled with her success, Mary began to take on help. She even
considered opening a shop or kiosk at the Baltimore Harbor Pier thinking she would have
a lot of foot traffic. Mary was constantly thinking of ways to expand the customer base of
the company. She opened a kiosk in the Harbor Building housing "Philips," a popular
Maryland landmark restaurant. Sales were far from stellar but the business still showed
growth. The company was now looking at over a million dollars in sales with expenses of
just over $500,000. The business had 18 employees. At this point, Mary had not really
explored internet sales or social media.

Unbeknownst to Mary, who had been very busy growing the business, YouTube was
showing instructional videos on how to make the lamps and included online websites where
people could purchase the panels and other materials needed to make the lamps. One day,
a downtown employee spoke with Mary about the videos. Mary was shocked. The employee
said she overheard someone say to a friend, "Yes I think they are cute too, but you can go
online and buy the panels and make it yourself for half the price."

Within six months of this conversation, Mary found that sales were dropping in the various
kiosks, but not in the party business. Mary closed two of the kiosks, the Baltimore and the
location at the first mall. She stuck with the store and the second mall location. Sales were
doing well at both locations although profits were flat. One year later, Mary closed the
remaining kiosk. She kept the party business in the storefront. Later, Mary would close the
party business as well but continue to work out of her house. Her million-dollar business
had reverted to $300,000 in the span of three years.

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