Dot-Com
Is a Hit
Confess. You want a Perfect Pancake maker (the world's
first spatula-free pancake maker). You need a tube of Super
Blue Stuff, the pain reliever cream fortified with emu oil. Maybe
you already own a TeleZapper (keeps telemarketers out).
CSU, Chico alums Steve Newman (left in photo) and Brett Wilson
(right in photo) sell these and other "as seen on TV" products through
their flourishing dot-com business, YouCanSave.com. In 1998, Newman
(B.A., Information and Communication Studies, '96) and Wilson (B.S.,
Business Administration, '96) launched YouCanSave.com out of Wilson's
San Mateo, California, garage. That first year, the company's sales
were $1.5 million. YouCanSave.com now operates out of a warehouse
in Hayward, with 15 employees. In 2001, the company's sales were
$12 million.
"Infomercials are intriguing," says Newman. "They capture a person's
attention with a memorable product." For those of us who don't want
to drag ourselves off the couch to call an 800 number but can't
live without the FlexiHose (the original flat hose, guaranteed to
never kink, tangle, or tear), Newman and Wilson came up with YouCanSave.com.
"We thought we would create the perfect place for people to find
these products they've seen so much of on TV," says Newman. Their
site also lures customers by offering hot sellers such as the Bun
and Thigh Rocker at a better price because the company doesn't spend
money on the initial television advertising.
How do Newman and Wilson choose which products to sell from such
a dazzling array? Wilson says they use two criteria: how often the
products are advertised on television (the more, the better) and
how available the product is. "If a product is in every store, there's
no need to buy it from us," he explains. "We try to stick with the
unique products."
Unique, like the Flowbee haircut machine (it vacuums as it cuts),
which Newman calls the "all-time classic infomercial product" and
his personal favorite. The vacuum aspect was alarming to their test
subject, but "it did give her a pretty decent haircut," claims Newman.
The partners test all of the products "simply because we'll get
a lot of returns if they don't work," he says.
Newman and Wilson were roommates for four years while attending
CSU, Chico. Both say they were well prepared for the working world.
"The teachers were focused not just on theory, but on the practical
side of business, too," says Wilson. "That gave us an edge over
our counterparts in the UC system."
Newman's wife, Jen-nifer, also a CSU, Chico alum (B.A., Spanish,
'98), works in customer service at YouCanSave.com.
So, back to Super Blue Stuff … what part of the emu is the oil
from? "Oh goodness, I wouldn't dare ask," laughs Wilson.
Lisa Kirk, Public Affairs and Publications
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