Miche Bag Business Review

About the Company

This company is the brainchild of Michelle Romero, who came up with her idea after spilling something on her purse. The story is that she just put together a new outer cover for her purse rather than switching all of its contents to another one. She shared her idea with her friend Annette Caveness, and together they developed the polished product and founded Miche Bag, LLC in 2005. Their business has spread world-wide in just a few short years. Their U.S. office is based in South Jordan, Utah.

The Product Line

Miche Bag sells designer handbags with a twist. The company offers four basic designer “base” handbags in black or brown and numerous interchangeable outer “shells”, straps and other accessories. The outer shells magnetically attach to the outside of the base bags to create a custom look. The magnets are apparently credit-card friendly (in other words, they do not affect their magnetic strips). If a Miche Bag owner wants to “change” purses, they only need unfold the magnetized shell and fold a new one around the base purse.

This is certainly much easier than dumping out the entire contents of one’s purse only to put it in a different one. The product itself is an original idea that makes the ownership of multiple purses more affordable to the average woman. To buy a bag alone, the cost runs between $18.95 and $39.94, but the bag would be unadorned black or brown nylon. The shells are listed for $25.00 each but the company is almost always offering some sort of discount. The cost of a Miche starter kit is $100.00 for a Miche Bag Max collection (one bag, two shells and two handles), or $100.00 for a Miche Bag Classic (one bag, three shells and three handles). The bags and shells are all created from man-made materials.

The Business Model

The company utilizes the direct sales business model to getting their products to their customer. The company does direct sales from their official website, but also relies on the services of independent home sales representatives. These home sales representatives work in direct contact with and receive their products from an authorized distributor who determines commissions and/or discounts offered to customers.

Like any direct sales organization, their representatives are independent contractors responsible for filing their own Federal and State Income Tax forms. These representatives contact and sell to individuals face-to-face, one-on-one, by telephone, fax or email, but the most popular way (popular with both customers and the representatives I have met) is the “party plan.” In fact, the company’s website indicates that the home party is the company’s desired method of distribution to demonstrate their product to customers.

The Party Plan

The home party plan can be one of the simplest types of business for a sales representative because the host/hostess invites friends into their home or workplace to meet the Representative and purchase the products. Chances are that over your lifetime, you’ve attended at least one party sales presentation, whether it was for Tupperware, Avon, Mary Kay, Arbonne or the like. Miche Bag representatives would make the product available to view and try out, and demonstrate how to change out the bag shells. Representatives earn their income through party sales. Their commission is usually 25-30%.

While the company is a direct sales organization actively recruiting hostesses for home parties, as well as direct sales representatives on their website, it is also clear that they are looking for retailers to carry their product line.

Final Thoughts

It is my opinion that Miche Bag, LLC offers an attractive, fashionable quality product, but may not have determined their final sales platform yet. It seems be a great business opportunity for someone who is willing to work hard, host continuous home parties and sell, sell, sell.

There is also something to be said for the great opportunity to get in with a company that carries a good product before it truly takes off. The official company website is attractive and user friendly, and does a good job of introducing the products to potential customers. The company also invests in television infomercials which could be invaluable “free” advertising to a sales representative.

If you are currently involved with Miche Bags, LLC, we would love to hear your story. Please share a product testimonial or personal success story with the rest of our online community. Just scroll down a little bit on this page and type in your 150+ word message in the web-form. If your story is approved, it will be posted for the rest of the world to see and comment on.

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