Leatherup.com 2006 Sales Soar

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Leatherup.com today announced estimated sales for 2006 should top $17.5 Million, with sales growth over 100% from 2005 sales. We attribute this continued growth to strong repeat customer business, high satisfaction rate, and robust word of mouth. People are telling there friends and family about our products and prices, our customer base continues to grow at a record pace in 2006. People have started to realize they can buy direct from a manufacturer and save 50-80% off quality leather goods and motorcycle gear.

Being a direct manufacturer enables us to cut out the middleman and other costs associated with the retail business.

LeatherUp.com also introduced the most advanced line of Waterproof Cordura Motorcycle Jackets on the market in 2006. This line by Xelement has beaten all our sales forecasts and it selling out faster then we can keep pace. These jackets are far more advanced then your typical motorcycle jacket. Most jackets feature full body armor protection, 3M Scotchlite Reflective stripes, gel foam padding, 3M Thinsulate lining, and advanced designs for under $79.95. LeatherUp.com continues to develop new product lines at a record pace. Our line has never expanded so fast and our product quality and satisfaction has never been higher. Our prices are unmatched because of the direct from factory to consumer philosophy we prescribe too. We have completely eliminated distributor markup costs. Our average $89.95 jacket generally sells for $199-229 at most retail outlets. For this reason the word of mouth our customers have given us over the past several years has exploded.

Our Xelement motorcycle boots line has won great praise from riders who love the quality, comfort, and unique look of Xelement Boots. The Xelement boot line is truly the most rugged and durable boot you can buy on the market. They are far more advanced then your typical biker boot with our signature traction control soles. All Xelement boots use Good Year Welt Construction, this means they can be resoled and used for many years to come. Xelement uses a comfort sole and extra comfort padding that gives motorcycle riders that extra comfort for the long haul, plus added durability and flexibility of top grain leather uppers. Some bikers have told us their entire clubs have switched to Xelement boots after a few members raved how great they were, and the added safety they felt with our signature traction soles.

Leatherup.com management feels they are 2-3 years ahead of everyone in the motorcycle and leather business online. We are currently working on moving to a new state of the art 60,000 square foot warehouse in 2007. The number of partnership and projects LeatherUp.com has under development will turn the leather and motorcycle business on its head in 2007. They will be introducing many unique and advanced products in the market place for prices that will keep people coming back year after years.

LeatherUp.com has come to dominate the online motorcycle gear market. Our brands Xelement (Xelementgear.com) and Outlaw Helmets (OutlawHelmets.com) have come to dominate the online marketplace for motorcycle goods. Customer loyalty and repeat business continues to be overwhelmingly robust in 2006. We are seeing the average order size increase over 10% and average conversion rate increase of over 500 basis points. All the signs are very positive going into the holiday season. Internal estimates predict $17.5 million in sales in 2006 and $28-$30 million in 2007. We will be one of largest and most powerful forces in the motorcycle and leather industry by end of the decade. While our competition continues to suffer from much lower growth rates, and low profit margins. This is mainly due to older and out dated product lines and the fact they buy from distributors who and are not direct like LeatherUp.com. That old model of business is slowing dying out; consumers are getting smarter and know were they can buy direct and better products for less online.

LeatherUp.com has continued to spend aggressively on marketing outside the typical Internet model and is starting to see larger return on Investment then pay per clicks. We launched our magazine campaign in 2005 with few magazines and 2006 we are expanding to over 15 publications. We had a huge response to our ad in Motor Trends September 2006 issue, with over 2 million readers seeing our advertisement. Even though these ads are costly we see 10 to 15 times the income returned. Management sees our offline advertising potentially giving larger return and subsidizing our online ads in 2008 as online ads become more expensive and more competitive. LeatherUp.com has also started to see large payoffs on radio ads played throughout the West Coast, and Eastern States. Management believes it's time to start moving parts of our budget offline as online pay per click prices are expect to increase 15-20% per year.

We have also seeing our margins increase in 2006 and see another possible increase by 3-4% in 2007 as we reduce old inventory and move towards some new product lines that have higher margins. "If people knew how incredibly profitable LeatherUp.com will be in 2007 it would make some peoples head spin in amazement. No one can figure out why we spend so much on advertising, it because we have the margins to. Smaller drop ship firms get destroyed going head to head with us, they don't stand a chance with there slim margins and outdated product lines." Said Travis Skylar LeatherUp.com marketing Director. "Being a direct manufacturer enables us to cut out the middleman and other costs associated with the retail business."

Our wholesale products division MyLeather.com continues to see large gains in 2006 as wholesale customers grew at a record pace. Wholesalers and dealerships are telling us our products and price points are right on target. They love the fact they can buy all their fashion and biker leather needs from one wholesaler. We are seeing more stores carry the full Xelement line from jackets, boots, leather chaps, vests, helmets, and fashion goods. They see better sell through and better customer satisfaction.

About Us:

LeatherUp.com is the most popular online leather store, dominating the online segments for fashion and motorcycle leather jackets and biker gear. Incorporating the unique approach of manufacturing there own product lines from footwear, jackets, motorcycle helmets, and biker accessories. This focus on direct to consumer cost structure has enabled Leatherup.com to bring higher quality products direct to online consumers at fraction of the cost. The strong word of mouth and loyalty of LeatherUp.com customers has help push them to the forefront of leading Internet Businesses, and domination of several key niche market segments online.


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Jesse Johnson
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