Good Vibrations — the ground-breaking sex toy retailer in San Francisco — is in financial trouble, as its Internet sales have dropped dramatically.
Company officials blamed the precipitous drop partly on the entry of numerous price-slashing sellers into the online sex toy market. Some were big companies like Amazon and Drugstore.com that could underprice Good Vibrations due to economies of scale and purchasing clout. Others were kitchen-table Web businesses that could underprice Good Vibrations because they had almost no overhead.
This week, for instance, Good Vibrations’ Web site is offering a purple Rabbit Habit cordless vibrator for $82. But Amazon and Drugstore.com are selling it for $55.99, and some smaller online stores also list it for less than $60. […]
“Sex toys are becoming a commodity – who would have thought?” Sparks said. “To a certain extent, we’re the victim of our success. We were one of the first companies to challenge the cultural taboos around sex toys and women’s erotica. Lo and behold, we won. Now we’ve got Amazon selling our products. And as a result, we’re getting hammered on price.”
GV plans — if it can raise capital — to expand its bricks-and-mortar presence, which has continued to do well.
(via Romenesko)
I think the loss of the top search results they used to have, also has caused a huge decrease in sales for Good Vibrations. But hte prices of the toys are also a major factor in my opinon.
There was an odd Google snafu over the holidays that the article mentions. But, yes, I suspect that price has become the main issue, especially as they straddle a bricks-and-mortar/online presence.