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 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.