The Sporting Life

Whether it’s on the court, in the home, or in the great outdoors, the team at Dazadi.com is making sure consumers are well-equipped for an “awesome” time. The West Hills company, founded by Jason Boyce and his brothers Ari, Elan and Josh Klaristenfeld, started off as a grassroots operation selling basketball hoops. Since then, the business has steadily expanded to a portfolio of 8,000 products that range from treadmills and foosball tables to trampolines and swimming pools. Four years ago, the company hit a road block as the economic downturn caused Dazadi’s sales to flat-line after five years of consistent growth. Not to be deterred, the brothers went back to the drawing board and implemented several changes in an effort to revitalize the company and better serve clients. In November, the company launched its revamped website, which sported a new look, increased functionality and a new tagline — “the home of awesome.” The results were almost immediate as the company experienced double-digit sales growth in November and December. In 2011, Dazadi.com brought in $5.7 million in revenues, a 21 percent increase over 2010 when the company had $4.7 million in revenues. Company officials are projecting revenues of $7.5 million for 2012 and say they are well on their way to meeting this goal. “We’ve had 40 percent growth (year-to-date),” said Boyce, who serves as president of the company. “This is our slowest time of the year and we’re killing it.” The site features products from outside vendors along with items from the company’s house brand, Harvil, which launched in 2004 and now accounts for about half of Dazadi’s sales. Cambridge Mass.-based market research firm Forrester Research Inc. estimates that the U.S online retail industry will grow at a 10 percent compound annual growth rate from 2010 to 2015, reaching $279 billion by 2015. As the online momentum continues to build, the brothers recognize that customer service is vital in standing out from the long list of online competitors that has grown in recent years. “There’s so much mediocre online because there’s a low barrier to entry with putting up a website,” Josh Klaristenfeld said. At 26-years-old, he is the youngest of the brothers and serves as the company’s executive vice president of operations. While larger online sites feature lengthy automated customer care systems, Dazadi takes a more personal approach to customer service and relies on consumer input to direct the development, and sometimes redevelopment, of a product. “Because of our size, we are able to take the customer feedback and make changes rather quickly,” said Elan Klaristenfeld, Dazadi’s executive vice president of sales and marketing. “With a Walmart.com or an Amazon.com there’s so much red tape changes don’t happen for years.” FOUNDED: 2002 HEADQUARTERS: West Hills CORE OF BUSINESS: Sporting Goods and Recreational Equipment NUmber of Employees: 10 Revenues in 2010: $4.7 Million Revenues in 2011: $5.7 Million Projected 2012 Revenues: $7.5 Million A ‘Super Duper’ Start Long before the days of Dazadi, Boyce and his brothers showed an entrepreneurial spirit— making money by errand running, for example, and starting a coupon business. When Ari, who is no longer with the company, proposed launching an Internet business selling basketball hoops under the name Superduperhoops.com, the brothers were eager to participate. As the online business began to generate buzz and expand its product offerings, the brothers decided to trademark the business. Under the advisement of an attorney, the company’s name was changed to Dazadi. Attracting vendors in the beginning proved challenging as many believed “the Internet was dead” and were hesitant about partnering with an online business. “People said, ‘You can’t sell anything on the internet,” Elan Klaristenfeld said. The brothers were able to win many vendors over with their customer service practices, which include nationwide in-home delivery and assembly and an in-house customer service sales team. Michael Thomas, national account executive for sporting goods brand Spalding, said Dazadi has been an online partner for the company for about seven years. Dazadi’s commitment to consumers and its efficient operations have made them an ideal retailer for Spalding, he said. Utilizing an Electronic Data Interchange (EDI) system, implemented by Josh Klaristenfeld, the company has been able to trade information and data electronically, allowing for faster ordering and shipping processes. The system also gives the company more of a competitive edge against fellow online retailers, Thomas said. “It’s the only way to be successful; otherwise, you’ll spend all day tracking down orders.” Lessons learned Dazadi’s road to growth has included some roadblocks and bumps along the way. In 2008, the company’s growth leveled as the retail industry as a whole was impacted by the failing housing market. The cost to drive traffic to the website increased exponentially while sales decreased, forcing the brothers to simplify. The company’s warehouse in San Fernando was sold and they moved into smaller office quarters to save money. In an effort to rebuild the business, the company cut its product line from 20,000 to 8,000, as a way to “curate” the selection process for the consumer. “We really refocused our merchandising efforts to make sure we had the best copy, the best photographs and the best products,” Boyce said. The company’s new website was also a vital component to Dazadi’s face-lift. As the company regains its momentum, the brothers say they are grateful for the tough times as it has made them stronger than ever. “It helped us better define who we were as a company,” Josh Klaristenfeld said.