Windy City Parrot was started in 1993
by Catherine Tobsing. Until New Year’s Eve 2001, Windy City
Parrot’s revenue was from bird shows. Bird shows are where vendors
congregate in venues from a school gymnasium to shopping malls and
they sell their bird related items to the public.
After 9/11 attendance to bird shows
began to dwindle and Catherine partnered with a parrot customer who
developed small websites exchanging goods and services for the
development of the first windycityparrot.com site. The site was
launched early January 1, 2002 it received its first order five hours
later. Google was much more tolerant back then allowing new sites to
be found more easily than today. (In 2002 Google would “spider”
or find your site as soon as it came on line. Today, a site will will
be ignored for at least 6 months - this is called the “sand box”
and unless you take a very proactive approach to getting found on the
web, your new site will be ignored). Eight years of bird shows
created a customer base that began to buy from Catherine online
immediately.
Catherine met Mitch Rezman her current
partner (and now husband) in the spring of 2002. The first year Mitch
helped Catherine do her bird shows as time allowed (about 30 weekends
a year) and joined her in business full-time in the fall of 2003. By
that time Catherine’s apartment was beginning to get crowded with
merchandise as the website began to gain traction. In spite of having
a large retail storage unit it was clear that retail and work space
needed to be rented.
In October 2003 we acquired our first
1500 square-foot retail space on Milwaukee Avenue in Logan Square.
Mitch and Catherine were now living together and the new retail space
was two blocks from our apartment. Response from Chicago area pet
owners was overwhelming. And six months after moving in, we had
acquired another thousand square feet next-door and broke through the
wall between the two spaces joining them.
While growing the website we were also
growing a retail market locally by holding “open houses” on a
monthly basis inviting bird owners, veterinarians, Bird Rescues,
behaviorists, and guest speakers. At its peak we would have 300 human
visitors and more than 100 visiting birds on a Sunday afternoon. We
were growing so rapidly that we acquired another 7000 square feet of
retail space from the same landlord three doors down in May of 2004.
Towards the end of 2004 we consolidated
space and gave up the first two units and moved everything into the
now newly remodeled 7000 square-foot retail area. We were growing
rapidly and had revenue from bird shows, the Internet and store
retail sales. We borrowed all the money we could to invest in
inventory. At the same time one of the last major manufacturers of
bird toys in the United States, XTC Fine Feathered Friends in
Palatine Illinois went bankrupt. We purchased roughly $50-$60,000
(retail) worth of toy making components and toy assembly machinery
for cash. To put things in perspective this was two 22 foot trucks
filled to capacity with crates of bird toy making supplies.
A sense of unstoppable success came to
a screeching halt June 23rd 2005. We were taking a much needed day
off having worked seven days a week for about two months to take a
day long motorcycle ride. Upon our return, we went to take the
motorcycle back to the shop where we kept it. We were met with
seemingly 100 pieces of firefighting trucks and equipment and the
building in flames. The 5 alarm fire burned for 3 days. The city of
Chicago apparently had some sort of issue with the landlords. We
never received the complete story but the ATF was involved and our
building instantly became a crime scene that we had no access to 14
days.
Both shocked and devastated we went
camping for about 10 days to review our future. The business was
insured, although under insured so we weren’t sure what our next
move would be. Even our personal laptops were at the shop and burned
up in the fire so we did not have one computer when we returned.
Prior to leaving for our camping trip we sign a contract with a
public insurance adjuster to help us through the maze of paperwork
needed to recoup our insurance money. We returned from the camping
trip and an advance check of several thousand dollars was waiting for
us.
We used the money to buy a new
computer. Once the computer booted up we had an epiphany. Fortunately
we had moved the website from a desktop server that was in an office
at the shop to a web-based platform - Miva Merchant. We also been
practicing cloud computing by moving all of our data to our website
server daily.
Once the computer booted up we dialed
into the website, we had a good news/bad news moment. While we were
in the woods indulging in self-pity, the website quietly kept taking
orders and we had about 120 orders and cash in the bank. That was the
good news. The bad news was we had nothing to sell anyone. At that
moment we made two major decisions on the spot. We needed to focus on
website sales and we needed to learn how to drop ship a lot of
merchandise very quickly. We decided that we would no longer do bird
shows and focus exclusively on Web sales and concentrate on retail
sales.
Our vendors were more than
understanding and we were able to begin fulfilling orders from our
living room teaching us how to be prolific drop shippers. Working
with the public adjuster we did some tap dancing trying to explain to
State Farm how an Internet business worked. The State Farm adjuster
came out and looked at the building and assumed that we needed to
find a new space, remodel space, stock the space and we’d be back
in business within six months. After presenting the State Farm
adjuster with a stack of orders and our bank statement on the hood of
his car from the burned-out store Milwaukee Avenue he wrote us a
check on the spot.
We rented storage lockers at the
closest business class facility that we could find that had
temperature control (for the bird food as it was the middle of
summer) and send purchase orders to all of our vendors sending
merchandise to the new storage facility address. In less than a week
we were fulfilling orders from the driveway of the storage facility.
We used folding tables, electrical inverters and a portable desk we
created out of the back of the van for computers and printers.
Catherine, who does fulfillment, worked outside under the hot sun. We
use a satellite uplink to connect with Fedex and our website server
in our shipping software.
An additional challenge confronted us.
Our now former landlords sued us for for abandoning the spaces. The
suit never made sense but we did have to deal with it and spent nine
months in Cook County arbitration. Our attorney Jill Rose Quinn
negotiated a settlement down but that issue hung over our heads
throughout our recovery.
It took all of July and August to find
a suitable and affordable facility that we could move into. We spent
several weeks negotiating a 50 page lease for a 5000 square-foot unit
with 22 foot ceilings at 2007 W. Fulton in Chicago. By early
September we had painted the walls, installed computer’s and phones
and moved in. We were excited about the move - the landlord had his
business upstairs, a Medicaid pharmacy and an in-home Doctor care
service. Unfortunately over the next two years we learned the
landlord felt he was King of the building. At the time we were
stocking hundreds of bird cages. When bird cages ship from
distributors they are stacked on pallets to the roof of the semi
trailer truck roof. A pallet of bird cages can be as much as 1800
pounds. We acquired a forklift from a neighbor who ran a used
forklift store. The landlord regularly blocked our loading dock for
16 months with everything from hundreds of boxes of medical records
to dozens of bags of garbage and litter.
We found ourselves leaving our forklift
idle and having to move our bird cage boxes and through a narrow 28
inch door regardless of weather. What became more of a problem was
the garbage on the loading dock We filed formal complaints with the
state of Illinois and the city of Chicago.
It was now 2007 and our combined
website revenue & retail store sales was over $900,000 annually.
The rat problem had become overwhelming. Based upon our growth
pattern assurances from the government that the economy was in great
shape we moved into a 15,000 square-foot facility on the West side of
Chicago. The landlord was our forklift salesperson who as it turned
out owned several large commercial buildings throughout Chicago
Metropolitan area. We had a great relationship, he had given us “pay
me when you can” terms on the $3000 forklift he sold us and came
highly recommended from one of our largest cage vendors.
We abandoned the Fulton space and moved
into 4727 W. Walton in April of 2008. As luck would have it this was
the cusp of our national financial disaster. The original plan with
the space was to have the neighbor on either side of us sublet space
from us help to offset the now sizable monthly rent payment. Both
neighbors went out of business leaving us with expenses higher than
we would’ve liked. To further complicate issues the economy began
its tailspin, and our sales reflected that. Entering our first winter
in the new unheated space became a major challenge as well. The
landlord had originally agreed to provide us with the enclosures
within the 15,000 square-foot unheated space but because he had so
many commercial tenants abandoning his buildings he ignored our
pleas.
As part of our agreement moving into
the new space the landlord supplied a 50 foot long double wide fully
functional office trailer that we placed inside the warehouse. The
trailer supplied us office space but all the inventory and
fulfillment was in a large unheated area which forced to build our
own temporary fulfillment (shipping) room, with heat at the cost of
several thousand dollars. By the time the spring thaw arrived we came
to realize that when the trailers were installed, the sewerage pipes
from the trailer were flowing into a storm sewer. During the first
major thaw in the spring of 2009 we walked in one morning to a flood
of human sewage throughout the facility. While inspecting this we
also realized the trailers were placed on cinderblocks after having
removed the suspension removed to lower them enough to fit inside.
The cinderblocks were now crumbling and we were concerned for our
overall safety.
We made move number four into our
current facility at 906 N. Western out of desperation. Although it is
only 900 square-foot with the basement it was three blocks from our
home and we felt we could make the space work. The property has a
two-story coach house in the rear that was used as a smokehouse for
the Ukrainian delicatessen that previously resided in the space we
now occupy. Within six months we were able to negotiate rent with our
current landlord and reclaim the greasy smokehouse as usable storage
and retail space on the first floor. This now gives us a total of
3500 ft.˛ of clean retail space.
It had been our goal to upgrade our
aging website platform to something more advanced. The platform we
were on did not offer all the new features that we felt necessary to
be successful on the Internet today. The plans to do this had been
postponed because of our physical moves and moving a website is
actually far more complicated than moving a physical business.
We spent the spring and summer of 2010
paying our due diligence researching website platforms seeking the
platform that would propel us to the next level. In October of 2010
we signed a contract with the company that I’m not allowed name and
I’ll explain why in a moment. We gave this company $13,000 upfront
to deploy the new website, create customized software to offer a
better shopping experience and to migrate from the old web platform,
which was to take at most 30 to 45 days.
The migration took 120 days and once
deployed the new website simply did not work, it kept breaking down -
at a cost of one thousand dollars per month. Costing us $20,000 in
monthly website sales and the loss of long-term customers. The first
30 days of operating the new website we opened up 250 technical
tickets and recorded over 50 screen captures of errors that we
pointed out to the new web host.
We had signed a 12 month contract with
a large penalty for early cancellation. We could not afford to stay
on this web platform. Working with social media we used websites
(like LinkedIn) around the world to amplify our voice in our
criticism of this terrible web platform. The CEO of the company
threatened us with a lawsuit. He also threatened some of the many
e-commerce review website operators who were posting the negative
comments we were providing. We also were not the only ones with
problems with this company. The more he pushed us the more we pushed
back. We made it clear that every day we were his customer we would
do everything we could to damage his brand and he wanted to sue us
but the activities of the lawsuit would be amplified throughout the
web world via business and social media and blogging.
Having come to the realization that
keeping us as a web hosting customer was going to cost him more than
letting us go, he released us from the contract with no penalty but
we had to sign a confidentiality agreement not to disclose anything
about our relationship. Once we received written assurances that we
would be released, Catherine & I literally worked around the
clock to move the website from this platform to the 3Dcart platform
we are now on. We did it in 21 days.
We also had to abandon the custom
software which included a rewards program that duplicated the program
that we had been with for six years. Also because of website security
issues we we were unable to move customer passwords over and many
returning customers were locked out of their accounts.
We had now changed website platforms
twice in six months. While we were migrating website platforms Google
deployed something called it’s Panda update. You may have read
about some of this in the Wall Street Journal because it cost large
web retailers like overstock.com and JCPenney’s to lose as much as
10 to 20% of their web revenue. Without getting into technical
details, the Panda update is forcing websites to provide the best
possible end-user experience. The site must be easy to navigate and
fully functional.
Without getting technical there’s a
couple things that need to be understood so as to realize the effects
of what happened to our company next. Whenever you move a website,
half the links inside the website (called cross-links), break. That’s
because the URL of the particular web platform changes slightly
making the old internal links obsolete. WindyCityParrot.com, is a
3500 page website with approximately 25,000 internal links. On both
moves of the website about 11,000 links broke providing for a poor
end-user experience. We were able to repair between 7000 - 9000 in
one or two days using scripts in an Excel spreadsheet. The balance of
the links must be hand coded.
Further to that, links from old
websites never die. Thus we had approximately 11,000 more external
links that were broken according to Google. In other words for every
bird toy we sold on the old website(s) there was a link to that bird
toy for every category that it resided in so one product might have
as many as 10 links associated with it. To overcome this problem you
must map the old links to the new website using something called 301
redirects. For every old broken link you must assign a destination
link on the new website. It has taken us six months but we have now
hand mapped 11,545 - “301 redirects” on the website.
A brief explanation of “301
redirects” from our webhost 3dCart’s knowledge-base: If you have
an existing website you are migrating over to 3dCart, you can enter
in 301 redirects to link to your new 3dCart website. A 301 redirect
means the site has been 'moved permanently' and the requested
resource has been assigned to a new, permanent URL. If a customer
clicks on a link to your old site, which no longer exists, they will
be redirected to your new site - this functionality helps keep your
rankings with the search engines
Through all of this because of all the
broken links we’ve lost what is called page rank. The loss of page
rank begets loss of traffic, lost traffic becomes loss of business.
We feel the worse is now behind us. Having repaired the 20,000+
internal and external links and acquired a new SEO consultant our
hopes are to focus on rebuilding Windy City parrot in achieving $1
million a year sales in the next 36 to 48 months. |