Company
Pets.com
TL;DR
Dot-com era pet supplies company cited as extreme cautionary example of 120% Allocation.
Dot-com era pet supplies company cited as extreme cautionary example of 120% Allocation. Spent $11.8M on Super Bowl ad with only $619K revenue per quarter. Bankrupt 9 months after Super Bowl ad. Classic case of allocation exceeding 100 units funded by investor capital that eventually dried up.
Cautionary Notes on Pets.com
- Marketing spend vastly exceeded revenue
- No path to unit economics
- Capital markets closure caused immediate death