Gab Waller On Celebrity Luxury Fashion Sourcing, The Coat That Changed Her Life, And Building Fashion's Next Big AI App

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1:02in case you missed it you're allowed to be hot smart and rich so let's get into it

1:12gab waller are you ready to get hot smart rich i am so ready let's do it okay well thank you first of all for coming i feel super honored i think when i was prepping for this i was like Gab Waller is kind of like the Carrie Bradshaw of our generation in terms of your Vogue column. But now you're like an entrepreneur. You are an AI tech founder. You are like a style guru and source of making celebrities look and feel their best. Which one do you resonate with the most? Great question. I would say that I feel the most comfortable with entrepreneur. Yeah. Okay. So growing up, did you want to be an entrepreneur?

1:55Did you want to be in fashion or why do you feel like that feels better for you? Yeah, that's really interesting. So growing up, I had no interest in fashion. It wasn't even, I came from a really small town in Australia, very country town. So it wasn't even the horizon or like a possibility for me growing up. So I feel when, once I graduated school, it's a bit of a crazy story of what I went into, but I started working in the government. Once I was like making some good money from this government job, I started taking an interest in fashion and I was like, on a personal level, on a personal level.

2:28Yes. Like just started, I remember my first purchase and I was like, wait, I, I've always felt very naturally drawn to style. Like it's always come quite naturally to me. So then I remember even working in the government, like going into my little corporate job and they're like, Gab, you need to be in fashion. Like, look, what are you, like, what are you doing right now? Look how you're dressed. And I'm like, yes, I know. And so I finally took the leap. So when you took the leap and went into fashion, what was that first job that you had? Or did you just start your business right away? I remember I doubled in internships initially because I think I was like, yes, fashion is for me, but I didn't know what area I was like, do I want to be a buyer?

3:02Do I want to be a stylist? Do I want to work in PR? So I went down the internship route and at the end of that, I kind of landed on styling. But fast forward a certain amount of time that's when I kind of was like I want to do something different I want to do something in the fashion space that nobody is else is doing yeah and that's where sourcing came from yeah I would say like that's something I didn't even know what fashion sourcing was before you and it's so funny when I was first getting to know you I was like I kind of was like is it styling like what is it so when you were like I'm gonna do something different I'm gonna do fashion sourcing you were like the pioneer of that how did you even like think that that was a career you could make for yourself?

3:41Yeah. So I was living in Sydney in Australia and I never called it sourcing to begin with. I remember I found one of my old email signatures the other day and it was like luxury personal buyer. Love that. Okay. You're a branding queen. So she started as a little luxury personal buyer, but the original concept stemmed from the research that I did. I knew that Australia tended to get collections much later than the rest of the world. And if they did get them or when they did get them, the quantities were so limited that they tended to sell out so quickly. So the original light bulb moment was, I wonder if I can, didn't use the word source, but I wonder if I can purchase pieces internationally for the Australian market.

4:26And then three months in, I knew that I was onto something. Like I was like, there is demand here for this. And then six months is when like the Rosie Huntington-Whiteley story happened. And it was like - Can we, I don't know the Rosie Huntington-Whiteley story. Tell me this. Yeah, so this is like such a pivotal moment in my career. But six months into the business, I predominantly had Australian clients and I think I was sitting on like a thousand Instagram followers. And I didn't, I wasn't established in the fashion industry, even in Australia. So me approaching clients back then, I was a complete stranger to everyone.

4:58So I was kind of finding my feet, but I was posting on my personal Instagram what I was doing. Like I've just found my client there. So I knew that I was onto something. And I remember like I often weirdly go back to my old Instagram stories to see. Wow. Yeah. Like just like just refresh. Like, wow, that's really how it started. Yeah. The original post. But it really goes to show like whatever you're starting, just post it because there was a girl that followed me. And well, if I backtrack a little bit, Rosie posted a Instagram story saying like, I'm dying for the Celine coat. Can anyone find this coat?

5:31and I saw that and I was like, I know I can get her that code. I know the boutique that has it, but I have no way of reaching out to Rosie. So I let it slide. But a week later, a girl that followed me messaged me and she's like, hey, I've been following what you're doing. I think this is something you can help with. I'm chatting with Rosie. Can you help? And I was like, yes, I can. And so when it arrived with Rosie, she did a full Instagram story saying, you remember when I was looking for the code, this girl in Australia found it and then she also did like an in feed post and that just like it's like I it's not overnight explosion because there was so much leading up to that point but it was like it was certainly the moment that changed like my career and definitely my life and that was how long after you had started this business that was six months six months and so was it like a struggle for the first six months so of like even like did you go and get the bags or the shoes or the coats first and then try to find customers for it?

6:29Or was it like you had a client, they're like, Gab, I want this? It was definitely a struggle. I think for me, two parts of it. Number one was just proving myself. It was a new concept. So I think for me, from day one, I was always like, I can find you pieces internationally. I can get pieces that you can't get your hands on. So that was always kind of the messaging. But I remember in the beginning, I think Sydney, I always think back to my story. I am very grateful that I started in a country such as Australia. I think that, you know, starting in a smaller market, it helped in the beginning as opposed to like starting in, say, you know, the US.

7:07But the main challenge was I wasn't a VIP client myself. I didn't really buy luxury. So I was walking into like Dior, Louis Vuitton, whoever it may have been and said, hey, can I have like you don't know me. I'm a stranger, but can I have your most requested or like most in-demand piece? And there was so much, no, I don't know who you are. So that kind of in those early days, like there was a lot of that rejection and me just having to be like, no, I know I'm onto something. I know I'm worth your while. I think that's what I really wanted to showcase to these like sales assistants and to these brands that I'm building.

7:43I'm building the clientele. And I think I did a lot of research prior to even launching Gab Waller as to like who was my target market and then reached out to them that way. So kind of within launching, I already had like good, good clients that were spending pretty heavily, even though there was say like 10 at that time. It's such a common thing. I feel this all the time. Like when I try to explain to people HSR that just don't get it and I'm like, I know I'm onto something. You just don't see it yet. It's one of those like really frustrating things where you're like, how do I communicate that I'm of value that you should pay attention to me no matter what business you're starting or what kind of guardrail you're up against?

8:18How do you convince people when you were starting and you didn't have what you have now to take you seriously and to give you their most in-demand piece when they have no idea who you are? Yeah, really great question. I think it does come back to relationships and being genuine and kind can go so far. I think, you know, in the luxury world, it is common that it can get a little bit demanding of, you know, I have the money, so I want the item. but me coming in from a much like kinder approach I felt that that really just helped establishing it so to me I've always been like let's you know you know let's look at this as a friendship and then I think that's kind of how I was able to yeah at least get my foot in the door yeah just being we need to talk about money for a second because I was gonna say this till later but you said something really interesting that's like you know being in the luxury space I have the money.

9:13I deserve this. You're around extremely wealthy people. These are the people that can afford what you're doing. What would you say are some of like the similar characteristics of people that have achieved that level of success in terms of their personality or how they think about money? My clients, for me, that consumer, they want things quickly. Sourcing is all about speed. And so I think on that, that is why fashion sourcing as a whole has grown so much as an industry because essentially these consumers, they want it quickly. They don't have the time to find it. The fact that they can just DM someone and say, get it for me, it's done deal.

9:54They're not lining up with the boutiques. They're certainly not doing that. And so that's what some of the boutiques are doing these days. There's a line out the front. Like they're absolutely not putting up with that at all. No. So the fact that it is very social and like social commerce, they can just DM someone and be like, this is what I want. Like that is how they are wanting to shop and how they're wanting to spend their money. I think it's really just about, of course, there is a, you know, personalization and relationship element to it. But I think at the end of the day, they just want it the quickest way possible with the most amount of time spent from their end.

10:27Yeah. You're also really good with your money though, because one of the things I've always really admired about you is like you own now two properties, one in Australia and one in LA. Yes. And how old are you? I'm 30. You're 30. So you own two properties at 30. That's super rare. Walk us through your relationship with money because we often hear entrepreneurs are investing into their businesses. You've been able to invest into your closet, your wardrobe, and your real estate empire and your business all at once it feels like. So what has your relationship with money been like from when you were younger to where it is now?

11:02I love this question. I, if I was to go, I certainly didn't grow up with money for anything of any kind of, grew up in a very, you know, just a very middle-class family, if you would say that, but back in a country town in Australia. So I've always known from a young age, I need to work for my money. So this is actually, oh my gosh it's gonna be funny I my nickname in high school was Gabby Gabby why because I'm so tight with my money and still to this day like I am very cautious I'm very um I'm the opposite of impulse like I will really need to think out any purchase and I hate spending money on silly things yeah so if it means that like I can save five dollars here and there on whatever it may be like standard shipping versus express whatever like trying to use it a good example like I or if you can pay for valet or you'll park for free you're parking for free that's it yes so it's those and those little things add up so I still feel like I have that mentality and in a way like I think because I didn't come from money I still am very tied with it because maybe there's a part of me that's always like what if this disappeared when they what if I don't have this I want to hold on to it so yeah I'm just very I'm a very smart spender yeah and even with my luxury purchase and my wardrobe I'm I will think it through I'm all about investment dressing so I want to think about I talk about cost per wear a lot like if I'm purchasing a piece I want to ensure that I get my wear out of that piece as opposed to just wearing it once and it's gone so that's kind of my personal approach and then in terms of business like we it is a business in terms of Gabweller as a whole it's very low overheads it's always been that way we don't hold stock we we work by we're a service-based business so you guys take a commission basically for each thing that you're sourcing that's it yes are you able to share what the commission is yes it's our flat rate and we do 220 usd for anything under 5 000 and 350 for anything over that so that's amazing it's very volume driven business because we are sourcing so much so the reason why i've opted for flat rate as opposed to doing like a percentage is it encourages clients to come back for more.

13:20There are clients requesting daily, weekly, monthly, as opposed if you did offer say like a 10 % commission, clients, we may only hear from them every six months or so when they like desperately want X, Y, Z bag. So that's kind of why we went the flat rate approach. Did you ever AB test that to know like that's the way that you should do it? Because if you did a commission that was like a consumer behavior, they're not coming back. I never did any testing to be honest when I, I've always had flat rate from the day I launched and I remember even when I launched it was pretty low um but I've always known that I'm quantity focused I'm high volume so even if and the reason for that especially in the early days is I wanted like word of mouth is truly how my business has been built yeah so if it means that I offered like a lower sourcing fee at the beginning it means that more sales are like yeah converting more clients are going to be talking about me.

14:10So that's kind of how I've always had that approach as opposed to it, to me, I just know that if it is commission, it's a, it's higher price for the client. And I still have that mentality of like, I want the best price for my client. Yeah. You mentioned cost per wear versus ROI. And I really want to talk about this because I feel like there's a misconception on TikTok. I see a girl buy like a Prada bag and she's like an amazing investment piece. And what I've been trained to think is like cost per wear is okay. If it is not going to give me money back after what I've already paid, if I want to sell it, I'm not going to make money on this item.

14:44That is a cost per wear item versus an ROI. So can you walk us through your mentality as it relates to cost per wear versus an ROI of a luxury piece? Yes. So cost per wear, I think of the amount of times that I am going to wear that piece. So say for example, it's a thousand dollars. I'm going to wear it 50 times over a particular year I will do that calculation and be like okay it equals xyz girl math yeah basic 101 that's it um in terms of the the return on investment that's where you look at pieces that really hold their value there's high demand on them and this is a great example of that you know that if you're purchasing a a Birkin or a Cali bag you are getting your ROI I absolutely guaranteed.

15:30But that's, it's not to say that there is, I've seen that even with, you know, Miu Miu pieces. There's a crochet pouch that's really took over this year. And like the resale price on that is so high because it is such a demand, like an in-demand piece. So I think it is, ROI is really, it's hard to track, I think for the consumer side, because unless it is like the Birkin or Cali, like you, some consumers may not know how much in-demand one particular style is. and I think too it is risky also because I've seen firsthand I see it every day how quickly these pieces are the it piece of the moment and a week later nobody wants it so I know that was going to be like my one question to you and how you think about money because I'm a very like ROI driven finance person right and so like for me buying luxury feels like still so scary because I'm like what if this goes out of season or this isn't on trend anymore and I think I really want to understand how you've thought about building a portfolio of things where you're like, you haven't just spent on luxury.

16:32You haven't just spent on real estate. You haven't just spent on a business. Like you've really had this like really balanced portfolio approach to building a career and a life for yourself. And I really want to try to figure out like, how did you know how to do that? Or like, why have you done it that way? I definitely think for me, I am, I mean the classic, what's the saying I think it's off sex and city where it's like I want to see my money hanging in your closet yeah yeah so like that to me is something that I do physically like to see my money my hard work yeah so I've or and I am I like possessions for that so yeah houses my properties are a um are an example of that where it's like I've I work so hard I need a physical item and of course like you know there's there's investing and everything like that like you know that's a that is a different side but I I do have that approach like I I like to physically see it I like to say that I own it and I think that is I'm also like a super visual person so I think that helps me mentally to say like that's mine it's there yeah touch it I can feel it yeah and the same with my wardrobe like I my wardrobe I it's like my I it's like my baby like I look after it so well oh, it's immaculately displayed, but I look after everything with like dry cleaning and storing it.

17:52And of course, you know, one day I'd love to be able to, you know, hand it down to my little daughter. Yeah. She comes along, but it is something that I think that's my approach. Like I do have, I like that wide portfolio because I like to physically see it. What would you say are the best pieces that were an investment that are like a true, even if it's a cost per wear, like what are the best things that you've purchased over the last year? And what were you like, I really wish I didn't purchase that? So for me, I'm going to say the best pieces that I've purchased, there's three brands that I'm pretty heavily focused on because they have no logos.

18:27So it is something that is so chic and elegant that you can just wear over and over and over again. So the row is, of course, has to be a big one. And you also talk like, yes, it is luxury. It is priced higher, but the quality is there. I like paying for quality because of course, if you want longevity to your pieces, you do need to make that investment into the highest quality pieces. And I'm a big believer in that. So I think the Rowe, Kate and Totem are three brands that anytime I spend on them, I know that I am, that's a solid purchase. Like I'm always going to be wearing those pieces, even this dress now, Totem.

19:03I'm going to wear this a million more times. It's unbelievable. So that's that. And I think in terms of regretful purchases, I have held on to them because I'm also a big believer in everything comes back around. So pieces that, you know, were in the early 2000s, like we're all, everything comes back around. So I surprisingly don't sell many of my pieces. I tend to hold on to it. But again, you may think, oh my goodness, she has so much. But because I am a very calculated purchaser, like I don't purchase a lot. I just purchase key pieces that like that have that will hold its value. Exactly. Yeah.

19:44So I think for me, maybe my regretful purchase, I think back when I started Gabola, I did fall into the trap of, oh, because everyone wants this piece. Like I want it too. It's trending. It's popular. It's an in-demand piece. Like it makes most sense for me to have it also. But I remember there was Balmain top, funnily enough. and I put it on and I was like, this is, I feel so uncomfortable in this. This is not my style at all. And so I had to teach myself like Gab, just because it's trending, just because it's popular, just because everyone wants it doesn't mean it's your style and doesn't mean that you need to have it as well.

20:21That's such a good lesson. And I think it's actually so true when we talk about your entrepreneurship journey, because one of the things people always ask me is like, what separates a successful entrepreneur from somebody that, you know, tries and it's just not working out. And I think one of the biggest things is focus and really making sure that you're like doing a job really well and making sure that you're not trying to do too much. When you're juggling so much, you now have how many people that work for you? There's only two full-timers. Okay. But you have freelance people? I do. Yes. I'm also on content and then my sourcing assistants that are kind of based all around the world.

20:54Yes. How do you feel like you're managing your day? because like I said at the beginning of this podcast, you're now obviously you have your own personal brand, which I want to talk about a little later. You obviously have Gab Waller, the business. You then have Sourceby, which we'll talk about a little bit too. How are you managing it all? Yeah, so best decision I've ever made is probably about eight months ago, I hired a general manager for Gab Waller. She is based in Australia, but she hands down best hire I've ever done because I think people may be surprised to hear this, but up until like even January this year, I was still so heavily involved in the day-to-day of Gabwala.

21:34Okay. Sourcing. Sourcing, chatting to clients, posting on the socials, like you name it, I was doing it. And it got to that point that I was like, it's six years now. It's time for me to kind of step back and be able to really allocate my time elsewhere. And so she was one of my sources and she was in Australia and she had over time put her hand up to say like if there's anything else you need like you let me know I was like amazing um I definitely will and then when it came time to like I want to hire a general manager I want someone to run the day-to-day of this company and it was a no-brainer that she was she was the one so that has been fantastic so at present Gabler is the as a company is the one that I spend the least amount of time on which is very surprising and very new for me also yeah but I just feel that it's great that it is in such a strong position that I can really pull back on that um but essentially how my day is at present about the first two hours of my day get well of work so I catch up on everything that's happened overnight catch up on messages um kind of touch base what orders have come through I still like to be hands-on on sales because of course like that's the profit um and then the rest of my day is sourced by I'm I'm surprisingly a lot more active on my personal Instagram now.

22:49I think that's kind of leaning into, like you said, the personal brand and the importance of that. Yeah. That's actually one of the things I wanted to talk about because you and I have talked about this offline, but you made a very specific decision to brand Gab Waller as like your company and then also your personal brand where you have two separate Instagrams. So walk me through when you were building the business and were you even thinking about building a brand at that point? Like a personal brand, sorry? I wasn't. No. Oh, so going back, I remember I started a separate account because I was like, I don't want to bother anyone on my personal Instagram with my fashion stuff.

23:24So I created a different account. And I think I mentioned this to you in passing offline some time ago. But if I could say one regret in the business journey is calling my company my own name. And that to me is truly just not thinking bigger picture. At the time, my only mission, my goal was I want to work for myself. I want to have a company. I want to work for myself and I'm going to build this by myself. Little did I know what direction it would take, but that's certainly a regret of mine because of course, like that I'm so personally attached to it with your name. But that is the reason why I created the two accounts initially.

24:01And so it wasn't a business decision. It was more me trying to be like, I don't want to annoy anyone. I think there's a way you can still, and I think that's what's so hard when everyone's like, how do I build a personal brand? I'm like, it's so different for everybody. For me, it was like truly feeling this dichotomy of like wanting to express my sexuality or femininity or like being a young, beautiful girl and then being like, well, I'm not being taken seriously when I'm trying to manage people's money or I'm trying to like build a startup. And so it was this like just frustration of like, why am I not being taken seriously if I want to like, why can Hailey Bieber post a bikini photo and then have a multimillion dollar business?

24:37That's a really good point. I like that perspective. As long as I think you're like, do you feel like you're being honest and transparent about like the highs and the lows of building businesses? Or like, is there a part of your life that you want to share that you feel like you're not with your personal brand? I definitely know that I'm always being authentic. Like what you see, like it's very like happy, bubbly gab. Like that is my personality. I think for speaking specifically more for Instagram, because that's really only where I post. I think, I mean, Instagram is the highlight reel. I would never, I don't post my struggles, which is something that I think embedded.

25:16I am quite a private person. So for me to even post as much, because I feel like I have upped my story. Totally. Yeah. And even that I'm like, I, you know, I just, I think there is that part of me that like, I like to keep a lot of things private. And I think over time I will share more of like any struggles and things like that, especially on the Gabola journey. Like I want to be super transparent and of course with Sourceby as well. Yeah. Because for me, my biggest motivator at this point in my life is just to inspire. I want to inspire anyone that comes to my page, be like, I can do what she's doing.

25:52I can be a fashion sourcer. I can, you know, build this business, whatever it may be. And so if that does mean that I have to, you know, be a little bit more vulnerable, then that might be what it is. Yeah. I think it's like, it's so funny because there's never, I think back being 32, And like the regrets I have in my twenties for anybody that's listening to this, it's like, it wasn't the things that I did. It was the things I didn't do. It was like not posting something or not raising my voice sooner or not doing my newsletter sooner or not even doing this podcast sooner. Like you always have these excuses where you're like, I'll do it eventually.

26:25But when I do look back, you know, the last decade, it was a great decade, but there's things that I wish I shared or I wish I talked about because the connection I feel now to people that know my life and know it's not all just one way is so like inherently amazing when your mission is to inspire people that I wonder like with you and building Sourceby which I really want to talk about now identifying as this like AI founder like how do you feel bringing people along on the journey? When I sat down even earlier this year and I was like what do I love doing the most like what is really brings me joy because you know I signed with IMG so I was doing you know some partnerships and things like that which I still do um but the I'm the happiest when I'm working I'm the happiest when I am the founder and just building and growing a company and if I understand that you know there's there is a responsibility on me to be on my socials I am a brand.

27:25It's important to post, but in a dream world, all I would do every day is just work. And so I love the idea of being a tech founder. I'm, I think for me too, because fashion sourcing, it didn't exist when I started. So like, I do feel like I have pioneered this industry. The most natural organic step for me in this journey would be to introduce tech for our industry. And so that's kind of what excites me. So when you sat down and thought about SourceBuy, walk me through the light bulb moment and like to get to where you are now, because I'm sure a lot of people know who you are, but they might not know that you're now an AI tech founder.

28:05So can you just walk us through like, what was that moment like? And what has it been like since building it? In March of this year, if I've actually, if I've even go a little bit further back than that I have little drafts in my notes and even on my road of over the years me planning out tech that I need to help scale my business so it's not as if in March of this year I was like done this is an idea I have and I'm running with it it's been little seeds along the journey of goodness like this kills me like we need to scale we need to grow but we don't have the ability to do so with the current platforms that we use for this space.