From Numeral to Kintsugi: How Plufl Cut Compliance Costs by 38%

In March 2022, college students Yuki Kinoshita and Noah Silverman launched Plufl—the world’s first dog bed for humans. The idea sparked when Silverman struggled to find a comfortable, oversized bed for a Great Dane he was caring for. After creating a custom bed for the dog, they realized the same cozy design could benefit humans. Inspired by that moment, they created Plufl—a brand that blends “plush” and “fluffy” comfort for nap lovers.

Plufl was featured on Shark Tank in October 2022. The game-changing TV exposure accelerated its growth, giving it an “explosive start.” The founders achieved their first million dollars in revenue within five months of focusing full-time on the business.

Challenge: Plufl Had An 'Explosive Start' And Struggled With Sales Tax

After Plufl’s Shark Tank debut, co-founder Kinoshita received a crucial piece of advice from a fellow entrepreneur: don’t ignore sales tax. At the time, Kinoshita was completely unaware of nexus rules or state thresholds. The warning hit even harder when he recalled a friend whose business collapsed after failing to remit hundreds of thousands of dollars in sales tax.

Determined to avoid the same fate, the Plufl team searched for a sales tax solution. Despite speaking with peers and exploring software options, they found compliance to be more guesswork than certainty.

With nexus in fewer than 10 states, they initially enabled Shopify Tax in states where they believed they had tax obligations. However, they were unsure about their approach and knew early errors could escalate. They realized they needed a more reliable and scalable compliance solution.

The team evaluated automated solutions like Avalara and Numeral. Avalara’s pricing was not feasible for a startup focused on reinvestment. They went for Numeral, but its approach risked costly discrepancies, including overpayments and inaccurate filings.

Plufl needed a reliable, cost-effective solution that won't compromise accuracy or cash flow.

Solution: Kintsugi's Pricing, Flexibility, And Accuracy

Kinoshita admitted they adopted their previous provider more out of necessity than confidence. It wasn’t until switching to Kintsugi that things finally started to make sense. Kintsugi immediately uncovered discrepancies in their past filings, highlighting the complexity of sales tax compliance and the risks of relying on inaccurate tools.

Kinoshita reflected on the decision to switch, saying:

"I'm glad I [made] the switch. Not only am I saving money right now, I'm also getting better service in terms of accuracy. It's been a win-win for us to transition."

What set Kintsugi apart was not only the clarity it provided but also the dedicated support it came with. Kinoshita praised the responsiveness of the Kintsugi team, saying it's the “biggest difference” compared to his previous provider. For him, getting fast, reliable answers is critical when dealing with high-stakes remittances.

He also pointed out Kintsugi's affordable pricing, flexibility, and speed. Kintsugi proved to be well-suited for Plufl’s needs as a lean, fast-growing startup. Kinoshita even wished they knew Kintsugi when they started their business.

“I wish there was a software like Kintsugi when we started because yeah, it would have made our lives a lot easier.”

Impact: More Time For Growth, Zero Headaches

For Kinoshita, focusing on Plufl’s growth is a priority over managing complex tax rules. And Kintsugi delivered cost savings, simplicity, and peace of mind.

Since adopting Kintsugi, Plufl has experienced the following advantages:

38% cost savings - Switching to Kintsugi immediately reduced their compliance costs. Compared to their previous provider, Plufl saw a 38% savings, allowing them to reinvest more into growth.

Time back to focus on growth - With Kintsugi automating sales tax filings and monitoring, Kinoshita now spends no more than 30 minutes per month on compliance. A quick dashboard check and a few clicks are all it takes to manage their tax obligations, giving him more time to focus on scaling the business.

Faster and more reliable support - **** Kintsugi’s responsive support team proved to be a standout. Whether resolving issues or answering questions, Kinoshita often gets prompt replies. The Kintsugi team ensures that their emails are replied to within the same day.

Peace of mind through accuracy - Kintsugi’s proactive approach to exposure monitoring and precise tax calculations gave Plufl a new level of confidence. Previously overlooked states are now fully compliant, protecting the business from future liabilities.

Kinoshita is satisfied with Kintsugi's service and plans to scale his business with it. He even recommends Kintsugi to other founders new to the industry and still navigating sales tax compliance.

100% I think Kintsugi is the go-to for sales tax. Hands down, especially because I've used other platforms and I've also used no platform and tried to do it myself. So I know that from that experience, Kintsugi has been the best, and we will continue to use it for a long time.

About Kintsugi

Based in San Francisco and founded in 2022, Kintsugi is dedicated to taking the stress out of sales tax compliance. Our platform automates the entire process, delivering high performance, reliability, and flexibility as your business scales. Top companies like Alchemy Marketing and Cabi use our app. Sasha Novakovich of Alchemy Cloud just spent three minutes on the platform and understood their sales tax exposure.

We can do the same for you. Sign up or book a demo now.