Transcripts For CNBC The Profit 20240713

Miranda i see ls. Lemonis i see something that looks like a swastika. Things could get very ugly for this company. Miranda if something happened to the business, i do worry about what would happen to us. Lemonis kansas city, missouri, is home to the lano company, a skincare and cosmetics business that was started by Miranda Coggins in 2005. Miranda high five, girls. Cristina whoohoo lemonis after the birth of her daughter, milena, she was inspired to create a lanolinbased lip product with medicalgrade benefits. Layne this is Layne Coggins with the lano company. Lemonis 10 years later, miranda and her husband, layne. Miranda love you. [ smooches ] layne love you. Lemonis . Now have a company that generates millions of dollars in revenue. Im excited to visit lano. And while its a profitable business, im 100 certain that it has a lot of potential for growth. The skincare and Beauty Industry generates billions, and its not just for women. Im marcus. Mccartney hey, marcus. Lemonis you are . Mccartney mccartney. Lemonis mccartney, nice to meet you. Cristina hi, marcus. Lemonis your name . Cristina cristina. Lemonis cristina, nice to meet you. Miranda hi lemonis hi, how are you . Im marcus. Miranda hi, im miranda. Lemonis hey, miranda, how are you . Is this your place . Miranda this is it. Lemonis how long have you been in the business . Miranda 10 years. We started in my house. I had chronically chapped lips my entire life. And so my daughter was born shes now 11 and while breastfeeding, started using lanolin for breastfeeding on my lips. Lemonis the nipple gets chapped. Okay. Miranda and im like, oh, ill put it on my lips, and they were healed for the first time in 30 years. Lemonis now, what is lanolin . Miranda lanolin comes from sheep. Its like an oil, like, a protective coating on their fur. Lemonis i think its especially cool when somebody starts a business that is meant to solve a problem. Sometimes necessity is the mother of invention. Miranda this is where we started. Thats the lano lip. This is my original formula, and its got medicalgrade lanolin, jojoba, sweet almond oil, and vitamin e because in my heart, my goal was to help people with chapped lips. Lemonis i love the name lano lip because it tells me what the story is. I like the fact that its medicalgrade. That tells me that theres some benefit, other than just looks. Miranda i understand. And this is all of our pure line. Lemonis whats inside of pure cosmetics . Miranda all of the lip gloss, all of the naturally based products. Lemonis whats this . Miranda this is our eye shadow that we came out with. Lemonis does this have lanolin in it . Miranda no. We have a whole nother brand called glam cosmetics. Everything we do has got kind of a twist. This has got a magnification mirror. Lemonis is there lanolin in here . Miranda no. Lemonis i dont love the look of it. So, is the glam cosmetics really a totally different audience . Is it teenagers . Miranda yes. Lemonis i think younger people today are more sophisticated. 1985 called, and they want their zebra stripes back. I mean, maybe when i was in high school and def leppard was out there, i guess it made sense. I feel like the fact that you came up with the lanolin as a solution is a great idea. This other stuff im kind of confused. Before i came to the lano company, i was under the impression that everything they made had lanolin in it. That was their hook. Thats what separated them from everybody else. But im not sure why they moved away from that concept. What does it cost . Miranda retail for 5. Lemonis and what does it wholesale for, if you were going direct . Miranda 2. 50. Lemonis what does it cost to make this . Miranda this particular packaging is 43 cents, not including the display; the display runs about 1. Lemonis so, this is 32 . Miranda right. Lemonis and then another 3 cents for the package, if you average it all in . Miranda right. Lemonis so its 46 cents, and youre selling it for 2. 50. Miranda right. Lemonis i mean. Miranda its not bad. Lemonis . Not bad. Its really good. Those are good margins. Miranda so, this is our shipping area. This is where we keep everything that may need to go out, like, any internet orders. And i can show you here. So, this is pure illumination. Lemonis thats what this is called. Who came up with the name what is this . Pure illumination . Miranda i did. So, we put the same formula that we started with my lip balm in our lip gloss, so its purely based. Other than the scent and the color, its 100 all natural. Lemonis unfortunately, you cant tell people that its 100 natural because youve added those things. Miranda this one has an l. E. D. Light here. See . So, its got a mirror on the side. So you can put your lip gloss on any time. Lemonis first, a line of cosmetics for teens. Now a lip gloss that doubles as a key finder . Way too bright. I came here believing lano was a brand, but i think that miranda just created some catchall to make everything she thinks is fun. Miranda this is where we store all of our boxes. Lemonis whats in here . Miranda this is our makeup brush. It comes with 12 brushes. And so its really great for travel. Lemonis literally, every time i turned a corner, i would see some other product that had no connection to her original story. I dont know how makeup brushes solve problems for people. Miranda layne. Marcus. Lemonis how are you doing . Im marcus. Layne nice to see you. Lemonis nice to meet you. Miranda layne does all of our numbers. Lemonis how much do you do in total sales . Layne well, last 12, of course, are 2. 8 million, but last year was 2. 336 million. Miranda im the artist, and hes the practical one. Lemonis does that work for you guys . Miranda no, it does. I think going into business together was really tough at the very beginning. Lemonis why . Layne she actually just got so aggressive on buying a bunch of inventory cause she was so excited about the product that she created. She just wanted to sell a ton of it. And me, i was wanting to try a little bit of it and then lets see if it sells. Shes kind of like that helium balloon. If you dont grab her, shes just gonna keep soaring away. [ laughs ] miranda its true. This is our production room here. Hey, ashley, can you show marcus how you fill lip glosses . Shes way better than i am now. Lemonis i think the thing that surprised me the most was their manufacturing process, if you want to call it that, where they basically line up trays of empty bottles, and, with a syringe, they essentially fill them one at a time. I did one. [ laughter ] its terrible. Ashley you did a good job. Lemonis thats, actually honestly, thats not easy. Ashley no, its not. Lemonis you do it with this . Ashley every single one. Lemonis in big vats. I mean, i guess its working if youre selling a couple thousand, but what if you got a 50,000piece order . Whats ashley gonna do sit here all day filling these bottles with a syringe . What im really trying to understand is who you are. Miranda right. Lemonis whats the main product thats creating the 2. 8 million on this table . Layne those eye shadows, the brush sets, and definitely the gloss. Its 25 , 25 , and 25 . And so this particular product makes up 25 of your revenue 700,000. What does this cost to make, allin . Layne depending on the colorant, anywhere from, say, 1. 76 to 2. 02. Lemonis what do you sell this directly to a salon for . Layne 10. Lemonis so 8 in margin. Layne yes, sir. Lemonis so, theres lano lip, which is what your original product was, and that makes up what percentage of the 2. 8 million . Layne 3 max. Miranda max. Lemonis what a bummer that is. Miranda i agree. Lemonis so, the premise of the whole company miranda . Was lost. Lemonis well, its not lost. Its gone. Im sure all these products are great, but you have to admit you are kind of all over the place. Miranda no, i think layne wants to go where the margins are. Layne we were really just kind of going where the money was. Lemonis you were chasing the money. The minute somebody else comes around thatll make that thing for 10 cents less, youre gone, and you really end up with a table full of stuff that doesnt really tell me who you are. This lack of direction and this lack of clarity, while it may be making them a little bit of money today, this is not a sustainable model. Do you have the financials . Layne mmhmm. Lemonis id like to go over them and really understand them more like, the balance sheet, p l. Both okay. Lemonis thank you. So, how is the equity split between the two of you . Miranda 51 womanowned, and then 49 layne. Lemonis well, at least youre 51 . At least you can kick him out at any time. Miranda i tell him that all the time. Layne ive been begging. Everybodys like, what are you doing . I go, im a guy selling cosmetics. Im living the dream. Miranda living the dream. Layne [ laughs ] lemonis very funny. So, is there only one entity, or there are multiple entities . Miranda only one. Layne theres one. Lemonis okay. Layne yeah. Lemonis so, 2. 3 million in total revenue in 2014. Layne 14. Yes. Lemonis after cost of goods, gross profit was 1. 5 million. So really good margins. Total operating expenses a year are 1. 1 million. Miranda thats with payroll, rent. Lemonis so, with 400,000 in earnings. I mean, you guys do well. Miranda obviously, financially, were not failing, but we want to do better. Lemonis without you being offended by it, your business is failing, just not financially. Im very concerned about the fact that its todays its like the flavor of the day. Youre selling lots of different beauty products, and youre making good money on it but with no sustainability. Theres two ways to run a business for today and you guys are doing a great job and for tomorrow. You guys have to figure out if you want to run it for today and tomorrow or just today. Miranda i dont want to fail. I want to be very successful. Its my blood, sweat, and tears for 10 years. You know, its our family. Its our marriage. You know, if something happened to the business, you know, god forbid, i do worry about what would happen to us because its become such an integral part of our marriage, too. Its everything for us. For real. Lemonis and you guys have a good dynamic together. Miranda well, can you help me . Lemonis the answer is yes, i can. But i have zero interest in makeup brushes, blushes. I have zero interest in that. I see a real opportunity to take this lanolin story and then have a core product and then create product extensions around it. My ultimate goal here is to create a hubandspoke model, with the hub being lanolin. Thats the foundation. Thats the story behind the business. And off of that hub are all these spokes. Those are products that are based on the story. They use the ingredient from the middle of the hub. And when you build that foundation and you build that brand and you build that product lineup, its got to have lasting power. We want to have a business thats built for time. Miranda id like to see it. Lemonis so, good talk. Layne yes, sir. Miranda thank you, thank you, thank you for everything. Lemonis nice meeting you. Thank you. [ indistinct conversations ] hey, there. Miranda hey. Layne hey, marcus. Lemonis how are you . Miranda good, how are you doing . Lemonis good to see you. Miranda good. Thank you. Good to see you, buddy. How are you . So, what did you guys think about after i left last night . Miranda youve got 10 years worth of work on the table, and you said, it looks like crap. You know, it bothers me, but lemonis did i say that it looked like crap . Miranda you said it looks like 80s, about glam, and you said, this is lemonis does glam sell . Miranda no, it doesnt. Lemonis you guys, with all candidness, have built a nice business. Most people would say, were doing great. Layne right. Lemonis and so i feel strongly that you know that you want to do something, but youre just not sure what it is. Layne you know, i mean, i know it, and all due respect. Lemonis what is it, then . What is it . Layne . Im not sure you know the exact direction we should go. Lemonis oh, i know what the direction is, but i didnt come here im not a consultant. I dont just lay out the plan for you. Layne i know that. Lemonis and so if you know what the direction is, whats the direction . Miranda i think that if anybodys gonna help us, it could be you. Lemonis i believe in what you guys are doing. To a degree, and youre definitely not a failing business, but you are a struggling business. I want to make an investment in a product that i think could be pretty amazing. So my offer is 500,000 for 30 . I think with that 500,000, the company should have sufficient working capital to be able to grow and allocate 100,000 of the 500,000 to new product development, new packaging, new branding. You said to me yesterday, can you help me . Miranda right. Lemonis and im telling you that i can. Im gonna give you guys a minute to talk without me, okay . Layne okay. Miranda okay. Its a lot of equity. Layne 30 is a lot. Youre right. Miranda are you worried . Layne mmhmm. Miranda nobody says we have to make a decision right now. I dont think we just give up 30 that easily. Lemonis for Business Advice and extra scenes from the show, log on to. For adults with moderately to severely active crohns disease, stelara® works differently. Studies showed relief and remission, with dosing every 8 weeks. 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Guys guys safe drivers save 40 safe drivers save 40 safe drivers save 40 thats safe drivers save 40 . It is, thats safe drivers save 40 . Hes right there. Its him safe drivers do save 40 . Click or call for a quote today. Safe drivers do save 40 . Still fresh. Unstopables inwash scent booster downy unstopables lemonis so, my offer was 500,000 for a 30 stake in the lano company. Miranda we would like to counter you with 500,000 for 20 . Giving up 30 of your baby a little bit tougher than id like to swallow. Lemonis what do you think the business is worth . Layne somewhere in the realm of 5 million. Lemonis on a business that makes 400,000 . Layne based on what next year actually is forecasted to do and p. O. S that are in hand for then. Lemonis i struggle with the business being worth 5 million today. Miranda what would be your game plan . Lemonis are you interviewing me . cause if you are, then we shouldnt do business. cause i have enough of a track record that i shouldnt have to tell you what my game plan is cause, candidly, you dont have a game plan at all. When i think about investing 500,000, it could be years before i get something. What i would be willing to do is give you 500,000 for 20 , but i would want a guaranteed return on investment on an annual basis. And so its basically whats called a preferred investment, which means that i would get 10 on my money every year no matter what, which is 50,000 a year. And then we share in the profits above that. Layne right. Lemonis . 80 20 cause i dont want to take your baby, but i dont want you taking my 500,000 babies. If youre gonna get a return on your 80 . Layne mmhmm. Right. Lemonis . I would like to get a return on my 20 . Miranda i think that thats a pretty good deal. Dont look at me. Lemonis when we shake hands, the deal becomes effective the minute we shake hands. Youre tough. I have good credit. Miranda [ chuckles ] you okay . Layne i prefer the 20 with the 10 . Miranda i agree. Layne youre selling your baby. Now you got a stepdad . [ both chuckle ] lemonis we have a deal . Miranda we have a deal . We have a deal. Okay. Lemonis congratulations. Miranda thank you. Lemonis now, you know that for a period of time. Layne i know. Miranda we know. Layne you got us. Lemonis . I am 100 in charge. Miranda we know. Layne thanks again. Lemonis thank you. What a goodlooking group. [ laughter ] so, miranda and lane and i made a deal for me to invest 500,000. Ill own 20 of the business, and they accepted the fact that i was 100 in charge. And so were going to challenge every single thing we do from coming up with consistent branding to developing new products. And then we want to take lanolin, the thing that made us who we are, and find new ways to expand on that. Were gonna look at manufacturing, and were gonna potentially outsource it. What is your biggest fear . Ashley taking away my job security. Woman oh. Ashley for sure. [ all chuckle ] miranda you will always have a job, no matter what. Youve been with us for a long time, and, ashley, were only gonna get bigger and better, i promise. Lemonis lets get back to work, all right . Thanks, ladies. Miranda thanks, guys. [ siren wailing in distance ] man i know you. Lemonis hey. Today i brought miranda and layne to new york city to meet with birchbox, a very influential online retailer. While im hoping to build a longterm relationship, i also want feedback about the products and the brand. I believe in the lip gloss, and i think that this is a perfect item for birchbox. Its a Good Opportunity for us to show them our product, get them excited about it, and build a new relationship. Miranda okay. Im a little bit concerned. Im not very prepared. Lemonis sometimes you got to be good on the fly. I have no worry cause i trust you, and i know that youre gonna do a great job. Miranda okay. Yes. Lemonis okay. Great. Miranda hi. Im miranda. Katia im katia. Miranda hi, nice to meet you. Layne im layne. Lemonis every month, birchbox delivers beauty samples that are custom tailored to their subscribers. Getting our lip gloss into birchbox would put our product in front of hundreds of thousands of potential customers. Katia id love to hear a little bit about the product inspiration. Miranda my whole thing is i had chronically chapped lips. So, lanolin actually can help people with chapped lips. So i started looking for a lanolin lip balm, and there wasnt one. And that was 10 years ago, and the companys grown from operating out of my house to well do a little over 3 million this year. This is our lip gloss pure illumination. So, you push the button here. Yeah. And so, then you un theres a mirror right there. Katia the mirror is, like, amazing, and its so obvious. Layne honestly, we get more compliments on the mirror than we do the light. Katia i dont love the light. And, also, if i was at a bar and i put on my lip gloss and all of a sudden, my face was lit up, i think i would feel a little strange. What is the price point . Miranda 20 retail is what these retail for. Katia okay, so thats, like, actually a higher price. Id say this is lemonis 14 . Katia yeah, i was gonna say sub 15. But you could change the packaging and really change the perception on pricing and keep it at 20. Is the pure is, like, the natural aspect of it gonna be, like, part of this . Miranda its mostly pure, but except for the colorant and the scent. Katia its tough to say its pure. You can get natural color. I think that there is something to that. We see major trends in customers caring about ingredients. Lemonis birchbox has over 1 million subscribers, and katia filters their feedback. So shes an amazing resource. I wanted to get her feedback on as many products as possible. Interesting . Katia what is that . Miranda so, were doing a whole, like art deco theme. This is an eyeshadow palate. Katia no. Lemonis interesting . Katia uh, no. Thats weird. We really think in brand. It just feels all over the place. Lemonis i am floored by how much crap is in this space. Throw money in the garbage. Miranda i dont want to lemonis throw it in the garbage. At tmobile, taxes and fees are included. And right now, when you switch your family, get four lines of unlimited for just 35 dollars a line and taxes and fees included. So what you see is what you pay every month. Check it out at out tmobile. Com 4for35 get relief behind the allecounter with claritind. Ion claritind improves nasal airflow 2x more than the leading allergy spray at hour 1. Claritind. Get more airflow. When you think of a bank, you think of people in a place. But when you have the chase mobile app, your bank can be virtually any place. 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Com stimulant laxatives forcefully stimulate i switched to miralax for my constipation. The nerves in your colon. Miralax works with the water in your body to unblock your system naturally. And it doesnt cause bloating, cramping, gas, or sudden urgency. Miralax. Look for the pink cap. Katia we relemonis how do you feel justabout the name lanolace. And a fullproduct set that explains the story and what the primary ingredient is . Katia i like it. Lemonis much like burts bees did with beeswax, right . Katia beeswax. Yeah, i think thats really cool. Lemonis are we onto something in that . Katia i think its supersmart. Lemonis so, if we made a commitment to sample 100,000, is that something youd be willing to try . Katia i think the right time to get, you know, 100,000 samples in peoples hands, who are gonna photograph it, put it on instagram, is when you are sure that this is the company, this is the brand. Lemonis so we have some work to do. Thank you so much for your time. We really, really appreciate it. Miranda thank you so much for all your feedback. Katia congratulations. Layne thank you. Lemonis now that we understand directionally where we want to go, i want you to come up with 6 to 10 products all using lanolin, and at least 50 of them have to be unisex. Miranda how long do i have to do this . Lemonis a couple weeks. Yeah. Miranda youre asking me to reinvent the wheel in a couple weeks . Lemonis yeah. Miranda i mean, two weeks to turn all of this stuff that you want me to do is a really short period of time. Packaging i want to make sure to get it right. Lemonis im gonna take you somewhere that i think will be a good resource for you. Miranda 10 years, ive done it all on my own, so its different. Lemonis you got us. Were not much help, but were here. Miranda [ laughs ] lemonis lets head in. Miranda okay. Lemonis rejuvenol basically helps beauty and Cosmetics Companies to manufacture anything from shampoo to lipsticks to lotions. They do all of it, from manufacturing to packaging. Bart this is all new. We moved into this Building Three years ago. So, when i started rejuvenol, we dedicated ourselves to the small beginning user that grows with us. Every piece of equipment in here is new. Lemonis so, ive done some other projects with bart, and theyve turned out really well. What is a product that you can make using lanolin . Julio anything. Anything anything, pretty much. Miranda ive not made lipstick, personally. Lemonis so lets do that. Julio so, what i do is you just weigh the base, right . You melt the base, and then if you want to add. Miranda a little bit. Julio . A little bit of lanolin. So, the way you do the colors, you use this machine here. Miranda pretty color. Julio and then you pour the sample here. And when the lipstick is cold, you just flip. Lemonis im just gonna tell you right now thats pretty cool. Julio and that have lanolin in it it. [ laughter ] lemonis do you want to see the factory . Miranda yeah, i would. Yeah, i would love that. Bart we actually make our own bottles, too. Layne oh, really . Bart this machine is running. This is a proprietary bottle to us. Lemonis so, do you know how that works . Miranda no, ive never seen it. Lemonis it starts like a bullet. Layne yeah. And then it blows out like that. Lemonis rejuvenol charges a fee roughly 5 to 6 on top of their manufacturing cost. But if they produce our products, well be able to fulfill orders much quicker and at a larger scale. And so you start to really think about it the sense of becoming kind of like a onestop shop. Miranda i know. Its great. Lemonis if i wanted to keep everything in house, it would require me to spend several million dollars. You need to invest in almost 10 to 12 pieces of heavyduty machinery. Why would anybody on the earth want to have to invest in all of that when they can just do what they do best . You guys are salespeople. Miranda i think it would be great to have somebody else if were gonna develop new products. It sounds like theyd be a great partner. Lemonis its time to head back to kansas city and to start the process for designing this new product line. Thank you very much. Appreciate it. How you doing . Ashley good. How about you . Lemonis good. I wanted to sit down with ashley because once we made the decision to go with rejuvenol, i want her to feel informed about all the changes and not get caught off guard. I can sense your concern about stuff changing. This idea of us not manufacturing kind of freaks you out, right . Ashley oh, yeah. If we, like, took the filling away from here, i dont know how i would get my 40 hours a week. Lemonis mmhmm. Theyve been very honest with me that nobodys gonna let anything happen to you. Nothing. While im having this conversation, im looking out of the corner of my eye, and miranda was lurking. She wouldnt even let me have a discussion with one of her employees without her standing over there monitoring what i was gonna say. Ashley i need this job to make ends meet. Lemonis i think you have to just trust people. And so if theyre telling you that youre gonna get your hours, i think you got to just believe in what they tell you. Its gonna be okay. Ashley but i do love my job in here, marcus. Lemonis i know you do. Keep your head up. Its obvious to me in this moment that miranda doesnt trust me. If this relationships gonna work, its gonna have to be built on trust. Hey, miranda, is this, like, the flavorofthemonth club right here . Miranda yep. Lemonis what is this . Miranda those are lightup tweezers. Lemonis you didnt show me this last time i was here. Is there anything else . Miranda yeah. Lemonis theres more stuff . Miranda theres all kinds of stuff. Lemonis as im kind of just taking a surveillance of things, all of a sudden, i now see all this other stuff things that look like theyre not on brand. Miranda this is a box that we have lots of different colors in. Did you see this one . Lemonis no. Miranda but no more trinkets like that. Lemonis how much do you have in inventory that is not your core business . Layne 108,000, 109,000. Lemonis of just. Layne most of it is glam products. Lemonis and who ordered it all . Miranda i order everything. Lemonis i asked layne to take me to the back of the warehouse, without miranda, by the way. So, where is all this glam stuff . Layne every one of those are full displays. Yep. Lemonis i am floored by how much crap is in this space. Did miranda order this kind of, like, on her own . Layne yeah. I mean, i got 30,000 bottles back there i cant sell. Lemonis which one are those . Show me that. Ive been here for several days, and i cant believe what im just seeing for the first time. And so you want to show me a profitandloss statement that says you make 400,000, well, hundreds of thousands of dollars in dead inventory in the warehouse those are losses. So, really, all this is garbage. Layne pretty much. Lemonis it was mistakes with packaging, bottle caps that were bad, containers that were bad. My god. Look, i know why you sell the brushes and the little accessories cause youre trying to just create enough cash. But at the end of the day, were literally throwing money in the trash can. Layne acknowledged to me that it was kind of out of his hands. Layne its a little bit different to tell your wife something and her not take it personal. If i have you in there saying the same thing ive been saying for a year, it makes it seem like second nature, like, well, okay, a couple people have told me. I know weve got to take the right step. Lemonis well, at least if im tough on her, she can come complain to you and you can console her. Layne sure. Lemonis if youre tough on her, you got to go home with her. And so i decided to grab miranda, and i wanted to show her that while they may be successful in one sense, this is not success. How did stuff like this happen over the years . Miranda i mean, i got superexcited, and i overordered. Lemonis but im gonna tell you what layne wont tell you. Miranda okay. Lemonis when you make these mistakes, it craters companies. He said that you guys donated 100,000 last year of bad product. Theres another 75,000 of product here. Theres more glam product inside thats bad. Have you ever thrown money in the trash can, literally . Miranda mnhmnh. Lemonis come with me. Miranda i dont know. Lemonis come on. Miranda cant we sell those . Lemonis come on. Miranda can we repackage them . Lemonis if your business is in trouble and you need my help, log on to. So meet eno, the capital one assistant that looks out for charges that might surprise you and helps you fix them. Whats in your wallet . All the way out here just for a blurry photo of me. You and helps you fix them. Oh, thats a good one. Wait, whats that . Thats just the lowbattery warning. Oh, alright. Now its all, check out my rv, and, lets go fourwheeling. Maybe theres a little part of me that wanted to be seen. Well, progressive helps people save when they bundle their home with their outdoor vehicles. So theyve got other things to do now, bigfoot. Wait, whatd you just call me . Bigfoot . My name is daryl. Stimulant laxatives forcefully stimulate i switched to miralax for my constipation. The nerves in your colon. Miralax works with the water in your body to unblock your system naturally. And it doesnt cause bloating, cramping, gas, or sudden urgency. Miralax. Look for the pink cap. Well, darlin, im just tryin to tell ya that theres always been a rainbow hangin over your head hmmmhmmm how do you gaveeno® happy 24 7 . With prebiotic oat. It hydrates and softens skin. So it looks like this. And you feel like this. Aveeno® daily moisturizer get skin healthy™ seeing the break in the clouds before anyone else. Together, well weather this storm. Lemonis throw money in the garbage. Miranda i dont want to. Lemonis throw it in the garbage, literally. Miranda [ grunting ] okay, i got it. Lemonis thats what throwing money in the trash looks like. Miranda doesnt look very good. I mean, it sucks. It sucks. Lemonis you cant be just going out and buying stuff. Miranda im not. Lemonis but i just saw tweezers. Miranda well, that, no. Weve already got a p. O. For that. Lemonis but you could get a p. O. For anything. Miranda im worried about pissing off my customers, or our new branding upsets them. Theyre not gonna continue with their millions of dollars worth of orders. Lemonis do you know what that basically says to me . I dont trust you with my business. Tell me why, when i was talking to ashley, you felt the need to stand there while i had a conversation. Miranda because im protective of her. cause i care about her and i care about our employees and i care about how they feel. Lemonis youre making it sound like im not worried about them. Miranda okay. I think you can be kind of scary sometimes. You can be intimidating. Lemonis have i tried to intimidate you since ive been here . Miranda you just do on accident. Lemonis you standing there and kind of monitoring what im telling people makes me not want to be here. Im willing to trust you, but i want the same in return. Miranda okay. Lemonis no more throwing money away. Miranda no more throwing money away. Lemonis okay. You are tough. Holy. Miranda youre tougher. [ laughs ] lemonis how have you been . Miranda good. Lemonis new packaging, new products. Miranda new everything. Lemonis two weeks ago, i asked miranda to rethink her whole product line and pare back the number of things she was carrying. I also wanted her to focus on products that only have lanolin in them. Miranda basically, i came up with all products that have lanolin. Lemonis okay. Miranda these are 100 allnatural lip glosses. Lemonis so, these are new . Miranda uhhuh. Yeah. These are brandnew. Lemonis i like the fact that you went to 100 natural. Miranda yep. Lemonis next. Miranda im very excited about my lip balm. I wanted something that was a matte finish for men but also that we can put into a stick, like a chap stick. Lemonis this feels good. Im not gonna lie. Miranda aftershave lotion with lanolin in it. Lemonis okay. Miranda its very smooth. Its real creamy. And its not, to me, real sticky. Lemonis the consistencys a little off, but i like the scent a lot. Miranda i do. I like the scent. Very clean. Lemonis ill put that here. Miranda and then ive got hydrating shampoo and conditioner. Lemonis smells nice. Miranda yeah, i like the smell. Lemonis and so all of this essentially fits around the lanolin hub and spoke. Miranda yeah, absolutely. Lemonis okay. Im really proud of miranda. She really got focused, and she stayed away from the gimmicks. And the products that shes created are unique to lano. Im starting to see the birth of a real brand. So lets now see the packaging. Miranda this was my top choice out of all of those. I like it because people will see this and know that its us. Lemonis ah. What do you see in that logo . Miranda i see ls. Lemonis you see ls . Miranda yeah, i see ls. Lemonis i see something that looks like a swastika. Miranda oh. I didnt see it until you just said that. Lemonis is layne here . Miranda yeah, hes here. Lemonis all right, so, im gonna grab him real quick, okay . Miranda yeah, yeah, yeah. Lemonis so, were looking at these logos. Layne yes, sir. Lemonis anything else you see in the ls if you stand back and look at the image . What it could look like. Shelly are we going with swastika . [ laughter ] layne oh. Got ya. No, i didnt see it, but okay. It can absolutely be perceived by some. Sure. Miranda we dont want them to perceive anything badly. Layne i mean, i liked the raindrop as far as an o on some of them, but, i mean, there were so many different ones that could be utilized in so many different ways. Lemonis this feels very feminine to me. This feels cheap to me. I dont like the bamboos because i feel like it narrows the audience. I like the fact that they took the initiative to come up with their own logos, but, quite honestly, they took a lot of swings. Most of them were misses. I like the color palette, but once we get the logo right, i think we may have just found it. I love the fact that were saying lano. I feel like if we could just somehow modify this enough to have there be, like, no chance. Layne right. Lemonis . At all that theres any sort of, like, somebody can do this and all of a sudden be like [gasps] miranda yeah. Megan hi, guys how are you . Miranda good. Im miranda. Megan hey, miranda. Im meg. Nice to meet you. Lemonis i wanted to take miranda to parlor, a very popular salon in kansas city. I wanted to get a wide range of audience to give us feedback on the product and the packaging. I know that you guys dont have dry elbows, but this can be used elbows, heels, cuticles. Is it nice . Woman mmhmm. Miranda this is phenomenal lotion. Rub it on the top of one hand. Woman 2 okay. Lemonis we have a whole line of cosmetics. So lanolin is at the middle, and off of that are a bunch of products. Miranda all that have lanolin benefits to it. Man awesome. Feels like it would stay on for a long time, too. Miranda it soaks in cause its medicalgrade lanolin, jojoba, sweet almond oil, and vitamin e. Lemonis check it out. Put it on your blue hair. Man i dont want to put it i just washed it today. Lemonis you did . Man [ laughs ] yeah miranda so, the lip gloss is a healing lip gloss. Its medicalgrade lanolin, jojoba, sweet almond oil, and vitamin e. Theres a mirror on the side and an l. E. D. Light on the top with the mirror, so try it. Woman 3 oh. Oh. Okay. I got it. Miranda yep. Woman 3 i like the idea of it. Its kind of weird lighting. Woman 4 its just, like, really bright. Megan its just not my deal. Layne what do you think we would need to do to actually bring something into qvc that works for you all . Ariana items that we dont like sea salt and scrubs are a little challenging. Not the candle. Featuring the Emmy Awardwinning voice remote. All the apps you love, including netflix, prime video, youtube and hulu. And the most 4k content. The best Entertainment Experience all in one place. We are running our covid19 Technology Response on teams. Teams has given us the possibility to continue to innovate. To continue business, and to react and to decide action. Bringing up video visits and accomplishing 14,000 visits in a matter of a few weeks. Loreal since the first day has decided to convert its facilities to produce hand sanitizer. 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And it doesnt cause bloating, cramping, gas, or sudden urgency. Miralax. Look for the pink cap. [ siren ] doug give me your hand i can save you. Lots of money with Liberty Mutual we customize your Car Insurance so you only pay for what you need only pay for what you need. Liberty. Liberty. Liberty. Liberty. Woman 2 its just, like, really bright. Woman kind of weird lighting. Megan its just not my deal. Miranda right. Megan but i could see a lot of women that may find it useful. Miranda it helps to tell our story, and ill tell you why. I had one person today that said, somebody brought in your lip gloss cause they thought it was so cool because it had a light and a mirror. So i know that it helps sell the product, and it differentiates us from everybody else. Woman 3 . See what youre doing. Lemonis and do you like the light . Woman 4 yeah, i love the light. Woman 5 its cool. Woman 6 maybe a little. Lemonis would you buy it just because it has the light . Woman 4 oh, yeah, cause its different. Lemonis okay, thats good feedback. Well . Miranda i loved the feedback. Lemonis i did hear a lot of comments about people saying it was bright. Miranda right. Lemonis and so i think we want to dim it down a little bit. But all in all, i feel good about it. So, i put a lot of thought into the discussions weve had over this logo. One of the things that i feel like is missing is medical grade. You kept telling me medicalgrade lanolin. Miranda okay. Layne okay. Lemonis a logos important because its a name, and it tells a story. And i knew that miranda was hanging on to pure, and i was hanging on to lano. And so i wanted to give her something that i felt brought the two together. What i like in logos is i like them to tell stories. Miranda mmhmm. Lemonis because its the thing that differentiates us from everybody else. Miranda right. Lemonis its pure. It contains lano. We belive that its good for you, and its natural skin care. Ashley i like it. Its clean. I think its great because a lot of our customers might remember us from pure cosmetics with the lano company. And its combining all of the above in one. Lemonis this should mean healing. What do you think of when you see that little symbol . Ashley dollar signs coming in plus, money. [ laughter ] thats what im thinking of when i see it, anyway. Its plus. Lemonis if you can sell your product on qvc, i think its safe to say youve arrived. Miranda yeah. Lemonis i flew layne and miranda to west chester, pennsylvania, to the World Headquarters for qvc. Theyre the biggest shopathome network anywhere. They reach over 300 million homes and generate over 8. 8 billion in revenue. So the products here. Well just get it all unpacked. Layne right. Miranda yay how do they look . Layne real good. Look at this. Miranda [ gasps ] yay oh, look how pretty. Lemonis the new packaging on the products looks great. And today were here to convince them that the lano products belong in their lineup. Miranda so, were excited to be here. Weve been in business for about 10 years. I actually started the company on my stove cause i had chronically chapped lips and never could find anything that worked. So i breastfed our daughter and found that while using medicalgrade lanolin that my lips were healed. So, looked for a lanolinbased lip balm, couldnt find one. So i decided to mix one up on the stove. And thats how the whole company was born. Lemonis isnt that a great story . Ken it is a great story. Lemonis and i think people will relate to that. Rachel mmhmm. Ken oh, absolutely. Lemonis the brand that you see on there today pure lano if you think about a hubandspoke model, lanolins at the hub, and all the spokes are all these products. Miranda this is our hand cream. Its got natural antioxidants, like a shea butter, vitamin e. Its got the acai berry. Rachel oh, it smells really good. Miranda its just phenomenal. So, this is our antiaging hand, neck, and face cream. And so it has a patented antiaging ingredient that actually helps promote collagen in the skin. And its antiaging. Two, weve got a whole seasalt bodyscrub cleanser that is absolutely phenomenal. We also i wanted to tell you this this is our lip scrub. It buffs off all that dry, dead skin, and then youve got a soft, you know, scrub over it. Layne and im sure youd want to test the items and things like that, but what do you think we would need to do to actually, you know, be able to bring something into, you know, qvc that works for you all . Ariana items that we dont like sea salt and scrubs are a little challenging. Rachel this would be along with the body scrub, though. Ariana youre right. Its not a category we really have a lot of strength with right now. Not the candle. Lemonis im always excited when i go into a new business and we rebrand. 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[tina] youre an old lady. [anthony] hey mama, whats up . [mama] im confused. Confused about what, everything ok . Yeah, i only see one price on my phone bill. That doesnt sound confusing mama. Youre on tmobile, taxes and fees are included. Oh come on, theres always extra fees not on tmobile mama. Why cant all my bills be like this . I dont know mama. Bye mama, love you. Anthony . Umph at tmobile, taxes and fees are included. And right now, when you switch your family, get 4 lines of unlimited for just 35 a line. Sea salt and scrubs itemare a little challenging. Not the candle. Miranda do you guys understand the benefits of lanolin . Ariana if you want to give us a little bit more information, that would be great. Miranda yeah. Absolutely, so, lanolin itself actually soaks in the top two layers of skin. So it actually will heal your lips and keep a nice barrier on them. All of our products have lanolin in them. Rachel i mean, that, i think, is really the fun part of the story cause how many women use baby lotion as lotion . Miranda i cant tell you how many people weve met at trade shows and they pull out their tube of lanolin and they go, oh, my god you are so smart lemonis would you mind trying the hand cream . Miranda yes. Ariana sure. Lemonis how does that feel on your hands . Rachel it feels nice. It feels like its gonna take a little longer for it to actually soak in. And it could just be because of the amount of lanolin in it. Miranda right. Rachel but, i mean, as im sitting here, its almost gone. Miranda this is really what got our company to the next level. Weve now formulated it to where its 100 all natural allnatural colorant, allnatural scent. And then its got an l. E. D. Light and a mirror on the side. So if you would, try it on your lips. Rachel its actually really. Its very smooth. Its very, very i didnt expect it to be that smooth. Its very smooth. Ariana we dont really have this ingredient at all, so thats very different. Lemonis is that a good thing . Ariana its a good thing. So were always looking to fill a void. Exactly. Ken i think what youre doing here makes a lot of sense. So i think if we move really, really quickly. I mean, thats kind of what the strength of our company is our ability to move quickly and be nimble. So i think, depending on your ability to get set up as a vendor, all that kind of stuff, we could be on the air in 60 days. Miranda awesome. Thats great news. Lemonis well, this is exciting. Hopefully, well be on in 60 days. Well try. Well do our best. Thank you so much. Rachel thank you. Miranda thank you so much. I appreciate it. Lemonis establishing a relationship with qvc was a huge accomplishment. And now we need to get our focus off manufacturing and onto sales. And that means ashley will be moving on to the salesandmarketing team. And why would my customers buy this . Ashley because we have over 20 different colors to choose from and because it is made with medicalgrade lanolin. Lemonis you know what youre doing. Ashley thank you. Lemonis now that weve decided to move all of the manufacturing to rejuvenol, we no longer need a warehouse. Hello good morning so i took layne and miranda to look at a new office space in downtown kansas city. Woman the rent is 3,000 a month. Its about 2,900 square feet. Lemonis you could turn this into a display wall, and you could turn that into a display wall and really have this be a live salesroom. Miranda its so much more professional than what weve got. Lemonis lets look at a fiveyear. Woman okay. Lemonis okay, great. Also, were headed back to new york city to birchboxs only retail store in soho. Miranda moisturizer and body wash. Lemonis you just set up yours. I wanted katia to see the progress that weve made. I wanted our lip gloss to be carried in the sample box. And i wanted our product on the shelves. Katia hi lemonis hi, katia. How are you . Good to see you. So, we made a lot of progress in a short period of time. Katia im kind of already taken aback cause on the table that day was so much product, and its a lot fewer. I think it looks highend. Lemonis katia was legitimately impressed by the new look and how weve focused our product line. Katia wed be superexcited to have you. And just from one entrepreneur to another, so impressed. Miranda thank you so much. Lemonis it was easy, right . Easy process . Miranda [ laughs ] lemonis and since shes asked us to be a part of her Monthly Subscription and her retail store, i expect our revenue to double within the year. Were excited to do business. Miranda thank you. I appreciate it. Katia we dont do that. Right . Miranda give me a hug. I appreciate it. Katia great to see you. Layne thank you so much. Mary ellen thats pretty. I like that. Lemonis . A family has sunk their life savings into their swimwear company. I leave here inspired by your story. Only to find themselves out to sea. I mean, you guys are, essentially, out of business right now. Thats a lot of pressure on you. Theres no clear leader. Charlie ive kind of run the show. Mary lou no. Mary ellen [ scoffs ] lemonis . No design process in place. Charlie i just dont have the time. Chuck no, you did. You did. You absolutely did. Lemonis . And now, theres no money left either. Mary ellen they have put their finances into running this company. I dont want to see you guys lose everything. Mary lou i dont want you to worry about me. Lemonis if i cant help them swim with style, it wont be long before they go under. Mary lou im afraid. Lemonis listen, listen