April 10, 2020
E-COMMERCE OR RETAIL: A Business Case Study of  ELAJ  علاج

E-COMMERCE OR RETAIL: A Business Case Study of ELAJ علاج

[Music] good morning it’s Monday and I am here to do my first class at the PBA Ice International spa salon Expo show I was here five years ago and today I am actually speaking so I’m so excited I’m teaching about e-commerce or retail which one is better for you so this class is designed specifically for those people that want to do startups launching a product and they don’t really know which way to go should they go ecommerce or retail how did they get in without a shark without alone without an investor I tell them how to do it just like I do so come on and join me how often do you come across a product in the personal care products industry that has zero hype and yet performs far better than any marketing claims welcome to Elan Sh that’s exactly who we are my name is su Han Beck and I’m inviting you on our a Lodge journey not just to make money but to make history the word eyelash means healing I inherited a medicinal formula for wound care from my grandfather who was a surgeon at first I was careful to not make any medical claims I introduced my measurements as an intensive cosmetic moisturizer at an upscale Street Fair in Palm Springs they loved it for cosmetic purposes but the surprise kicker was the overwhelming feedback from customers that it worked on their eczema and psoriasis far better than prescription medications so there I was focused to go down one road easy simple cosmetic sales but customer demand was dragging me to go on the road less traveled I did my own case studies collected hundreds of testimonials and then finally the real wake-up call came when an assistant buyer from QVC called she tried it on her son who had excellent it worked I jumped out of my chair and said of course I’ll be there next week if you be seen you called me yes I’ll be there no she said no no stop QVC does not need another moisturizer we need something for eczema she then asked for our FDA drug monograph I’m like what that was our final wake-up call monograph sure fresh off the press drop tomorrow new packaging officially FDA registered over-the-counter medication with the FDA monograph and drug panel hello world’s meat sloshed let the healing begin before you make any decision about a lodge you can disregard every word I’ve said but you will not be able to disregard what you see and hear from our customers on our YouTube channel there you will find some of the most raw unedited and honest testimonials you will ever see [Music] barely ten years in a street fair has paid off so much because I got testimonials every single day I was working it last night yesterday I got two more videos two more testimonials to the same every time a customer uses your product get the video get the testimonial she patented 100% sterile packaging system so that same product now I can diversify into so many different things because the market taught me how to use my product I came here to share our journey again I had no clue medicine cabinet in every household around the world yeah so as I said here I wanted the easy way I wanted to sell a moisturiser cosmetic without you know getting on the radar of the FDA or anything like that so what ended up happening is and I honestly we did not know that my product worked on eczema because no one in my family had any skin condition so people started coming back to me in there like what’s in here why is this working better my prescription medication and I’m like why are you mad and they’re like do you have steroids in here and I swear to I was naive enough ten years ago that when they said steroids I was thinking steroids I didn’t know how to spell eczema and I know you’re all in the beauty industry but ten years ago that was not my gig it was the economy crashed I took this from our family like you know kind of the joke in the family is like who’s gonna cash the lottery ticket I had no clue how to do this so I did go to the PacWest I did go to the other trade shows and I did learn but that stupid little ridiculous street fair I have done my time there ten years I’ve barely missed maybe ten weekends in ten years so so that has been the biggest blessing and curse because it’s humiliating to set up a tent at four o’clock in the morning but at the same time it got me in front of my customers and even after I built up my cult my tribe they still expect me there and it’s kind of humiliating I’m the CEO and the founder and yet they want me there and then I realized how valuable that is so regardless of what you learn today the most important thing is your tribe your cult groom them bloom them in ways that you can’t imagine and collect every single email and phone number their names and little notes as well so get a good database system going about seven eight years ago just when we were really getting going and getting started it was Thanksgiving my leap we finished Thanksgiving dinner did the dishes got on the dining-room table come on let’s go we got labels to put on how many of you understand that concept when you are literally like you know on it so my 13 14 year old daughter at the time she said mom when will you know you made it what’s how will you know when you’re successful and I said the most absurd thing when I walk into some random big store and I don’t even know that they’re carrying my product doesn’t it just give you goosebumps like the idea of like oh and you don’t even know that’s how big you are I swear to you that moment when it did happen and it creeped up I didn’t realize that it had happened so I want you to close your eyes right now and think of the most absurdly Fantasmic or cosmic dream possible you don’t need a shark you don’t need a loan you don’t need I’m investing in your dream right now and this may be it and in ten years find me stalk me I’ll give you some hints I mean they’re gonna be in a Spain villa with two Dobermans or in a coastline condo in Turkey and Istanbul or in Cabo San Lucas with a mango mojito glued into my hand so those are your clues in 10 years find me and you will say on octo January 29th 28th where are we 20 20 days I had the most spectacularly absurd dream and I had it and I sent it to you and I received it and I’m investing in your dream and I’m telling you go big go crazy because it will happen hi everybody we are here in Bed Bath & Beyond in Mission Viejo and my mom doesn’t know why we’re here so she’s looking at my glasses she’s on this survivor that kept the recipe and we didn’t have Dropbox obviously so what she did is she kept the recipe and shoes and coat pockets and things like that so she’s the one that saved the recipe and gave it to me so she deserved that moment for sure spectacular moment in time the hardest thing you will ever endure is going through scaling of manufacturing this so offered so I did the trade show here in Long Beach five years ago but was great because it prepared me for wholesale okay because at that point I had the salon owners like yourselves that came in and they’re like you know we’d like to carry your product you know and I was like yes I want the salons because I can train you you can train your customer because it’s complicated you know like you have to use the product three times a day when you have an eczema rash or you have something going on it’s not that easy so it’s not something that’s easily put onto a shelf it has to be an explainable product and if you have explainable products keep that in mind that just putting it onto a shelf is not the end-all be-all so what happened was I auditioned for Shark Tank and I got like I got a call back and they wanted the video they you know I was signing all the contracts and everything so they wanted me to do the video to do the final stage right and like it’s kind of like a screen test kind of a thing so so I did that video that you saw that you know the further philatelist journey and and then the guy that’s videotaping me it wasn’t Fred at the time he said Sue Ann do you want an investor do you want someone to you know do that I’m like technically I don’t really want an investor I don’t want to give equity away of my company what I really want is just someone that will just kind of like help me catapult it because I know what I need to do I just don’t want to give away the equity he goes no problem I’ve got everybody in LA hooked up I can make one phone call I swear to you the guy that did the video we hadn’t even edited that video yet he sent it to the guys up in LA Ventura area and they were like get us an appointment with her right away so the next morning Redondo Beach we were having breakfast we shook hands what we did is a licensing deal and licensing is really weird because you typically think of Licensing as you know licensing kim kardashian private labeling that kind of licensing there’s a whole other universe that no one knows and it’s called licensing so what happens is that you have a brand new product it’s different its unique okay a licensing company comes along and says wow you’re a great innovator give us permission to use your product your brand your IP your intellectual property hopefully you’ve gotten your trademarks your patents whatever is unique to you your intellectual property let us use that so you rent your IP your assets all those videos those testimonials that you’ve collected over the years you take that you give them permission and give them an exclusive distributorship for them to manage your product and distribute it so if you’re a typical inventor this is fabulous because anybody got time further you know the big picture of manufacturing distribution and all of that you’re get good at innovation creation you know pipeline of new products coming in you’ve got ideas now you have someone who’s willing to you know you focus will do all the business logistics and strategies out there so they are called licensing companies and it is so easy to get them it is ridiculous and it’s kind of crazy because no one really understands this and as a start-up why don’t we know we only know Shark Tank and we all feel like losers when you know we don’t get the Shark Tank we don’t get the investor we don’t get the loan from SBA but there are other ways to do this and that’s the simple easy way if you are that kind of a person that just loves the innovation aspect of things you can do licensing now you’ve heard of licensing because Guffey ranker took proactive who did not want to be in salons or retail or any of those places they became the infomercial so this is called the dr TV direct response TV marketing distribution now it’s changed a little so it’s not so much dr TV direct response TV now it’s direct response anywhere else internet online so with that they will take your product they will incur all the costs of manufacturing advertising production liability distribution you sit back and look pretty you will get a royalty the bad news is is the percentage is insultingly low and I’ll be real with you it is on average about 7% hang on 7% when you go into huge retail the margins are so humi but you get your product out you build your brand you build your name you do all that and they’re doing everything they’re taking on all the headaches and you get to focus on what you do best the way to get a licensing deal believe it or not is look up the best licensing attorneys because if you go to the attorneys first they know the good guys from the bad guys they’re in the game and they’re going to be the ones that are able to guide you and help you design a contract that truly protects you okay so to get into mass retail no shark no loan note no investor don’t go into debt you can do licensing and they do everything and they’re behind the scenes it’s kind of like the fragrance industry where the manufacturer the big names you don’t know who they are you only know the brand of the Versace’s and the Gucci’s and you know so you only know those so so now you get all the glory and they do all the grunt work it’s a good gig but but and this is where you know I did wrong is that I wasn’t shrewd in my negotiations I trusted so when I had two different attorneys one was the big gorilla in the whole direct-response licensing companies and when this group that I was signing with found out that I had her they were like whoa how did you get her random a different story but the thing is is that I was able to find her get her and she was just like oh you know but what happened was she wanted me to go into her law firm in her law firm invest in a lodge so she was out to sabotage the contract instead of helping me get the contract which I had already had breakfast and shook hands with them and it was an agreement of Honor and she’s like you know doing this contract and they’re like sue and you don’t really want to do this contract do you because of the way she was negotiating it on my behalf so so I went with them by default on their basic contract and did not clarify all the ridiculous little details my bad had I done a better job in negotiating those pre terms way more carefully for example how much are you going to advertise on what channels when where how and then when you take my FDA registered mana graft product where in the store is it going to be placed so the location Location Location I have a background in real estate yeah think I would have known that one right so then there is also the pricing strategy and of course I was naive enough to think when they when I asked them how much are we gonna price my $40 2 ounce jar and they were like well the the market dictates that of course yeah the market dictates that but I’ve had five you know six seven years of knowing that my market knowing no one’s ever balked at my price because I have a quality product they expect it to be that price so I’m not the made in China product so I trust it again that the price was going to be there secondarily they did something else and they kind of wanted my oh it is long okay so they wanted my intellectual property which was crazy because I mean I really went hard to get my intellectual property I trademarked a lot of my tag lines let the healing begin and all of that and then I blew their minds away with one thing that I’m really proud of and that is that I had hundreds and hundreds of before and after case studies testimonials and I mean remember how did I get my education in the beauty industry my customers they taught me I learned about topical steroids and topical steroid addiction withdrawals I am now teaching doctors about alternatives to steroids like that’s the crazy thing and it’s the customers that taught me everything and they taught me that the typical system is not working we need this and this and this property okay so you get an attorney who is going to help you register the patents the trademarks in my case I did not do my patent registration because I don’t believe in patents in certain circumstances because if you publish which you do when you patent somebody else comes along goes oh that’s that good stuff that works let me very at 10% ba-bye so no I don’t so I believe in trademark secrets trade secrets so I have a specific situation where like wd-40 they have one factory San Diego company by the way they have one factory that does a B and C in their production they take it out of the factory haul it to an onion other– undisclosed factory that is unrelated to factory one and then the secondary procedure is done in another factory so one and two don’t know so so the left hand doesn’t know what the right hand is are doing okay so i have articles written about that about you know intellectual property and trademarks and whatnot so you can check out my website on that and all and i’ll share with you a little bit more in that so so we were they had national television commercials instantly like within a month of signing that deal we filmed our commercial and laguna beach because i had all of my customers in my database all i had to do is send out an email saying anybody want to be my commercial or lecture so from boom boom boom boom boom we filmed in two days they purchased wholesale rates of commercial airtime and they started doing a test so what happened with the test is they see how much they spent how much is returned on the ROI simple as soon as we do that then the licensee which I didn’t know finds a sub licensee and those are the Big Kahuna’s those are the big ones and those are the ones that are the the big distributors in the world so then we met up in Las Vega and we did kind of the the testing ground they were floored they said yes we sign up so that’s when the national television commercials went out and then the race to get into retail and we did the impossible within three months we got into retail with an FDA product that is close to impossible because there’s so much testing involved and things like that then go on so it was insane they say that you the innovator you know you could just sit back and become a mailbox paycheque inventor sit home get your paycheck in the mailbox in my case that was not the case because I was so hands-on in every aspect that I was working harder than I’ve ever worked in my life but that was good trade secret you keep your formulation your proprietary information to yourself if you’re a sleep talker duct tape okay and then you set up systems in place where that like if you have a Dropbox you make sure that it’s like you really go to the umpteenth mile and you do that if you have any employees or whatnot you make it very clear to them they do not have access to that information you set the precedent that way because you don’t have legal recourse but if you have been diligent in protecting the information than you have recourse if you’ve been sloppy you don’t coca-cola KFC you know wd-40 that’s how they protect their trade secrets because they did not post it online so you had a question earlier did you did I pass it the licensing company that’s something that you have to go stick with your vision of like if you yes yes that’s a major negotiation they bought into my vision so I was lucky on that and so when we decided to do the so called infomercials I didn’t want to be the but wait there’s more so I wanted to make sure it was not cheesy and it was because my product is serious you know it’s dealing with you know illness you know so I you know they were very good about respecting my vision from the you know product standpoint but in terms of execution of marketing and distribution they screwed up robot I want you to imagine Walmart and I did not know that they were planning on Walmart and that was the so this was really hard yeah you know so here I am like you know my really good quality product and it’s going into Walmart and and everyone was calling me all my customers that were so excited cuz I was sending out newsletters you guys we made it the American dream and we did it and so all of my customers were rallying around me they would literally go to the stores to go buy and they couldn’t find it where was a loss it was in the as seen on tv section which I did not know that’s how naive I was and so I was asking the managers for my product it wasn’t on the typical SKUs because they have their own separate SKUs that they don’t have access to apparently this moment in time where like the video goes in and it shows me like looking surrounding and then I find it I’m like and so really painful and then but wait there’s more what was the price 1998 what was your crazy Fetty $40 per 2 ounce jar but wait there’s more it doesn’t stop there this is what blew my mind as naive as I was I know this better than they did how in the world do you keep the website showing the product at 1999 with a BOGO offer oh but wait there’s more free shipping I have goosebumps right now just saying it like it’s still painful so even with the insult of Walmart setting it and here’s a here’s a radical idea you’ve all purchased cars what’s on the sticker what is an MSRP I suggest their retail price they suggested loud manufacture suggested so you you manufacturer you cannot set the price but a boom bada bing suggested ah so what happens when you as a manufacturer lose control like do you see how I’m losing control of my product now my beautiful amazing product that like I have a cult following tribes so loyal customers from Canada every year they come back to the street but like we’re here for you and then all of a sudden it’s cheapened the brand is diluted I’m in Walmart I mean as seen on tv and none of my customers they don’t trust it anymore instantly they’re like oh soo-hyun oh probably doesn’t even at that you know the typical you sold out to the devil you sold out to the devil so double offer now only $19.99 free shipping but wait buy one get one free so I would wake up in the morning I would get a bucket of ice and I would chew them I broke all my teeth that year okay so then okay the good news is is that I got amazing exposure so if you look up a lodge you know Walmart com the reviews are great like we average like a 4.6 to 4.8 on the on the reviews go to Kmart you go to Bed Bath & Beyond you know and and the reviews that we’re bad we’re awesome because they were like I used to be able to buy this for this much and now I can’t find it and like you know it’s the only thing that works and I can’t find it anymore and then yeah and then there was another one on true pilot where it was just like you know I ordered it and they said that their backordered because of like demand and they can’t get it out fast enough and I can’t believe this company we could do that best reviews ever to those customers I reached out to them because on Trustpilot you can I reached out to them and I said where are you I’m the owner I will ship from my garage and they took pictures of myself in the car going to the post office and I’m like look tracking number Here I am I’m sending it to you they are my best friends right now I go to Chicago they treat me like like all over the country like that’s the touchy-feely that I’ve developed with my customers that doing this almost jeopardized and sabotage you know but still they were trying to retouch me and find me okay so in Walmart so this is what happened and then they went down to can you see that Wow it’s ten dollars say it again so then Walmart because the licensing company was goofy enough to keep the BOGO offer so then Walmart was like you’re gonna sabotage us we’ll show you so then they went down to ten the price you suggested we all know now that it’s not you know it’s not just cars it sells here in sells there do they have the same price in different stores yeah because then Bed Bath & Beyond who I love I love you but Beth and beyond they were so respectful they were giving me good locations they were putting me you saw that on the end caps and I went so this is another trick okay so when we got into the stores I went to every single Bed Bath and Beyond from San Diego border to Ventura I mapped them out I went in I schmoozed the managers I talked to the you know the the clerk’s I would give them free product and I’m like what do you think what do you think what do you think I have pictures of me with some of the managers flowers I mean I stopped at nothing to schmooze the managers of Bed Bath and Beyond they were so wonderful they truly did respect the product they tested it and I have videos and videos of them saying we love the product it’s selling great but by then disaster was looming and I couldn’t stop the hemorrhaging and then say it out loud $3.99 what could comparable value 499 so they’re gonna get discount at 399 look at my eyes so okay so that moment in time it was Burlington Coat Factory Mission Viejo I walked in with my mother and it caught my eye and I’m like oh the lodges in Burlington Coat Factory and something said oh and I pushed my mom to the other side of my mom there’s a red coat over there I went over there my hands were shaking I picked it up and it said that and I vomited I started gagging and I and then I had to run I called my husband outside so then remember that moment on Thanksgiving – remember when I when my daughter asked me that question when will you know when will you know that you were successful and in that moment it snuck up on me and like wait I just walked into a random store didn’t know they had my product and I carry my product no so you know those jokes with genies we’re like somebody’s like oh you know give me a you know beautiful blonde rich and then it uh but she happens to be 89 years old and she’s you know whatever whatever like be very specific with those dreams okay so those dreams that you’re gonna come back and find me in ten years and tell me that you did really well be specific with that dream and be with much clarity that your brand is gonna be honored that people are gonna respect you as the owner you’re not going to have some you know scandal that chases you down out of any of these you know things that you want so again what went wrong I sacrificed control the brand positioning location price the sabotage of retailers with the online press of the bow go something else happened as well the essence of the original company was lost my daughter is a sustainability major we love a low carbon footprint we don’t want to add packaging you know you know we want simplistic and minimalism they doubled the size of the package to deceive the customer because we were competing with the Aveeno user and gold bond neosporin those were the you know eczema products that were FDA that were diluted with water but bigger and cheaper so the only way we could do it is be bigger but the jar is still the same that’s not me okay so all right so there was a good thing in this and that I pulled out and I said I’m done I caught the licensee in a situation that was compromising towards them because I had IP and my intellectual property I caught them where they were sharing it with someone else I flew into Philadelphia to my attorney did a cease and desist not a official is he synthesis but it pretty much what the hell are you doing they were like what and you know they played the game and whatever and then I was just like yeah I think there was something about sharing it with someone who does MLMs so is gonna be off the radar yeah and if you know anything about me you know that I am so anti MLM that I can become violent so again we look at the good in that and the good is that I didn’t stay in retail despite the margins despite the the insults and the humiliation and all of that I didn’t and you know why it was good because the big boys when you build the brand oh and by the way when you go into these retailers you are required to drive traffic to them so you better prove to them that you are paying bank in retail like in money of advertising because Walmart and all of those stores want to know what are you doing for me to drive traffic to the store so you have to prove to them these are Network sheets this is where we’re advertising and that’s how you see those commercials that say in the beginning you know this product only available now here if you call but then they Stran spher into now available in stores near you with the listing that’s you showing good faith effort oh dear God Walmart thank you so much for being Almighty and allowing me a little tadpole into the space so that’s your way of doing that and how is their way after four or five years of of you doing your time you know working in a street fair getting the loyal customer base that all I have to do is send them an email and they’re all rushing to the stores wanting to buy I’ve done my part we had a national television commercial airing major networks we proved had my product continued and I’m not saying I’m saying this very humbly forgive me my product is good I’m blessed had it continued how would walmart and CVS Costco all the big boys how would they thank me the Shakespearean way flattery is by copying you isn’t that what they do flattery is the highest form of you know complimenting you so this is exactly what they do so Vaseline cocoa butter yada yada 348 97 cents okay Oil of Olay look at look at the coloring look at that splash of the shea butter 747 497 but wait there’s more I am gonna write a book with that but wait there’s more Visine through 24 97 cents alka-seltzer gummy bears friend antacid 888 478 you’ve seen this wait is that so you have Kirkland Signature you have CVS you have all of those so after you you did it you live the American dream you killed yourself to get in I don’t care whether it’s through Shark Tank you gave away 30% of your company and then on top of that you did everything and all of that and then in the end what’s gonna happen the copycats are gonna be there we go to the Chicago International housewares show and I have the most amazing moment in time where I have front-row Center the innovators are doing all their business pitch on the stage and there’s a man who’s definitely fresh off the boat from China you can tell by the head by the glasses by the note-taking you know and he brings his own food and he’s eating in his watching and he’s taking notes it’s that instantaneous and this is the Chicago International housewares show where that is the place where you want to get discovered that’s the place Chicago International housewares show first week of March so here’s another story my husband created this electronics plug charger and he did all of this differently because he learned from my mistakes okay he did a Kickstarter program crowd-sourced you how many of you understand that because I will tell you what it is okay okay okay so another way to get in to retail should that be your dream because you’re gonna be smarter than me you’re not gonna make the same mistakes you’re not gonna relinquish control you’re gonna make sure that you do hold on to your brand and control it and you’re gonna figure out the MSRP you’re not going to give large quantities to the big boys you’re going to give them small quantities and test them see where they’re selling it because if you need to relinquish their rights of selling your product the damage is small you see what I’m saying so you know I get offers all the time you know these Canadian distributors Canadians they want my product and they’re like you know we’ll get it all over and whatever anything no no no if we do it I’m good with sending you ten or a dozen like no no no we want mass quantity I’m like no no let’s test it out for a while I’ve got an offer for 150,000 units right now to go into Dubai and I’m not feeling it like I want you know smaller amounts how could I control the Middle East and I’m from there okay so real quick so my husband he created a little charger plug it’s like this triangular he’s Egyptian you can take the boy out of Egypt but you can’t take Egypt out of the boy so it’s really cute it’s called Charlie Connect Charlie so he did a Kickstarter program where you crowdsource you create this advertising platform of people that love new products new innovation new hair extensions new shampoos new something new and different there is a whole obsessed cult of I’m the first one to get my hands on this brand new mouse and all of the gadgets and gadgets of the world people love that too so you do a Kickstarter goal and not GoFundMe it’s like a GoFundMe but there’s some other programs that are out there we happen to do Kickstarter because it was one of the biggest ones we set our goal to be like 20 something thousand dollars we met it and that’s where you you know you send it out to all your relatives and your friends the beauty of this is that they’re not investing in you just because you’re cute you’re giving them the product but you’re getting their money first so that you can create the product and you can go into manufacturing okay so he did that as soon as he succeeded inside the Kickstarter program Amazon Launchpad picked him up that’s not the same as you going and selling on Amazon this is Amazon finding new innovators and they’re like yeah that’s a cool product they advertise it so now my customer is Amazon they’re purchasing large quantities from me yes yes they want the product so he was able to do it in a different way so you if you have an innovative product crowdsourcing is a fabulous way to get in at least to get you over the hump of that first stage of prototyping manufacturing getting all the labels and all of that if you’re too far gone in the process Kickstarter doesn’t want you they want your you still virgin prototyping figuring it out and all of that and the people that invest in Kickstarter’s are so merciful they don’t you know like they’re like oh she didn’t perform on time you give him a delay though they’ll be good so anyway um so he did that he got on Amazon Launchpad and then we went to the Chicago International housewares show where he presented as an innovator so you have two years to present as an innovator bless you and as such all the biggest names of all the buyers that first morning of that trade show they come in but a boom bada bing right then in there it happens our first account that morning sharper image that was sexy although let me tell you the gentleman’s name well I don’t say things he came in and whatever and it was so funny because as we were getting in there I told my husband I’m like wouldn’t it be great if you could get into like a prestigious text store like sharper image so I said it again like I’m a witch I can’t say things and then they come true and then he shows up we just talked about you we just said the sharper image would be our dream client and and he was just like wow and so we took his email that night we went to the hotel I’m like honey honey let’s take a picture of us toasting with Nick his name with his business card and that we’re toasting to Nick and we sent it to him on the spot and we’re like Nick we’re toasting to you because you were our first client and you know and all of that that touchy-feely now transferred into your wholesale corporate retail accounts and that’s what it takes it’s not hard to get into retail so that’s where to go also at that show this is where the vultures of QVC and HSN and then the other one a vine or something that’s where they’re at and that’s where they are looking for a new product that they can say oh this is new this is different you look like you would be a good host you know as the innovator you look you know and so you know I can get you into HSN I can get you into QVC but be careful those are brokers those are the people that also sell on the show and they get a continent get a commission and you know all of that so out of luck my husband got directly the actual buyers from QVC and HSN so he bypassed those brokers which I’m not putting it down I’m just saying that they also can help you if you don’t want to deal with it for us to get into HSN for his product was so difficult and then we have to do attend a training class in Florida yay but so we did and then he got Bed Bath & Beyond but he got him directly with the buyers at that show at the Chicago International housewares show okay so I want to share another moment in time with you for all you entrepreneurs out there that are saying I can’t do anything with my product I can’t launch without seed capital I need a shark no you don’t there are ways to get into mass retail of the United States have the American dream just like me I got a lodge into but Bath and Beyond and every Walmart nationwide and hundreds of other stores and how’s that that’s Adam my husband he got his product Charlie into retail and he did it completely different than I did we both have an incredible story and we’re here to tell you and share with you how we got our products and never give up with money yep from Arlen other than this and a lot of sweat blood and tears yeah but we do it so car you can too okay so how many husband-and-wife teams do you know that got their product within 10 feet of each other in master Dale not college educated I’m a Syrian refugee he’s a okay so that’s what I’m saying is that like yes the dream dream dream dream big but please dream specifically okay so now let a switch okay so did I open you up to the retail space through like painfully well okay so beyond that so the take control you can get into retail space the attorneys are the way to get in the attorneys will help you get the patents and the intellectual property protected as well and if you’re ever going to partner with anybody partner with an attorney because then they’re doing all the legwork all the protection now I want to export to the to the rest of the world and I’m scared because I don’t have my intellectual property registered there had I partnered with an attorney they would be doing all of that so that’s long-term thinking as well okay so you understand retail space you can get in crowdsourcing licensing direct relationships go to the Chicago International housewares show bite the bullet pay the twenty five hundred dollars for that innovation booth you are the creator you are the inventor prove it they give you the booth there after you get the best buyers on the spot 9 a.m. in the morning the doors open Walmart Bed Bath & Beyond sharper image QVC HSN they’re all there now you have choices on how to get into retail real quick about HSN and QVC they are retailers so it’s not a matter of you get on and you are selling your product know your customers HSN they send you a purchase order for 10,000 units you ship to HSN which is now QVC cubes you bought them so QVC you shipped to QVC they have it in their warehouse you air because they’re going to give you the 2:30 morning slot for the first few times just to test you out if your product doesn’t sell they’re going to lower the price so my husband’s going through that right now and working through that so just so you know like you’re not really totally safe in that retail space out there like you have to maintain control and go in there eyes wide open okay as far as e-commerce is concerned can I make this as simple as possible and if you want just give me your email addresses and I will send you the whole presentation so that you can like put my voice back into it and you can see cuz I really am proud of the presentation so make this as easy as possible open an online store via Shopify don’t do the other ones like WordPress and all the complicated ones do it with Shopify it’s $27 a month you can do it it’s that easy because I can do it and I know okay start a blog or a video log okay you could be talking about shampoo you could be talking about hair health scalp health it can be that one specific niche I am the expert on topical steroids Bar None right now and when it comes to eczema and skin from my Big Cartel night I don’t know BIC hurt oh I’m just saying that Shopify is one of the biggest platforms out there that is so easy good convenient they have all the plugins and all the apps so good to use like all the big experts they also say that too so okay so start a blog vlog and I know that’s leg work but if you are the expert in your niche in your field just start the blog and I learned this the hard way okay when I did my licensing they told me oh my god Sue Ann you have so much information about you know skincare and all this other stuff you know start a blog so I was like okay so I just started writing which I love but I did a crappy job on these particular articles because they gave me the subjects you know when to tell the guy you’re dating that you have eczema like very silly level you know like I’m more academic nerdy they wanted me to like dumb it down so I did okay and then when I was going through the licensing you know rescission and I’m pulling my product out and I was chewing ice I stopped blogging okay and then I’ll tell you what happens later get affiliates okay now two important game changers from 2019 and hereafter affiliates are people that blog that have websites that have nothing better to do in their life except grow their blogs what they do is they get permission from you to take your little ad put it on their website if someone clicks on that and goes either to your website or to Amazon or to Home Depot or whatever to purchase that product that affiliate get percentage the beauty of this is it’s not out-of-pocket for you it’s after the fact so go hard and heavy on the affiliates now start because you alone cannot do your own search engine optimization you cannot get enough traffic to your website these guys they do nothing in their life except drive traffic to their websites so get affiliates now and there are so many places to do that amazon has affiliates within as well okay so you could do them with any amazon and then outside okay get influencers you know the game i don’t need to go into that very heavy so influencers the cheaper ones the ones with less followers do not underestimate them do not fall into the trap of thinking you know you only need ones that have a hundred thousand subscribers you can go with the younger starters and they’ll put more effort into you yes 10 likes on a poster and you have 100 followers you got 10% if you have 10 likes on a billion followers you think yeah you have a fake account basically yes okay I know those are up front those are up front okay and there are actual brokerage firms that all the influencers list and you as an owner can actually hi welcome you can actually decide oh this one has this many followers this is their niche she’s a mommy she’s a you know sports blogger lalalala okay so you can choose and pick and that’s where they all post their resumes and all their their their media and you can stalk them and see okay I’m sorry there’s there are firms that they are the central headquarters where you can find influencers to hire so from the starters to the big ones email me and I’ll send you the the different ones that I’ve used okay and then the name of the game you guys please please please pay attention right now so you created your website on Shopify it’s your typical classic format it’s the horizontal you’ve got your home your about your products your contacts us that’s your classical format you probably are not going to make a lot of money off of that that’s your typical information headquarters okay your blog and vlog is going to feed that that’s where you’re gonna get the information remember when I started writing stupid dumb down articles and then I went back a year later and I wanted to clean up my social media image and whatever I went to go close it and I like what I got twenty-eight thousand views in one month and they were reading my articles and I hadn’t even posted anything in a year I’m like I can’t close this I have to start up again and have that feed into my website tell how could I have not done that okay okay so this is the gold mine gold mine gold mine please please please stay with me here landing pages does anyone know what a landing pages this is so exciting and new it’s incredible okay so you could go and get your product licensed and have them take 93 percent of your money or you could set up a landing page because what did the Licensing Company do effectively they created an infomercial created the demand in order for me to get into retail yes props give them credit for that however now the name of the game is landing pages so a landing page is different and you’ve been on them so you’re on Facebook you’re cruising and then something pops up and it’s so weird and random and it’s like this don’t eat bananas you know or something weird like to trigger you okay and then you click on it and then all of a sudden you get sucked into this funnel of information but wait there’s more if you buy now this is the thing it’s good your life it’s gonna do this it’ll look like you can’t get out of this thing and it’s mesmerizing the way it’s written is incredible and if you purchase now you’re gonna get this you know this offer is never going to be available again so now what they’ve created our vertical websites not the horizontal and like when you get sucked in the biggest one that creates them is called click funnels you click and the percentage of return on the investment on that is mind-blowingly exponential so the people that employ click funnels or landing pages now are the I don’t even know how to say this you can’t pay them enough and they’re asking a lot so if you find somebody and like what I would do is I would go to Facebook and go into the private groups of click funnels and the people that are creating click funnels are all in there and they’re looking for you in order to create click funnels for you they get to know your product you give them your assets your testimonials your videos your before and afters your case studies and all of that you give them them they dress it up they create this web page but this landing page bounces back into your Shopify website so now all your ecommerce is organized from Shopify and that’s what I love accounting everything is beautiful through Shopify but these landing pages they land on them they funnel through they purchase and the way to do it offer something cheap and free you know you’re free just pay for shipping okay so again ecommerce how to start this because like you can do this in one year or 2019 you can start start the online store on Shopify start a blog or vlog of your specialty niche beyond that get affiliates you pay them after they send you the sale even within Shopify there is a program that you can find the affiliates within Shopify as well okay you get influencers those are the ones you have to pay upfront okay and then you create the landing pages or you hire someone to do the landing pages okay I lost three months thinking that I can do it okay going back to the simplistic aspects of business growth get testimonials when I signed on with a big licensee company I hand it over to them one of the biggest thumb drives they’ve ever seen as big as a memory of a computer and they were like how did you do this 10 years working in a street fair baby I did it so I grew my tribe your email database is gold I can’t tell you how much and then most importantly create original content and feed them constantly your newsletters whatever like you know extract new content you can hire writers for five dollars to write a 300 page a 300 word article on fiber fiber is the best resource for you to get all the dirty work the graphics all of that stuff Don five or five with another are at the end fiverr.com there you will find graphic designers for five bucks you will find everybody to do things for you like crazy okay so real quick Amazon don’t put all your eggs in one basket Amazon is a cruel cruel place because with Amazon they can shut you down for no reason your competition could write bad reviews okay and in the event that you do go into retail somebody liquidates you you end up at Burlington Coat Factory for 399 okay some smarty Sandra Dee is going to go pick that product up post it on her store and sell it for $6.99 you cannot even compete with your own product two years I didn’t have income as a result of the third-party resellers that picked up a lodge at the dollar stores so I was issuing all of these fake poker Bluffs like cease and desist and I sorry yeah okay okay real quick Amazon there’s two ways to do it Amazon FBA fulfilled by Amazon or you ship directly to the customer a customer by Amazon is not your customer a customer by Amazon is Amazon’s customer don’t you dare try to touch them but I’m touchy-feely with my customers no they’re Amazons don’t you dare so what do I do you ship them a product with a 10-foot Pole so I decided and if you do FBA Amazon rewards you if you don’t do FBA you get penalized and I’m paying more on shipping it would be cheaper for me to do FBA why am I not doing FBA why am i shipping directly to my customer I have at least their shipping address you know Amazon’s like nope bye sue Han and I can send them coupons all day long thereafter because I’m not gonna lose them my customers okay so that’s what I’m talking about so it’s all about my tribe okay so when you go on to Amazon and eBay please remember this do not go in as a store you’re setting up your store on Amazon you are the brand you are the owner so you do have to get your trademark so you have to like prove to them even if you don’t have trademarks you have to prove to them you created this product they will want to see your invoices within the last quarter that you manufactured you got ingredients you they will want to see that that’s how obsessed Amazon is that if you are the owner you are the brand you are glorious they respect you a little more okay so don’t make the mistake of going in as a seller and you are qualified for enhanced brand advertisements as the brand on Amazon this was the kick starter that we did oh here’s another trick so when my husband launched charlie we went to a pre Emmys party in 2016 best investment ever because that was the hub of all of the like actors and be actors and stuff like that okay so apparently what happens is that these pre emmy parties all of these actors and actresses they sign up they sign release that you can take pictures with them they can hold your product and they can’t come after you later for royalties okay so we exhibit at the show there’s a private party and we are exhibitors there so all of these actors and actress come when all the paparazzi’s trailing them and they come in and we give them free product and then we take pictures with all of them and then it’s a hashtag frenzy and we got so many influencers on that that cost us twenty five hundred dollars but how many influencers did we get or zero thereafter because this guy who’s that Nick somebody famous so famous people and we were hash tagging and forwarding and sharing and back and forth or whatever it was a buffet Oh brilliant was that ah okay so okay Chicago International House where show innovators there’s two rows of innovators you want to get the innovator section because that’s where the first place everybody goes to so real quick I am writing a book called the I’m not sure if I can do this but so I said the crazy stories of mr. mrs. entrepreneur but it’s really the batshit crazy stories of mr. mrs. entrepreneur can I get a vote of like should I include the batshit or not really because I’m pretty classy and conservative like so it’s kind of like you know that’s like pushing me over the edge of being like that because I should be I raised two ladies and so this is going to be really hard for me real quick I was at a seminar I belonged to the US commercial office with the SBA they’ve been my mentors from the beginning they’ve been proud of me they’ve been ashamed of me like now I’m a public speaker for them because as you can see I’m I’m buff naked you know with you know what I’ve been through and if it helps you and then you combine a mango mojito in ten years right so so I was at a class and it was how reach global customers through e-commerce so it’s not just ecommerce here in the United States and this is a tricky thing that I learned is that ecommerce abroad is actually easier than ecommerce here in the United States because there’s so much competition so so I was in this class and it was fabulous and I’m telling you go to your resource of US commercial office because they will do everything for you they will help you to go to their classes go to their resources and seminars you’ll see me there and then they will guide you I took a tour of the La Porte and learning how to export a cruise luncheon fabulous it was amazing and they’re all over so when I was negotiating my contract with Jordan and Dubai in order for them to you know for me to export their they have field offices in so many different countries they interviewed that person pre-screened them qualified them for me on a business level they got all their accounting they got all their books they did all due diligence for me not to waste my time get on a plane and go over there and meet with them partners in a cos commercial office isn’t that sexy it’s just part of the u.s. commercial office and so wherever you are they have local offices in order to help you and be at service for you why they want to grow the GDP gross domestic product so you are their client whatever you need they are at your service they are at the Cosmo Prof show they usually are here at PBA I haven’t seen them but there usually are Oh oh really so there I was at this seminar at the u.s. commercial office and I’m not really paying attention that much because I’m like in that resuscitation of my company mode you know and Here I am unlike ecommerce you know website and I’m like making my brain map of you know how I’m gonna dictate my time and everything right here at the very very very bottom this is the letterhead of the hotel that it was at in Costa Mesa Avenue of the Arts strangely enough to have good eyes stay independent stay independent it was on the letterhead of the boutique hotel so here I am you know all of these speakers and I’m trying to figure things out stay independent Wow so you know for all the okay so I swear to you you this weekend I was at the street fair I was working every single time I am there you know people like oh this is great a lot like you really should go on Shark Tank what is this Saturdays Sundays on Monterey it’s empowering sand Palm Desert I live in Orange County I Drive two hours every weekend to go to that Street there because that demographic is unbelievable high-end wealthy older snowbirds love my Canadians so the name of the game let’s recap real quick so the number one thing is if you decide to go into retail choose your retailer develop the touchy-feely with them you guys are so lucky because you’re in the salon Specter you can really control these retailers and build that trust with them like look if you’re gonna sell it for this much I need you to give me your word you know I’m gonna be consistent I’m not gonna sabotage you the retailer I’m not gonna post the online price less than this so if you respect it I’ll respect it so let’s stay on that same level and people are just like that is wonderful believe it or not the retailer’s want to hear that because they’ve been sabotage so much they’ll make space for you and then you will sabotage them and they get upset vice versa you know you create that protect yourself from the third-party vultures that want to come in buy liquidated product that has been destroyed in terms of your brand and your pricing and they will strip it take it post it on Amazon and eBay every day I check and I see and I you know send out you know obnoxious letters like oh so so that is that as far as e-commerce is concerned I gave you the five most important things for you to really hold on to Shopify affiliates Instagram build your blog vlog because that will drive insane amounts of traffic the written word is still the most powerful thing according to Google oh my god Google Google Google I have a story to tell you okay so we go to the Consumer Electronics Show to show Charlie my husband’s product okay and I go to this class and who’s hosting it Google this was about four years ago okay and it was weird because they were talking about the future and you know Lola and then they said how many of you are manufacturers and were like yeah and the class was for manufacturers and they and they were talking in code it was really weird and they said if you were a manufacturer we are opening up a platform just for you and in this platform you have an unlimited amount of space to showcase your products you can put videos long-form short form commercials every angle of anything you could want of your products for free this is almighty Google telling me I can have unlimited talk time come to mama Google and it kept like speaking and tongue in code and then they were like you know we really want to honor the manufacturers no one’s given them a platform before directly we want to be that it took me about a month or two to really understand that class guess what they were doing Google is the biggest search engine the second biggest search engine for purchasing when you’re serious and you want to buy something you go to Amazon so Amazon is becoming a bigger search engine and eating up into Google but what is Amazon saturated with Schmucks the third-party resellers that took my product out of liquidation and hosted it and put it onto their stores in Amazon Amazon is filled with counterfeiters so Google wants to take the high road they want you the manufacturer to have your own website within Google and so as this new millennial generation comes up what do they love they love the touchy-feely I know the owner they like that relationship they don’t they hate corporate they hate everything on the big level they want booty keys small mami papi I’m mami papi right so now Google sees the opportunity to host all of US manufacturers directly as a consumer what don’t you trust purchasing from me directly rather than easy buy.com on Amazon so you see how now Google is coming up and so they are going to take us to another level of being able to showcase us in the most extraordinary way and now I can build my platform and now it’s called Google manufacturer so you register on google manufacturer and it’s true it’s unlimited I can give them my whole thumb drive of a large assets and they haven’t said no yet and now Google manufacturer transfers into Google Shopping and Google’s not taking a commission oh you’re welcome okay so on a personal note we came to America like in the 1972-73 range after being in a camp in Germany we did not know English we didn’t know the system we didn’t have $200 we didn’t have handouts we didn’t have any of that and we made it and you can see like you know whether it’s me whether it’s my husband we did it you’re American you’re American you have no excuse okay I had a stuttering problem I had a speech difficulty I had visual problems you know like we have so much to overcome so are you gonna buy me a mango mojito in ten years okay so real quick so I thought the land of opportunity was only here in America because we were so lucky and whatnot and then this picture comes across the Internet it’s a Syrian girl and my dream is to find her and to see but this to me is she’s me that’s me that’s my twin and I want to find her so badly but look is that not the land of opportunity in Syria in war-torn in the most horrific conditions she is my hero I invite you to be my hero in the worst of circumstances and the worst of economies in the worst of conditions okay I just listened to a presentation by and it was really incredible the super informative she’s so real and genuine and made me feel like it’s really possible to become a manufacturer and do this it’s very it’s really inspiring I have learned so much about marketing and retail and e-commerce I can’t wait to go through with the plan and reach out to her because she has left herself open for us to extend to her and show our journey and helped us through it thank you very much was absolutely man so very transparent all of the information that she gave us she was so genuine about her delivery that she wants all of us and cannot wait to give her it’s about her her mother [Music] you [Music]

4 thoughts on “E-COMMERCE OR RETAIL: A Business Case Study of ELAJ علاج

  1. Suhein your lecture was so rich in information for young and old starters , you are great presenter and what I love about you are tow things, first your genuine passion on giving the information and second is your generosity to share wealth of information from first hands on experience … stay giver and contributor to the world…

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