00:11 Lisa Price: I then was able to get onto the Oprah Winfrey show in 2002, which was amazing. It's everything that everybody ever said that it would be and more. It was not instant success, it was not instant cash. A lot of people think that because you go on Oprah or because you shake her hand that as you're shaking her hand...
00:37 Price: There's a wire transfer taking place. And that does not happen at all. And depending on what type of show you do with her and how it's set up would indicate what type of success you will get from it. So, the thing that I heard from people was, "Well, what are you gonna do when you get all of the orders? You gotta stock up, you gotta make things." And the whole thing happened very quickly. They called on a Tuesday, they were in Brooklyn by Saturday filming me. They told me Saturday night that I was going to Chicago on Tuesday. I taped the show Wednesday morning. I flew back home Wednesday afternoon. It aired the following Wednesday. How much could I stock up in a week?
01:20 Price: So, I felt like whatever happens, happens. I was there for a reason, I wouldn't have been put there if it wasn't meant to be. I can't worry about what orders are gonna come in. I can't go and make extra stuff when I don't know what to make. The only thing that we did focus on was foot care products because during the show she mentioned, "Oh, your foot cream is fabulous." I actually didn't have a foot cream.
01:46 Price: I had a foot butter and a foot lotion, so I'm not sure which one she was referring to. So, we just put foot care on the front of the website and we made extra foot lotion and extra foot butter just in case. And what happened was, our website crashed when the show aired because our service provider didn't listen when we said, "Well, I'm gonna be on Oprah, so we're gonna get a lot of traffic." And we went from four people shopping on the website to 17,000 people shopping on the website in four minutes.
02:21 Price: Yeah. So, it was a little crazy and... But we survived it and it was a nice ride, if you will. We were on her show in June and People Magazine did a feature on me because I had gotten onto her show. That came out in a November issue that year and the show re-aired October of that year, so it made for a very good fourth quarter, and it was steady growth. We did get a lot of orders initially being on her show but it wasn't anything that we couldn't handle within our warehouse. But what it did mostly for me as a person was allowed me to fulfill a dream, which then forced me to dream bigger. Because I never thought that that dream was going to come true. I just referred to it as, "Well, you know, when I get on Oprah." "Well, you know, when Oprah calls."
03:15 Price: But I didn't think it was actually gonna happen. [chuckle] So, when it happened, it was like, "Okay, what am I gonna say now, cause like, I did that." And so, the business continued to grow. I got a book deal with Random House and I wrote a memoir and that was published in 2004. But before the book was published in 2003, I met someone who was interested in partnering with me and investing in my company, and his name was Steve Stoute. And Steve is a marketing person. He has a company called Translation. He's a brilliant marketer.
03:51 Price: He's just written a book called, "The Tanning of America." If you Google him, you can read all about him, he's amazing. And I've known Steve since 2003 when we first met. And he invested in Carol's Daughter and became my business partner and helped to take me to the place where we are today and why so many people know who we are. So, I went from being the person in Brooklyn with the little shop, making the things in her kitchen, to being a beauty brand. I didn't even actually think of myself as a beauty brand prior to that, I was the woman who made products in her kitchen. And the whole process of growing in that way and working with someone who has such a different vision than I did was great for me. I just got the signal that I'm at my little 12-minute mark, so I'm gonna wrap up the last few years, we're at 2003, got eight years to go.
04:45 Price: Gonna wrap up the next eight years, so that I can start to take your questions. So, Steve and I have been partners since 2003. In 2005, celebrity investors joined the brand, and our celebrity investors are Will and Jada Smith, Jay-Z, Mary J. Blige. And they... Will and Jada have been fans of Carol's Daughter for many years. They were actually introduced to the products through Jazzy Jeff.
05:17 Price: Remember Jazzy Jeff and the Fresh Prince? I've never met Jeff. I don't know how Carol's Daughter came into his life. One day I'm gonna meet him and I'm gonna get to thank him for sending it to Jada, but he knew that Jada would love them. And so, they were customers beforehand and then they also happened to be friends and business associates of Steve, so the synergy was there. There was a relationship there that could be fostered. Jay-Z wasn't aware of Carol's Daughter but knew that I was from Brooklyn and that we were from the same neighborhood and he liked that, and he asked his mother about me and his mother knew of my products, and another one of his cousins knew about it, so I passed that test.
05:59 Price: And Mary, Mary J. Blige had heard about it on a beach with a friend of hers. She was appreciating the tan that her friend had, and her friend was using my browning oil but she didn't know how to find me or it, but have heard about me. So when se was approached about working with us, she was excited about doing it. So in 2005, we had this big over-the-top press announcement 'cause Steve is a very big over-the-top kind of person, 'cause he's the brilliant marketer, and we had this great press conference to let the beauty industry know that we were this new beauty brand that had arrived. And it led to us having meetings with Sephora and Macy's, and developing those partnerships with them, a little bit before we were actually ready to do so.
06:49 Price: So there are times when I kinda wish I could go backwards and get all the infrastructure stuff done first and then have done that, but I don't know because you have that saying of, 'strike while the iron is hot' and things did eventually work out but it was a little bumpy. Cause you focus on that first order, and the first order is actually the easy one, it's the 18th order that's a bitch.
07:14 Price: You got to keep those orders coming in and keep it fresh and relevant. In 2007 we added, sorry not 2000... Yes, at the end of 2007 we got equity investors with Pegasus Capital Advisors, which was amazing 'cause that was right before everything went really bad. So the timing was fortunate on our side. And then we've all gone through 2008 and 2009, and what we did was to scale back on the number of stores that we were opening. So we only opened two in 2009 because we had least commitments out there. We were supposed to open about seven or eight, but decided not to and focus more on our wholesale business, and built our HSN business, Home Shopping Network. So in 2008, I started on the Home Shopping Network in May of 2008, and we're now the number three beauty brand on the network. Which is really great, its really great.
08:19 Price: Thank you. And it is... You don't get as much profit as you would if it was your own stores, but the exposure and the advertising is so much more than a brick-and-mortar store would be. And there's not as much cash at risk with developing wholesale businesses.