tv Your Business MSNBC December 15, 2018 4:30am-5:00am PST
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good morning. coming up on msnbc's "your business," a former u.s. navy s.e.a.l. turns his business into a booming business and has to face copycats stepping in. and then how a woman turned a baby skincare line into an order and how a wreath company in vermont deals with the challenges of running a seasonal business. for over 12 years we've been giving you the information and advice you need to run your company. that's all coming up next on "your business."
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♪ hi, there, everyone. i'm j.j. ramberg and welcome to "your business." for anyone fanatical about fitness, you have probably heard about trx. it's a training system that consists of a single strap, two handles, and hundreds of workout options, and it is hard. a former navy s.e.a.l. is at the helm of this driving bland. copycats floded the market and randy faced battles he had never
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imagined possible. randy is the man behind trx, one of the most buzzed about brands in the fitness industry. his explosive success stems from a single concept, one strap, two handles, but the trx experience is anything but basic. trx's success didn't happen overnight. for over a decade, randy poured every last dime into building a pristine product and a standout brand experience and then just when trx started to take off, he was blind-sided. copycat and counterfeit products started to flood the ma marketplace. >> they multiplied like cockroaches. then you have to look at putting this genie back into the bottle.
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randy was serving in the u.s. navy s.e.a.l.s. >> the one constant was when we would deploy abroad, there was no gym. >> a natural problem solver randy came up with a solution. >> i had accidentally scooped up my jujitsu belt and came up with a crazy idea to tie a knot on the end, throw it over the door and try to copy the motion of clipping a ladder except do it using my own body against gravity. it worked. i could do work, curls, flies. i started to make them for guys in the squadron. >> after 14 years of service, randy enrolled in stanford business school and people on campus started noticing about his workout. >> the coach would come over and say tell me what this is.
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>> randy began to realize his simple fitness system might have the potential to become a lucrative business and he was willing to make a bet on it. >> i think i had about 2$50,000 to my name. i spent that buying a soma clean and working on a prototype over the summer. >> it provided undeniable results and unlimited processes. copycats and counterfeits took off. >> what's the difference? >> not only are they copying your product wu they're trying to get the trademark. they're trying to convince the consumer thatey are you. copycats copy your product but don't put your trademark on it. >> he needed to take immediate steps to fight back if he wanted to keep his company afloat.
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>> you have to get a lawyer and that's expensive. >> it sounds like a game of whackamole. so you get this one down, and another one comes up. >> it is whac-a-mole. >> trx's brand was in jeopardy as people around the world using systems they thought was trx were getting injured, broken bones, a head injury, and even a death. customer service complaints and horrible online reviews kept coming. >> our strategy ultimately was to form a partnership with amazon and explain that this was not tolerable and that they were, in fact, a contributory infrirjer that they did not like to hear. they took action pretty aggressively on counterfeiters to try to put in place a many clean learning mechanism so once someone has been proven to be a bad actor, it gets increasingly harder for them to get back up
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on what is what is an automated platform. >> randy knew he had to make a bold and public statement to scare off the copycats, so he targeted one of the companies doing the most material damage to the trx brand and filed suit against them in corn. >> how hard was that to win? >> that was a painful trail. >> he spent two years and $2.5 million on the case and even though they won $7 million, trx never saw a dime. >> they ended up going out of business. now we have a cease and desist letter. >> the other thing i notice you did was put out a big press release. >> it very much was intended to be a don't let this be you message, right, to all the other knock-off folks. >> randy's strategy has worked and today the business is thriving. with headquarters based in san francisco, he currently employed more than 100 people.
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>> i love this. black and yellow trx. these offices are so amazing. >> it's pretty cool having your headquarters over the top of your gym. >> trxs are in more than 40,000 gyms worldwide with 250,000 training the mektd odd. >> we built the company and brand literally one trainer at a time. we tried to give them the great tool and knowledge to deliver the product to their clients. >> inhale, exhale how. >> reporter: when a trainer jason opened his studio in los angeles, he decided to invest in trx ee whim for every station. >> it was something knew. i love trx. you get within 100 positions. within three minutes you're sweating, your heart's racing. it's cardio. you leave drenched. it's an awesome workout. >> the world of black and yellow became an instant obsession for
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many. now randy's main focus is on trx any time, anywhere. a home system along with a trx app. it allows fans to bring the experience into their house and on the road. >> how big is the company. >> somewhere near $60 million in revenue. i feel so fortunate to have this astonishing community. you know, the black and yellow is a big deal. people from all around the world tell us stories about how it charged their lives. that's really powerful. you can't knock that off. how do you get customers to purchase more at your ecommerce site. this is the general manager and head of the north american business at paypal. if anyone can get someone to know how to shop, it definitely should be you. >> we definitely have tips. >> i used to work if an
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ecommerce. the problem is we would get people come to the site, leave abandoned carts, come to the site and leave and there were little things that could get people to actually purchase. let's start with it. number one. >> it starts with finding customers. number one, as we talk to millions and millions of merchants, the thing they struggle with is, hey, the world is evolving. everyone is used to paying for google key words and stuff, but today to given you a stat, consumers, about 30% of their time is spent on social, facebook, pip trefpi -- pintere. the idea is getting them into your store. that's number one. a couple of things. make sure your site is mobile-ready. 40% last year mobile grew at 40%, far faster than what's happening on the desktop side
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and this continues. if you have a site that's not only mobile optimized but mobile-ready to shop on those 5-inch screens and make sure things are simple, those are critical things. >> that's big for you. one-click checkout. not like go to the next screen, the next screen. >> we have adopted one-touch. we have over 100 million consumers and 10 million businesses. the whole idea is no credit card exchange. one click and you're done. imagine if you're at a railway station and you want to shop. you want to buy it but you don't wasn't to put in 25 key strokes that and you don't want to pull out a credit card. basically what shoppers want is for it to be easy. >> one, they want it to be easy. that's where one-touch will come in. but the other big thing we bring in is make sure once you get into the cart -- the cart
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abandonment rate is at 70%. a lot of it is recoverable. make sure you offer all methods of payment, whether it's credit card, paypal, apple pay, whatever the customer wants. consumer credit is a huge one. a lot of people see a watch, it's $500, i really want it, but i need some time to pay it off. that gets you over the hurdle. >> where do you do that? at checkout you have a little button? >> you can hit the paypal credit button or a banner throughout the shopping experience, hey, you love this dress or watch whatever you want and click here and you get consumer credit. >> is this widely available? >> it's massively widely available. it's a simple plug-in. >> got it. and then this is an oldie but goody. provide coupons to get people back. >> remember i said 70% of your
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carts are left abandoned? this is a key thing. people are like i'm looking for a couple of things. i may come back later. >> make sure you get them back. hey, we've got this product, maybe i'll give you another 10%. the other thing is offer free return shipping. >> people expect return -- free shipping both ways right now. >> one is it's expected, j.j. the other is if you're a smaller merchant without a large brand, this takes away the fear, if i buy something and don't like it, what happens. the answer is return it to me for free. that gets a lot of consumers over the hurdle of shopping at small businesses. >> i've been in coupon business with good shop for 12 years and coupons get people to shop. >> that's exactly right. >> it changes everything when people feel like they're getting something sth that is right. >> thank you so much.
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it's so good to see you. this is incredibly helpful as we head into the shopping season and small businesses need to know how do we make it easy so people shot there. >> thank you. >> thank you. when this woman launched her baby care, she started with a single product, shampoo body wash. two decades later, she sells over 200 products and is worth more than $250 million. we sat down with jessica at her headquarters in the heart of los angeles where she shared her tips on bubbling up to the top. ♪ >> when i first started california baby, my goal was to change skincare for the american child. my goal was to replace the
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sulfates. did that. replace the synthetic fragrances. we did that. it was all about creating a 100% natural preservative. how do you do that? it's about saying yes, we can. we're going to do it. i don't know exactly how, but we're going to do it. fake it till you make it, right? i've got to get people on board with me, right? they say, if she thinks we can do it, i guess we can do it. you have to get a few wins urned your belt. i remember one time i had a very large supplier and i was talking about something innovative. they said, you know what, jessica? we'll do whatever you want because you have proven you can build a successful company and that was great. you have to have some wins under your belt. when i develop a product, it's a minimum of six years of just development. first it's an idea. okay, i want to do a hair gel,
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but i don't want to use silicones. what should we use. we start r & d'ing it. that didn't work. we started with starch. you can use it to thicken your gravy at thanksgiving. it's tapioca pudding and cornstarch. that didn't work, that didn't work. i take one thing and expand that. sometimes not every idea is a good idea. you need to write your ideas down, let them live a little bit, and then you come back. i think that's the essence of california baby. there are no shortcuts. you learn as you go. you take your time. you make the very best decision. i really haven't made too many mistakes. the reason is i take my time in making my decision. when the decision comes, i look at every single angle. what about this, what about this, what about that. i'll go back and do it again.
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let me talk to this person and see what he thinks or she thinks and then i'll milwaukee the decision because i know i've got all the information. i them sometimes people make mistakes when they rush because i think, i've got to get this done. i've got to get this order to fill. we've never done that. i have never had a recall. i'd rather hold it than rush it to sale. that's not right. we own 100% of our business. we don't have any outside investors. my advice to people who are going to take funding, just make sure you know what you're getting into. don't be afraid to ask questions. it's your business, right? it's your idea. you're the founder, you're the captain of the ship. make sure that that's the case. and put in a clause to make sure that you are the one who's actually signing off. and also make sure you read that contract. understand why you're taking that money, what are you going to do with it. i think sometimes especially in
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today's market, people think that they're successful because they got funding. you know, i think that people don't understand that funding is actually dead that you have to pay back, so just pay attention. especially when you're innovating, don't follow somebody else's timeline. say you get a big order. if everything isn't falling into place, don't be afraid to say no, it's not ready because who's going to lose? the big box placed an order for 10,000 pieces but they need it in six weeks. everyone is running around with their head cut off. that's when you say slow down. your emergency is not my emergency. i need a perfect product. don't ship product out of here unless it's perfect. i say is it a brand builder or
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brand killer. that's how you answer all the difficult questions. still to come, do you navigate the conflicts that come up in a family owned business? and we'll show you how the owner of a vermont christmas tree business capitalized on a delivery trend. the meeting of the executive finance committee is now in session. and... adjourned. business loans for eligible card members up to fifty thousand dollars, decided in as little as 60 seconds. the powerful backing of american express. don't do business without it. i'm in a family business and there's a lot of conflicts all the time. what's the best way to resolve conflicts in a family business
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when the emotions are running very high? >> i think that's a great question. the way i think about a family business is that like any relationship, you have to create a foundation of trust and communication, and so if there is conflict in a family company, i think you first get to the root of the lack of trust. once you're able to identify it and discuss it openly either with a facilitator or with the family together, then you work on your communication skills because once you have that foundation of trust and everybody knows they're pulling in the right direction for the same things, wanting the same things, very often it's not a very profitable company but they want something that serves their ego or gives them recognition or status. >> the stream of packages showing up at our doors sometimes feels endless during the holidays, but let's be honest. who doesn't love that kind of convenience. the owner of a christmas wreath
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company did that with her business. she also discovered that running a seasonal business is very different than running one that is year round. is ♪ >> we make christmas wreaths and decorate them and ship them all over the country. once you've received one, it become as family tradition. that's the other piece that i really like to be a part of. >> it's the most wonltd wonderf of the year in this workshop. the smell of balsam instantly reminds you of christmas. >> when they open the box, that smell, it transports them to a different time, and i've gotten a lot of comments on that, that the fragrance reminds them of childhood or reminds them of a special time in her life. >> this landscaper rounds out her year's work by handcrafting these festive designs for her mail order business. my vermont wreaths. the tag line sums it up
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perfectly. the scent of vermont sent anywhere. >> i make each one. i make every single wreath. >> all the wreaths made from brush from trees take shape in a very short period of time. what started out as a hobby for katherine turned into a seasonal operation after her friend who already had a mail order business died from cancer. >> her husband couldn't, didn't want to take and continue it on, and so i bought the mailing list, and it was a solid business decision, because it was a list specifically designed for me, almost. >> my vermont wreaths launched with 700 clients on that list, along with names that katherine collected on her own. now customers from across the country, like in florida, oklahoma and california, hang her creations. >> i've had her mailing list for nine years now, and so it's
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blossomed into a whole other direction that i could have never planned. >> the business is split in two parts. wholesale and retail. >> november 1st in the shop making wreaths gearing up for the wholesale part of the business. all that has to be done and completed by thanksgiving. >> earlier orders from nurseries and garden centers, months in advance, get production going. once those wreaths are picked up, katherine shifts her focus to her more personalized displays. >> i work the mail order some shipping wreaths from november 21st and even shipped after christmas. >> this despite all the phone calls and e-mails, this part of the process needs some guesswork. >> i make what i know i'm going to sell. i know i'll sell 300 to 400. so i make that and then the orders keep coming in. that can be a bit difficult, but i'm a smart girl. i figure it out.
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>> her team can pick up any task necessary while katherine works her wheel. >> i make the bows for the wreaths so they stay fresh. >> i handle the office work. process the shipping and sometimes clip the brush. >> i train and i have my staff, and you saw today people coming in and out. i have a support group of people that i could call in at any time. >> if there really is an issue with a wreath, katherine's take on customer service is straightforward. if there's a problem, it's replaced. no questions asked. >> i've had the occasional wreath that is not -- it shed or something happened. it's a natural product, and i immediately send another wreath. >> the high number of repeat customer, and their willingness to spread the word about her designs are clear signs to katherine she's on the right path. >> dealing directly with people from all over the country, it's lovely to have them call. especially when they call year after year. it's everything. it tells me exactly how my
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business is doing. >> her goal of spreading joy and good cheer every holiday season is all the inspiration she needs to continue to grow. there is an art to asking for help. just think about your own life. there are some people who make it really easy for you and you are on top of what whatever they need or something about them that makes you want to get involved. then other people, you may have good intentions you never get around to following through. heidi grant is a psychologist who studied the science and motivation of communication. her latest book is called "reinforcements: how to get people to help you." it's so good to see you. i love, love this topic. >> everybody needs this topic. we are all not as eager to ask for help as we should be's in this day and age we talk how important to the have a network, allies. we need to know how to tap into that and need to be good at
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this. >> we're asking in the wrong way and nobody's helping us. right? even though we know there are people who want to. we're going about it wrong. >> yes. >> i want to talk about the first thing you say here, which is just ask a favor. >> oh, yeah. actually, that's a really great technique. especially if you don't really know someone well and they have no particular reason to want to help you personally. it turns out if you preface asking for what you want by just saying, would you mind doing me a favor, and then you have to wait, by the way, until they say yes, and then you ask for what you want, that's called precommitment and it almost doubles the rates of helping. so people will actually be much more likely to help because they feel like, well, i already kind of told you that i would. now i'm going to feel extra bad if i turn around and say no. it's not a technique you want to use with people you have a relationship with like a colleague, but if you need help from a stranger or a random person, asking for a favor first is very effective. >> and i think asking for something specific.
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can i ask for a favor, but can i ask you a favor? can you please connect me with blah, blah, blah because i know you know them. >> important to be specific what you're asking for. it does two things. one, helps the person that's going to help you get over the anxiety, i don't know what you want from me and threatens me a bit. also let's them know they can be effective. i want to tell you what i want you to do so i can do a good job. nobody wants to give bad help. >> it makes it easy. j.j., i'm starting something new, i'm very busy but falls down am i to dmam i to-do list no it will take a lot of time when the thing is what you need is just to proofread for me. make it easy it will get done. i don't have to think about how i can help you. >> exactly. being explicit exactly what you want helps people, can i fit
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this into my day? we're all really busy. it's a reason to be reasonable what you ask for add specific. >> i believe people really want to be help. it's like help me help you help me. so make it easy for you to help you. and always follow-up. >> absolutely. one of the things people neglect to realize about helping, first it is inherently satisfying, most human beings are wired to want to help each other. it's one of the strongest sources of self-esteem and well-being we have when we're helpful to other people. the moment you really feel that is when you know how your help landed. so many times we ask someone for help. they agree to help us and we never follow-up and let them know what effect they had. tons of research shows that's when people experience that warm glow from helping, knowing when they had an impact and makes them more likely to help you again in the future. >> sometimes people feel
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uncomfortable. sort of i imposed first time to? you and now don't want to write you back again, but that is the important part. >> oh, no. it is actually. if you care about the person you're herring, a win-win you and they are getting something you really need to follow back up again. >> agree. so good to see you, heidi. thank you. congratulations on your book. >> thank. this week's your biz selfie comes from jim fitzgerald up on a roof who owns titan roof and pressure cleaning in jupiter, florida. around 20 years cleaning roofs, gutters, pools and when needed removing graffiti. a dirty job but someone has to do it, so thank you, jim. best of luck to you and your business going forward. thank you so much for joining us. just a quick programming note for those who missed the show last week. after 12 years of giving you tips and advice "your business" will air its last new show next week. we've been having a great time here behind the scenes remembering some of our favorite
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stories and moments and will share them with you on that program. meanwhile, if you have any that you'd like to share with us, send us an e-mail. it's "your business"@msnbc.com. we'd love to here what inspired you or what you learned from the segments we've aired. as always, if you missed our pieces head to our website. msnbc.com/yourbusiness. we put up all the segments in today's show plus a lot more and don't forget to connect with us on all of our digital and social media platforms. one last thing. check out our podcast called been there, built that, tune in from kwhwherever you get your podcasts. we look forward to seeing you one last time in next week. until then, i'm j.j. ramberg and remember, we make your business our business. >> announcer: sponsored by american express. helping you turn your business ideas into reality with flexible
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funding solutions. of helping you. business loans for eligible card members up to fifty thousand dollars, decided in as little as 60 seconds. the powerful backing of american express. don't do business without it. this is "up." i'm david gura. new developments in the russia investigation this morning. robert mueller saying michael flynn should have known better than to lie to investigators. meanwhile, michael cohen saying nothing happened without donald trump's say so. >> he directed me to make the payments, directed me to become involved in these matters. plus a judge strikes down the affordable care act and the president heralding what he calls great news. >> save americans from this
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