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12 Beachwood Buzz
n
January 2017
Sales Swelling for Skin Care Products
After Reality TV Feature Airs
By June Scharf
S
ince Beachwood startup entrepreneur Kelli Klus appeared last
month on an episode of a new reality show where contestants vie
for dollars and deals, she has witnessed the volume of online orders
and retail sales of her skincare products explode.
"I've never seen anything like
it; the orders just keep coming in,"
Klus reports. Her company, Swell
Skin LLC, produces two items made
from sea buckthorn oil, a substance
reported to offer regenerative,
healing properties for skin that
suffers from a range of maladies.
The oil is sourced from the sea
buckthorn berry, which has 190
bioactive ingredients, including all
four omega acids and vitamins A, C
and E, according to Klus. Sea buck-
thorn oil also is used by hospitals to
treat burn victims, she adds.
Modeled after Shark Tank, where
contestants try to cut deals with
the show's multimillionaire judges,
Lifetime network's Project Runway:
Fashion Startup features three
contestants in each hour-long
installment. Klus appeared on
episode 7, titled "Entrepreneurs
are the New Rock Stars," which
aired December 9. Back in May, she
spent five days in New York City
shooting the episode, while the
network handled all arrangements
and expenses, including her stay at
the Redbury Hotel.
During her pitch on the show,
she asked for a $250,000 invest-
ment and in return, she offered
a 20% stake in her company. Her
product line consists of a beauty
bar that sells for $16 and an oil
treatment, for $17. They may be
found locally at Heinen's grocery
stores and at several outlets
outside Ohio. They're also available
online at swellskin.net.
What the 53-year-old business-
woman actually sashayed away
with was a different deal, one
that provided more intellectual
capital than hard currency. While
two of the judges were dismissive,
two others bit on her hook. Katia
Beauchamp, co-founder and CEO
of beauty retailer Birchbox, took a
10% interest in the company for
helping Klus to secure distribution
deals and for offering consulta-
tion services aimed at marketing,
including product packaging,
which was something the judges
criticized on air. Klus, however, says
she likes her packaging ("That's just
a few people's opinion," she says
regarding the judges' comments)
and maintains that "if it creates an
obstacle, I'll address it."
Claiming another 10% interest
was Gary Wassner, CEO of Hilldun
Corporation, chairman of Interluxe
Holdings and a business mentor
with the Council of Fashion Design-
ers of America's incubator program.
He will help finance orders and re-
ceivables. Other show judges were
fashion designer Rebecca Minkoff,
and Christine Hunsicker, a "tech
marketplace maven," according to
the show's producers.
Klus started the company in
2009, when multiple challenges
in her life converged. She was
dealing with her father's death, a
divorce, three children to support
and an ongoing recession. She be-
lieves these were factors to which
the show's producers responded,
seeing in her someone who over-
came adversity.
"I was persistent and found
opportunities," she explains. "I
handled my problems and turned
them into something positive."
In fact, it was her own skin issues
that drove her to discover sea
buckthorn oil. Through her studies
to obtain a degree in homeopathy
and natural healing strategies, she
learned about the oil and used it
to treat her own rashes, inflamma-
tion and acne. When she saw how
quickly it made these problems
vanish, the idea emerged to build
a business around it. She had
Swell Skin up and running about
eight months later.
The show's casting process
selected Klus as one of 30 contes-
tants from among thousands of
applicants. It all started when she
followed a friend's suggestion to
apply for a spot on the CNBC show
West Texas Investors Club, another
program modeled after Shark Tank.
Producers were eager to have her
appear as a potential guest, but
after several interviews, one of the
team members moved over to The
Weinstein Company, which was
launching Project Runway: Fashion
Startup. He invited her to apply, and
the evaluation process began again.
Before the actual recording,
there were rehearsals to show
contestants their marks for where
to stand and deliver their pitch.
Also, wardrobe elements were
approved. Klus, however, declined
hair and make-up opportunities,
preferring instead to appear
without any extra enhancement so
that her flawless and youthful skin
could speak for her products. The
judges noticed and complimented
her by remarking she looks like
she's in her thirties.
Contestants do not meet the
judges before the recording, and
during the roughly 15 minutes of
their air time, they must deliver
their memorized pitch and field
questions from the judges. Drama
ensues. Since the recording of the
show, Klus has been in contact with
the favorable investors, but she
says it's a slow process since they
are working with a large group of
contestants' deals.
With no advertising in place, Klus
has relied strictly on word of mouth
for sales. The swell of enthusiasm
for the products is manifest in the
testimonials and Facebook contact
she has received from satisfied
customers who detail how the
product has helped heal their
dermatological ailments.
In the near future, Klus antici-
pates having to move out of her
home office and into a larger space
to accommodate increased prod-
uct demand. She also hopes to
grow her business with line exten-
sions to include body moisturizers,
hair care products and items tai-
lored for men. Her grand ambition
is to enter new channels, including
drug stores, more grocery stores
and mass merchandisers, like Tar-
get, eschewing high-end retailers.
"I want the product be acces-
sible to everybody, and the price
point reflects that," she notes.
She says that it feels as though
everything is coming together.
"The TV show has given me the
momentum and confirmation that
I can move forward and enter new
markets." She also points out that
"if you put your mind to some-
thing, and believe in it, the results
can be beautiful."
"I handled my problems
and turned them into
something positive."
- Kelli Klus,
founder and owner, Swell Skin
Kelli Klus, founder and owner,
Swell Skin.