Why Pricing with Transparency Matters for Small Business Owner Helena Chapman

We chatted with Helena to find out more about their journey from the kitchen sink to the beauty halls and why they believe that transparency is the key to finding the right price point for your product.

Name: Helena Chapman

Business: Rosalena Skincare

Started: November 2014

How did you create your awesome company? 

We met at our kids’ preschool and discussed how our skin had been all over the place since having our families. We both wanted a range of natural face oils that could be used every day, were well priced and beautiful to use. We felt so bombarded by how many choices were out there but not at all informed. 

For two years we researched bioactive ingredients and sourced and blended until we came up with our range. We sought out scientific advice on what we were making, but essentially it was just us, in the kitchen, with syringes, vials, measuring cups and a dispensing unit! 

We think using our oils should be a moment to benefit both skin and mind, so we have a phrase that represents our brand: Pause, Breathe, Be. 

Who were your very first customers? 

We gave the oils to our friends to try and told them to be honest. They told us their skin was transformed and they came back to buy more!

When did you know your business was going to work? 

We knew things were working when someone who wasn't a friend bought a face oil. It’s a constantly evolving and exciting journey, but every time someone reorders one of our products it reaffirms that we're on the right track! 

What has been the biggest surprise so far after starting your own business? 

The amount of serendipity we encounter along the way. We were prepared for the hard work and tenacity required to start a business, but a pleasant surprise has been the genuine feeling that doors are opening up for us. 

This drives our passion, enthusiasm and energy regardless of what the day brings.

 How do you price your products? 

We didn’t want to be price-prohibitive when we launched our products because we don’t think women should feel guilty about using facial oils as if they're a treat. First, we considered what would we be prepared to pay. 

We knew we could charge twice as much — other brands do for a product with inferior ingredients to ours — but then would it impede our growth? Also, we stand for honesty, transparency, integrity and authenticity. We're on the same side as our customers — it’s not about what we get out of this, it’s about what we give. 

A consideration for us is also that the price of the natural ingredients used in our oils can change, for example, if there’s been a good harvest. One of our ingredients, prickly pear, has gone from $12 to $38, but we don’t change our prices to reflect that. That was a decision we had to  make.

When you were figuring out your pricing, did you consider how your competition prices their products?

We looked at our competitors, but we’re so different. We want our oils to be used every day and that reminds us to stay true to our ethics of providing a fantastic product at a fair price.

What has been your most effective way of getting new customers? 

We use samples that customers can pick up. This has created a 98% repeat purchase rate, so we know that once someone has bought a sample, they’re likely to buy full size. 

Social media advertising via bloggers has also been great for us, but we don’t give anyone money — they’ve always bought the product. We’re not interested in paying to appear on someone’s blog. 

Also, we love word-of-mouth! When customers tell their friends, it's the best kind of advertising we can ask for.

What does a typical day look like for you? 

We work together on Mondays and Thursdays, but on other days we work separately. 

Usually we rotate going to one another’s homes after we drop our kids off. We start with coffee and get the chitchat done quickly! We do reactively what needs to be done. I do sales, new business and pitches, while Maja does marketing and PR.

How do you juggle other responsibilities and interests outside your business? 

For both of us, family comes first. Although, Rosalena is a close second! 

We have a mutual understanding that we work hard together when school's in session, and during school vacation we speak more on the phone.

It’s definitely getting easier to manage as the kids get older. Thankfully, both of our husbands are incredibly supportive. Having support at home is really important. 

 Do you have any employees yet? 

We now work with a PR company, a manufacturer, a cosmetic chemist, a facial therapist and a graphic designer. All of them have helped speed up what we’re doing so that we can grow our business faster.

If you could go back in time, is there anything you would do differently? 

I know it would have been useful to have been more social media savvy from day one. Instagram has been key for us!

In terms of making the oils, we’ve learned from everything we’ve done. We’re invested in each part of the process, which is integral. We now know how ingredients react, but if we’d employed a cosmetic chemist from the start we wouldn’t have known that ourselves — so while it may have saved time (probably about a year!), we’d have been denied that journey.

What’s one thing you would like to learn today from a network of other small business owners and self-employed professionals? 

We want to know more about MOQs — minimum order quantities — for packaging. Where can we buy small quantities of amazing packaging? 

Also, how can we increase SEO on our website without paying for a digital marketer?!

Do *you* have tips that Helena and Maja can use for finding packaging manufacturers willing to commit to small quantities? 

QB Community members, if you're SEO-savvy, what's your recommendation for improving Helena's website performance in the search results?

Share your own tips, stories and experiences with us in the comments below! :-)