#5 Why I started Open Formula

----Transcript----Hi, my name is Damyan Nikolov, I'm the founder of Open Formula and today I wanted to share the story how we got started. How making clear, healthy skin achievable for everyone became my mission in life.  So the big question is this, what do people with great skin do differently to have that? How did they achieve a great look without using celebrity beauticians or spending a paycheck to re-stock their beauty cabinet? What are their mindsets, their approaches, their rituals, the products and tools they use? That is the question and this podcast will give you the answers. My name is Damyan Nikolov and welcome to skin care secrets.  So the journey started a few years ago, one morning when my wife was doing her skincare routine. She put a few drops of Vitamin C Serum on her finger. She turned to me before she applied it on her face and she said - there's got to be five bucks worth of product here. And she was showing me this bottle that was over a hundred dollars for a one ounce product. And I didn't know much about skincare at the time but when I heard this the toothbrush almost fell off my mouth.  So I decided to look into it. And a week later I told her - Listen, I think there's actually probably no more than five cents of vitamin C in that product. And guess what happened? She, of course, totally did not believe me. She thought I was crazy. And I showed her my work. So I pulled this research assistant to pull all the studies on vitamin C as it relates to the skin. I interviewed this dermatologist and I contacted suppliers to get the price of materials and packaging and I told her - Listen it's five cents of vitamin C here, max. And she looked at me with her eyes wide open and she was - what the hell?! And I said the worst part is they don't even tell you what's the percentage of vitamin C inside.  So all the literature published was showing that to get the most benefit you need 20 percent Vitamin C concentration. So I had called the brand she was using and I asked them how much vitamin C is in this product. And they said it's a proprietary formula. Really!? You just appropriated Vitamin C?! Anyway, so the more I learn about the industry the more the integrity level in this whole space just seem really low to me. And when you buy food you can see there's 20 grams of protein in a serving. So you know if you're getting enough protein in your diet or not. I couldn't understand why when you buy beauty products you wouldn't know the same thing. I guess if they said that that would probably tell everyone that there's three dollars worth of product in the package and ninety seven dollars worth of hope. I don't know.  But back to my wife. So she sat there for a little and now she said- You know I feel like I've been taken for a ride every time I bought this stuff in the store. And this really hit me. The first part, figuring all this stuff out that was just my own curiosity. But at this point it became personal. My wife, you know, she's a strong woman, she's a very proud woman. And seeing her feel this way just got to me. It kind of put this fire in my belly. So I kept going and that's when the idea was initially born.  Obviously, it took some time and effort but we got going, we put together a team, we started formulating, we started making product and I got really excited because we got through all this research on active ingredients and seeing how they actually work and how they can help people. And the best part is we were making some fantastic products at a 3, 4 dollar cost to make this stuff. So I was unbelievably pumped that we can get this stuff so affordable and it can we can help people achieve your healthy skin.   But the more I learn about the industry the more I scratched my head - How do we get these products to people. I sort of look at how other brands are doing business and I started to understand why they charge 100 dollars for one ounce of product. Because they go through retail stores and retail stores take 60 percent. Now these brands have no connection with the consumers so they have to get people to the store. So you have to spend a ton of money on TV and radio and magazines and celebrity spokespeople all that stuff and that takes another 25 30 percent. Then you have to make some profit and they still have to make the product. And if you don't charge this kind of price how do you pay for all that? That's the model, that's how big beauty works, period.   And if I can make products that can help people get clear healthy skin at a three, four dollar price point how do I get them to people at that price point? I knew we're not going to play the game with retail stores and porcelain face ads and all that stuff. And that was a low point for me. It was a time when I couldn't see the way forward. I couldn't see how to stay true to the mission and make this a viable company so we can have a positive impact on as many people as possible. I'm an entrepreneur. I find solutions, that's what I do. So we put our heads together and we started thinking how do we invent a new category? How do we come up with the skincare store of the future?  And we came up with this membership model where we charge a small membership fee so customers can get access to the store, kind of like a Costco card. And this way we can keep the lights on and deliver those concentrated skincare active ingredients and a three, four dollar price point and we can be completely open and transparent about it and we can tell you there's 10 percent glycolic acid in this cleanser and it costs $3.50 to make and that's what you pay for it. And this is your membership fee. And so we are launching in a few months and currently have some 3000 people signed up on a waitlist for early access and we haven't even been spending money on marketing.  And what gives us real strength is that these people really love the concept. These are skincare lovers who know what they want. They're not going for fancy jars and marble store shelves. They're spreading the word for others to join and our job is to serve this community. And we're staying true to the mission to make clear, healthy skin achievable for everyone.  So thank you everyone for joining the sign up list what early access and thank you for listening today. I'll talk to you soon. Until then live strong, live with passion and tag a friend who needs to hear this story. 

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