TThe Foundr Podcast
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19 July 2024

521: They Made $20M selling Perfume

3Frameworks
13Insights

Frameworks in this episode

Insights & moments

The myth-busts, hot takes, explainers, and tools worth keeping.

Hot Take· 2

Hot Take39:00

A 40-Person Team Stopped Feeling Like a Flex

The founders compare their 40-person team with businesses achieving results with far fewer people. They say they would have stayed leaner and outsourced more, and they describe finding that some warehouse work could be handled by ten people rather than twenty. Their point is not that every team should be tiny, but that headcount and impressive infrastructure are poor substitutes for profitable output.

  • The founders regard excess headcount as a recent regret
  • They believe some work can be completed with a smaller warehouse team
  • Large teams can become part of a misleading growth identity
  • Efficiency and profitable revenue matter more than staffing optics

It's not a flex to have 40 people.

Adam · 40:00

it's Flex to have Revenue without all the cool stuff

Adam · 40:00
#team size#operations#efficiency#profit
Hot Take51:00

Hundreds of Stockists Can Leave a Brand Spread Too Thin

Raquel says extensive independent wholesale helped the early business but may now be limiting focus and international leverage. She describes ending many Australian independent accounts to concentrate demand through Sephora and David Jones, hoping stronger sales there will support a future US opportunity. She also argues that building demand before approaching retailers can improve margins, marketing support, and negotiating terms, though the outcome of this change was not yet known.

  • Early wholesale and later wholesale concentration serve different needs
  • The brand was ending many independent Australian accounts
  • Raquel wanted demand concentrated in two major retail partners
  • She hoped stronger Australian performance would support Sephora US discussions
  • The proposed international benefit remained a forward-looking belief

We're spread so thin.

Raquel · 52:30

letting the best 53 30 retailers come to us give us the best deal

Raquel · 53:00
#wholesale#retail strategy#distribution#international growth

Story· 5

Story02:00

Launch Day Brought Crickets—Then One Memorable Order

Raquel describes photographing one product on an iPhone, publishing it through Shopify, and receiving no immediate response because she had done no marketing. She still remembers preparing the first small order at home late in the evening. The story makes the brand's later scale feel distinct from its quiet start.

  • The first store launch used one product and iPhone photography
  • No marketing meant no immediate sales
  • The first small order became a memorable proof point
  • Early fulfillment happened from home

I didn't do any marketing.

Raquel · 02:00

I had like an order like packed on the dining table.

Raquel · 02:30
#launch#first sale#shopify#bootstrapping
Story04:00

A LinkedIn DM Opened the Door to David Jones

Raquel found a David Jones buyer on LinkedIn and sent a direct message. When asked for a brand deck she did not know how to make, colleagues helped her produce one within about five days. According to the founders, the retailer agreed to launch before requesting samples, although they say retailer onboarding now takes far longer.

  • Raquel contacted the buyer directly on LinkedIn
  • She sought help when asked for an unfamiliar brand deck
  • The deck was delivered within about five days
  • The guests describe the retailer's decision as unusually fast

I DM'd the buyer on LinkedIn and she wrote back within like a day or two.

Raquel · 04:00

I sent it to David Jones like within like 5 days.

Raquel · 04:30
#retail#linkedin#brand deck#outreach
Story09:00

Their Supposed Perfumer Was Actually a Middleman

The founders say their first fragrance supplier presented himself as a perfumer but would not provide the formulas needed for overseas registration. They became suspicious and later connected with the actual manufacturer after a persistent message about a quality-control issue. Their account distinguishes legitimate intermediation from what they describe as deception about identity, pricing, and ownership of the formulas.

  • The supplier would not provide the requested product formulas
  • The founders inferred that he might not own the intellectual property
  • A quality-control message connected them with the actual manufacturer
  • They say the product itself remained good despite the supplier relationship
  • Continuity of fragrance made changing suppliers feel risky

He wasn't the perfumer, he was like the middleman.

Raquel · 09:30

There's nothing wrong with being a middleman, right?

Adam · 10:00
#suppliers#intellectual property#quality control#fragrance
Story14:30

They Hand-Filled the First Bottles in an Apartment

The first fragrances were assembled from separate liquid, bottles, sprays, lids, and labels at home. After a machine failed, Raquel found inexpensive hand tools from South Africa and says the business used them for years. The founders describe learning the process through trial, online searches, and late-night production around full-time work.

  • Early bottle and fragrance minimums kept initial risk relatively low
  • A powered crimping setup failed in the apartment
  • Simple hand tools became the workable alternative
  • The team filled bottles with syringes or sauce bottles
  • Production happened after full-time work

I found these little tools and they were like $200.

Raquel · 15:30

How do you fill a perfume bottle?

Adam · 16:30
#manufacturing#bootstrapping#minimum orders#product launch
Story27:30

One Influencer Post Helped Prove Online Demand

When pandemic closures removed most wholesale revenue, the founders had to lean into ecommerce. They say a gifted post from Emily Hembrow coincided with a sale and produced about $40,000 over two days. They treated the result as evidence that online fragrance sales could work, then increased their use of influencer and user-generated content.

  • Store closures forced an online pivot
  • The brand had only recently begun learning ecommerce content
  • A gifted influencer post coincided with a sharp sales result
  • The event increased confidence in online acquisition
  • The reported sales figure is the founders' account

We did like $40,000 in like two days.

Adam · 28:30

can do it we can do it

Raquel · 28:30
#influencer marketing#ecommerce#covid pivot#validation

Takeaway· 6

Takeaway19:30

Boutique Stores Solved the 'How Do You Sell a Smell?' Problem

With little online awareness and no large influencer budget, Raquel concluded that customers needed somewhere to smell the fragrance. She began approaching Sydney boutiques and says roughly nine out of ten accepted small opening orders. The founders credit wholesale with creating the early demand evidence that the online store lacked.

  • The sensory nature of fragrance made an unknown online offer difficult
  • Physical retailers gave customers a place to experience it
  • Small wholesale orders were acceptable as early traction
  • The founders report reaching about 100 stockists and $40,000 monthly revenue before Raquel left her job

how do you sell a smell yeah through a picture

Adam · 19:30

Nine out of 10 of them like said yes.

Raquel · 20:30
#wholesale#retail#fragrance#early traction
Takeaway21:00

Raquel Waited for Retail Evidence Before Leaving Her Job

Raquel says she set entry into David Jones as the condition for leaving her full-time role. By then the business had around 100 stockists, reported about $40,000 in monthly revenue, and had other significant retailers approaching. The founders present the move as a measured decision supported by current demand and household income rather than a leap based on hoped-for growth.

  • David Jones served as a personal decision threshold
  • The business already had a meaningful wholesale base
  • The household still had income outside the new venture
  • The founders say they avoided quitting in hope that a retailer might perform

If I can get into David Jones, I'll quit my job.

Raquel · 21:30

We believe that people want the product.

Adam · 23:30
#career transition#risk#traction#founder decisions
Takeaway48:30

Their Advisor Calms Them Down—Then Pulls the Business Apart

The founders credit a monthly advisor, Paul, with challenging them while keeping the overall state of the business in perspective. They argue that early founders should actively search for experienced people who have already encountered similar problems. The host adds that learning from someone with relevant experience can shorten the path compared with solving every problem alone.

  • The advisor visits monthly
  • He combines reassurance with direct identification of problems
  • The founders wish they had learned basic business fundamentals earlier
  • They acknowledge that finding credible guidance involves noise and effort
  • The host presents relevant experience as a shortcut, not a guarantee

He just calms us down, picks us apart, pulls it apart.

Adam · 48:30

You have to go searching for these people.

Adam · 49:00
#advisors#mentorship#founder learning#experience
Takeaway54:00

Learn Enough Advertising to Challenge Your Agency

After disappointing agency experiences, Adam learned to operate and read the company's Facebook advertising account himself. He says he managed the account for about a year and later returned to an agency while staying involved in calls and performance review. His recommendation is not that founders do every task forever, but that they understand a channel important enough to move the business.

  • Adam says he learned the advertising account in about four weeks
  • He reports managing copy, creative, campaigns, and ad sets himself
  • Direct operation gave the company more control over a major channel
  • The business later rehired agency support without surrendering oversight
  • Channel literacy helps a founder question external advice

I would learn how to read an advertising account.

Adam · 54:30

It doesn't mean you have to do it yourself forever.

Adam · 57:00
#facebook ads#agencies#founder skills#oversight
Takeaway1:02:30

Raw Warehouse Clips Work—But Polished Brand Content Still Matters

Raquel says a simple warehouse order-packing video became one of the brand's strongest ads while expensive campaign imagery often performed less directly. Adam cautions that an entire feed of warehouse clips could become repetitive and weaken the brand's accessible-luxury position. Together they advocate a mix of raw founder-led material, polished campaigns, product storytelling, and fast responses to platform trends.

  • A simple order-packing clip outperformed some expensive production
  • Polished campaign assets still support retailers and brand positioning
  • Raquel's founder presence connects personal story with the product
  • A single content style can become repetitive or undermine positioning
  • The team avoids planning all social content far in advance

One of our best performing ads at the moment is me packing an order in our warehouse.

Raquel · 1:03:00

There needs to be a good mix and it needs to be a thought out mix.

Adam · 1:03:30
#content#founder brand#creative strategy#social media
Takeaway1:05:30

Opposite Temperaments Strengthen Their Founder Partnership

Raquel and Adam describe being aligned on their goals while bringing contrasting temperaments to the company. Raquel characterizes herself as more erratic and Adam as calmer, which they believe helps them balance each other. They also emphasize patience, support, and not overreacting to small issues as important to both their relationship and leadership.

  • The pair say their personal and business goals are aligned
  • Contrasting temperaments can balance the partnership
  • Patience and support matter beyond formal meetings
  • Adam extends the support principle to employees
  • They advise against dwelling on small issues

Our goals are exactly the same in life.

Raquel · 1:06:00

Be patient and support the other person.

Adam · 1:06:30
#cofounders#couples#decision making#support