Julie Fredrickson

So in our case, we're giving you something that's really effective for both your mobile life and a much better value.

Now, that said, we're direct to consumer.

So we're not giving a cut right now to Sephora.

So our margins are markedly better than, say, a Procter & Gamble because of that.

Now that isn't to say that we'll never sell retail.

So if you go into the 10Ks of these companies, they're looking at about 50% margin, whereas typically when you're independent and don't necessarily need to leave room for these resellers, your margins in cosmetics can get up to 90%.

Well, obviously it depends on what your costs are.

We're a very small team, so net versus gross margin for us is...

operating a little differently because we are so early.

But that's actually, in this case, gross margin.

It's a little bit more than that.

I'm saying that on average, you're looking at 80 to 90%.

We obviously have lower order volumes, so there's a lot that goes into it.

Believe me, I could talk about this all day, but just giving you sort of sense of averages.

So that's also one reason we're really proud of our pricing, it being half the price, because you're paying an exorbitant amount for products that you don't finish, that these companies are getting incredible margin on.

And that's just really unfair to the consumer, but it's also not a sustainable business long-term.

It's only sustainable because they have a functional monopoly.

Well, the thesis is that you should have a choice as a consumer to carry cosmetics that make the most sense for your lifestyle.

And increasingly, we live in mobile ways.

And you may find a chapstick to be something that you don't mind not necessarily finishing because you're probably spending two or three bucks on it.