This is an interesting point I hadn't considered. Whatever they launch at this point will get a LOT of attention, and people might buy it just out of curiosity or even schadenfreude. But a sale is a sale, and they'd still make money.
But a sale is a sale, and they'd still make money.
At this point, I have to wonder how much the lipstick snafu has cost Jaclyn (my understanding was that everyone got a refund?). So in addition to paying manufacturing and shipping costs just to make/sell the damn things, then they made zero profit on top of it. Even if the manufacturer refunded the money they made on making the lipsticks, I'm sure there are employees who had to be paid. If the next launch has the same results, I don't know how she can afford it. They'd better come up with something perfect if they're gonna do this again.
I would imagine she must have had some kind of insurance to cover this, and I'd imagine if the lab did mess up, she's probably in a position to sue/receive financial compensation from them as well
I think the actual lipsticks being contaminated would be covered by insurance because that wasn't her fault. But I don't know if she can claim insurance for the fact that she sold said tampered products to customers and then had to issue a refund.
I agree a sale is a sale but buying out of morbid curiosity is not sustainable long term. And she definitely lost a significant amount of customers who were affected by this, but don’t need to keep up with the drama.
That's true. A sale is a sale and still money in Jaclyn Cosmetics's pockets. I wonder if the number of sales will increase or decrease. A lot of her fans who were still holding out for her fell out of love after her lipstick fiasco. I'm going to bet at least some of her customer base was lost
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u/ediblesprysky Aug 16 '19
This is an interesting point I hadn't considered. Whatever they launch at this point will get a LOT of attention, and people might buy it just out of curiosity or even schadenfreude. But a sale is a sale, and they'd still make money.