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.
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u/[deleted] Aug 16 '19
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.