Here's How Poo-Pourri Founder Held Onto 97% Of Company

Forbes

Suzy Batiz filed for bankruptcy twice before inventing a toilet spray that made her one of America's richest self-made entrepreneurs. In a conversation with ForbesWomen editor Maggie McGrath, Batiz dishes on her strategy--and the future of her company.   Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1  Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:  https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript  Stay Connected Forbes newsletters: https://newsletters.editorial.forbes.com Forbes on Facebook: http://fb.com/forbes Forbes Video on Twitter: http://www.twitter.com/forbes Forbes Video on Instagram: http://instagram.com/forbes More From Forbes:  http://forbes.com  Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.

Transcript

00:00 (upbeat music)

00:02 - Hi, and welcome to Forbes Talks.

00:03 I'm Maggie McGrath, the editor of Forbes Women,

00:06 and welcome to the Forbes set at the NASDAQ Market Site.

00:09 I am here with a founder, a CEO,

00:13 someone who has overcome a lot of challenges

00:16 to get to where she is.

00:17 I am talking about Suzy Batiz,

00:19 the founder and CEO of PooPourri.

00:21 Suzy, thank you so much for joining us.

00:23 - Hi, thank you for having me.

00:25 What an honor.

00:26 - I'm so glad we finally get to talk

00:27 because you've spoken to Forbes before,

00:29 but you and I have not sat down together.

00:31 And I want to go through everything that has happened

00:35 since the last time you talked to us.

00:36 - Okay.

00:37 - And a lot has happened.

00:38 In 2019, we ran a story with the headline,

00:41 "How a Twice Bankrupt Entrepreneur

00:43 Turned Toilet Spray Into a $240 Million Fortune."

00:48 That headline says a lot.

00:52 And for folks who haven't read that story

00:54 or aren't familiar with you as an entrepreneur,

00:56 can you give the 60 second overview?

00:59 What is PooPourri?

01:00 What is your business?

01:01 - Yeah, so PooPourri is a before you go bathroom spray

01:03 that I invented in my kitchen, in my house.

01:06 Took me about nine months.

01:07 I had this idea, can bathroom odor be trapped?

01:10 I've always been a closet hippie

01:12 and decided to mix some oils.

01:14 Took me nine months.

01:15 One day, my husband walked out of the bathroom.

01:16 He said, "We're going to be millionaires."

01:18 And I said, "What?"

01:19 So I'd been bankrupt twice, but the product was so good.

01:22 I knew I had to bring it out into the world.

01:24 - Well, past performance is not a guarantee

01:26 of future results.

01:27 And in fact, I imagine you learned a thing or two

01:30 from those bankruptcies.

01:31 And one of them, you were very young.

01:32 You had borrowed money to start a business

01:34 when you were just 19, I think.

01:36 So what happened there?

01:37 - A bridal salon, I borrowed and bought

01:39 a bunch of old inventory.

01:40 So I had no money, no cash reserves

01:43 to buy any new inventory.

01:44 So I was stuck with this old inventory

01:45 and ended up being bankrupt.

01:47 But I got some really good advice

01:49 from the owner of the bank.

01:51 I went to go get a loan.

01:52 And he said he had been bankrupt a few times.

01:55 He was very wealthy.

01:57 He said, "The key is to recognize

01:59 "when you have a rotten fish,

02:00 "and when you do, turn your back on it.

02:03 "Turn around and never look back, just to learn."

02:05 So I did it at a very young age.

02:07 I thought, "Oh, this is the way it works.

02:08 "Okay, great, let's move on."

02:11 - And what did you take from that experience to founding?

02:14 It was called Poo-Pourri at the time

02:15 that you last spoke with Forbes.

02:17 - Yeah, I think not being so worried

02:19 about whether things are gonna work out or not.

02:22 It can work out and it cannot work out.

02:24 I've had both sides of that.

02:26 And can I stay true to this idea

02:29 and giving this to consumers and not be so afraid

02:32 about whether the company's gonna crash

02:34 or make it or grow or scale

02:35 or all those words that we hear.

02:37 Can I just be present

02:38 and give my company what it needs in the moment?

02:41 - So 2019, you make our list

02:42 of America's richest self-made women.

02:45 We had projected revenue was on track

02:47 for $100 million that year.

02:50 What's happened since?

02:51 How are you doing?

02:52 How's the company doing?

02:53 - The company's doing amazing.

02:55 We're growing into, we're in big box,

02:57 we're in Target and Walmart,

02:58 we're in about 40% of the store.

03:01 Poo-Pourri changed to Pourri.

03:03 So now instead of having one SKU,

03:05 we have 75 SKUs in different categories.

03:08 We have Pet-Pourri, Home-Pourri, Diaper-Pail-Spray,

03:13 we have Car-Freshener, even Pot-Pourri

03:15 for the people that enjoy weed.

03:17 - Oh, that pot versus like a pot.

03:19 - Is that pot?

03:20 - I'm picturing a flower pot,

03:21 which like mulch can smell.

03:23 Okay. - Different kind of pot.

03:25 - Okay, got it.

03:25 - Yeah, so we're expanding in all departments

03:28 in a lot of different forms.

03:30 We're excited.

03:30 - And is it the same technology that you used

03:32 for the toilet spray, like using the essential oils

03:35 and creating the film, or has it involved more R&D?

03:38 - Way more R&D because not every odor is the same.

03:41 You know, like a breath odor is different

03:43 than an underarm odor.

03:44 They're actually different bacterias.

03:46 And what we do differently is I use oils

03:49 to solve a problem, not to smell good.

03:52 So I'm using oils and plant ingredients

03:54 to actually kill and neutralize the bacteria

03:57 versus covering it up.

03:58 That's why the products are so effective.

04:00 But yeah, it takes a lot of R&D.

04:02 - What is the most popular product now,

04:04 given that you have so many different SKUs?

04:06 - Well, I'll tell you,

04:07 Amazon just stated a couple of weeks ago

04:09 that our diaper pill spray was one of the top

04:12 baby products on there.

04:13 So that looks like it's gonna have a great demand.

04:15 The pet products are going crazy.

04:17 It got expanded into all stores in Target

04:20 with multiple SKUs.

04:21 So pet and baby looks very promising.

04:24 - Big growth areas.

04:25 And I was gonna ask, you know,

04:26 we are in a high inflationary environment.

04:28 Consumers are feeling the pressure.

04:30 And something like a Poo-Pourri

04:32 could feel like a luxury product almost,

04:34 like a nice to have versus a need to have.

04:37 So was the diversification strategy

04:39 part of making Pourri an essential

04:43 so that people buy it in all economic environments?

04:46 - First, I wanna commend you on your business savvy

04:48 'cause you're exactly right.

04:49 (laughing)

04:50 During the actual recession, 2008 to 2009,

04:54 we grew 735%.

04:56 And we were selling a product

04:57 that cost 10 times as much as the competition,

05:00 but it made you feel good.

05:01 So for $10, you could get a good feel-good product, right?

05:04 And feel like you were doing something

05:06 that was a little more luxurious.

05:08 And it's the same way in every category.

05:09 So yes, you were right on.

05:11 - Well, I was wondering about the pandemic too,

05:12 because if you don't have people using

05:14 your restroom at your home, you know,

05:16 a dinner party, Poo-Pourri,

05:17 I totally understand the value proposition.

05:20 Just you and your partner or your family,

05:22 you're kind of used to your smells.

05:24 - Exactly, now people are coming over, yeah.

05:27 - The world's opening up again.

05:28 - And pets, people adopted more animals and pets,

05:31 which is great, but also there are now contained spaces

05:33 'cause they're working at home as well.

05:36 Before the pandemic, we were leaving.

05:38 - So you changed the name of the company in 2022.

05:41 And then there was a period there a few years ago

05:43 where you had stepped down as CEO, but now you are back.

05:46 - Yes. - Can you talk about that?

05:47 First of all, what made you step away?

05:49 And then what was the thought process behind coming back?

05:54 - Yeah, I stepped away right before the pandemic,

05:56 actually the month before.

05:57 I went to LA to move, I was burnt out,

06:00 and I didn't know what I wanted to do when I grew up.

06:03 I was like, I can't do this anymore.

06:04 Then the pandemic happened and I didn't wanna come back.

06:08 So I hired a CEO that was very well vetted.

06:12 And about a year in, well, a few months in,

06:15 you know, it didn't work out.

06:16 So at that point I was faced with, do I hire another CEO?

06:20 I know in my own evolution,

06:21 I was working on creative projects

06:23 and I was really in flow for my being,

06:26 but that wasn't particularly a full-time CEO.

06:28 So I went back, had to make hard decisions

06:31 to restructure the company and change out some executives,

06:34 the executive team.

06:36 And then now I am still the CEO,

06:38 but I work in mostly marketing and creative.

06:41 So I came back in a completely different capacity

06:44 than I did before because I built the support underneath me

06:47 that I didn't have prior.

06:48 - That's smart.

06:49 I think a lot of founders have to navigate that journey.

06:52 They have a commitment to the product

06:55 or company they've started,

06:56 but they don't necessarily want to do all aspects of the job.

07:00 So what's your advice to a founder out there

07:02 who's in the CEO position

07:04 and feeling like they're struggling right now?

07:06 - Yeah, the things that drain you or that you hate doing,

07:10 you know, if it's that strategic pressure,

07:12 hire someone to do that.

07:14 And really the things that make you get up

07:16 and want to work every single day.

07:18 I've been on back-to-back calls all morning,

07:20 but they're all creative meetings and marketing.

07:23 That's my sweet spot.

07:25 So try to carve out as much time.

07:27 So probably 90% of my CEO life

07:31 is in my creative and marketing.

07:33 And I trust the other people with, you know,

07:37 I have reporting every two weeks

07:39 of what's going on internally in the company,

07:41 but I keep myself almost separate while still tapping in.

07:44 - So talking about the marketing and creative,

07:46 I do want to ask you,

07:47 I know you've been asked this a thousand times,

07:49 but the marketing for Poo-Pourri back in the day,

07:51 and even now, it's a little sassy.

07:53 And the product lends itself to literal bathroom humor.

07:56 But then there's a flip side to that, right?

07:58 If you lean into that humor,

08:00 you run the risk of not being taken seriously

08:02 as an entrepreneur.

08:03 How did you make the decision

08:05 about how to lean into this humor

08:07 and what type of marketing you've been using

08:09 for the company?

08:09 - Yeah, again, great call-outs, because we did.

08:13 The reason I started with humor

08:16 is because when I was inventing the product

08:17 and I told them, people would back up.

08:20 They're like, "You're doing what with what?"

08:21 Nobody wants to talk about bathroom odor 18 years ago.

08:25 So I said, "Hold on, comedians actually break the ice

08:28 "with humor, so I'll use humor."

08:30 But it was very subtle,

08:31 but it did get us into a thing

08:33 where people thought it was just a giftable.

08:34 They didn't think it was an everyday product.

08:36 So we had to go back

08:38 and really start talking about how effective the product is,

08:41 that it actually works.

08:43 Once we changed that campaign message,

08:45 then the giftability or that whole joke part was out of it,

08:48 because we had a tagline like, "It works guaranteed,"

08:51 which we had many studies

08:52 and gazillions of five-star reviews.

08:55 So we banked on that versus,

08:56 we just used humor to help break the ice a little bit,

08:59 and it's fun.

09:00 You get to awaken your inner third grader

09:03 that laughs at the fart jokes, right?

09:05 (laughing)

09:06 - It is a little hard not to laugh.

09:08 - It is.

09:08 - At some of what's on your website,

09:10 but it's effective.

09:11 Humor is effective.

09:12 - It's effective, and that's why people love the brand too.

09:15 I gotta tell you, I've never met anyone

09:17 that when I say I'm the CEO and founder of Poo-Pree,

09:19 they smile and they light up.

09:21 So there is a level of levity and happiness that we bring,

09:25 and there's also a secret that I rarely tell people.

09:27 The essential oils in the original formula

09:30 are aromatherapeutically uplifting.

09:34 (laughing)

09:35 - Interesting.

09:36 So you're drawing on aromatherapy lessons

09:38 to fuel your business.

09:40 - And I never talk about it 'cause it's kind of weird.

09:44 - No, I mean, I think aromatherapy,

09:46 and there's a lot of science behind.

09:49 - Right, but while you're pooping, you know it.

09:51 - True.

09:52 - Yeah.

09:53 - Now, I was reading the comments on the story and video

09:56 that we did on you in 2019,

09:58 and a lot of people were saying it's so cool

10:00 that she owns the whole company, basically.

10:03 So at the time, you had owned 97% of the company,

10:06 you took on no outside investors.

10:08 Is that still the case today?

10:10 - Yes.

10:11 - 97%?

10:12 How did you do that,

10:13 and were there any moments that you wavered,

10:15 that you felt yourself talking to an investor,

10:18 considering outside capital,

10:20 thinking it might be good for help?

10:22 - Yeah, there's probably 20 that could call you right now.

10:24 Say, "I got that call one time."

10:25 Of course, you know, there's always that.

10:27 You think, "I'm not gonna be able

10:28 "to get around the next corner."

10:30 But what I have done that I think is very smart

10:33 is leaned on partnering with my suppliers early on.

10:37 Like my first Christmas,

10:38 I didn't know how I was gonna build up inventory.

10:40 My manufacturer actually produced goods

10:43 that I didn't have to pay for until I sold them.

10:45 So they were sort of inventorying for me, right?

10:48 So, and I've had a relationship with them for 17 years,

10:51 so I've built really deep relationships

10:54 where we can grow together during times.

10:57 And I think that's the way collaboration is.

10:59 That's the only way you can grow.

11:01 And they were always strategically able

11:04 to get us out of any tough spot.

11:07 And I keep knocking on wood going,

11:08 "Okay, we're still here.

11:09 "It's still growing." (laughs)

11:11 - You've also had some offers to sell the company,

11:14 and you have refused.

11:15 What would it take to sell this company?

11:18 - Someone that I knew could do a way better job than me.

11:21 You know, Pree is, I invented her 18 years ago.

11:24 I call her her, to me it's like a child, you know?

11:27 And I would love to see what she can do in the world.

11:29 You know, I have my own dreams.

11:31 So, you know, I'm open.

11:33 If someone says, "Hey, I can do a much better job,"

11:36 then okay.

11:38 - You led into my next question.

11:39 I was going to say, what is next?

11:40 We're talking at the beginning of 2024.

11:42 What can we expect to see from you and Pree this year?

11:45 - Well, our future's very bright.

11:46 We just had a Boston consulting group

11:48 do a study on our future.

11:49 And, you know, like I said, right now,

11:51 we're in 40% of the store.

11:53 We can go in so many different areas,

11:55 even different categories that are beyond odor elimination.

11:59 So our future is very, very, very bright.

12:02 Now we just gotta keep up with it, right?

12:05 - Do you feel like you're creating your best impact

12:08 or more powerful as an entrepreneur

12:10 than you were earlier in your career?

12:12 - I do, I do.

12:13 I believe it's because strategically,

12:16 the reason I never launched any other products

12:19 is because I wanted Pooh Pree to be the Band-Aid

12:22 or the Kleenex.

12:23 Like, I created the category.

12:25 I wanted to have dominion, you know?

12:27 Like, this is, we did this.

12:29 And then now that that has happened,

12:31 now we can bring in all the other products

12:33 and it's just fun.

12:34 You know, it's like, oh, we have all these other things

12:36 in our back pocket over here.

12:38 - You did create the category.

12:39 It wasn't, and there was a competitor that I won't name

12:42 that tried to use a similar name

12:46 and you were successful in fighting back on that.

12:49 Have you had a lot of copycats that you've had to whack 'em all?

12:52 - Yeah, and you know, I do believe competition

12:55 helps breed, you know, innovation.

12:58 So it's not anti-competitive,

13:00 it's just don't act just like me, right?

13:03 It's like, you can do whatever you wanna do.

13:05 That's where I get, and I have been very offensive

13:10 and defensive, you know, in the world,

13:13 with just don't act like us.

13:15 And that particular company was a $50 billion company

13:17 and they did act like us and I did go after them.

13:19 - Yeah, that was Goliath taking on David a little bit.

13:22 - I was like, yeah, no.

13:23 (laughing)

13:25 - Now, I think you were 54 when you were named

13:27 to our Richest Self-Made Women's list

13:29 and I edit a list called the 50 over 50

13:31 and I'm curious, we ask everyone on the list this,

13:35 did you ever imagine your career,

13:37 so when you were in your 20s,

13:38 did you ever picture your career over the age of 50

13:40 and if so, what did you picture?

13:43 - No, I mean, heck, we thought we were dead over 50, right?

13:47 Most people, I mean, when you're young,

13:48 you know, my kids look at me now and they're like,

13:50 oh my God, you're gonna be 60?

13:52 Like, do people live beyond that?

13:54 So it's amazing.

13:55 Of course I never pictured it,

13:59 but what I'm excited about is I spent so many years building

14:04 and that has its own rewards, right?

14:06 You know, I have those rewards, they're within me

14:08 and nobody can ever take those away.

14:11 But now it's that you've built it, how can I share more?

14:15 So you get into a place of service, you know,

14:17 and that's where I'm at, is how can I now serve

14:20 and help other people?

14:21 I get a little weepy with that, you know?

14:22 How can I give other women and other people

14:24 that are from any marginalized background a leg up?

14:28 South by Southwest, we're having an event

14:29 and we're doing a whole showcase for marginalized artists

14:33 and bringing in some record executives,

14:35 realizing that a lot of the marginalization

14:38 is just you don't have the same opportunities,

14:40 so how can we kind of create those opportunities

14:42 knowing that the person has to have the gumption, right,

14:46 after that opportunity is presented to go forward?

14:49 But that's what I'm really interested in doing now

14:51 in the world.

14:53 - You have a tattoo, if Forbes reporting is correct,

14:55 which I believe it is, that says,

14:57 this dance is the joy of existence.

15:00 - Yes.

15:01 - What does that mean?

15:02 - That's a Rumi quote, which was a Sufi poet,

15:05 and what it reminds me of every day

15:08 is that at the end of my life, at my last breath,

15:11 I would look back at even what I considered

15:13 the worst moment and be like, I'd take that too, right?

15:18 So what it reminds me of is it's the entire dance.

15:21 You know, we talk about challenges,

15:23 like of the pandemic or challenges in business, obstacles.

15:27 Obstacles are, life is, you know,

15:30 it's like how do I stay grateful during all of those?

15:35 That's what it's for.

15:38 - Thank you for sharing that with us

15:39 and thank you so much for joining Forbes

15:41 at NASDAQ MarketSight, we so appreciate it.

15:43 - Oh, thank you, I enjoyed it.

15:45 (upbeat music)

15:47 (upbeat music)

15:50 (upbeat music)

15:52 [BLANK_AUDIO]

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