While most people enjoy a good laugh or two when they think about infomercials, it’s an undeniably effective method of direct-response marketing. Whether you think about the Snuggie, the Forman Grill, P90X, Proactiv—the list goes on and on—these are genuine household names that most consumers recognize instantly. Even more, these products have generated sales ranging in the hundreds of millions to billions. Infomercials are no joke.
Just ask Insynergy Products, Inc. (ISYG) , whose latest product Plumber’s Hero may be the next name on that list. Launched in March of this year, Plumber's Hero gained immediate success in a very short time. The product is now in nearly 15,000 locations of three of the nation's largest retail chains, Walgreens, Rite Aid and Kroger.
And that’s just the beginning. Insynergy has several products in the pipeline ready to launch, leveraging the same successful model that has Plumber’s Hero spreading through the country.
Equities.com had the opportunity to speak with Sandy Lang, CEO of Insynergy Products, Inc. to learn more about Plumber’s Hero and what the company has coming down the pipe to propel its momentum further.
EQ: Can you start by giving us a brief overview of Insynergy?
Lang: Insynergy is a direct response company. We’ve developed many of our products ourselves, and do license some products. What we do is we brand the products on television with either a two-minute spot or a 30-minute commercial. We then take it to massive retail around the world. We do sometimes brand certain products digitally on the internet, which is a lot less expensive but we do a large volume of business at the retail level.
EQ: What are some of your leading products and how are they currently doing in the market?
Lang: Let me tell you about the major product that we have out now called The Plumber's Hero, which is a product that clears clogs in your home from garbage disposal to sink, to a toilet, to tubs, Jacuzzis and showers. There’s no opening in your home that Plumber's Hero cannot unclog. It costs $19.95 and is good for about 20 applications. So it comes out to about a $1 a clog. I don’t know of any plumber that you can call late in the night that will come clear a clog for you for a buck.
There is no product like this on the planet. We think this will be a mainstay product in the plumbing area for all retailers for a very long time. We’re in over 39,000 stores and we'll probably be in another 10,000 stores over the next 90 days. We’re also beginning to sell it internationally. We think this product will be around for years and years to come. It will be a mainstay for Insynergy.
EQ: Adoption of the product has been very impressive. Within two months of launching, you were able to generate $1.4 million in sales. What is the market potential that we're talking about here?
Lang: You quoted the $1.4 million figure. Unfortunately, when you're doing a 10-K filing, it’s from January 1 to the end of March, and you only report the income from that period. We have a great deal of sales to report in the next one because since April we've been selling more products and opening up more retailers.
When you look at certain types of products, whether it's OxiClean or something like that, I’m confident that over the next eight months to a year, there will be some big company that's going to contact us to buy this product because they'll need this product in their line. That’s not to say that we would sell it, necessarily, but I guess you could sell anything for the right price.
EQ: Is the primary focus of the company right now to expand the distribution of Plumber's Hero or introduce new products into the market?
Lang: We have enough products for probably seven years of business, but we have four more products that are in the final development stage and we’ll be introducing in the future. One is in fitness. One is in golf. Two are in the beauty area. I can’t go into major details with them because in this type of industry, I would never let anybody know what product we’re coming out with until it’s on TV. Until we were on TV, I did not tell anybody about Plumber's Hero. I could tell everybody about it once we're on TV and we're branded and patented and trademarked, and things like that. This is a great business but it's a business that you've got to keep close to the vest until you come out with the product.
We have a fitness product that we think is second to none, which was developed by a doctor. Without going into great detail, we think it will be the hottest fitness product for a very long time and it’s very affordable. When this product hits the market, we think people will create studios specifically for this product, much like how yoga and Pilates studios are popular now. That’s how important it will be. It’s great for fitness, wellness, and overall health and just to look good. It’s the easiest product to use in the world. You can use it for an hour and every time you use it, it will work every part of your body. You'll see and feel the results almost instantly.
We also have two beauty products that will do large volumes of business. They’re a billion-dollar industry themselves. All our products are really innovative to the point where you've never seen anything like the. They’re brand new. They’re also very affordable.
EQ: With that in mind, you’re establish great distribution and business relationships with these major retailers with Plumber’s Hero. Can you leverage that to make the roll out of new products that much easier?
Lang: Yes, 100%. When a retailer knows that they can count on you for a product, it’s a big deal. Remember, for retailers, like Wal-Mart, Walgreens, CVS, etc., that space means money to them. If you have a product that is being moved in that space on a weekly basis, they want that product. Now, maybe I don’t have another plumbing product that we make, but what happens is they put these products in a special section like an “As Seen on TV” area. Take a product like Plumber's Hero; where did they put it first? They put it into an As Seen on TV area.
Once the product becomes established, that will move over to the plumbing area of that store because no matter how many times you show it on TV, not everybody in the world is going to see it. What happens is you have people that have a clog problem and they go into the plumbing area to find a solution. We think we have the best plumbing product out there. If you take a snake, it will beat the hell out of your pipes. If you take a liquid product, they're as toxic as can be. I’d rather have a non-toxic product get rid of my clog in the blink of an eye and move on with my day.
So using Plumbing Hero as an example, we went from As Seen on TV to the plumbing area, and believe it or not, retailers like your Walgreens and CVS, all these stores have a plumbing-type area where you can buy this type of product. We're in those stores.
EQ: Going back to Plumber’s Hero, you mentioned that we're really just at the beginning. What are some milestones that we should watch for within the next 12 to 18 months from Insynergy?
Lang: We have been concentrating on Plumber's Hero, but we are now ready to present four more products that are just coming out of development. In a year from now, we could have eight products on TV. We could have eight products at retail, but we’ll do it a little differently. We really do large testing and large focus groups. We show thousands of people our product and get their feedback so we get the right price and we get a product that truly works that we can guarantee.
When we started four years ago, it took us a long time to get the right manufacturers. For example, Plumber's Hero is made in the United States. It is so intricate to make the cap have the exact weight for this product. We spent more money on the rubber that goes to the attachments than any company would even think of doing, but our rubber attachments will last a lifetime. If you dont take a match to them or lose them, you can use the same rubber attachments with refills forever. We make a product that lasts. We make it perfectly and it's very intricate. However, there are some products that we have the luxury of saving money by manufacturing it overseas.
EQ: To help us get a sense of the team behind these innovative products and the strategy to make them household names, can you tell us about your experience and that of your management team?
Lang: We have a philosophy as a company. It states that the two most important things in our business are our customers and our shareholders. That’s who we try to please every single day. That’s what we do the best for every single day. Our sales group has been my sales group for 30 years now, going back to past companies. They’re the most powerful sales team in direct response. Nobody is bigger.
Marty Goldrod, our chief operating officer, has worked with me for the better part of 40 years. Rachel Boulds, our CFO, is someone I’ve known for close to 28 years. She’s one of the most knowledgeable direct response people in the world.
Being a public company, it gives us a luxury to have people work for us in different ways in terms of compensation because it allows for a lot of incentive structures to keep the best people. It also allows us to keep our overhead down. We also use outside services for many things. We use several outside media companies, as an example, and that helps us try to keep the overhead and the burn rate very low. As a result, our percentage of profit is very high and we can make our shareholders happy.
EQ: So you’ve created a scalable business model that emphasizes on operation efficiency?
Lang: Right. The structure of our company is that we currently have five people in-house. We'll probably grow to nine when everything’s said and done, but we could be running a billion-dollar company with no more than 10 or 11 people. There is no reason to create a burn rate just to impress yourself to say that we have 80 people that work for us. That’s not how we run our business.
By the way, we're also not the kind of business that takes gigantic salaries. We’re public for a reason. We own stock. Everybody in the company is an insider. We’re subject to only selling 1% of the outstanding shares in a quarter. We have a very low amount of outstanding shares at about $28 million. We have a very small float, and we've made it very easy for investors to see everything we do. We’re a very transparent company. We’ve never missed a filing.
As a company, we’ve paid our dues to get into the right place at the right time. We have never tried to promote our stock. We trade between $3 and $4 a share. Our volume is not big but we've never tried to create a large volume because we wanted our company to be in a position where, when we were ready to explode, we wanted our shareholder to really get a gigantic value. Certainly, the people that came in early got incredible value, but anybody coming in now at $3 or $4 a share is a steal. I’m not in this company to stay at this levels. I’m in this company to really get the shareholder a value for their investment, whether they bought it at $4 a share or $24 a share.
EQ: That’s really great. Do you have any final takeaways that you want to share with our readers?
Lang: Our business is a retail business, and our mission statement isn’t just written to have the dialogue. We do work on the premise of satisfying one customer at a time. That is the key for this company and for people to know that when they buy a product from Insynergy. Not only is the product guaranteed, but they're getting the best quality of a product that could be made in that category.
We price it right so that everybody can afford it. We don’t have any products that only a few people can afford. We’re looking to make living easier for everybody that needs a product or wants a product in a category that we make. We really take the time for our customers. We pay a little more money to make our products at a higher quality. That's why we don’t get products coming back to us because they don’t break. They just work, because at the end of the day, they're great products.
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