Small Business Story: Milli Miracle Stands Up To Price Competition and Liability

The CoverWallet Small Business Scholarship encourages entrepreneurship in students by asking them to take on the perspective of a local small business owner. Students share their perspective on the opportunities and challenges faced by a business in their community.

Student: Melissa Hall, The Family Institute at Northwestern University

Small Business: Milli Miracle LLC

Milli Miracle

I’m in love with Milli Miracle LLC! Not just because it’s local and the products are hand made; but because of the types of products offered and their quality. Milli Miracle LLC is a luxury vegan bath-and-body and wellness company. It’s focus is on providing healthy products, nutritious recipes and tips for managing stress. As phenomenal and professional as Milli Miracle is, there are some risks I believe the company may face.

Any time something is considered all-natural, the floodgates of naysayers, spectators and the sue-happy will open. There is the risk of the company and products being perceived as not real, ineffective or made up. Society as a whole is conditioned to be more trusting of name brands and big companies. Milli Miracle is yet to be a household name and I imagine the frequently asked questions about the products are, “But do they work?” and “Will they make me breakout?”

Another risk is undervaluing the product. Because this is a small business, there is no other chain or location to help cover costs. Some common store brands are cheaper and I imagine the owner is tempted to lower prices to compete with the retail market. If prices are made too low, the small business will risk losing all profit. The luxuriousness of the product may be questioned as well, resulting in less sales.

As I mentioned above, being sued is also a risk. Although the owner’s personal assets may be protected, I can’t help but fear that the company couldn’t handle a suit. Would it last? Could it recover? Some people target small companies just for this reason.

Another risk is losing the significance of the brand. There is competition among natural product makers. I imagine it’s easy to feel intimidated or be pressured to compare ones business with another. Milli Miracle LLC has to maintain its standard, quality and individuality. It has to stand out as an original or risk fading into the sea of many other body butter and bath salt merchants. I see a definite difference in this brand compared to others. Because this company is so amazing, it will also be at risk of having copy cats – folks who will mimic the brand, its products and style. This is a low risk (I feel) if Milli continues her consistent branding, advertising and continues appreciating and respecting her customers.

A risk that may not be as popular is the risk of having little to no social life. Business people, especially those who make and market their own products, have little time for friends and fun. I think finding a balance is crucial. Too much of a social life may result in too little time designated for business growth. Too little interaction with family and friends can also be detrimental and produce a type of tunnel vision. Milli Miracle LLC is all about wellness. The image and reality must match because it will affect the company’s products and energy.