Max Carter, a renowned fashion editor, and her family were living in Sydney, Australia, when her kid developed allergies to commercially available cleaning solutions. She created a line of cleaning products that didn’t include any chemicals that might damage her kid. She started marketing her non-toxic cleaning product, which quickly gained popularity in Australia, resulting in almost $1 million in sales. They decided to try if they could continue Murchison-success Hume’s in the United States, so she and her family relocated to Los Angeles.
Their high-quality product was expensive, and they were having difficulty competing with mass-market cleaning solutions.
With expenses piling up, Max turned to Marcus Lemonis of The Profit to see if he could assist them in cleaning up in this large, competitive market of home cleaning goods.
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The Profit by Murchison-Hume
Episode 6 of Season 4 of The Profit
Marcus wasn’t sure he was at the correct office at first. Murchison-Los Hume’s Angeles office was decked up with mood boards, exquisite chine, and, of course, two dogs.
Max and Peter, the company’s co-owners, met with Marcus and described how Murchison-Hume got started. Max’s kid had a variety of health issues, including asthma, eczema, and a variety of allergies. When she cleaned the home using professional cleaning chemicals, she found his respiratory issues worsened. Her son’s problems appeared to be under control when she created her own plant-based cleaning products. Her father-in-law came up with the name Murchison-Hume to give a touch of class to the company, but it didn’t take on in the United States.
Marcus thought the name was a problem from a marketing perspective. Customers should be able to pronounce and comprehend the product’s relationship with ease, which Murchison-Hume failed to do. He liked the scent of the items, which he said was more like that of essential oil than the typical harsh odor of most cleaning solutions. Marcus was particularly taken with a shoe spray Max had created. When he asked whether she had attempted to sell it to any shoe shops, Max replied she had. Marcus was concerned that she didn’t completely comprehend the state of her company.
Marcus was worried about Murchison-brand Hume’s and direction. Max offered candles, clothes cleaners, and shoe spray, all of which were single items in several categories that conveyed a jumbled brand. Unless she intended on sending someone to handle the cleaning as well, Max disclosed that the spray cleansers sold for $9, which was more than twice the price of her rivals.
Max was losing approximately $1 for each unit due to a highly inefficient manufacturing method. A third-party logistics firm had her goods manufactured in Chicago before shipping them to Dallas, which increased prices and caused consumers to lose interest. Marcus was going to start here.
Marcus said the office’s appearance and atmosphere did not adequately reflect the Murchison-Hume goods. Marcus thought the framed photographs of celebrities placed around the room belonged in a fashion store rather than a cleaning supply store. When Marcus met with the art director, he was informed that getting anything authorized by Max, who was always trying to elevate the company, was a problem.
Murchison-Hume lost $477,000 the prior year due to mounting costs and mounting debts. Max intended to build a fulfillment facility in the basement of the office complex where their headquarters were located. Max was the only one who liked the concept, and Marcus thought it was a terrible idea to ship goods across the nation when they didn’t have to.
Marcus approached Max, asking why she was still going about her business as if everything was OK. It wasn’t the case. Murchison-Hume should have closed months ago, but Max insisted on keeping it open because she felt obligated to make it work for her family. She’d relocated them from a large house in Australia to a tiny house near a highway in Los Angeles.
Max was seeking a $1 million investment from The Profit to help him turn things around. Marcus thought the company was too dangerous, so he offered $250,000 in return for a 50% stake in Murchison-Hume. Max started crying and responded with $500,000 for 30% of the company. The two sides compromised and agreed on a price of $250,000 for 30% of Murchison-Hume. Marcus would also get 70% of Max’s Best in Show pet product trademark, which she now owns.
Getting Down to Business on Murchison-Hume
Marcus immediately set about altering Murchison-branding Hume’s message. Marcus chose to alter the company’s name to Clean Evolution while working with the art director, which irritated Max to the point that she left the room. Marcus dialed her phone number. She said that she was anxious, and when she became a little emotional, they agreed to meet later.
Kathy Ireland was called in by Marcus to help with the branding issues. Max was disregarding the work her art director had done, and neither Marcus nor Kathy were impressed.
Marcus was eventually able to save money for Murchison-Hume and Max by relocating the production and distribution operations to Chicago. He found that the inventory was wrong by $230,000 and told Max one week to sort it out or he would walk away from the transaction.
Max had not worked out the huge difference in the inventory and had no clue where it had gone a week later. She didn’t appear bothered by it, and she didn’t seem regretful in any way. Marcus pulled out of the agreement and wished her luck in the future.
What Happened to Them? After the Profit, Murchison-Hume
Even though he backed out of the agreement with Max and Murchison-Hume, he kept his Best in Show label equity to compensate for the lost company equity.
Murchison-Hume is still in operation under its original name, offering exorbitantly priced plant-based cleaning products on their website and via Amazon.
Max’s work has been published in Marie Clarie, Vogue, and Home & Garden, among other publications.
The material in this article is given only for educational purposes; Royal Pitch is not connected with Murchison-Hume, The Profit, or any of its subsidiaries.
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