Friday, April 25, 2014

Consider a Private Label Line

Diversion of professional retail products is a challenge for many beauty businesses.  Everyone from the big box retailers to the ecommerce sites are selling the same products you are and likely for less. More often clients are purchasing from these other sources. What is your business going to do to compete? It might be time to consider your own private label line.

Why a Private Label Line
The benefits for creating your own private label line are to increase your retail sale profits and build your brand.  The cost per private label product will be cheaper than any manufactured name brand.  Additionally if you use your line within your services, you will likely reduce costs and drive up service profitability too.  Aside from the profits, there is more prestige and pride in building your brand verses promoting the other guys.             

Where to start
Define what products you want to private label. Look at what sells the most, has the most client requests, and that is used most often in your services. What minimum orders would you be most comfortable carrying. Think of this in terms of product cost, inventory carrying cost, and your storage ability.  Have this ballpark data in mind as you start researching vendors.

How to Source your Manufacturer
There are a host of providers from hair products, skin care, and cosmetics. Look to your industry association groups and trade publications for the top performers. Remember that your private label manufacturing company is truly a business partner. Going with the cheapest player or fastest turn around time isn’t always the right choice. Fully vet your provider by requesting test products and referrals from other customers. Most providers showcase their quality control, research and development, and offer in house art services to make your brand look fabulous. Leading providers offer marketing material support and in-house training for your team.

How to Launch your new Line
Utilize the services of your manufacturer for selling support materials such as product brochures, product images for digital marketing, and direct mail efforts.  Reach out to your staff for feedback on the best promotions and marketing methods. Host an exclusive VIP event and provide a sneak peek to your best clients with a saving discount. Drive interest on your social media sites and in-store with signage and a sample testing area. 

Remember just because your name is on the product doesn’t mean it will go flying off the shelves. You need products you believe in, the right marketing plan, and vendor support to make your private label line a winner! 
Have a private label story to share? Please a comment below or share on our Facebook page. Lets pool resources and grow sales together!

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