Since the entry barriers for wholesalers are low, wholesale distributors that source products then sell these to salons must compete with various other distributors. Some curently have established relationships with your prospective clients. It is possible to beat the competition by offering specialized distribution services to beauty salon owners, which can provide you with a profitable income stream from only a few reliable clients.
Manufacturers and wholesalers deal only with licensed Beauty Supply Distributors. You may not need special licensing to purchase and distribute salon care products, but you do need to obtain a sales and use certificate from your state and must possess a legally registered wholesaling business. You are able to gain licensure online through the website of the state department of commerce. Because some manufacturers and large wholesalers may well not cope with sole proprietors, you may need to incorporate your small business as an S-corporation, LLC or C-corporation.
Beauty product sourcing can present challenging to new wholesalers, because manufacturers and full service wholesalers might require large initial orders. These firms usually offer credit, but they will require you to prove the creditworthiness of your own new business. You can handle limited service wholesalers that allow you to make smaller orders but typically work on a cash-and-carry basis, meaning you cannot obtain products on credit. When sourcing personal care products, you need to deal with multiple limited service wholesalers that specialize in personal maintenance systems.
As you should form relationships with wholesalers and manufacturers, you need to first conduct market research before purchasing products. Travel around to local beauty salons and get the owners what sort of products it is possible to provide for them. Because you have not established a bond of trust, they likely will say they are certainly not interested, however, you can gain valuable insight by bkaukl around their salons and noticing what products they stock. In addition, you can establish an initial contact that you can build on when you begin marketing products.
To make initial relationships with salon owners, offer them product lines on consignment. Target salons belonging to small businesses proprietors and speak directly along with them rather than surrogates or employees. With consignment, you receive area of the share from the profits each time a salon sells or uses the item you provided. The consignment method is most effective whenever you obtain credit from manufacturers and wholesalers that you source the product. Based on your budget, additionally you could also hand out products free of charge initially.
While you establish a rapport with salon owners, determine the needs of their business. Explain honestly and plainly what products you are able to offer them as well as the prices you can give. If you cannot beat other wholesalers on price, offer additional services including flexible delivery times, low minimum orders and immediate service if a salon finishes of product. When you have successfully secured a few salon locations, you are able to expand your reach by utilizing your overall contacts as references and relying on positive word of mouth marketing from the salon owners you service.