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Manufacturing

What is the best way to distribute a new cosmetic product to distributors and hair salons?

The product addresses a need in the market that is not currently being served, while remaining odorless and hypoallergenic. At the moment we have small batch production and no branding. We need a growth strategy.

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Eric Bandholz

Founder of Beardbrand

I am the founder of a cosmetic company that bootstrapped from nothing to a 7 figure business.

It sounds like you are really at the beginning stages of business and there are a lot of opportunities for you. You've got a lot of work ahead of you and you need to build some infrastructure.

Your brand is going to be one of the most important things to establish and you won't be able to sell to distributors, salons, or consumers without a clear message of what your company is about.

When it comes to distribution of your product, you can either work with a distributor, sell directly to resellers, or sell directly to consumers. They all have their advantages and disadvantages. You'll have the most margin with direct to consumers - but you need skills on ecommerce.

When you sell through a distributor you lose tons of control, but you can expand your reach quicker. You also have the slimmest margins; but you don't need to invest as much into sales.

Selling direct to salons is a time consuming process; but you have more control of how your product is displayed, and the perception the consumer has of your products. So much of cosmetics is where your product is currently sold. If it's sold in mass market retail, no salon will want to carry it.

But the direct answer of your question is you simply need to sell your product to anyone who's willing to buy it. Pick up the phone, hustle, and win over those customers.

Answered about 9 years ago

Arjun Buxi

Executive Coach and Communication Expert

I am currently training a Multinational Cosmetics Entrepreneur to expand business and develop a long-lasting brand.

Your small batch production may be your key. Are any of your products non-GMO and/or Natural Ingredients-based? Set up a table at your local farmer's markets, and at public trade events where one can rent a booth for a fee.

This 'whisper'-of-mouth campaign has brought success for some that are shedding the 'big corporation' trappings and embracing the 'small business' friendliness.

I am happy to talk with you about making tie-ups with Online Partners, what 'tastemakers' are and how you grow small to grow big.

Answered about 9 years ago

Peter Urey

Find Your Path - Career Coaching

In the final analysis you will need to prove that they can get a strong GMROII or Gross Margin Return on Investment Inventory. In simple turns the product should generate a level of margin and a rate of stock turn (earn x turn ratio) which means that for every $1 invested in your product the distributor gets the best rate of return. These days computerised stock management systems do this and they also handle the re-ordering. Sell the financials along with the Fs and Bs and meet the FD every time.

Answered about 9 years ago