Because the entry barriers for wholesalers are low, wholesale distributors that source products then sell them to salons must compete with many other distributors. Some have established relationships with your potential clients. You are able to beat the competition by providing specialized distribution services to beauty salon owners, which can supply you with a lucrative revenue stream from only a few reliable clients.
Manufacturers and wholesalers deal simply with licensed Beauty Supply Distributors. You do not need special licensing to get and distribute salon care products, but you do need to obtain a sales and make use of certificate from the state and should use a legally registered wholesaling business. It is possible to gain licensure online with the website of your own state department of commerce. Because some manufacturers and large wholesalers may not deal with sole proprietors, you might need to incorporate your small business being an S-corporation, LLC or C-corporation.
Beauty product sourcing can present challenging to new wholesalers, because manufacturers and full service wholesalers may need large initial orders. These firms usually offer credit, nevertheless they will require that you prove the creditworthiness of your own new clients. You can handle limited service wholesalers that allow you to make smaller orders but typically operate on a cash-and-carry basis, meaning you can not obtain products on credit. When sourcing personal care products, you ought to cope with multiple limited service wholesalers specializing in personal maintenance systems.
When you should form relationships with wholesalers and manufacturers, you must first conduct consumer research before purchasing products. Travel around to local beauty salons and inquire the owners what kind of products you are able to provide to them. As 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. You also can establish a preliminary contact that you could develop once you begin marketing products.
To create initial relationships with hair salon owners, offer them product lines on consignment. Target salons properties of small business owners and speak directly with them and not surrogates or employees. With consignment, you get part of the share from the profits each time a salon sells or uses the product you provided. The consignment method is most effective whenever you obtain credit from manufacturers and wholesalers from where you source the product. Based on your financial budget, you also can also give away products for free initially.
While you create a rapport with salon owners, determine the requirements their business. Explain honestly and plainly what products you can offer them and the prices you can give. If you fail to beat other wholesalers on price, offer additional services like flexible delivery times, low minimum orders and immediate service when a salon expires of product. Once you have successfully secured a few salon locations, you are able to expand your reach by using your existing contacts as references and depending on positive word of mouth marketing through the salon owners you service.