Since the entry barriers for wholesalers are low, wholesale distributors that source products and sell these to salons must compete with various other distributors. Some curently have established relationships with your potential customers. It is possible to beat the competition by offering specialized distribution services to beauty salon owners, which can provide you with a lucrative revenue stream from only a few reliable clients.
Manufacturers and wholesalers deal only with licensed Beauty Products Wholesaler. You do not need special licensing to buy and distribute salon maintenance systems, but you do need to have a sales and make use of certificate from the state and should possess a legally registered wholesaling business. You are able to gain licensure online through the website of your state department of commerce. Because some manufacturers and large wholesalers might not handle sole proprietors, you may need to incorporate your business as an S-corporation, LLC or C-corporation.
Beauty product sourcing can present challenging to new wholesalers, because manufacturers and full service wholesalers may require large initial orders. These firms usually offer credit, but they will need you to prove the creditworthiness of your new business. You are able to cope with 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 should handle multiple limited service wholesalers that specialize in personal care products.
When you should form relationships with wholesalers and manufacturers, you have to first conduct researching the market before purchasing products. Travel around to local beauty salons and inquire the owners what kind of products you are able to provide to them. Because you have not established a bond of trust, they likely will say they are 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 one could build on once you begin marketing products.
To form initial relationships with beauty salon owners, offer them product lines on consignment. Target salons properties of small businesses and speak directly along with them and not surrogates or employees. With consignment, you receive part of the share of the profits when a salon sells or uses the product you provided. The consignment method works best whenever you obtain credit from manufacturers and wholesalers from which you source the item. According to your budget, you also could also give away products free of charge initially.
As you create a rapport with salon owners, determine the requirements their business. Explain honestly and plainly what products you are able to offer them and the prices you can give. If you fail to beat other wholesalers on price, offer additional services such as flexible delivery times, low minimum orders and immediate service in case a salon finishes of product. Once you have successfully secured a couple of salon locations, it is possible to expand your reach by making use of your existing contacts as references and counting on positive word of mouth from the salon owners you service.