Questions

I'm starting a new cosmetic company and I am not sure how to distribute it. I want to do more than just walk into beauty supply stores. Wholesale? Who does distributing?

Great to really consider if this beneficial, meaning having your products in stores matches your profit + overhead requirements.

Typically you'll have to give a 50-80% discount to an aggregator to place your product in stores.

Best you really run your numbers closely. I've seen many companies become slaves to evil overlords like Whole Foods, because of the deals they sign or just becoming dependent on an aggregator who repeatedly demands deeper discounts as more product flows. This effectively causes all your profits to be split between your aggregator + manufacturing overhead, so over time principles of the company may make less + less.

Likely you'll be better off placing your products in Amazon or selling your products through dealers.

If you have a company like Amazon or any other company fulfill product for you, be sure you have some labeling device for customer capture.

So... some sign up on your Website for "101 Ways To Use Our Products For Your Optimal Beauty" or something like that.

Anytime you have another company fulfill product for you, always be sure you include a label device to build your in house list.


Answered 5 years ago

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