Because the entry barriers for wholesalers are low, wholesale distributors that source products and then sell these to salons must compete with a number of other distributors. Some have established relationships with your potential clients. You are able to beat the competition by giving specialized distribution services to hair salon owners, which can supply you with a profitable revenue stream from only a few reliable clients.
Manufacturers and wholesalers deal simply with licensed Beauty Supply Distributors. You may not need special licensing to purchase and distribute salon care products, but you will need to acquire a sales and use certificate from the state and should use a legally registered wholesaling business. You can gain licensure online from the website of the state department of commerce. Because some manufacturers and huge wholesalers may not deal with sole proprietors, you might need to incorporate your company being an S-corporation, LLC or C-corporation.
Beauty product sourcing can present a challenge to new wholesalers, because manufacturers and full service wholesalers may require large initial orders. These businesses usually offer credit, nevertheless they will require you to prove the creditworthiness of the new clients. You can handle limited service wholesalers that allow you to make smaller orders but typically work on a cash-and-carry basis, meaning you are unable to obtain products on credit. When sourcing personal care products, you should handle multiple limited service wholesalers that specialize in personal maintenance systems.
While you should form relationships with wholesalers and manufacturers, you need to 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 in their mind. Because you have not established a bond of trust, they likely will say they are certainly not interested, but you can gain valuable insight by bkaukl around their salons and noticing what products they stock. In addition, you can establish a primary contact that one could build on once you begin marketing products.
To make initial relationships with hair salon owners, offer them product lines on consignment. Target salons properties of small business owners and speak directly together and not surrogates or employees. With consignment, you receive portion of the share from the profits each time a salon sells or uses the item you provided. The consignment method is most effective once you obtain credit from manufacturers and wholesalers from which you source the merchandise. According to your financial budget, additionally you can also hand out products free of charge initially.
When you establish a rapport with salon owners, determine the requirements their business. Explain honestly and plainly what products it is possible to offer them and the prices you are able to give. If you fail to beat other wholesalers on price, offer additional services including flexible delivery times, low minimum orders and immediate service when a salon expires of product. When 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 through the salon owners you service.