Because the entry barriers for wholesalers are low, wholesale distributors that source products and sell these to salons must compete with a number of other distributors. Some curently have established relationships with your potential customers. You can beat the competition by providing specialized distribution services to salon owners, which can present you with a profitable income stream from only a few reliable clients.
Manufacturers and wholesalers deal simply with licensed Beauty Products Wholesale. You may not need special licensing to purchase and distribute salon maintenance systems, but you do need to have a sales and make use of certificate from the state and should have a legally registered wholesaling business. You can gain licensure online with the website of your state department of commerce. Because some manufacturers and enormous wholesalers might not cope with 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 the new clients. It is possible to deal with limited service wholesalers which 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 maintenance systems, you need to deal with multiple limited service wholesalers focusing on personal maintenance systems.
While you should form relationships with wholesalers and manufacturers, you must first conduct market research before purchasing products. Travel around to local beauty salons and ask the owners what kind of products you can provide for 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. In addition, you can establish a preliminary contact that you can develop when you start marketing products.
To form initial relationships with hair salon owners, offer them product lines on consignment. Target salons belonging to small businesses proprietors and speak directly with them and never surrogates or employees. With consignment, you obtain part of the share in the profits whenever a salon sells or uses the item you provided. The consignment method works best once you obtain credit from manufacturers and wholesalers from where you source the product. Based on your finances, you also may also offer products free of charge initially.
When you establish a rapport with salon owners, determine the requirements their business. Explain honestly and plainly what products you can offer them and the prices it is possible to give. If you fail to beat other wholesalers on price, offer additional services such as flexible delivery times, low minimum orders and immediate service when a salon finishes of product. After you have successfully secured a few salon locations, you can expand your reach by utilizing your existing contacts as references and counting on positive word of mouth from your salon owners you service.