We all got into business to make money, RIGHT?!!?!?!? Or at least to chase our passions.
But when starting out, we tend to only focus on providing services to our clients. Yes as a service provider, actual services will be our bread and butter, but only providing a service does a true disservice to the very people we are servicing. Also what happens if something physically happens to you and you have to stop or decrease the services you provide? I can guarantee you that if you don’t have a team or additional income sources, then your income will drop immediately and that can damage your business/ career. Some examples of changes could be, pregnancy, health issues, accidents, and/or life changes.
For these very likely reasons I’d highly suggest having multiple streams of income in your business. No I am not talking about you having your beauty business, doing real estate, selling insurance, and running a trucking business running all at once, I mean having multiple streams from one source. Think of a major river (your business) and sources related to your business as a stream. Ideally you want products or streams that compliment your services and/or that your clients want to purchase. There are a few options to diversify/increase revenue streams with your existing business but we will focus on retail here.
What is Retail?
Retailing is the act of selling a product for a profit. There are three major ways that you can get retail products for your clients such as wholesaling a product, private labeling a product, or self creating a product.
Wholesaling- purchasing an existing product that is already labeled and package to sale. you would buy a wholesale product in a bulk order at a cheaper price and sell for a profit to your customers.
Private labeling- purchasing an existing product that is not already labeled and package to sell. You would buy private label products in order to add your own labels and brand to the already created product.
Self created product- creating A product from an idea using a recipe or the help of a professional. You would be responsible for purchasing all ingredients to create a product, come up with branding for labeling, packaging. I do not suggest this option for people starting out as the research and development can be quite costly for a product that is not proven.
How to choose your product retail option?
When purchasing your products to sell for retail regardless if you purchase wholesale, private label, or if you self create; you should look to have at least a 20 to 30% minimum mark up or better. If the mark up is not at this minimum then this may not be a good option for you to make a profit from and ideally you may want something with an even higher profit marker up.
Example: if you purchase an item or make an item and it cost you $10, then the minimum price should be $12. That is a two dollar profit but ideally you would want to sell for$15-$20 yielding a five to $10 profit per product. This type of markup gives you room to run sales and maintain a profit.
Best of luck to you on adding retail or expanding your retail offerings in your business. I hope this information was valuable to you and allowed you to see how adding retail products to your business can help position you to freedom without causing additional time on your books and compliments existing operations. Having retail in my day spa has tremendously helped my business and added value to our customer experience.
If you are looking to add intimate area skin care and/or wellness products to your retail offering, it would be an honor to partner with you and your business with wholesale products. Please check out our free product guide and pricing sheet. Here, https://heyzine.com/flip-book/ba1af7d845.html
I AM Tanya S. Kelker spa owner, licensed beauty pro turned CEO and your favorite strategic business advisor for entrepreneurship but you can just call me your business BAE.
I help entrepreneurs just like you to go from pro to ceo by increasing profits and growing both your business and within. Connect with me on IG @TanyaSKelker