So, the perfumes are now carefully bottled, labeled, and are set to be delivered to your buyer. But wait, is your price too low, should you factor in your delivery cost, and have you paid for your own labor? What amount of materials should you buy next? All these questions, and more, are part of the things that you should know as a small business owner, particularly in the perfume industry.
When you produced that first bottle of perfume, there must have been visions of grandeur, of knocking the socks off competition and having phenomenal sales. But as your first orders came in, you realized, it's not as easy as you thought after all! So here are some tips for keeping your sanity in your new home perfume business:
A. Keep very good records:
1.Have a notebook for all the cash that comes in (Sales), and all the money that goes out (Expenses, Purchasing of Materials, Rent, etc.) as a result of your business. Because your business is home based, there are times that your personal expenses may be mixed in with the business expenses, but proper business etiquette dictates that this should not be so. So even when you're out shopping, try to have separate receipts if the item is for your business, and a separate receipt if it's a personal expense. Keep all your receipts for your business in a separate place.
2.Have a notebook for your inventory as well. As a small "manufacturer", you will have two types of inventory, one for your finished products (perfume that is finished, bottled, but has not been sold yet), and your raw ingredients (alcohol, essential oils, empty bottles, etc.). Its good to have these at hand because there may be times when you feel you're losing money, when in actuality, they are all in inventory.
B. Try to practice fair pricing, for yourself, and for your buyers. Many home businesses fail because they did not price the products to cover for many hidden expenses. They just place a small mark-up on the total cost of the raw materials, not taking into consideration their own labor, gas or electricity expense, and other overhead costs like rent. Even if its in your own house, you have to factor rent in, because, if your business expands, then you will eventually have to pay rent, and when that happens and you are unprepared, then your costs will jack-up your price, leaving your customers none too happy. The usual rule of thumb for a manufacturing business is the total cost of materials x 3 = selling price. This should cover for all the costs. The perfume industry has a very wide price range, though, and you can increase that amount depending on your market.
C.Keep looking for potential buyers. What kind of store would likely sell your kind of perfume? What trade fairs can you participate in? Do you have contacts that can lead you to buyers? These are questions you have to keep asking yourself and the more you practice, the easier it is to recognize your niche in the home perfume market.
D.Never underestimate the value of advertising. Yes, you don't want to "commercialize" your product, but many times the expense of advertising can more than make up for itself in terms of sales. As a small business owner, with little resources, you have to be very choosey in terms of where you want your product to be advertised in. You don't need to advertise in the national newspaper, for instance, probably the city publication will do, or give some samples out at your local PTA. The possibilities are endless in terms of marketing your product.
All in all, the success of your business will rely on your determination to make it work. It takes discipline to accomplish many of the suggestions above, and, as a wise person has said, without discipline, you have no right to dream.
Laise have been writing articles for nearly 2 years. Come visit his blogs more often for tips and advice that helps people with the interest for id badge printer and great passion and knowledge for receipt maker and all the different options & providers available in the market today. Find out for more info also here tcisecureprint.com
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