Posted on November 10, 2009 with No Comments
Saturday night my wife and I had the opportunity to attend a Grand Opening of a salon’s new location. It is owned by a good friend we have known for years – and his partner and her husband.
It was a big bash with lot’s of folks, wine flowing and great snacks. The new location was an old house that had been
Private Label Hair Products
converted sitting in the heart of the old part of the city – just where you would think a progressive, fun and upscale salon should be. They did a great job on refurbishing the old house – plenty of walking room, interesting decor, well-laid out sections for washing, drying, styling and waiting.
A Case for Private Label Hair Products
We wanted to visit, but not steal the hosts from their other guests – so, we were only able to spend a few minutes together. With that said, we exchanged pleasantries and congratulations. What caught my attention was the next thing that came out of his/their mouths – “You know, we really need to discuss getting a private label line of products in here. It is becoming very difficult to work with the distributors, the manufacturers and there is little margin in the products we do sell.”
They went on…”…look over here – we have two display cases filled front and back with $1,000′s of dollars of products and they just sit there. We sell a few, but customers become uneasy when we ‘promote’ the products, plus sooner or later we are notified the products are discontinued?!”
So, why are they teeling me this? Because I am the managing partner for a small, niche hair products manufacturing and distribution company. We do wholesale of our brands – Nourish, Healthy Hair Plus, ProFolla, ProFolla Silk, Strimedix, and RegeneVal. And, we do private label for some salons and distributors who want to market their own brands or establish their own identities. We do a few proprietary formulas, but 95% of our customers choose from over 200 hair and skin products we have available.
I don’t mean or intend to promote our products or our services (but you need to sometimes), but I wanted to write this post because it is the 5th or 6th time I have have had this comment made directly to me and the “ump-teenth” time I have seen this subject come up in a blog, article or as a topic in a magazine article.
Why Does a Private Label Hair Products Line Make Sense?
Here’s the $50,000 question that I get everytime along with a couple of add-on questions like…how do you do it?….how much does it cost?…what products should I choose?…should I do wholesale or private label?
Well, before we talk about the process, let’s discuss what you can gain:
- Build a product mix that works best for you and your customers and clients
- Choose the products you want…not just those that are available
- Improve loyalty and exclusivity with your own brand
- Increase traffic
- Increase ancillary product sales
- Improve salon margin
These all sound very good. How do I get started??
Without going into a small book on the process, here’s a summary:
- Determine start-up budget (smallest – $100 for a few wholesale products; plan for $500-$2,000; big plans – $10,000)
- Choose the products you want to carry
- Shampoos, conditioners, styling aids
- Solutions – Dry, oily, colored, permed, dense, coarse, breaking, scalp problems
- Supplemental skin products
- Choose the plan of introduction
- Start with a few, or a whole line…or a sub-line (volume and dry, for example)
- Determine any promotional or display steps, if any
- Private Label or Wholesale
- Labels or screens (silk screens)
- Labels cost – design cost + ~$2,000 for labels themselves
- Screens cost – design cost + ~$250 for set-up + $.50 per bottle
- Minimums – generally a case (48) down to 6 (half dozen)
- If you want to do a special formula, count on minumums in the hundreds or thousands
- Shipping costs must be incurred
- Shipping, delivery time usually 2-3 weeks
- Create you own hair products brand!
Bottom line – start to finish, you can have some wholesale products on the shelves in a few days. To design a screen/label, get screen/label made, product produced and shipped consider 5-8 weeks. This isn’t actually too bad. We tell most of our private label customer to plan on 2 months or less start to finish.
If you’re considering a private label hair products line, visit www.alternativebeauty.com or call our Customer Support Staff at 888-909-1658. The site, though not winning any design awards, it has most of the hair and skin products we make (about 90%). But, we always have new products in the works and have access to a number of formulas for special projects or needs.
Posted on October 8, 2009 with No Comments
I try to spend at least 8 hours per week looking through some of the hair forums and blogs to see what customers and salon owners are thinking. It’s a great way to get new ideas and to get a feel for what customers really think – generally, the ability to post anonymous comments brings out what folks really feel.
Earlier in the week I ran across a forum where salon owners were griping (in a good way) about the expense, carrying cost, and pure hassle of dealing with some of the well known brands and the distributors they buy from. While many folks are genuinely satisfied with many of the there suppliers, many are not. And many have considered selling shampoos and conditioners under private label brands.
Why? Well the list is pretty long and it will probably take a few posts to dig into depth. But, here are a couple of things I hear.
- Getting “jacked around” – Sorry, it’s the only way to say it, and that’s what many folks feel. Here are some examples.
- Discontinued products (with no warning) – I have a long list of products customers LOVE, but have been discontinued. We are not at the corporate level of many of these companies so you don’t know what the justification is, but I promise many products are discontinued as a mistake.
- Price changes – Not much to say about this one – often necessary, but I don’t believe some of the changes are warranted not justified – just more attempts at increased profit.
- Delivery – Some manufacturers are pretty good…many are not.
- Snooty-iness – Yep, again, sorry for the lack of better vocabulary, but “it is what it is”. Increasing demands, selective exclusivity, product positioning – yepper, all of the above.
- Product Diversion – The major manufacturers just need to get over this. There are numerous marketing and sales channels available for personal care products. If a few of them would go to b-school, they might figure out that ”exclusively through professional salons” isn’t such a great idea – especially if everyone is doing it. Prohibition is over…and the majority of consumers are not married to their brands – especially at lower price points.
I didn’t spend too much time discussing why a salon owner might turn to private label, but for those of you in the business you understand and probably have a much longer list. With that said, here a re a couple of reasons why many stylists and owners prefer their own brands:
- They know their customers – This allows them to carry just the products they need that they think will do the job. It also allows them to design labels, names and verbiage that will sync with thei customer base better.
- You can often make more money – Name brands may go through 3-4 levels of wholesalers, distributors and manufacturers before they hit your shelves. This makes for lower margins for you and higher costs for customers (which is not a good thing in this economy). As a side note, many (most) upper-end brands spend a TON of $$ promoting, advertising and packaging their products. You can be sure you as the salon owner is paying the bills. With private label hair products the products go straight from the manufacturer to you…period.
- You can dictate the pricing and promotion as you wish – sales, specials, give-aways – you name it, you can do it. Plus, if you salon has a website, you can sell your products online without fear of retribution or having your “name brand” pulled.
Here’s a couple of ideas to get started. There are some draw-backs. You need to educate your staff. There is a an upfront cost to getting started (labels, art work, etc.).
If you are interested, there are several companies theat have private label hair products available for purchase – Alternative Beauty, Aware, and Liquid Tech are three that are good.
Posted on April 26, 2009 with 1 Comment
Many of us have lengthened the time between stylings and haircuts in the past year or so. As a result, many of our 
friends (and stylists who work with us) report increase in problems – particularly dryness, frizziness and increased breaking.
Basically there is a fundamental cause. Flat irons and curling can reduce moisture content in the follicles. Additionally, a periodic cut trims spit-ends and frizz. Though we may have some “cut shock” following styling, it does help keep hair smoother and easier to manage (usually within a week). But, with many of us postponing the $45-$125 treatment due to economic issues, paying a bit more attention to cleansers and conditioners, may keep our healthier.
- Keep your moisture up – Normal moisture content for follicles is about 8%. Below that you will experience dryness and lack of control. While inexpensive shampoos are especially appealing when you walk down the Wal-Mart beauty aisle, consider many products may not give your hair the nutrition and hydration necessary for prolonged health. A more expensive shampoo is generally that way for a reason. Most manufacturers price their products competitively. Excessive pricing is generally a result of either packaging or marketing. Find a manufacturer where you can buy “direct” and you will usually find the best products at the best price.
- Conditioners help (a lot) – Many conditioners can help repair damage as well as provide protection. Most of us have just gotten back from Spring Break – so, we probably have been in the sun, ocean or possibly on the slopes. UVA/UVB damage combined with Chlorine from pools or salt water can dry out locks and make styling pretty difficult. Again, the best conditioners are generally pretty expensive, but they are best because of the ingredients. Emu Oil, Jojoba Oil, Panthenol and various proteins proven to moisturize and improve control are top of the line ingredients used by manufacturers – because they work.
While more expensive products are not a panacea, they tend to last longer, require less application, and are best at improving scalp and follicle health. In a time where we are all watching our pennies, a little investment in hair care can reduce costs in the short and long run.
Tags: conditioners, hair damage, Hair Products, healthy hair, inexpensive, recession, Shampoo, shampoos, spend less
Category: Controlling Hair Care Costs, Damage, Hair Care Products
