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Owners point of view

Written by Spa Beauty NZ on August 29th, 2018.      0 comments

As owners we choose our brands based on our Visions, philosophies and values, we commit to our brands from day one, and why wouldn’t we?

As we all know stocking a skincare brand is not a cheap exercise, we need to ensure that we have researched the brand, that we feel aligned with the company that distributes the brand, as well as the parent company. An outlay which is paid upfront can be anywhere from $8-12,000.00, reflective of your clinic and spa size, and retail space.

The investment we make is not just paying for the stock, it is also time invested in training our staff, educating our clients, and marketing the skin care brand to our market. So, when we make this decision we need to be very sure that this is the brand and company that we want to work with to establish a long-lasting business relationship.

We need to ask the questions…..

What will this company provide me?
  1. Professional, respective business relationship
  2. Loyalty and trust
  3. Exclusivity within so many km
  4. Regular communication, in e-newsletters, etc.
  5. Actively market their brands to the end consumer
  6. Personalised marketing plans, monthly, quarterly that benefit us not their excess stock.
  7. Monthly On-site education
  8. Training programs and staff incentives
  9. Business support
  10. Point of sale material, incl. of samples and testers
  11. Brand growth but not excessive constant replacements
  12. Inventory reliability, stock on hand not consistent out of stock items.
  13. Customer service, returns policies, money back guarantee ongoing support.
  14. Events/conference platforms
The market in New Zealand seems saturated with skincare brands, many have been here for years, in fact this year alone, we are hearing distributors celebrating their existence of ranges for 20 and 30 years within NZ. These are great milestones and these companies obviously have strong foundations as they are still distributing within NZ.

When we make the decision, we need to know we can trust the distributor to professionally support us in our business to the best of their ability. There are a few cowboys out there that only see dollar signs, a sale is a sale, buy my stock, and I’ll see you later. You go to place your next order and guess what, out of stock!!

We ask for loyalty from our distributor, you better believe that they ask for it too, it’s important that at all times that there is a strong presence of the skincare range within your clinic or spa, this should be what all business owners do naturally as it’s hard to sell skincare if there is none on the shelves.

When can we expect exclusive rights to our skin care brand? When is it ok for the distributor to place their skin care range down the road at a competitor?

There are two sides of course to this question, as owners we need to be an active ambassador of brands to expect exclusivity, this includes consistent re-ordering.

In my experience with dealing with distributors, the conversation should be prior to taking on their skin care range, in fact most distributors should have exclusivity policy within their business plan. Its simple, they are either going to offer it or they are not.

If they chose to not offer it, then you should be told prior to purchasing, even if this is the case we would all believe that the distributor would respect its business partner enough not to put their range too close to you?? Isn’t that called respect, and professionalism?

If they offer it, there will be no doubt requirements that will need to be followed to receive exclusive rights.
  • Start-up package, minimum set amount $.
  • Start-up package inclusive of retail and professional stock
  • Consistent monthly dollar reorder spends
  • Excellent credit rating
  • Professional brand ambassadors
  • Consistent involvement in education

Can the distributors expect the below?
  • Yearly growth in sales
  • Their brand exclusive, no additional brands
  • Involvement in all education events and conferences
  • Acceptance and buy in to every monthly marketing promotion
I believe the above four requests need to be flexible, and not have the expectation of must do!

So, what if the distributors choose to put their brand in a clinic down the road? As small business owners, can we fight off the big players? As in the clinics that have buying power as they have multiple spas, should they have exclusive preference over us?

What do we expect? firstly a conversation, well and truly prior to any agreement, as this is respectful and professional!

What if we were given exclusive rights, with no clear must dos, and then we get notified the clinic down the road is being given our brand? can we fight it? I think if this happens you probably have an insight that the distributor does not respect your business partnership. For them to forge ahead with your competitor is just disrespectful.

Question…..Do you keep the brand?, or do you throw it out??? A future discussion….
Topics: Business
 

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