Selling Your Own Products Is So Much Better Than Selling Retail
June 5, 2023
If selling retail is already boosting your profits, why should you start your own product line? Great question! You hear from beauty schools and business coaches that strong retail sales are essential to success, and they are right! But thinking that the only option is to sell someone else's brand is outdated. The industry has changed fast. High-quality private label products with no minimum order are now available. Starting your own product line is now a straightforward and affordable upgrade over selling retail. By not selling your own products, you are missing out on a huge opportunity. Here are the 3 biggest reasons why.
1. Don’t Let Other Brands Steal Your Customers!
When you sell someone else's retail products, you become a marketing channel for their brand. Selling your own products means that the time, effort, and energy that you put into marketing and selling the products builds your brand instead of someone else's. You don’t need to go cold turkey on selling retail, but you can give yourself space to do something for your own brand. Your customers come to you because you have put in the time and energy to build a relationship with them so don’t just give the benefits of that relationship away to another brand.
2. Way Higher Margins
One of the biggest advantages of selling your own products is that your profit margins will be much higher. Our clients generally see margins of 150% to 400% and above. This means more profit for your business, without charging your customers per product. Retail products are very expensive - even at wholesale prices - which cuts into your profit and makes ordering inventory overly pricey. Sourcing your own products is far less expensive since you are not paying for someone else's profits. This leaves you with more income, while selling the same amount.
3. Make a Passive Income.
As discussed in reason #2, when you sell your own private label brand, the higher margins make you more money without more time or effort. However, that is just the tip of the iceberg. Carrying your own product line allows you to bring in passive income. Once you have established your line with your own customers, you can then grow your line by selling your products online. By selling your products to your customers first, you will be able to expand your brand through word of mouth - clients recommend quality products to their friends and family - and you will be able to collect 5 star reviews, which is important for selling online.
But wait! Can’t you sell online with retail? Of course! But retail products aren’t exclusive to you, so customers will start to shop around for the lowest price for that product - something that is very easy to do online. You can even lose those customers to competitors selling the same product for $1 less. This isn’t something that happens when you carry your own product line!
Many of our clients will then also expand by selling their products through other beauty businesses. Adding another clinic can double your product sales, but it’s someone else’s time and effort that goes into that sale, not yours! This gives you the opportunity to add significant income to your business that doesn’t demand more of your time.
Conclusion
The benefits of starting your own product line are huge. You get to build your brand and make WAY MORE money, without putting in more time. You also have the ability to use your product line to generate passive income. If your retail is selling well, then switching to private label will make you more money with the same amount of effort and will have the ability to generate passive income.
Imagine sitting on the beach, sipping a pina colada, all while your product line at home is piling up the money being sold by other businesses and online. None of your time is required!
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