Private Label
Do you need your own product line?
By Millie Haynam
Originally published in Skin Deep, November/December 2009. Copyright 2009. Associated Skin Care Professionals. All right reserved.
Spa co-owner Ela Molczan of Allure Day Spa & Hair Design in New York City did not set out to develop her own product line. As she tried line after line of professional products, she discovered something lacking in every one. Her passion for skin care drove her to develop a holistic skin care approach that promises lasting youth and beauty. She says clients drive from all over the state to purchase it.
Is private label skin care the right choice for you and your practice? More and more spas are adopting this profitable alternative to what they see as cookie-cutter brands. Some are reaping huge rewards.
Mass Competition
What was once a private network of professional products sold in professional settings is quickly changing. The crisp line between professional and retail products is disappearing. Global marketing and Internet access have afforded the mass distribution of products to the general public. High-end brands are available to your clients at all hours of the day and night and in beauty stores such as Sephora. Your retail business is being watered down as more retailers fight for client dollars. If you are tired of this battle, developing your own brand might be your best strategy. Your clients already trust you with their skin. Your professional recommendation has a huge influence on their purchasing decisions. Your own skin care line is the ultimate professional recommendation. These products can build loyalty as well as retention.
Homework is Key
There are several ways to go about developing your own line. Look at the lines you carry now and identify the top sellers. Identify your ideal retail client. Following your salon's "brand" helps determine what your product line should include. If your salon caters to baby boomers, you will want to consider an antiaging line. Have a natural theme? Many private label manufacturers have botanicals and organic ingredients.
There are many resources available for developing your private label skin care line. The Internet is a great place to start: search "private label skin care." Do your homework. Pore over company brochures, ask for samples, and call with several questions to assess customer service. Are they friendly and prompt? Do they get back to you in a timely manner with your needs fully met? This will be a very important business relationship, so make sure to thoroughly check out your partner. Make sure to read the fine print. Many companies have minimum orders and these can be financially prohibitive. Be prepared for the long haul. When you go to sign on the dotted line, make sure your supplier understands your business, your consumer, and your concerns.
Attention to Detail
Melissa Blayton of Independence, Missouri, was simply trying to meet her own needs for product when she began developing what became BE Cosmetics. As a licensed barber (the legal term), she had always loved makeup and soon found herself a retail manager behind the cosmetic counter for some very high-end lines. She became frustrated by other staffers when clients did not receive the same passionate experience and individualized attention she provided. The solution for Blayton was developing her own line and creating passion from the ground up. Striking out on her own as a professional makeup artist and photo stylist, Blayton used her beauty background to guide her product development.
Working with a chemist was the first step in her research. Blayton knew cosmetics and which ingredients were going to give her the performance she demanded. What she didn't know in manufacturing, she quickly made up for with her attention to detail. It took about two years of research, trial, error, and fun, she says, to really get it off the ground. She freely admits she was selfish in developing a line for her needs as an artist and the needs of her clients as expressed by their direct feedback. Blayton discovered a need and filled that need. Despite the economy, she thought: "How can I start my own business, but how can I not?"
Today, her following includes the Kansas City Chiefs cheerleaders with whom she has a National Football League contract as a makeup artist. "I started with this really cool line that I could share with my clients," she says. "Now it's growing."
Weigh the Costs
Blayton advises others to be firm in their direction before beginning because there are so many different directions you can take. "Companies tend to try and talk you into more," she says. Trademarking and legal fees can cost more than $5,000. Testing can be incredibly expensive. "It's worth it, you just have to be patient and try not to do too much at one time," she says. "Taking time to enjoy the ride has been amazing." While her line was first intended only to complement her professional makeup artistry, the fact that it has become a money maker is all the sweeter.
Linda Orsuto, owner of 800 West Salon & Spa in Marlton, New Jersey, was driven by a different set of circumstances in developing her own line. She didn't have a private label brand on her radar until she ran into an old friend at a trade show. Ironically, Orsuto had filled, labeled, and shipped bottles and jars in this friend's kitchen when she was a teen, as he was just beginning his business. It's now one of the largest manufacturers in the country. This chance meeting sparked her interest in developing her own line for her salon. As she watched her back-bar costs skyrocketing and her margins for retail profits getting smaller and smaller, she decided to pursue a private label brand with her old friend and employer. She was having challenges with her staff as she discovered too many high-end products were being used in "express" facials and began researching a private label line for the back bar. Taking along a lead esthetician, she went to a manufacturer and did a
feel-and-sniff test. Evaluating stock products and specific ingredients, Orsuto began choosing her go-to ingredients and favorite aromas to develop the line. To get the rest of her estheticians on board, an educator from the manufacturer introduced the products to the rest of the staff. "You don't want too many opinions," she says. "The staff really didn't pooh-pooh any of them."
Orsuto has made a conservative start with 12 retail products. She started with cleansers and toners, eventually replacing masks, while making sure she did not sacrifice product quality as she reduced costs. Packaging and label costs have come down considerably.
The feedback has been tremendous. "The staff is dying to sell the hydrating serum," she says. Orsuto admits she's had it easier than some might because of her manufacturer's convenient location and their positive working relationship. They are helping her market her new line. She has found it to be well worth the effort.
Research shows that by 2010, the skin care market in the United States will reach an unparalleled $7 billion. Euromonitor International predicts an 8 percent annual growth rate in antiaging facial products over the next five years. That's more than twice the predicted gain in the overall cosmetics and toiletries market. The time has never been better to develop your dream line. With the proper research, testing, and sampling, your new line could be the best investment you make this year.
Millie Haynam is an author, industry consultant, and speaker. She owns the award-winning Natural Beauty Salon & Academy in Solon, Ohio. Catch up with Haynam at one of her classes listed at www.milliehaynam.com.
Spa co-owner Ela Molczan of Allure Day Spa & Hair Design in New York City did not set out to develop her own product line. As she tried line after line of professional products, she discovered something lacking in every one. Her passion for skin care drove her to develop a holistic skin care approach that promises lasting youth and beauty. She says clients drive from all over the state to purchase it.
Is private label skin care the right choice for you and your practice? More and more spas are adopting this profitable alternative to what they see as cookie-cutter brands. Some are reaping huge rewards.
Mass Competition
What was once a private network of professional products sold in professional settings is quickly changing. The crisp line between professional and retail products is disappearing. Global marketing and Internet access have afforded the mass distribution of products to the general public. High-end brands are available to your clients at all hours of the day and night and in beauty stores such as Sephora. Your retail business is being watered down as more retailers fight for client dollars. If you are tired of this battle, developing your own brand might be your best strategy. Your clients already trust you with their skin. Your professional recommendation has a huge influence on their purchasing decisions. Your own skin care line is the ultimate professional recommendation. These products can build loyalty as well as retention.
Homework is Key
There are several ways to go about developing your own line. Look at the lines you carry now and identify the top sellers. Identify your ideal retail client. Following your salon's "brand" helps determine what your product line should include. If your salon caters to baby boomers, you will want to consider an antiaging line. Have a natural theme? Many private label manufacturers have botanicals and organic ingredients.
There are many resources available for developing your private label skin care line. The Internet is a great place to start: search "private label skin care." Do your homework. Pore over company brochures, ask for samples, and call with several questions to assess customer service. Are they friendly and prompt? Do they get back to you in a timely manner with your needs fully met? This will be a very important business relationship, so make sure to thoroughly check out your partner. Make sure to read the fine print. Many companies have minimum orders and these can be financially prohibitive. Be prepared for the long haul. When you go to sign on the dotted line, make sure your supplier understands your business, your consumer, and your concerns.
Attention to Detail
Melissa Blayton of Independence, Missouri, was simply trying to meet her own needs for product when she began developing what became BE Cosmetics. As a licensed barber (the legal term), she had always loved makeup and soon found herself a retail manager behind the cosmetic counter for some very high-end lines. She became frustrated by other staffers when clients did not receive the same passionate experience and individualized attention she provided. The solution for Blayton was developing her own line and creating passion from the ground up. Striking out on her own as a professional makeup artist and photo stylist, Blayton used her beauty background to guide her product development.
Working with a chemist was the first step in her research. Blayton knew cosmetics and which ingredients were going to give her the performance she demanded. What she didn't know in manufacturing, she quickly made up for with her attention to detail. It took about two years of research, trial, error, and fun, she says, to really get it off the ground. She freely admits she was selfish in developing a line for her needs as an artist and the needs of her clients as expressed by their direct feedback. Blayton discovered a need and filled that need. Despite the economy, she thought: "How can I start my own business, but how can I not?"
Today, her following includes the Kansas City Chiefs cheerleaders with whom she has a National Football League contract as a makeup artist. "I started with this really cool line that I could share with my clients," she says. "Now it's growing."
Weigh the Costs
Blayton advises others to be firm in their direction before beginning because there are so many different directions you can take. "Companies tend to try and talk you into more," she says. Trademarking and legal fees can cost more than $5,000. Testing can be incredibly expensive. "It's worth it, you just have to be patient and try not to do too much at one time," she says. "Taking time to enjoy the ride has been amazing." While her line was first intended only to complement her professional makeup artistry, the fact that it has become a money maker is all the sweeter.
Linda Orsuto, owner of 800 West Salon & Spa in Marlton, New Jersey, was driven by a different set of circumstances in developing her own line. She didn't have a private label brand on her radar until she ran into an old friend at a trade show. Ironically, Orsuto had filled, labeled, and shipped bottles and jars in this friend's kitchen when she was a teen, as he was just beginning his business. It's now one of the largest manufacturers in the country. This chance meeting sparked her interest in developing her own line for her salon. As she watched her back-bar costs skyrocketing and her margins for retail profits getting smaller and smaller, she decided to pursue a private label brand with her old friend and employer. She was having challenges with her staff as she discovered too many high-end products were being used in "express" facials and began researching a private label line for the back bar. Taking along a lead esthetician, she went to a manufacturer and did a
feel-and-sniff test. Evaluating stock products and specific ingredients, Orsuto began choosing her go-to ingredients and favorite aromas to develop the line. To get the rest of her estheticians on board, an educator from the manufacturer introduced the products to the rest of the staff. "You don't want too many opinions," she says. "The staff really didn't pooh-pooh any of them."
Orsuto has made a conservative start with 12 retail products. She started with cleansers and toners, eventually replacing masks, while making sure she did not sacrifice product quality as she reduced costs. Packaging and label costs have come down considerably.
The feedback has been tremendous. "The staff is dying to sell the hydrating serum," she says. Orsuto admits she's had it easier than some might because of her manufacturer's convenient location and their positive working relationship. They are helping her market her new line. She has found it to be well worth the effort.
Research shows that by 2010, the skin care market in the United States will reach an unparalleled $7 billion. Euromonitor International predicts an 8 percent annual growth rate in antiaging facial products over the next five years. That's more than twice the predicted gain in the overall cosmetics and toiletries market. The time has never been better to develop your dream line. With the proper research, testing, and sampling, your new line could be the best investment you make this year.
Millie Haynam is an author, industry consultant, and speaker. She owns the award-winning Natural Beauty Salon & Academy in Solon, Ohio. Catch up with Haynam at one of her classes listed at www.milliehaynam.com.
