Selling the Scent? Why NOBODY does that!

Suppose you had a fragrance to sell -- a fragrance you created and had a very good feeling about -- suppose you had this great fragrance to sell ... and NO fancy packaging. None. How, then, would you go about selling your fragrance?

It is hard to even imagine being in this position. It is hard to think of a perfume stripped of its packaging. Perhaps the last person to pull off this trick was Gabrielle Chanel -- in 1921. But, then again, her No.5 is still a best seller.

And this leads me to believe that it could be done -- selling a new, wonderful fragrance without any "push" from a beautifully designed package. But how would you go about doing it? Oh, and did I forget to mention? This is to be an expensive perfume!

Notice how hard it is to think of a perfume without its packaging. Notice how badly we want to connect the perfume with a "celebrity" or with some tangible, physical presence that is NOT the scent itself. Notice how lame major advertising is for a fragrance when the issue of words arises.

Tresor? "love is a treasure" -- but what does it smell like? My Insolence? "dare to be yourself" -- but the perfume??? Euphoria? "live the dream" -- but what will I smell when I open the bottle? Armani Code? "the secret code of women" -- code? What code? And on it goes.

The issue of the fragrance -- the scent -- is ignored because the advertisers haven't a clue as to how to write about it in a compelling manner. Is this an inherent problem with the fragrance of a perfume or is it simply a lack of advertising skill on the part of the advertisers?

Is fragrance -- the scent of the liquid in the bottle -- really so intangible that it can't be described?

Food advertisers seem to have no trouble talking about the contents of their packages. Is this simply because we are more familiar with the taste of lemon, sugar, cranberry, tomato juice, chocolate chip cookies, tangerines, mangoes -- for example? But is our familiarity with these tastes the result of them being talked about? Has our talk made the taste of these foods seem less abstract? Suppose we talked more about the scents of perfumes. Would it then, in time, become easier to write about new perfumes by describing their aromas? Is this just a part of our language which is not well developed (and not likely to become well developed, if perfume advertisers continue to shun the topic!)

Getting back to our expensive perfume without a packaging budget (or a celebrity!) ... is there some creative solution -- creative breakthrough, actually -- that would allow us to sell it successfully?

I feel confident that a solution can -- and will -- be found. And that it will be the beginning of the next big creative wave in perfume marketing.

Pricing A New Fragrance For Men

I am awaiting delivery of a new perfume compound -- a men's fragrance which I will market as a "cologne," even though it will be perfume strength by its use of alcohol.

I have always tended to "cheat" a bit when it comes to deciding the ratio of compound to alcohol for a men's product. Fillers sometimes complain but customers appreciate the fact that my fragrances are "long lasting," which surprises them because most men's fragrances are not.

Being generous with quality is good business but let's get right down to the big issue -- packaging and pricing.

I am assuming that my new male fragrance will be a "hit." It was intended for a special audience -- not the mass market -- and I'm hoping that those for whom it was intended will like it enough to give me repeat orders. I will offer samples to let them try it first. Men who like a fragrance (teenagers excepted) tend to wear it for many years. Teen guys are still experimenting, exploring "mass" taste, finding their own taste, and they can be a very fickle market, just like teen girls.

But lets assume in advance that my new project will be a hit. Let's focus on the really big issue -- packaging -- which is the issue which will determine the price I can charge.

While I would like to think that my fragrance is so spectacular that it, alone, will draw orders, the reality is that most sales will be closed by the credibility of the packaging. If I have "nice" package, I can charge more. If my packaging is less distinguished, I'll have to settle for less. But I have two big problems here -- first, I am not a package designer, and secondly, I am planning to fill at most a few hundred bottles of my new fragrance and I don't want to offer this product for sale unless I can sell it at a profit.

Does this "problem" sound familiar?

Frankly, I don't know a graphic designer I could both afford and trust with the project. I'm sure that if I had more money to spend I could find one but my "account" isn't sizable enough to attract designers who will give me highly professional presentations "on spec." That's the current reality.

Then there is the issue of quantity. Printers have minimum runs. I have yet to find a "stock" box that fits my needs nicely so any box or tube would have to be "custom" -- which means a minimum order in excess of 1,000 units -- or perhaps even 5,000 -- even though I might only want from 100 to 500.

Now for this project there is an additional "complication." I am planning to offer my new fragrance in three different sizes -- sampler size, a 50ml "sprinkler neck" bottle (no spray pump), and (possibly!) a rather nice 100ml bottle with a glass stopper (which will cost me an arm and a leg!)

So now you see my limits and my ambition. How would YOU deal with the pricing? It is, after all, critical to the success of the project.

There must be a consistency in my pricing structure. When measured on a "per milliliters of fragrance" basis, my sampler has to be the most expensive and my middle size "ordinary" bottle has to be the least expensive. The large, exotic bottle can command a premium price due to its unusual beauty.

So let's look at some possible pricing.

Suppose I decide to price my big, beautiful, 100ml bottle at $240. Ignoring the cost of the bottle and packaging, that puts the price of the fragrance at $2.40 per milliliter.

Now let's address the price to be charged for samples. I plan to use a 3ml spray vial here. I have them in stock already. So if the price of the fragrance in my sample were to match the price of the fragrance in my big bottle, the sample would be priced at $7.20.

But I don't believe that a single sample vial will be large enough to "hook" new customers on my cologne. So I'll want to deliver a package with two sample vials. That brings it to $14.20. By rounding this UP to $15.00 I have now made the fragrance in the sample MORE EXPENSIVE than the fragrance in the "big bottle."

The reason I want to do this is simple. If people really WANT my cologne, I don't want them to be able to save money by buying lots of cheap samples in lieu of regular size bottles. Hence, my samples aren't going to be cheap -- they are simply a way for the customer to make a more affordable TEST of my new fragrance.

Now let's get real about $240 bottles. How many do I really expect to sell? Truthfully? Not many.

My big hope is for a bottle with an intermediate price. As it happens, I have a generous supply of 50ml sprinkler neck bottles on hand along with caps for them. These bottles and caps were acquired at a favorable price so, if I can sell my new cologne in these bottles, I can make a handsome profit. How, now, should I price my 50ml bottles?

At our original number, $2.40/ml, the 50ml bottle would be priced at $120.00. But this isn't a fancy bottle so I can charge less. But I want to keep the price "premium" so I'm not going to try and match the prices of men's fragrances at the mall. (While the packaging of these mass market fragrances may be far more expensive than mine, and while they have been created by perfumers with far more experience and talent than mine, my compound uses far more expensive ingredients than theirs AND the scent of my new fragrance would never make it in the "mass market" as it would be far too controversial for most men, far too "far out," far too "edgy.")

So on the one end of the scale, I have a top price of $120 and on the other end of the scale, a "mall price" of say, $45. I want to be in the middle so I'm going to go with $85.00.

Now ask, "why not $84.99?" Or even $79.99? To boost sales by giving a perception of a lower price.

The answer is simple. I don't want the perception of a lower price! I want the perception of "this IS the price. If you can't afford it, it isn't for you." Yes, I want a price that says, "My fragrance is for those who can pay the necessary price. Take it or leave it. And, if you leave it, it is probably because you can't afford it ... and I didn't make it for people like you. Sorry, go out and get rich like my real customers. Then buy my fragrance."

As I write this, the compound for this new fragrance is in transit to me from the people to who were entrusted to make it from the formula I gave them. The alcohol I will be using is already here. When the compound arrives, there is the business of mixing the compound with alcohol. Then it all sits for a while and gets nicely mixed. Then the bottling begins.

If you want to follow the progress of this men's fragrance which has not yet been named, go to this web page where it will be offered for sale. The samples should be available around May 30th, 2008. Now here's that link:

http://www.FrankBush.com/mens_originals/xm_001.php

Why you MUST develop the ability to sell

Two days ago I was talking to a customer who was working on the packaging for a new perfume, having learned to sell perfume successfully. He asked me about my own sales and I told him candidly that, at present, I am more interested in learning to make perfume than to sell it, although I have several fragrances for sale at one of my websites, and I "give away" a growing amount of perfume with the books I sell, as examples of what can be done with a very limited budget.

But getting back to selling. SALES are the difference between a hobby and a business. To be in business -- any business -- you have to develop the ability to make sales.

SELLING is a skill that can be LEARNED. That is why giant corporations run training sessions for their sales STAFF. If they relied on the ability of a handful of "naturals," they could not do business on the scale they do.

Once acquired, the skill of selling works equally well in good times and in bad. In a down economy, it is interesting to see who is doing the most advertising and selling. You can't be in business if you stop putting substantial attention on sales!

Today there are more opportunities than ever to make money with perfume. But SELLING is involved. And selling -- successful selling -- involves creative thinking about products and markets and the ART of perfumery.

Today the raw materials of perfumery, the raw materials of packaging, and the "raw materials" of sales promotion are available to ANYONE who can put together a few thousand dollars in capital. Five thousand dollars can be a GIANT budget for the independent perfumer, more than enough to get the product and the message out there.

So what do you REALLY need to make sales in your own perfume business? Start with perfume -- a perfume that grabs you ... and others -- add PACKAGING -- packaging which is APPROPRIATE for the people to whom you want to make sales (and cost-effective for you!) -- and finally you need PEOPLE -- people who will buy your fragrance, because you have sold it to them.

That is a business and it can be very profitable. If you understand the importance of developing YOUR OWN ability to make sales!

5 Day Perfumery Course In New York City, May 5-9, 2008

Greetings --

This may be considered a "commercial" announcement but I believe that it is important to independent perfumers who are looking for new ideas, informations and contacts. Hence, I have reproduced our recent press for a 5-day perfumery course in New York City that we are co-sponsoring:

=========

For Immediate Release:

Maybrook, NY, May 10th, 2008 -- How often do fragrance, fashion, beauty biz professionals, and business owners have the chance to roll up their sleeves, reach for bottles of aroma chemicals, and work "hands on" at creating a perfume of their own?

This May 5th through May 9th a select group of industry insiders will have the opportunity to become students again when iconoclastic British perfumer, Stephen V. Dowthwaite, brings his 5-day "The Art and Technology of Perfumery" immersion course to New York City. Students will observe and take notes as Dowthwaite creates an original perfume and answers all questions concerning the process. Then, in afternoon sessions, they will create their own individual fragrances which will be completed by day four of the course.

If this sounds impossible, look to the results achieved by 42 youngsters, age 10-18, who recently took Dowthwaite's course at Harrow International School. After just six hours of training in smelling techniques, odor classification and basic fragrance creation, each had created their own personal fragrance, working from their own personal perfume brief.

Far from being a weapon to destroy the perfume industry, Dowthwaite's perfumery training courses give students a greater appreciation of both perfume and the work of perfumers. Dowthwaite believes that perfumery -- like art and music -- is a creative form that can and should be enjoyed by a far wider range of men and women than those selected for salaried positions in industry.

And -- good news for the fragrance industry -- Dowthwaite's students are far more likely to build vast personal libraries of new fragrances than the average man or woman.

Besides "hands on" creation, the course will cover a range of technical and aesthetic issues including aromatherapy and spa theory, perfume applications including cosmetics and toiletries, cosmetics ingredients, perfuming for functional products, dealing with perfume inquiries, marketing the language of smell, product trouble shooting, quality control, safety, standardization and packaging.

On May 7th, Hugues Thibaud, head of of O.Berk's luxury packaging group, will be explain the technology of semi-automatic bottle making which is now being used to produce custom and factice bottles in runs of less than 50 bottles. Thibaud's most recent project was a signed, limited edition set of decorative bottles created by legendary package designer, Pierre Dinand.

Dowthwaite, trained at Picot Laboratories in England, claims authorship to over 300 fragrances and flavors currently on the market. Based in Bangkok since 1989, Dowthwaite helped launch Thailand's first perfume compounding facility and currently consults for all three of Thailand's major fragrance houses. He is also a consultant to Thailand's National Science and Technical Development Agency and has been teaching perfumery at the university level and to private students since the early 1990's.

Attendance is limited to fifty. Advance registration is required. The course is sponsored jointly by PerfumersWorld, Ltd. (PerfumersWorld.com) and Lightyears, Inc. (PerfumeProjects.com)

For more course details and registration information, visit www.PerfumeProjects.com.

"The retail price of a bottle of perfume is largely determined by the environment in which it is sold."

One of the first lessons I was taught in the mail order business -- lifetimes ago, so it seems -- is that the retail price of any particular item should be the price at which profit is maximized.

Sometimes profit is maximized by keeping the retail price low and selling in volume; other times the price is maximized by restraining volume and pumping up the price.

In the mail order business, as it existed in the days of old, the optimum price could be determined by "price testing." Ads were run offering the identical item at several different prices. Then, analyzing sales volume, merchandise cost and advertising expense for each of the test cells, the most PROFITABLE retail price could be determined. From that point on, the item would be sold at that price.

Notice that, in this model, setting the price has nothing to do with the COST of the item. In fact, the most profitable price could be one at which the item is sold at a LOSS, although I hope this never happens to you.

This method of pricing ignores the concept of a "standard" markup, be it 3 time cost, 5 times cost or even 10 times cost. Instead, the retail price is set based on
CONSUMER BEHAVIOR.

Now how does this apply to perfume?

What does a buyer EXPECT to pay for a bottle of perfume?

Think quick. If you see a perfume in a dollar store, what do you expect to pay for it? Certainly not $45. No, you expect to pay ONE DOLLAR. Conversely, it you saw a bottle of perfume priced at one dollar in Saks, Bloomingdales or Neiman-Marcus, you would ask, "What's the gimmick?" The price would not seem right. If you saw a one-ounce bottle of Chanel No.5 EDP in WalMart's prices at an "everyday low price" of $145 -- you would ask, "What is Chanel No.5 doing in WalMart?" because you might feel that something about this bottle and price was "not right" -- "not right for regular WalMart shoppers because regular WalMart shoppers don't buy real Chanel No.5; "not right" for anyone else because they would question how WalMart happened to have obtained a Chanel perfume.

The simple truth is, the perfume buyer goes into a particular store EXPECTING to find perfume prices within a certain RANGE. The more desirable -- "hot, new" -- fragrances can be expected to be at the high end of this range, the proven standbys in the middle, and perhaps a few "economy" fragrances at the lower end. But the buyer HAS a price range in mind for ALL of the store's offerings and a fragrance prices outside of this range will seem "wrong" -- and will be harder, or even impossible, for the store to sell.

The cost of making your perfume

When a major fragrance marketer plans a new fragrance, the FIRST step in the process is to determine a retail price point. From there, an acceptable manufacturing COST can be determined, based on the margin the manufacturer wants for this product. (Major fragrance marketers DO NOT "price test" in the way mail order people once did, but they do have huge amounts of accumulated data on what consumers have been willing to pay in the past for particular fragrances.)

For the creative perfumer, the fragrance itself comes first and cost is secondary. Big companies rein in this tendency. The small, independent perfumer is not so constrained but this lack of constraint can cause problems by allowing the perfumer to build a fragrance that costs more to produce than it can fetch at retail.

So you, the independent perfumer -- just like the mass market perfumer -- MUST give consideration to the retail price that your creation can reasonably fetch -- and build your formula accordingly.

This issue is particularly important for independent perfumes who use a lot of NATURAL materials in their compositions as these can pile on the costs VERY quickly.

The selling environment

Where are you going to sell your perfume? What kind of retail outlet? Let's look at the LEAST likely first.

A Website -- IF you are mad enough to think you can make money selling your fragrances on a website, the "aura" you create for that website will largely determine what price you will be able to get for your fragrance, assuming you are ABLE to sell it at all on the internet -- which is a tough proposition, so don't give up your daytime job!

"Fancy graphics" are necessarily the component needed to create the aura needed to sell perfume at $85 an ounce and up. Remember how Chanel build a perfume empire stressing SIMPLICITY -- but also by stressing Chanel!

How you create a website aura that will allow you to get the price you want ... is YOUR problem to work out. But unless you can do it, forget trying to make money selling your perfume "web only."

A retail boutique -- IF you are really into it, with money to burn, you might try your own retail boutique. A few companies have done it; none too successfully. Giorgio tried it in New York, as did Helena Rubinstein (for her husband!) If you own your own store and have lots of money, you can create whatever retail environment you want. The danger is you won't be able to sell enough of your perfume to cover your expenses.

Somebody else's retail store -- Most people making their own perfume at least HOPE they will be able to retail it through someone's existing store. THE BIG FANTASY for some is that the fragrance will become a huge hit and be taken in by a major retailer. I know of NO instance where this has ever happened. Coty, Estee Lauder, Gale and Fred Hayman all came close to this ideal but none of them opened the doors to major retail sales outlets by simply having a "good" fragrance. Each of them engaged in a LOT of selling!

A more realistic approach is to deal with stores -- boutiques -- where you feel comfortable shopping and where you feel comfortable working out a deal with the store's buyer. Buyers know their customers. They KNOW what customers want AND WHAT THEY WILL PAY. Assuming they are willing to give YOUR fragrance a shot, they know pretty well how to price it.

What this means is that the price for your perfume will be determined by the STORE ... not by you. If you've put your all natural fragrance into an eighty dollar bottle and the store says they can't price it above fifty-five dollars ... you've got a problem!

Conversely, if -- because of the selling environment of the store -- they want you to price your perfume at $135 ... you don't have to tell them that your cost comes to less than six dollars a bottle!

When we sold our first successful fragrance for $26.95, we didn't tell our customers that our cost to make it was less than $1.50 a bottle. (See our book, Creating Your Own Perfume With A 1700 Percent Markup!)

Website Essentials: Your NEXT product

A wise man once explained the secret of mail order (read "internet marketing") success to me: Before you put money into selling your FIRST product, have your SECOND product ready!

Let me explain. It's hard to make money with a business that has only one product to sell. It simple costs too much money to ACQUIRE a customer. The big profit is made in getting REPEAT SALES from a customer. The person who likes your first product is a very good candidate for your second product.

So if you don't have a second product, you've lost out on an opportunity. Your business struggles rather than flourishes.

If your "first" product is a perfume that took you a year to develop, can you afford to wait another year until you have a second perfume? Certainly this would slow down the growth of your business but, perhaps, you can find OTHER products that COMPLIMENT your perfume.

The classic line extension for a perfume is the soap, bath oil, linen spray, candle routine. But this is tricky as, not only does it involve a significant cash investment, it also requires a good deal of technical skill -- the skill of a cosmetic chemist perhaps. Going down this path may not be appealing to you.

But there are alternatives: scarves, costume jewelry, (somebody else's) soap and bath products -- items that can be purchased through normal, wholesale, "gift boutique" channels. You won't get the markup you might like on these products but you can buy them in small quantities and these other products -- if well selected -- can put the icing on your cake.

You might have a better idea for a "second" product -- but those "second products" will speed your way to business success.

How to succeed in marketing your own perfume

I once knew a not very good artist who, to my amazement, sent me an invitation to a show he was having at a prestige gallery. I went, out of curiosity, (the paintings were junk) and observed him making sales!

We can argue over tastes in art but the fact was he was a far better salesman than he was an artist. And this should give us all hope.

Creating a successful perfume is not easy. Just ask anyone at Estee Lauder, Elizabeth Arden, Inter Perfumes, IFF, Givaudan, Firmenich, or whoever. For every fragrance that "makes it" in the market place, an uncounted number die -- because they weren't "the right" fragrance at the right time and place, and because they were not SOLD successfully.

Yes, you can make profitable sales with a less than brilliant fragrance. If you couldn't, the perfume industry would be quite different than it is today.

Marketing people often don't have much choice about what they are called upon to sell. In advertising circles, the mantra is, "there are no dull products, only dull copywriters/artists/art directors."

The simple fact of business life is that you have to work with what you have ... sell what is in front of you ... generate a profit for your company from a product that might not be as great as what your competition is selling.

If you don't, your company will be out of business, your employees will be out on the street, and your spouse and children might start to wonder about you and your business sense.

Yes, you have to learn to sell what you have, to be enthusiastic about it, to find its good points, to find customers who can appreciate it, and convince them to pay you, not a "fair" price, but a price that allows your company (especially if it is a 1-person company!) to flourish.

BUT.

But while you are selling the perfume that you HAVE, the perfume that you have made already, it is essential that you keep working on your NEXT perfume, using the feedback (or lack if it!) gained from your current fragrance, working toward new fragrances rather than sitting idle.

I was recently reminded that, when Gabrielle "Coco" Chanel first tried to make a comeback in fashion, at the age of 70 after being out of the business for 16 years, her collection was a disaster. But when her financial backer tracked her down, she was already working on her NEXT collection. Which proved a huge success.

Life does not revolve around a single fragrance. As a perfume creator, you have the opportunity to create many scents. You don't know which of them might be your big breakthrough. But if you keep selling hard with what you've got, and keep developing new fragrances, there's a good chance that you will, in time, find yourself with a very good business.