Friday, August 7, 2009

A Random Business Plan To Sell Very Exclusive Perfume

How many times have you seen it happen. A struggling creator of handbags, dresses, jewelry, makeup ... or even PERFUME scores one celebrity client who brings in a few celebrity friends and soon it's all over the news (and the promotions for the lucky creative) and now THE PUBLIC, who have never shown the least interest in this person before, JUST HAVE TO HAVE the handbag, dress, jewelry, makeup .. or PERFUME that this person has created.

The money rolls in, the celebrities move on. The fame and fortune may or may not stick but either way, the creator rushes to make the creation as non-exclusive as possible. Perhaps there's even a deal with QVC.

But suppose the PERFUME (this is a blog about perfume after all) was -- and remained -- exclusive.

The business plan I am proposing here may sound a bit far fetched. And certainly I don't claim it to be "well thought out." But I offer it freely and, who knows? Perhaps the right person can find the right "adjustments" to make it a reality and thereby make money for themselves. You are welcome to try. Now here's the plan.

You start out struggling to sell the perfume you create. Nobody knows you. Nobody cares. But you manage to sell a bottle or two here and there, and you're crazy enough to keep at it, even though all your friends are putting big dollars into their retirement plans and you're still struggling to make your minimum monthly payments to MasterCard. Yes, you LOVE creating perfume!

Then one day somebody walks into your (perfume business) life who really LIKES one of the fragrances you've made. And this person is rich and famous. And, again, this person REALLY LIKES your perfume.

But this person DOES NOT want to be wearing the same fragrance thousands of other women are wearing. IF another woman is wearing this fragrance -- YOUR fragrance -- it had better be someone rich and famous. For all the lovely praise this new client is giving your perfume, she clues you that, if she is to continue to wear it, the fragrance MUST remain exclusive.

Up to this point your fragrance was "exclusive" only in the sense that you hardly had any customers. But now, thanks to the custom of this rich and famous person, you have an incredible opportunity to promote it from here to Walmart. But to do so will destroy any hope you might have had of selling to more who are rich and famous. What should you do?

Here, at long last, is my idea. Make your fragrance exclusive by limiting the number of people you sell it to. Say 100, tops.

Make it like a country club. Limited memberships. For one to be admitted, someone else must die or resign. Person 101 has to wait until one of your original one hundred no longer uses the fragrance.

Now clearly the mechanics of this proposal are not simple. How do you select the lucky one hundred? How to you deal with them? Clearly a commitment to buy more than a bottle or two of your fragrance will be required. I am NOT contemplating a situation where each bottle is so extravagantly priced that a single bottle yields great profit. But there needs to be some sort of "fee" system for membership in this elite group.

One possible way to do this would be to have two lines -- the exclusive line where only a limited number of people are allowed to purchase a particular perfume -- and another less exclusive line of fragrances that, while not cheap, were available to anyone with the money.

Think back to Studio 54 days in New York City. ANYONE could wait in line outside the club and hope to get in. But to get in, you had to be SELECTED. Many were not.

I recall that Picasso regularly withheld his works from sale in order to maintain the exclusivity of those he allowed his dealer to sell. He was a prolific creator and would have flooded the market had he allowed all of his works to be sold.

Selling "by appointment only" may be going a bit far for most of us (I hate making appointments) but the idea is certainly worthy of consideration.

But I think that my "100 Club" idea has some genuine potential in the right hands. Personally I have yet to develop a celebrity following so I still have time to think it over.

Meanwhile I'll continue to create perfume.

Wednesday, July 22, 2009

Getting the feedback you deserve for your perfume

If you are going to market a great perfume, you want others to talk about it. You want lots of people to talk about it, so that as many people as possible will know about it. The more people that know about it (if they hear about it in a positive light), the more people are likely to try it, and this results in sales for you.

I once had a friend whose father reviewed books for a leading newspaper. Periodically large boxes of books would arrive at their house and it was up to his father to read and review them. Judging from the number of books his father received -- and the amount of space the newspaper would give to reviews -- I would guess only a handful of those books got the full treatment. But for those that did get reviewed and whose reviews got published, I'm certain that these reviews boosted awareness of those titles and, no doubt, sales. Look at Oprah's Book Club.

As you are no doubt aware, there are today magazines and newspapers that publish reviews of perfumes. Although I don't pretend to know the exact mechanics of the business, it can be assumed that fragrance marketers shower reviewers with bottles of their latest perfumes in the hope that they will be favorably reviewed. It has also been "revealed" that certain "independent" bloggers receive outpourings from fragrance merchants and, in return, post appropriate comments.

But now let's look at the situation of the smallest of the small perfumeries -- operations like mine (Frank Bush) and perhaps yours. Speaking for myself (and you?), I don't have "connections" and -- in this year in particular, like almost everyone else -- I don't have (a lot of) money to throw at public relations and publicity. But I do have a strategy that I'm going to share with you, and I'd be willing to bet in advance it will be helpful in generating "talk" which, ultimately, will generate sales.

What I have done is simply to "create" a "Fragrance Evaluation Board" for my perfumes and masculine fragrances (I hate the term "colognes" for modern men's fragrances that bear no relationship to the colognes of the past, and most men wouldn't like to be told that they are wearing "perfume," even when they are.)

The way the Board works is quite simple. Anyone can ask to be included on my mailing list for the free -- yes FREE -- samples I send out when I feel the urge to get some WRITTEN feedback.

Of course when I send out samples, not everyone gets one because of the cost of mailing and the small number of samples I make up.

The deal is that, if you receive a sample, you are expected to email me your written review for it -- your HONEST, THOUGHTFUL review of course, even if your reaction to my fragrance is not entirely positive.

Just as there are people who cannot smell, there are people who cannot write, so they don't make good reviewers. Texting and tweets have not been kind to the fine art of English composition. Among those who receive samples and return reviews, it is necessary to discover those who are highly literate and can return meaningful commentaries on the perfumes in question. These then become candidates for ADDITIONAL free samples, while the less literate may be dropped to the bottom of the mailing list.

Beyond this, the best candidates for my Fragrance Evaluation Board are those who have their own web presence through a blog (or blogs) and/or social networking activity such as Facebook. Then, assuming that their reaction to my fragrance is positive, they have the ability to spread the word even farther and wider than they could through face to face contacts alone.

So there it is. The plan I've put into action. But I think this strategy could work for you too.

Saturday, July 4, 2009

Sample piled upon Sample

(My own sample strategy is found at the END of this article)

The surest way to get someone to buy your perfume is to let them try it and be overwhelmed by how its beauty is "so much like them." Yes, even if they LIKE what they smell there is no guarantee that they will buy it. But getting people to TRY what you are offering is the first step.

How do you get people to try your fragrance? If you are selling your fragrance through retail stores, you supply the stores with tester bottles and paper test blotters. In my experience I'd say that stores are often lax in keeping the tester bottles filled and available, and even worse at supplying paper test blotters. And probably worst of all is the mutual failure of marketer and retailer to IDENTIFY what is in each tester bottle. Often the consumer is left to guess. But at least, at the perfume counter of a store, there is some hope that your fragrance will get sampled.

Drawing customers to the perfume counters of retail stores is the second big issue. For the larger marketers it is done with magazine advertising and, in many cases, sample cards inserted into the magazine. This type of advertising requires a considerable budget. The ad pages alone are not cheap. Then add the cost of preparing samples -- and the graphics, including model fees, and you are into the millions. But even this is not enough. Today these ad pages serve only as a reminder that the fragrance is available. The real push for the new fragrance is through publicity events with the celebrity endorsing the fragrance, and what major marketers would dare to introduce a new fragrance today WITHOUT assistance from a recognized personality?

Now suppose you aren't a large fragrance marketer. Suppose you are starting your business by attempting to sell your perfume through one or a handful of small, carefully selected boutiques. There are two ways you could make a success of this. The first, and most likely to be profitable, is to build a buzz for your perfume in the communities where these retail stores are located. Your buzz will drive people to the stores where they will ASK for your fragrance as they are already "pre-sold." For the store owner, this is the ideal situation. On your part, it takes a good deal of energy and creativity and it helps if you are well known in your community or have teamed up with someone who is popular and well known.

The tougher alternative for selling your perfume in stores -- and less favored by store owners -- is for your entire promotional effort to be your in store, point of purchase, display.

Think about it. In this second scenario you are first competing for the customers attention with everything else in the shop. The customer did not come into the shop to buy perfume and particularly not to buy YOUR perfume. So you first have to attract attention, you then have to inspire an INTEREST in perfume, you then have to "sell" the customer on BUYING your perfume. This requires some clever marketing. It is a myth to think that just because you have PLACED your fragrance in stores, people will buy. They will not. They need a great deal of inspiration to push them over the edge and reach for their credit cards.

My Own Approach -- Outside The Mainstream

Mail order sales -- and now the internet -- have long been my specialty. I've never sold one of my own fragrances through retail stores. (I hope you aren't too disappointed to hear this.) Why do I (now) sell only online? Simply because I work alone, I have good systems to handle online orders (I've taken orders from just about every country you could think of, although not always for perfume), and it allows me to focus on what I WANT to focus on -- building a library of fragrances that I can take pride in, and building my online store, FrankBush.com.

But if you are selling online or through a mail order catalog, how do you get people to buy PERFUME? I won't kid you. It's not easy. But it can be done and, once you get it down, it can be nicely profitable.

Let's face it. Right now -- Summer of 2009 -- a good part of the world is struggling through a difficult economy. So what better time to offer MORE rather than less, to offer your BEST rather than the minimal. And that's what I've been doing.

Before leaving the office at the end of June for our summer house in Canada, I put together a "deal" at my website that offers "samples piled upon samples." I've been offering small, "tester" samples for some time but, although I'd worked at it, I was never full satisfied with the sample "deals." I think I worked too hard on the presentation of the samples and not enough on the "tremendous money savings" side of the offer which, let's face it, can be pretty compelling both in good times and in bad.

So what I've done has been to take TWO sample testers (I use a small spray tester) of each of my TOP women's fragrances, TWO small samples (sorry, these are smaller than originally intended -- looking back, I wish I had used larger sampler bottles) of each of my (two) original men's fragrances and then, after dumping all these samplers in a simple zip lock baggie (I was rushing to get away for the summer and didn't have time for "elegant"), I tossed in some ADDITIONAL samples of fragrances I am planning to discontinue (although some people really like them), and then I added a full size bottle (of a fragrance to be discontinued) to the offer. Wow!

This seemed a bit like overkill. Too much for too little. So I was about to stop there but then I got to thinking, wow, I have a NEW fragrance that people tell me they like but I haven't yet made available because I'm still doing some final "tweaks" on the formula. Why not throw THIS into the "sample bag" too? So I did -- but just ONE tester of it.

So that was it. A "??? dollar" value all for just "XXX" (plus shipping and handling, of course). Why did I do it? Because I WANT to 'spread the word' -- I WANT people to use my fragrances and talk about them and have others ask, "what's that wonderful fragrance you're wearing?" -- and it happens.

The cost of putting this "sample bag" together hasn't been an issue. Advertising dollars spent judiciously can provide bountiful returns. No, my only "regret" as I departed for the summer was that I didn't leave ENOUGH of these "sample bags" behind and my summer staff may be left short before I return to the office at the end of August when I am going to produce ... MORE!

Oh, yes, that number to call, again -- www.FrankBush.com. Check it out for yourself!

Saturday, June 20, 2009

Using social networks you don't yet know about

A woman phoned me the other day with a question about her perfume business. After a pleasant conversation (I tried to help her as best I could) I asked her to send me an email with a link to her website or whatever so I could find out a bit more about her and her perfumery work.

The email arrived. No website was listed. But, when I cranked her name into Google, all sorts of links popped up because she was actively using the internet in blogs and various social networking sites to talk about her background and perfumery work and make her creations known. This is great.

This week I made my own discovery about social networks: there are more social networks out there than you might think. Let me tell you what happened.

I have been reworking the copy and graphics on my FrankBush.com website, which is my retail store for the fragrances I create. In the distant past I had always used live models and original photography for my advertising but in recent years I had gotten away from that. Now I decided it was time to once again recruit models, shoot new photos, and use these pictures to build my new web pages.

For models -- since I'm located well outside of New York City -- I turned to our local Craigs List and advertised under "talent gigs." Craigs List is a great network in itself but one person who responded gave me a link to her portfolio at Model Mayhem, an international networking site for models, photographers, makeup artists, photo retouch artists, etc. I had never heard of it but I jumped.

In a short time I was showing MY portfolio on Model Mayhem while advertising for models on our local Craigs List.

I got the models I wanted -- some really great people -- but that wasn't the end of the story.

When you photograph someone for an ad they are always eager to see the ad when it comes out. I was moving pretty quickly on the new web pages for this project and notifying the models as the pages with their image were completed and posted. I knew THEY would want to see those pages. What had NOT occurred to me was that each of THEM had their own following and immediately, after seeing themselves in the ad, sent an email blast to all their friends and contacts -- other photographers who might use them in the future, client possibilities, and gosh only knows who else.

So the models became MESSENGERS, sending people to my website. Best still, since they are active daily in pursuing new assignments, they continue to send people to my FrankBush.com website so that people can see their picture in my ad pages. All of a sudden traffic on my site was increasing dramatically. (My web stats showed it was from the models.)

Now this blog is an effort at honesty in what REALLY happens when you go out to market a perfume so I'm going to share some inside information with you that you probably won't find elsewhere.

First, my "retail store" website does not (yet) draw a lot of traffic (although I've noticed that Microsoft's new Bing search engine pops it up pretty quickly). The traffic generated by the models was a big addition.

In the second place, traffic does not necessarily translate into sales. Getting people to your website is one thing. Getting them to buy from you is something else. Building traffic is essential for a website but, to make money from it, you've got to convert browsers into buyers and this -- quite frankly -- is neither easy nor automatic. It takes a good deal of thought and strategy.

But let's look forward a bit. What about all these models, friends of models and business connections of models? You KNOW a bit about the models because you have just worked with them. They TELL you about others they have worked with or hope to work with. So could this constitute a niche market? Could you develop fragrances that NAME THEM??? Call out to them??? Say to them, "This fragrance will bring you GOOD LUCK in your endeavors if you wear it because it was crafted just for YOU!"???

Now isn't that a thought that has some possibilities? Fragrances developed specifically for a niche social networking group?

Wednesday, May 27, 2009

The value of face to face selling

Personally I'm in the mail order business and the closest I usually get to customer contact is the telephone. But yesterday I had a walk in customer and a sale was made but it didn't go at all like I had expected.

Let me start with some background. A new friend who I didn't yet know very well heard that I made perfume and wanted to buy a bottle as a birthday present for his wife. I've met his wife and know a bit about her background and that small amount of knowledge gave me an impression that she might like one particular fragrance I had, one that several people had remarked upon quite favorably.

But there was one small problem. This fragrance, which I though my friend's wife would like, wasn't yet bottled. In fact, nice as it was, I had been planning to plan with it a bit more before I declared it finished.

But, with the customer in mind, I went ahead and produced one bottle, reasoning that even if my friend didn't want it for his wife, I could use that bottle for photography. So when he showed up I was ready with my four different women's fragrances and a pad of the aerosol testing blotters I use with spray perfumes.

I turned out that my friend has a very good nose -- probably much better than my own. And, instead of rushing to judgement, he sprayed four blotters and let them stand for a while while we talked. (Have you ever seen anyone doing that at a perfume counter?)

Then he evaluated the blotters, and ranked the fragrances by his preferences. I was stunned! My pick for his wife cane in last! And, in first place, he selected (and purchased) a fragrance which I personally like a lot because of certain images it conjures up for me, but which hasn't set the world on fire (yet,) probably because it is clearly a step away from today's main stream perfumes.

So a sale was made but, more important, a perfumer got a bit of education as to how a very honest, straightforward, customer with a good nose viewed his creations.

Now I await his wife's judgement.

Wednesday, April 15, 2009

Can you do your own creative thing and still focus on the consumer?

For an independent perfumer -- particularly one who does not have to earn a living at it -- there is a strong tendency to do your own thing creatively and, only later, worry whether you can sell your fragrance or not. I find myself in this situation constantly. I have a fragrance idea I want to develop and I go for it, regardless of consequences. Then, at times, I find myself scratching my head wondering what I can possibly do to sell it.

Perfumery is an art, a creative art. So too is marketing. But the thought patterns needed to achieve great perfumes are not the same as those needed to achieve great sales.

Over time I have found myself thinking more about "my market" as I set out to develop a new fragrance. Even so, working along with no one to prod and push the development of my fragrances, I find myself following the inclinations of my idiosyncratic nose rather than obsessing over what I think "people" want. I want people to want my perfume. But it is more for the ego gratification of having others enjoy what I have created than for visions of large financial wealth. Obviously with this attitude following hot trends is out.

When the new fragrance is "done" -- in the bottle, ready to sell -- I turn to marketing. I confess that I love marketing as much as I love creating the new fragrance. But I must also admit that, when I "switch over" to marketing, the perfumer side of my brain shuts off. Instead of doing my daily exercises with aroma materials, smell shuts down entirely; the perfume because "the product." I detach myself from all that energy of my own that went into creating the new fragrance. At this point my thoughts revolve around how I might build a bridge between the product and the consumer. Marketing and advertising are the tools with which these bridges are built.

Flipping to the marketing side of my brain, I must look now at my fragrance though the eyes of my consumer. How does he or she see it? (Here's where the independent creator-perfumer gets the biggest shocks!) Always the consumer sees it differently than does the creator. And this is why I can no longer "be" the perfumer when I step into the role of marketer. As the perfumer I would want to argue with the consumer and scream, "NO! YOU DON'T UNDERSTAND!!!" But as the marketer I want to grab hold of the consumer's understanding, get inside his or her mind and go with it. I want to USE the consumer's understanding and turn it on them to make my sale, just as an judo practitioner uses the strength and speed of the opponent to make the fall, by redirecting this strength and speed in a direction the master has selected. You can ONLY make sales by giving the buyer what THEY want but you do have to get them pointed in the right direction.

So we study the buyer and how the buyer relates to the new fragrance. We look at what we have through the buyer's eyes. How do they judge the aroma? What image does it convey to THEM? This will be our clue as to how we present it commercially. We may have to shift the image we were aiming at to the image we have actually "hit" with the buyer.

Packaging is always a major headache for the small, independent perfumer because (1) you don't have enough money, (2) you don't have a fantastic graphic designer, and (3) even if you did have #1 an #2, if you turned them loose to do their thing -- to do what THEY thought was the ultra-marketing presentation -- you would discover that your cost per bottle was so high that you could never make it back on sales. Marketing is not just about making sales. Marketing is about making profit.

So now we begin thinking of price. Price is a funny thing. Long ago business people discovered that price and product are not so closely linked as you might imaging. Lowering the price may -- OR MAY NOT -- increase volume. Raising a price may -- OR MAY NOT -- increase profit. We have to know our costs and do the math and be guided by the math in our marketing.

While the "creative perfumer" side of you may groan over this requirement, the creative marketer side of you will immediately see that the situation DEMANDS creativity ... the creativity of developing advertising and sales promotion that will take the product -- at is is -- and present it to the consumer AS THE CONSUMER WOULD LIKE TO SEE IT -- all within the financial constraints that our mathematics has given us. Tell me that's not an invitation to be creative!

What I am finding, more and more, is how essential it is to separate the mind of the perfume creator from the mind of the perfume marketer. Each requires intense creativity, but of different kinds. And, if each is allowed to work without interference from the other, sales will be made -- profitable sales -- and when those sales start to make the cash registers ring, the two sides of your brain can shake hands with each other and congratulation each other over a job well done!

Monday, March 30, 2009

Selling your perfume in an absolutely impossible market -- It's not impossible!

The starting point in approaching a difficult market (think "a difficult time to sell perfume") is to understand that there ARE NO simple answers or guides. NOBODY really has the answers. But there are some "tricks" that can greatly improve your chances of success. Here are some thoughts for you.

First and most important of all, you have to understand this one great TRUTH. Yes, this IS a TRUTH: It is NOT impossible to make profitable sales, even when it appears that all the odds are against you.

Keep this TRUTH in mind. If you forget it you are doomed.

Next -- and this is a truth too -- it is better to do SOMETHING than to do nothing. In other words, get off your duff and get to work, even if you think you're just spinning your wheels. ACTIVITY on your part stimulates activity on the part of the consumer. Lack of activity on your part leads to your being forgotten. Forever.

RETHINKING your business is essential. If things are slow, rather than sitting around complaining and feeling all depressed, use some of this "spare time" (quality time?) to think about your business -- where you've come from, where you are now, and how you can use this "analysis" of your business to prepare for a successful tomorrow. Yes, it's hard to think "forward" when things are slowing down, but it's essential for your future success AND your current survival.

Cycles reverse. You can't predict the timing but you can predict that -- if you keep your head and don't panic -- in time all will be well again ... probably in less time than you now forsee.

So clean up the garbage. Get rid of those elements in your business that don't really belong. Polish up the good points so that you look sharper and better. Do the fine tuning you were too busy to do before. This is the time to make your business shine, to really do your best to make a good impression. Look dusty and mouldy now and you are doomed. Forever.

REMEMBER that SOME people have money to spend and LOTS of people can still afford to buy the things they raelly want. You have to entice them properly. If somehow you can make YOUR perfume the one thing that they MUST HAVE, you will make profitable sales.

What it all comes down to is finding ways to make the PURCHASE of YOUR perfume irresistable. Good luck!