Saturday, July 7, 2018

Producing 1000 bottles of perfume

     The original version of Creating Your Own Perfume With A 1700 Percent Markup! was about nothing more than producing 1,000 bottles of perfume (all of which were sold successfully at full price.)

    Selling 1,000 bottles of a perfume of your own can be wonderfully profitable if you've kept your production costs in check. But there are a few special issues about producing this number of bottles. You're over the limit for a "crafts" project perfume that makes use of decorative bottles that were never designed for the controlled dispensing of perfume; no spray and often no dabber.

    And you are, for the most part, under the minimum for commercial assembly by automated equipment (although you might find a contract packager willing to undertake your "small" job by doing by hand what you could do by hand yourself.)

    Producing 1,000 bottles of perfume almost begs for hands on desktop or kitchen table top assembly by you, the boss, the owner, the chief engineer, bottle washer and promoter. The "putting it together" isn't really difficult. The real hurdle is locating the components in the quantities needed. To accomplish this you must know something about each of the required components: fragrance, alcohol, water, bottles, closures, labels, and boxes.

    The fragrance itself is the most complex issue. It can be stock or custom but either way it will be a very important part of what sells your product. Obtaining the "right" fragrance is both a marketing and a creative project but, if you think you know what smell will sell, you can work out the fragrance issue.

    Alcohol and water are not major issues. Real perfumery alcohol is available if you're willing to hunt for it. You don't have to resort to substitutes such as using vodka (no!) or going for a non-alcoholic perfume (which can be fine but is not the kind of perfume I'm writing about here.)

    Bottles, in my mind, are what separates the professional/commercial perfume from the hobby project. You want to put your perfume in real perfume bottles, 1,000 of them. Your problem is finding a bottle you like available in the quantity you want (1,000 bottles) with a neck that will mate with the closure you want.

    While bottles, in small quantities, may be sold by the dozen, when you want 1,000 bottles it is unlikely you'll be able to buy this exact amount. Distributors sell bottles by the case and the number of bottles in a case is not a fixed number. The count will depend on the size of the bottle and on how much weight the manufacturer wants to pack into each case. Glass is heavy.

    To get your 1,000 bottles you'll have to buy a certain number of cases. For example, if your bottle is packed 426 bottles to the case, to get your 1,000 bottles you'll have to order three cases, which will give you 1278 bottles -- 278 more than you want. But the alternative -- ordering two cases -- would give you only 852 bottles, 148 short of what you need.

    At this point you may want to reevaluate your production quantity. 1,000 now looks like an oddball number in terns of ordering. But there is yet another issue to deal with: minimum order size. Most distributors have a minimum order size, say $500. Sometimes you can get around this by talking to the distributor heart to heart.

    Now you can go out and buy the closures, usually a spray pump and overshell. Again the offerings will not give you an exact 1,000 but here having a few extra on hand shouldn't be a problem.

    Labels offer some complications in that you'll want labels that fit your bottles and this may require ordering a custom size which will involve setup charges. You'll also confront the issue of the printing -- a simple one-color job or a multi-color job with detailed artwork. Here it's easy to see your potential cost by going to label printers' websites and getting quotes or just looking up available label sizes and costs for your 1,000 quantity.

    Finally there are the boxes. 1,000 is not a good number for boxes but, if you're planning to sell your fragrance through retailers, boxes are important. Many, perhaps most, printers have a 5,000 box minimum. There are exceptions. In all likelihood if you want a box you'll find yourself with many more than 1,000. But think positively. Your project may be a big success and 1,000 bottles could simply be a starting point that finances a larger venture.

    Vendors for all these items can be found at the Vendors pages of our website. My book about all this is Creating Your Own Perfume With A 1700 Percent Markup!

Thursday, June 7, 2018

Market testing is really important when you're trying to grow a perfume business

    In Creating Your Own Perfume With A 1700 Percent Markup! I mentioned I had done a test with a dummy product before making a $2,000 commitment to developing manufacturing our own fragrance, a men's cologne. Market testing is really important when you are trying to grow a business.

    Testing involves risking a small amount of money to get data -- data that will guide you through larger decisions. The testing mentioned in Creating Your Own Perfume With A 1700 Percent Markup! wasn't the first or the largest test I had ever done. Sometimes you don't even know you are testing but when you examine certain marketing results you realize that you have a chance to make a lot more money but it's going to involve spending more money ... and the thought of spending that money can make you uncomfortable.

    Sales results that you already have are the tool you need to make your analysis. But when the new opportunity -- or a larger opportunity -- involves doing something you've never done before, stepping off into the unknown, you have to be very clear headed about what your data really shows.

    For us, one case involved a small ad we had run in a national publication. The cost was under $1,000 and the results were profitable so the question arose, "what would happen if we ran that promotion as a full page in that publication?"

    The bait was simply that the cost per inch of space dropped dramatically as the size of the ad increased. On top of that, the publisher was offering us a deep discount on the posted ad rate.

    Calculating the sales per inch of our small ad and the number of inches we would get from the larger ad, and the cost of the small ad and the cost of the larger ad -- we decided to go with it, based on our proven results from the smaller ad.

    The commitment was scary. We would be spending ten times more money for the larger ad. Yet our data showed it to be a logical move -- and it was. The results per inch for the larger ad were several times what our results per inch had been for the smaller ad. And, not only did we receive a flood of cash orders, we received a flood of new customers, some of whom continued to buy from us for years.

    The test mentioned in Creating Your Own Perfume With A 1700 Percent Markup! was a bit different. It was suggested that our regular, loyal customers would buy a men's cologne from us. We had a print catalog that we mailed, monthly, to our customers. We bought a few dozen bottles of the same cologne a competitor was selling. It sold well but due to what we had to pay for it (too much!) and our matching our competitor's retail price (too low!), the profit was solid but not exciting.

    That all changed when we invested in our own fragrance. Our cost per bottle dropped from $7.95 to less than $1.50 while our selling price was bumped up from $14.95 to $26.95 which did not seem to deter buyers.
    To some, $2,000 might not seem like a lot of money but at the time, as our business was focused elsewhere and we had never sold a fragrance, $2,000 seemed to me like a huge leap into the unknown -- except for our test data that cried out to us, "there is profit to be made here!"

    Again, the data had the answer; we made our money.

    It's not always easy to develop a test that will give you good data. But that's no excuse for blowing off the idea of a market test and plunging into the unknown without any data to guide you.

    Test today and live to see your business grow!

    Here are three links to other articles I've written on testing:

Tips on test marketing your perfume

Test marketing your perfume

Testing — from the past

Thursday, April 13, 2017

What kind of perfume business do you want?

People come to my website because they want a "perfume business." For the most part the dream is either having a marketing business selling famous name perfumes at retail (or making your own name and perfumes famous) or, more interesting to me, a business selling perfume they can make themselves.

    My own start in perfume was on the marketing side. I had a business with customers. We sold various products. Somebody suggested we try a men's cologne. After some inexpensive tests, we did our own cologne and it made money. That was my start.

    People ask, "What does it cost to launch a new perfume?" In my case the numbers broke down like this: First of all, about $2,000 to produce 1,000 bottles of perfume. We estimated our cost per (1-ounce) bottle to be just under $1.50. That leaves $500 unaccounted. Some of our purchases required orders greater that 1,000 units so, after doing our 1,000 bottles, we were left with bottles and other components to start on our next one thousand.

    Let's just say our production cost was about $2,000. We bottled the fragrance ourselves and I wrote a book about how we did it. (Special price here -- offer expires May 31st, 2017).
    That first $2,000 was just the production cost. We still had to sell it and that is the sticky point for someone who wants to launch their own perfume business with their own perfume.

    In our case we had a catalog sent monthly to loyal customers. Larger catalog companies know the cost of ever square inch of every page of every catalog they mail. That lets them track how well one ad is paying off compared to the others. We never did that kind of precise tracking so I never put a dollar amount on the cost of the full page in our catalog we gave our new fragrance.

    But before we could advertise the fragrance, we had to develop an ad for it. In this case it involved some creative copywriting, graphic design, and both still photography for the bottle and model photography which involved props, styling, and two models. Add a few dollars for those costs.

    For us at that time, this was all within the way we typically developed new products and tested them in the catalog. We had to test new products continuously to stay in business. If you are attempting to start a "perfume business" launching your own perfume, you have to look at your opportunities to sell your perfume. The first question you must ask is "Are there any?"

    If, at the moment, you can't say how you are going to sell your own perfume, you're not ready to start a perfume business. But this doesn't mean you can't start, now, looking for that niche that will allow you to start a perfume business. You'll find some ideas in a book I advertised here.

    Now if, instead of wanting to make and sell your own perfume you simply want to build a perfume factory to make perfume or develop a retail chain to sell famous name perfumes (or their copycats), I'll save that for another day.

Friday, November 11, 2016

Starting a new business before writing a business plan

    I recently did a major re-write on a small book focused on a business plan. In doing it (it took several months of work) I came away impressed at how important a business plan is and I vowed that for my next project I wouldn't spend a penny until I had prepared a business plan and double checked every paragraph. Yet now I am going ahead with a new project without a business plan. What happened?

    I did not develop a sudden antipathy for business plans. Much of what I have learned over the past six months is still very much in my head. But there is one essential part of any business plan that poses a problem, particularly for the very small business or solo entrepreneur or the creative voice that doesn't quite fit into any category. The problem is research -- market research, competitors, market size, pricing within that market -- core data. Getting this information accurately is what makes a business plan worth something. This is what makes a business plan work.

    In the abstract you can think about preparing a business plan and fudge the numbers (since no one knows that they will be anyway) and do your "market research" on Google and you'll come up with fillers for the blanks in your plan but you'll end up with a very risky plan. It may fool a few loving relatives but not a banker or serious investor and, should you try to implement it, the fooling will stop very quickly. Just pray that you are working with someone else's money, not your own.

    It's that section called "market research" that's the killer. Here, accurate information is really important. If you don't get it right your quest may be hopeless so let me explain why, for my new project -- The Green Wave Newsletter -- I am going forward without a business plan, even though I believe business plans are very important.

This is a test --
Can I find a market?

    I'm not sure how much I've ever written about testing but perhaps I'll write more about it some day. Testing is the art of getting accurate information at the lowest possible cost. Yes, information can come at a cost. You can't find it all on Google. I'll give you an example from the past.

    Back in the days of junk mail and mailing lists, the use of the right list to promote your offer would make the difference between a very profitable promotion and a failure.

    But how could you find the right list? The renters of mailing lists (they were always rented, not sold) would propose various lists to you. Their interest was in making sales, to you. But you had to sort through their proposals to find out which if any of these lists would work for you.

    So you made minimal orders of many lists, mailed your offer, and counted the results. Your results showed what lists would work and what lists would not. You had to spend money to get the information but, with the information, you could now rent the good lists and make a lot of money.

    For my new newsletter, The Green Wave, I need information. I need to find out where to promote it, what people to promote it to, and how enthusiastic they will be once they start to get their monthly issues. I need feedback.

I'll run it up the flagpole
and see if anyone salutes

    In fact, the whole project may be off course -- the frequency of publication, the price structure, the format -- feedback is really important to me and the only way to get it is to put the newsletter and promotions for it out there and see if I can begin to assemble the audience I am looking for -- people who will read it and pay to keep reading it.

Later, perhaps, a business plan

    Someday a business plan for this project may get written. And if and when it does, that "market research' section is going to be filled with some very accurate information, information I will be able to show bankers and serious investors, if I care to do so.

Monday, November 7, 2016

It's about problem solving

 I'm launching a new newsletter, really a continuation of the most recent issues of my Perfume Strategies newsletter. The theme: "It's about problem solving."

    Want to succeed with your perfume? With your business? (With your life!) -- get better at problem solving.

    Look at it this way: You have a great idea, you start putting it together, then you hit some sort of glitch -- it always happens. Your success now hinges on your ability to solve the problem that is causing the glitch whether it be money, a person saying "no" when you need them to say "yes," a technical issue which you don't understand, some equipment you need but can't come up with -- whatever. You either solve the problem or ... or you fold -- end of project.

    Sometimes problems are really small and seemingly trivial. I had one last week. I had fabricated my own instrument cable (to hook an electric guitar to an amp) and one end of the cable went bad. Bummer, especially since I had used top of the line components.

The plug at the other end went bad

    So the next step was analysis. For some time I had been aware that my soldering techniques wasn't good and, when working with electronics, that's bad.

    I had previously addressed this problem by buying a new, slightly more powerful, soldering iron. It made no difference. The solder wasn’t melting fast enough so the components were being exposed to too much heat. Bad!
Small and larger soldering irons

    But every YouTube video I watched showed equipment that looked like mine doing a good job. My (initial) conclusion: I needed an even more powerful (and expensive) soldering iron. I started looking through online catalogs thinking perhaps my wife would buy me one for Christmas.

    Then something happened. I watched one more "how to solder" YouTube video and picked up one small point I had missed. I went at it again, this time with a different roll of solder (much thinner!) and it all worked like magic, just like in the videos.

On the right: the solution

    The point I had missed wasn't the solution to my soldering problem but it quickly led me to the solution.

    My problem wasn't the soldering iron, it was the solder. Now I solder like a pro and a few rolls of the right (for this job) solder cost nothing against what would have been the cost of (another) new soldering iron.

    Problem solving isn't about throwing money at a problem; it's about thinking the problem through and filling in the "information gaps" by doing some research and sometimes with some small scale testing and experimentation. The better you get at problem solving, the more perfume you'll be able to sell and the more money you’ll be able to make.

    You can read more about my new monthly newsletter, The Green Wave, here. Cost is just 99 cents for the first three months (3 issues).


Thursday, September 8, 2016

Why it's good to have a website you can manage yourself

 Why be limited to Facebook?

    In the years between 2000 and 2016, website design tools went from being so simple any motivated entrepreneur could make their own website to being to complex that you almost needed an academic degree just to understand basic webs design concepts.

    Although they might not consciously be aware of it, this trend has discouraged small business owners from using websites to promote their goods and services and instead have turned to Facebook.

    Two big anti-www issues are the cost of having a website built and the cost of maintaining it. While business owners do hire people to maintain their Facebook pages, the skills needed to build and maintain a Facebook page are much like the skill set needed to build a website in the year 2000 -- a job for graphic designers, not a computer science mba.

    But promoting without a website is limiting, even with a Facebook page. Facebook doesn't have the reach. It's a walled in community and, in spite of efforts to make it a business getter, for users it is still more social than commercial.

But can you build a simple web page in the year 2016?

    This week I conducted an experiment to find out what would happen if I put up a web page using minimalist coding. I wrote an article about designing a web page with code so simple that anyone could do it. Then I formatted that page using this code, the way I would have done it in the year 2000.

    To make this a practical test, I added a photo and e-commerce capability, still using "year 2000" coding. You can actually order a book from this page and it will be delivered to you, electronically, immediately.

    View my test page here
    Left out were a few lines of code browsers look for and which should have been part of the page. But I wanted to see what would happen if I really trimmed the code down.

    One thing more. I wanted this page to display properly across all platforms, including smartphones. I wanted nothing to be lost beyond the width of the screen.

    View my test page here

    View my the page with both a desktop and a mobile. The design is plain by today's standards but by Google standards it shines. I ran it through the Vary SEO tool and the page won points for loading with lightning speed, even though it was quite long. It was also credited for being OK for mobile although on mobile the text was small. My simple test showed that you can, all by yourself, design a web page that will display across all platforms and all you need to do it is a handful of html tags.

Here's the why you should do it

    You've got Facebook with its nice templates that make your stuff look good. But in Facebook you're operating behind a wall. For someone to see your stuff they have to have a Facebook account. Most social friends will. Potential customers might not or, if they are, might not find you when looking for what you offer. Unless you are just a local business in a small community, Google and Bing are far more likely to bring you business. But for Google and Bing to find you and your business you need a website.

Don't hire someone to build your website

    In almost every case I know when someone hires a web designer to do their website, one of two things follow. If it is an organization, such as a church that really wants their website to communicate, they pay a monthly service fee to have the site "maintained," meaning regular updates announcing sermon topics, luncheons, and special events. The designer makes updates once a week.

    But now it's Sunday morning, snowing hard. Will church be canceled? You go to the website but there's...  nothing! With Facebook an announcement could easily have been made.

    The second thing that can happen to the small business that has a website built for them is they never bother to budget for maintenance. The site is built like a monument, unchanging for all time. As time goes by it becomes increasingly irrelevant and forgotten, particularly by the search engines because they judge sites by their activity.

    All of this shows just how practical Facebook can be.

You can build a modern website using retro design

    Building your own website was once easy. It still can be easy if you ignore all the frills and whistles and stick to retro-era coding which is very, very simple. As demonstrated above, it works. But it's good to be clear on why you should use it rather than hiring a web designer or sticking with Facebook alone.

    Google and Bing don't care about the look of your website; they only care about it's content. By developing simple pages you become free to spend more time on content, new products and services, testimonials, something about your business, something about you. You can add or change content as often as you want. It costs no money and no more time than you might spend updating your Facebook page.

View my test page here

    Try it. Look into it. If you feel you need more resources to build your own site, ask questions in the "comment" box below and I'll respond. There are some retro tools that can help you but if you can't find what you need, or if I can't direct you to what you need, I'll wrote up a full "building your own retro website" manual myself and distribute it free.

    So go for it. You'll be amazed at how a regularly maintained website of your own will extend the reach of your business.

  View my test page here

Monday, July 11, 2016

How to pack more power into your visual images

If you are looking for strong images
to sell your perfume, your first step
is to develop a strong concept.

    Visual images can be a powerful selling tool, but not all visual images. Some are spectacular in their marketing power, others are little more than pretty pictures, nice but quickly forgotten. Powerful images stick in people's heads.

    I've had some experience with powerful images. I've seen one photo produce $100,000 in sales; another more than a million. But the key to it was getting the right image for the context in which it was to be used. These shots involved a bit of luck. But the luck itself came about by setting up the setting in which the lucky shot could be grabbed.

    If you are looking for strong images to sell perfume, your first step is to work up a strong visual concept. This is like outlining a plot for a book, film or TV show except that it will be an outline for one frozen moment.

    As you develop your concept, keep several points in mind. Most important is the image that you want to create. What will be the best image to hook viewers on an emotional level, pushing them toward a purchase?

    Also keep in mind your resources. A good idea is no good to you unless you can produce the image you've imagined.

    Models who are unavailable to you, or you can't afford to hire, or who will never be good in front of a camera have to be ruled out.

    Locations you can't afford must be rules out.

    Sets that you can't set up properly must be ruled out.

    Your great concept has to be one you can execute.

    Photographing your great concept should not be a static exercise. Yes, take the "art director" shot, the one you sketched on paper for your layout. And keep your layout in mind, the space the photo must fit. I can recall a time when I wanted to shoot jewelry on a model. You get a quick lesson in proportion. The model is large, the earring is small. You want to show the earring large because that's the product. The model's face gets cropped. So why, tell me why, was casting for a face when it should have been for an ear?

    Now comes the fun part where you are most likely to get a shot that moves people. Loosen up a bit. Go a bit crazy with the camera. If you're working                                                                                                        with a model or models, have them loosen up and go a bit crazy. Overdo it. Then cut it back just slightly. This is where you're likely to get images that move people.

    The image above is not a great example of an advertising shot but let me walk you through its creation.  

    Having just written about the importance of TEXT, I wanted to follow up with an article on the power of images. In producing this article it seemed strange not to have an illustration so I decided to cook one up. This would be a simple image using props on hand and a "model" who was sleeping on the couch next to my desk.

    Since this blog is about marketing your own perfume, A bottle of perfume was called into service, Moonfaire in this case. Then, to add human interest, I posed Kissy, a miniature dachshund, with the bottle. Now it was just a few snaps and a bit of photo editing and I was done. No, the image isn't powerful. It just demonstrates how you can put a concept together.

    A few final words on images. Few images have much meaning standing alone without a headline, photo caption, or a context. When you use a photo, make sure you've given it the support that can make it's message clear -- and powerful. You'll be amazed by how a few added words can multiply the power a photo.