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by Douglas Preston
"Thou Shall Not Have Any Other Brands Before Me!" This is the motto, the guiding light, the single precious principle around which a couple of new and unknown suburban aestheticians (my former partner and me) built a multi-million dollar spa and product company. I’m talking about our company under our name and, after a happy division of business ownership, a new company under my personal brand. When people ask me how I built an anonymous name into a well-respected brand I typically offer the following recipe: find something of quality to sell, put your name on it and, in an excited and attractive fashion, NEVER SHUT UP ABOUT IT! Whether you’re Mary-Kate and Ashley (who could probably succeed with a line of car batteries by now) or Angylene—Hollywood’s vintage sex kitten billboard queen—a key to fame and fortune can be found in confident (or shameless) self-promotion. I’m talking you talking about you. Not a conceited bleating of the ego, not a boring “gee it’s great to be me!” turn-off, but a pure, fun “I’ve just got to share something fabulous with you!” enthusiasm for a product or service under your moniker. If you’re among those who think that success in promoting and selling your own product brand is beyond your reach then you’ve only read this far into the article. Stay with me here—a BIG opportunity awaits you!
What is a “private label” product?
Purely put, a private label product is one of any quality, be that high or modest, created for someone other than the manufacturer to brand and sell. There are many, many examples of them that most of are unaware that we’re aware of. Sears’ Kenmore appliance line, known for quality and reliability, is not manufactured by the venerable retailer. Their washers and dryers, water heaters, and numerous other company branded items are contract manufactured for them by independent appliance builders, but delivered bearing a particular Sears-owned brand badge. Peruse a vintage clothing store or your own closet and count the dresses, blouses, and accessories sporting the name of the store that sold them to you. Neiman Marcus, Barney’s New York, Saks 5th Ave, and even, yes, Sears sells clothing under their own company labels. At last count I found over 35 products in my own home labeled by the supermarket, department store, and hair salon I purchased them in. They taste good, fit well, and look wonderful. Go ahead, take an inventory of your own home and see if the privately branded product invasion has reached you. And every time you discover one ask yourself what in particular influenced your buying decision. Is it always an established brand reputation that opens your wallet?
Growth of a concept
A recent Fortune article “Brand Killers” (insert credit info) reported that the average consumer is quickly accepting privately branded consumer goods on a par with the more established brands. It shows that in 2002 traditional branded goods grew 1.5% in sales volume while private brands captured a startling 8.5% during the same period. As retail competition has heated up through an explosion of stores, catalogues, infomercials and web-based sellers more and more of them are offering the same product selections at cut-throat prices, forcing many to either abandon the race or rethink the game. Company branded goods not only create an exclusive inventory but free retailers from direct item-to-item price comparisons on easily recognized products. Who other than Macy’s carries the Macy’s brand products? None yet anyway unless, perhaps, Federated ends up owning every major department store—a not-too-far-fetched possibility in today’s business consolidation frenzy. The world seems to be getting smaller as it gets larger.
Image is everything
How much did J.Lo, George Foreman or Tiger Woods have to do with the design and manufacture of products that wear their names? Did they personally sketch the pants, engineer the appliance or invent the sporting goods under their “brand?” Do we really care? No, we don’t but we do love the star association with certain goods we buy. Retailers know this and it’s why the major brands will pay fortunes for celebrity endorsement deals. A supermodel admitted in a fashion magazine interview that she never used the cosmetic brand that paid her seven figures to crow it. She kept her job after that, too! We often love what people we love, if it’s a love in name only (like a Cary Grant marriage). It’s why so many fashion victims will wear anything MTV commits to video, and why there’s too many low-rise jeans on bodies obviously not born to bear them. If P. Diddy ever doffs a Napoleonic hat we’re all doomed!
Identity power
Okay, a little lesson in the realities of fame and fortune. Over and over again I hear the same thing from spa owners, aestheticians, and other beauty professionals, “We’re too new, too small, too unknown, etc. to have our own product line. We need to wait until we’re bigger, better, more this or that to sell our name.” Meanwhile the potential profit and brand building power is handed over to the established brands. But think about it—who was it that got those product brands established in spas and salons? And who is responsible for the popularity of certain products you sell to your clients? You are! You did it. Was it really a particular product’s reputation that compelled your customers to purchase them or your own demonstrated enthusiasm that did the convincing? You know the answer to this. And if your customers like you, trust you, count on your professional skill and judgment when it comes to product advice and selection why wouldn’t they buy a product that bears your personal brand name? The truth is, they will, reliably and repeatedly. If you’re willing to put your own name on a sign or business card, and sell services that you didn’t invent yourself, why can’t you do the same thing with a product line? Well, you can, much less expensively and quickly than you may realize.
Here you are at your 16th minute of fame! You’re ready to be seen and remembered long after the client has left the spa but performs her daily cleansing ritual. There you are, sitting faithfully and confidently in the medicine cabinet or shower shelf. Famous little you—seen, felt, and appreciated morning and night in the form of a moisturizer or bath gel. You’re soothing, pampering, and invigorating your client miles away from the spa! You fly with her to exotic vacations, brighten up her sterile business hotel room, help make interesting conversation among her product-savvy friends. She’s not another devotee of the common national brand but a member of a special club (your spa or practice) and has something her sister on the east coast has never seen before—your wonderful products! Maybe Sis just has to have that amazing vanilla body lotion herself. Who do you call to get it? Not Bloomie’s…
Always remember: you are a brand. You have your own special way of providing services to customers and, for better or worse, are cultivating a reputation in your market that will either win or repel new customers. Since customer referrals are the cheapest yet most productive source of valuable clients you’ll want to puff up your image to the hilt! Anyone looking for a new aesthetician, hairdresser, or nail specialist hope to get the best result for whatever price they’re willing to pay. You’ll never hear a friend ask, “Can you refer me to a mediocre massage therapist with a poor attitude who usually runs late, cancels her appointments often, and charges too much?” You get the picture.
Getting started—One, two, YOU!
First of all you don’t need to create a new and unheard off recipe for beauty products in order to brand your own. In fact, that’s probably the last thing you should do. There are numerous high quality offerings in production now that provide the treatment results you demand. And while cooking up your own product recipe might sound like a fun idea you’re looking at a large inventory investment and increased risk should your beauty cake fall in the oven. Better to start with a limited collection of proven formulations rather than massive batches of “all new” products. And take it from a manufacturer—“new” often goes wrong until you get it right!
Step 1: Commit to being your own brand and go confidently forward!
If you plan to brand yourself then go full bore! Holding back on your launch will only, well, hold it back, and may limit your enthusiasm and result. Timidity isn’t attractive so don’t expect clients to flock to your apologetic attempt to establish your brand. It won’t work. You’ll be ignored and deserve to be. No matter how few products you include in your line make a lot of noise about them. Gush! Use testimonials (even if it’s your own testimonial in the beginning), anything to win attention and interest. Remember, the last thing a customer does in the new product buying ritual is to actually use it—much must happen before that use can happen, like a convincing promotion and successful sale. There was a time when all of the big brands were virtual unknowns. You have to begin to begin somewhere so unless you have a fat marketing budget and a few celebrity friends that owe you a favor you’ll have to use what works best in the beginning: crowing to all available ears. In their hilarious book How To Become Famous In Two Weeks Or Less authors Melissa de la Cruz and Karen Rabinowitz plainly state, “The real secret to fame is more fame. It’s a snowball that feeds on itself—once you convince enough people that you’re famous more people will believe it, and the more famous you become.” Okay unknowns—start talking!
Step 2: Research product suppliers
Begin by gathering names of quality private label product manufacturers then do some homework. Order brochures and samples, ask for customer references, test their customer service and so forth. You want a company that understands your business, your customer, and your concerns. Are they stable, easy to work with, friendly? This is an important relationship you’re engaging in so be sure you enter one you’ll be happy with. Once you’ve found the company for you you’ll need to determine the scope and quantity of product for your initial order. This depends on many factors—size of your spa or salon, sales skills, whether you plan to use the products in treatment as well as retail, etc. It may be wiser to order more conservatively at first until you’re completely confident in the line and have established some sales volume. Be wary of opening order “packages”, collections that have been created for your “convenience” by distributors. You may end up with a disappointingly imbalanced and inadequate collection. Don’t invite discouragement!
You also need to be realistic when it comes to private label product companies. Most don’t offer the kind of product support, training, and perks that name brand lines do. Why not? Because it’s expensive, that’s why. All of those “freebies” you think you’re getting from the brands are, in fact, paid for by you through high wholesale costs and limited markup. Nope, no free lunch. And while some PL suppliers do provide more support than others, none will equal the level of attention you expect from the major lines. But this is not the same game as established brand retail—this is your brand to learn, train on, and support, and for succeeding with it you can realize far greater profits and an accrued equity in your line. Think of it as just another part of your business as a whole, a business you probably don’t depend on outsiders to run for you. You’ll need to be a little sharper cookie to manage a private brand but it’s nothing that’s beyond the dedicated entrepreneur.
Step 3: Design your brand identity
How do you want your product line to look? What will be its unique identity? Some private label manufacturers provide pre-screened packaging ready for you to apply your own label to. Others will print and apply the label for you or, in larger minimum quantities, screen the packages to your specifications. Whatever method you choose be sure that your brand name is available for your use in cosmetic products. Adopting a trademarked name as your own may cause you some unwanted trouble and expense from its rightful owner, so avoid it. One simple way to research a trademark is through a convenient website: tradename.com. They offer a cursory or deep title search, for a fee, that you conduct right there through the site. Once you’re certain that your brand name is safe to use trademark it yourself then get to work on your label art design (if you don’t already have one). Some private label companies have art departments that can assist you with creating a label design or you may have a graphic artist handy. Whatever you do try to keep your design simple, uncomplicated, and free of mysterious symbolism that you think is magical but bewilders customers. Watch out for Goddesses riding glowing unicorns propelled through the starry cosmos by a team of comets in golden harnesses! Save that for your shoulder tattoo. Once you have a design you (and others) approve of then it’s time to place your first order!
Step 4: Get everyone on board
The biggest hurdle in settling in with a private brand is in getting skeptical employees to embrace the concept. Most will show little if any enthusiasm to learn and sell this unknown and “inferior” (in their eyes) collection. And why should they? They already know, love, and believe in the products you’re already using. Won’t the quality of their services suffer now? Won’t retail sales suffer, like they haven’t been nearly dead already? And what are they to tell their clients who have been loyal to your present line? WHY ARE YOU TRYING TO DESTROY OUR BUSINESS??? Oh, as if… You’ll need to do your first and, probably, best selling job right here. This will require handling all hysteria with calm and sensitivity, talking up the virtues of the new products, how having a private brand will help to retain your business, and that you’ll be there to help them through the learning curve new methods call for. But, most importantly, you must make it clear that you’ve decided that a company brand is good for the company and that there’s no turning back. In other words, you must require employees to work according to company protocol and with company tools, and one of those tools is your product brand. I’ve known aestheticians to resign over a product dispute but, believe me, your replacements will be all-too-happy to accept your approach to skin and body care.
Step 5: Your welcoming party
The products have arrived but are a stranger to you, your employees and customers. They’ll need a proper introduction, some product and technical training, and a firm, official start date. Don’t leave this up to volunteerism or you’ll be severely let down.
Have a product launch party at the spa; announce the event in the paper or in a direct mail piece to your client list. Print announcements and slip them into shopping bags and hand out before customers leave. Send a sample to your local newspaper health and beauty editor with a press release on the launch event, and invite her to be your guest of honor. Hey, most writers don’t make a lot of money so these perks go a long way toward making their job fun and rewarding. Go for it! Offer product trade-in credit toward the purchase of one of your fabulous creams or serums. $5.00 off for that empty Estamagic jar, even if they found it abandoned in the gym wastebasket. You don’t care! Just do anything to get them started using brand YOU so your repeat sales and reputation can begin to spread among the bold and the beautiful. This is your coming out bash so get the excitement and the customers stirred up!
After the confetti and champagne corks are swept away the real work begins, and this is where the winners and losers begin to show their stripes. Just as you need to keep reminding clients about the importance of routine spa appointments so must you maintain the focus and enthusiasm for your own product line. Little by little old employee habits will resurface, and they’ll begin to migrate back to their real product preference. Your new product sales will cool and, if left unchecked, will prove very difficult to rekindle. Expand your collection as the need for new products and some new excitement demand it. Sustaining your retail momentum should be your #1 priority, so keep a close eye on your sales to ensure that your investment in you will be your best one ever! |
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