Spa

Small business venture…what’s the profit? Want to make sure I got it right….?

Okay, I am a consultant for a health and Beauty corporation…I want to sell my services to small spas and massage therapists, I get my products at a 35% discount and they turn around and sell it…..how much would they profit?

I’m a Salesman and a Consignment Artist. I buy items which are closeouts, discontinued, over-stocked, and even wholesale if it’s priced right.

I specifically market to independent convenience stores. The general rule for c-stores to sell most non-food items is to double the wholesale price. Therefore to sell to the c-stores, I look for items which they can buy from me and sell two and a half to three times the price that I sell to them.

For an example, let’s say that “widgets” are currently in demand. I look for them at numerous closeout sources. From a market study, I determine that the average retail price of quality “widgets” is about $2.99. That being the case, the c-stores are probably already paying about $1.50 each for them. For me to be able to sell to the c-stores, I need to be less expensive than their usual suppliers, so I look for sources to allow me to buy at such a price as to be able to sell to the c-stores somewhere between $1.00 o $1.25 each.

For me to be able to sell at those price points, I must be able to buy at a sufficient price as to allow me to sell sufficient quantities of the product to allow for me to achieve a return of about $30 or better per hours work. ($30+ is the level at which I have been able to achieve several years ago, and at which I try not to fall beneath.)

You have to determine if the merchant will be able to sell your product at a reasonable price as to achieve real sales, and probably guarantee him a buy-back method if he can’t or doesn’t. Not all products lend themselves to hard and firm pricing, as you’re most likely already dealing with a competitor, and will have other competitors “nipping at your heels” too.

In business, the “best transaction”, is the one wherein all parties benefit. This doesn’t mean equally, it does mean that the various parties are satisfied with that which they have had.

Truth be known, the $1.00 20 oz. soda that the customer happily bought, probably cost the store about 50 Cents. The truck driver and his overhead was probably about 10 Cents of the cost, production costs, product cost, container cost and taxes probably left the manufacturer with about 8 Cents, but they all benefitted and were somewhat satisfied. [Although paying taxes is never all that pleasureable! It, too, must be done and smiling is easier than frowning.]

Marquis Spas ad 2010 Discount Pool Supply.mov