Running a beauty brand takes a lot of staying power. Those who have the endurance stick around for years and build their brand through multiple channels. One of the most attractive profit channels is retail contracts. Although they may seem scary at first glance, they’re a lot more accessible and attainable than you may think. Let’s look at some key things that can give you a significant boost in negotiating retail contracts for your beauty brand.
Getting noticed is a lot easier than you might think. Nowadays there are more tools available to you than you may realize. One of the biggest avenues being social media. Developing a social media presence gets you seen and recognized all around the globe. The amount of time and energy you put into your social media presence will deeply impact your growth and visibility. You’ll also want to get into some conferences or expos like Cosmetic Distributors Australia to get noticed.
If you’re an indie brand, the community is a lot smaller than you might think. Getting to know the brands and people behind them will take you farther than you may think. Recognition is a big part of it. If you have a following and loyal customer base, retailers will feel more confident in stocking your brand.
Know The Retailer
Knowing your retailer and who their customer is will take you a long way in your negotiations. You can get this information by doing a little research. Visit the store, talk to both customers and employees, check out their website, etc. The goal is to get a good sense of whether or not you’re a good fit for their brand and their ideal customer. You will need this information going into negotiations in order to sell your brand and make them see how this partnership can benefit them as well.
Know Your Strategy
Have a solid grasp on what you want for your brand. Know how you intend on driving traffic to your brand on a shelf with other competitors. Have a strategy for interacting with and growing the customer base, and know why you’re such a good fit for the retailer you’re trying to woo. Understand that you need them more than they need you and that flexibility is your friend. Of course, there are some things that you have to be rigid on, but there are plenty of points that can bend a little.
There will be plenty of things to negotiate with a retailer. It can seem a bit tedious, but it’s all part of a partnership that should ultimately benefit your beauty brand in the way that you envision. Here are some other things that will be discussed at the negotiating table:
- Mark downs
- Buy back of stock balance
Every retail contract is different and is tailored to fit the needs of the retailer and the beauty brand. There are a lot of nuances to negotiating, but make sure you’re realistic and honest about what you can and can’t deliver. Remember that the retailer is somewhat of a partner and needs to be kept in the loop, so never underestimate the power of great communication.
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