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  • #987946
    mybusiness78
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    We are a new hair and beauty products company. We initially were going to only wholesale our products to hair/beauty salons but few months after starting our business, decided to retail online as well to reach more customers, who don’t have access to our products near them. As a result of starting to sell online, We’ve had steady national sales and some worldwide sales.

    My question is do retailers (our clients) get put off if they know we also sell our products online at the RRP? We just don’t have enough wholesale clients at the moment to sustain our business solely on wholesale business formula. At the same time wholesale clients might not want to buy from us knowing their clients can eventually buy online. Catch 22.

    #1164928
    Dave Gillen – Former FS Concierge
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    Hi there,

    Welcome to Flying Solo!

    I think your answer is in your question “Do our clients get put off if they know we also sell our products online?”. Ask your clients! You don’t have to be in sales mode all the time, ask for their advice and they’ll probably appreciate you being candid.

    I would say that as long as they weren’t led to believe otherwise when they signed up, that it wouldn’t matter too much. You expect that people can buy most things online these days if they really want to, but sales are sales. If your product is selling, they’ll be happy. But again, I’m not your client, and they probably aren’t on this forum.

    Good luck and we’re glad to have you on board the forums. :)

    Dave

    #1164929
    Tony Manto
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    My answer to your question is your cant effectively have both without upsetting your re-sellers. You really need to make a choice. Do you want strategic re-sellers that buy lots in one hit or do you want to set one here and there?

    You need to have a distribution strategy. What I would recommend is to direct on line sales back to your stockist. This will also give you leverage to get more stockist. If you have a sale in a particular area where you don’t have a stockist, you can call some businesses in the area and tell them that you have a client that is looking for your product, do they want to become a stockist. Once they get a couple of clients, they will then not only stock it but use it as well. This way you win on both fronts.

    #1164930
    Jenny Spring
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    mybusiness78, post: 190909 wrote:
    We are a new hair and beauty products company. We initially were going to only wholesale our products to hair/beauty salons but few months after starting our business, decided to retail online as well to reach more customers, who don’t have access to our products near them. As a result of starting to sell online, We’ve had steady national sales and some worldwide sales.

    My question is do retailers (our clients) get put off if they know we also sell our products online at the RRP? We just don’t have enough wholesale clients at the moment to sustain our business solely on wholesale business formula. At the same time wholesale clients might not want to buy from us knowing their clients can eventually buy online. Catch 22.

    Hi

    Most wholesalers also have an online presence these days. The biggest concern with ‘channel conflict’, is that the retailers may be concerned that you’ll sell below RRP. Of course, they’ll feel free to sell off your products at any price they choose, but if you run sales, they’ll be unhappy.

    Some retailers will be put off by your online presence, and in the end, those retailers won’t be ones that you’ll want to work with. Most progressive successful retailers want to work with a brand that is busy promoting themselves, and in doing so, making their brand a household name. When someone arrives at their store, and recognising that brand, the retailer will most likely make a sale!

    Having a website these days is required to promote your brand.

    Hope this helps.
    Jenny

    #1164931
    mybusiness78
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    Tony Manto, post: 190957 wrote:
    What I would recommend is to direct on line sales back to your stockist. This will also give you leverage to get more stockist. If you have a sale in a particular area where you don’t have a stockist, you can call some businesses in the area and tell them that you have a client that is looking for your product, do they want to become a stockist. Once they get a couple of clients, they will then not only stock it but use it as well. This way you win on both fronts.

    Thanks Tony

    How would it work if I have multiple stockists in 1 area? Which stockist would I direct them to? or do I keep 1 stockist per suburb?

    Our product is for hair loss so some clients might be intimidated going into salons and would prefer to buy online I think.

    Also how will it work to have an online store where the customer is told they need to go into a physical store to collect the product? kind of a contradiction ?

    #1164932
    mybusiness78
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    Jenny Spring, post: 191022 wrote:
    Hi

    Most wholesalers also have an online presence these days. The biggest concern with ‘channel conflict’, is that the retailers may be concerned that you’ll sell below RRP. Of course, they’ll feel free to sell off your products at any price they choose, but if you run sales, they’ll be unhappy.

    Some retailers will be put off by your online presence, and in the end, those retailers won’t be ones that you’ll want to work with. Most progressive successful retailers want to work with a brand that is busy promoting themselves, and in doing so, making their brand a household name. When someone arrives at their store, and recognising that brand, the retailer will most likely make a sale!

    Having a website these days is required to promote your brand.

    Hope this helps.
    Jenny

    Hi Jenny

    We definitely don’t want to upset our wholesalers by undercutting them. We will keep our RRP the same across Australia. Another thing to note is that all of our competitors have online stores. Good point about making the brand a household name. Thanks

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