Marketing Your Own Perfume

Is it possible to launch a successful "internet only" perfume brand? (Part III)

2008-07-13T03:43:00.000-07:00

This post is a continuation of my last post and the last of a three part series.

Step # 2 -- Converting appropriate website visitors into buyers

Once you learn how to attract good prospects to your website, your next step is to make a sale. This can be incredibly difficult.

To start with, unless your perfume was given a favorable review by another website, one which has an enthusiastic following of well-heeled perfume buyers, people who come to your website will have more CURIOSITY about you and your perfume than they will have interest in buying it. In fact, you might consider yourself lucky to have them just LOOKING at it! To turn them into buyers is going to take some extraordinary EFFORT!

The FIRST RULE to selling these people is to MAKE IT EASY FOR PEOPLE TO BUY. IF you happen to get lucky and someone decides they want to try your perfume, have your shopping cart set up and ready to take their order. The smoother you can make the process, the more likely they will be to COMPLETE their order -- meaning you get the money.

The SECOND RULE to selling people is to MAKE IT FUN, or in some way A PLEASANT, UPBEAT EXPERIENCE to do business with you. People will spend money for the intangible pleasure of dealing with a "fun" salesperson who makes the buying experience alone worth the entire purchase price. So don't bust chops. Be nice to your prospective customers. Entice them, flatter them, let them know you CARE about them. DON'T hang big signs on your website reading "CASH ONLY" ... "ABSOLUTELY NO REFUNDS" ... "ALL SALES ARE FINAL." Make people feel that you have confidence in your product and confidence in THEIR integrity. You aren't out to rip them off and you trust them to deal honestly with you and not make complaints unless those complaints are fully justified.

The THIRD RULE is OFFER THE RIGHT DEAL. IF the deal you are offering seems too risky or too out of line with what the customer expects, no sale will be made, regardless of how charmed the customer was up to that point.

I can remember most vividly an experience in a dress shop in a small, semi-chic, upstate New York town when my wife was looking at a simple dress she liked (but noticed that it was badly sewn) and, because she was whim shopping, was prepared to pay sixty or eighty dollars ... but NOT the EIGHT HUNDRED dollars the sale clerk quoted. Sorry, folks. No sale!

I recently had a similar experience myself when trying to rent space in New York City for a perfumery workshop. After a pleasant chat with the rental agent, I was quoted a price ten times what I was expecting (and I knew the building and had lived in the neighborhood!) The quote was so ridiculous to me that I didn't bother trying to negotiate. I just walked away.

Think about your price points!

Pricing involves STRATEGY. Pricing involves your prospects ABILITY to pay and his or her WILLINGNESS to pay. There is no use pursuing a prospect that cannot afford your perfume. Instead, focus your attention on converting those who can afford your product. Woo them into becoming willing buyers.

One way to hit the right price point is to SIZE your product to fit. In other words, if you need to get $300 on ounce for your fragrance but know that the customer expects to pay about $100, offer your fragrance in 1/3 ounce (10 ml) bottles at $100 for 1/3 ounce.

And remember too, in selling a luxury product -- with yourself as the ONLY SOURCE (since it is your own perfume being sold only on your own website) -- a TOO LOW price can turn off sales as quickly as a "too high" price. You are not a discounter and your customers is looking for quality and originality, not "cheap."

Now let's look at how you get over the sales resistance barrier. Assume that you have brought prospects to your website (which, in itself, is difficult to do!) and assume (miracle!) that they have a real interest in the perfume that you are offering ... what do you do to make the sale?

Drawing on thirty years of experience in the mail order business, let me tell you. There is no mystery to this. The technique has been used for generations. It's the TWO STEP CLOSE -- LEAD and CONVERSION. It is simple and profitable. It can sell VERY EXPENSIVE items. Here's how it works.

BAIT THE HOOK -- In mail order, small, affordable ads can be used to get leads. Then, when you have the prospects name and address, you can mail them a BIG sales brochure, VIDEO, or even send a salesman to make a house (or office) call. In selling perfume on the internet, your "bait" is a SAMPLE. Please note that this is the SAME bait used at perfume counters in big stores!

Strategies for distributing samples will differ. In 1921, Chanel gave samples of her "No.5" perfume to customers, as a gift, before it was available for sale. Her customers were, of course, spending thousands of dollars with her. She could afford this pleasant giveaway.

For website inquiries you don't know who you are dealing with. My thought would be to make even the samples a bit exclusive, by charging a (small) amount of money for them so that you don't waste your distribution on people with no intention (and not enough money!) to buy.

But HOW you choose to distribute samples is up to you.

I should add here that the samples you send out should NOT be the same size and packaging as your regular size perfumes. They should, however, be presented to the customer with at least a degree of elegance. Again, how you achieve this will be up to you.

CATCH THE FISH -- The sample is your bait. Your bait has to be powerful enough to make the sale. The customer must, first of all, BE PLEASED with the fragrance you've sent out as a sample. In fact, the customer must be pleased enough to WANT MORE!

IF you find yourself sending out too many samples and not getting enough sales, consider that your problem may be in the perfume itself -- OR, possibly, in its price. Perhaps people like the perfume but don't feel that it is worth what you are charging. In this case, you can adjust your price (even if it means losing money!) and see if you can begin to make more sales. (You can make a "special offer" to those who are taking the samples.)

If reducing the price does not step up your number of conversions, it is likely that the problem lies in your perfume itself. It is simply NOT winning the hearts of your customers. Your best solution here it to go back into the laboratory and develop a more appealing fragrance.

FOOTNOTE : Packaging Elegance -- A nice bottle and elegant packaging can be a great help in stimulating orders. Unfortunately, the small, independent perfumer or perfumery is likely to find itself quite limited in its ability to purchase elegant bottles and to design and manufacture elegant packaging to set the bottle off.

There are a number of tricks that can be used here but packaging is a whole other topic, one that requires a good deal of study and experimentation and, when possible, assistance from a talented and knowledgeable graphic designer.

Lacking a source of assistance in packaging and presentation, my advice is simply, "Do the best you can!"

Is it possible to launch a successful "internet only" perfume brand? (Part II)

2008-07-12T06:48:00.000-07:00

This post is a continuation of my last post and the second in a three part series.

As has been said repeatedly, "CONTENT" is what builds visitor traffic on a website. "Content" generally refers to TEXT ... WORDS ... ARTICLES -- items that can be INDEXED by search engines. Photos do not qualify.

To be most effective, the CONTENT must relate to SEARCHES. If someone is LOOKING for particular information, and if your website offers the information that person is looking for, the search engines will guide the seeker to your website. This is "Internet 101" but it is often ignored or forgotten.

If there is no information on your website that will provide a resource for the seeker, search engines -- the most powerful advertising tool on the web -- will do NOTHING for you.

NOBODY is searching for your completely unknown, original, new fragrance because nobody knows it exists.

So your STARTING POINT in building your website-store is NOT your perfume. It has to be something else. BUT, that something else -- that CONTENT -- must be "content" that provides answers to search questions that might be asked by the very same people who will be prospects for your perfume. (I described these peoples in my previous post in this series.)

Let me give you an example. I sell (successfully) books and materials on perfume making on my website, PerfumeProjects.com. When starting that website, the most important "content" was what I called "The Museum of Modern Perfume" -- a series of articles and pictures of some great and not so great perfumes, on perfumers, and on marketers of perfume.

This "museum" draws a great many visitors interested in tracking the history of a bottle of perfume that their grandmother left when she died, people seeking information on a fragrance company they or a relative once worked for, and people simply trying to find out more about their favorite classic fragrance.

The museum has expanded over the years and brought more and more visitors to that website. The "hits" on that website have advanced its standing with the search engines and so, when people look for information on perfume making and perfume making supplies, PerfumeProjects.com is likely to be fetched up to them in response to their search -- meaning more sales for me.

Once you begin to develop a following, you can expand your product range, just like any sharp retailer. This means even more sales.

Now the museum content DOES NOT pull in visitors wanting to buy MY perfume -- just my supplies. But the concept is a step in the right direction -- getting my name known, building credibility, enhancing my reputation -- with the hope that, in time, people will go to my OTHER website -- my retail shop -- and try my perfume.

So, to build YOUR website, think in terms of what you might offer, to draw prospective customers to your website. It won't be your perfume itself -- at least not in the beginning -- but it might be some (original) information on how you MAKE your perfumes, on what inspires you, some technical details on perfume making that don't give away your trade secrets.

Think of YOUR own interests at they relate to perfume. I was interested in the development of modern fragrances and the people who created and sold them. You might be interested in natural perfumery, aromatherapy, spa products, exotic aroma materials -- or whatever. And if you write about your interest and post your articles on your website, you too are likely to start building up RELEVANT traffic on your website which, in time, could offer you a viable outlet for the perfumes that you make.

These are ideas for bringing good prospects to your website. Next I'll give you some thoughts about how to make the sale.

...to be continued.

Is it possible to launch a successful "internet only" perfume brand?

2008-07-12T05:01:00.000-07:00

A great deal of perfume is sold over the internet. I've purchased a fair amount myself. There's eBay for "hard to find" fragrances plus a half dozen or more major retails who offer far more fragrances than you can find at your local mall.

These sales take place because the buyer is LOOKING for a particular fragrance and, going to the internet, can find a convenient, affordable source.

But what about the UNKNOWN perfumers who is creaeting new fragrances under his or her own (UNKNOWN!) brand name? Can the internet provide him or her with a viable sales outlet?

Setting up a website costs a tiny fraction of what it would cost to set up a single retail store. But setting up a website can easily cost MORE than what it would cost you to sell, face-to-face, out of your garage or home.

The internet has the POTENTIAL to reach a huge audience. But this is only a POTENTIAL. A very large number of websites draw NO VISITORS AT ALL. Having a website is NOT the same as having a BUSINESS. To have a BUSINESS on the internet you must be able to generate SALES. How many times have you seen a new business set up in your neighborhood, open with great fanfare, then close in a matter of months -- because they could not generate sales? The internet is no different.

To launch your unknown perfume brand on the internet you need to (1) draw qualified prospects to your website and (2) convert enough of these prospects into cash buyers to make your "internet-only" perfume brand profitable.

In short, you need the same two elements you would need to operate a retail store -- or chain of stores -- or any other successful distribution network for your perfume.

With the internet, the real question is, "How can I do it?"

Some hints at a solution

STEP # 1

Your first step in developing your website to sell your unknown perfume will be to build up your own reputation among people with an interest in TRYING and USING "unknown" fragrances. The person who will buy only well known brands is NOT going to become your customer. The person who buys only what is "fashionable" is NOT going to become your customer (unless you can find a way to make yourself or your perfume "fashionable" -- which is DIFFICULT.)

Your best prospect will be someone with an interest in FRAGRANCE (not BRAND NAMES!), has enough curiosity to seek out oddball fragrances (like yours!) and enough "mad money" to buy at least a small bottle, to give your fragrance a try.

How do you attract these potential customers to your website? Certainly NOT by simply showing a bottle of your perfume and its price.

...to be continued.

Selling the Scent? Why NOBODY does that!

2008-04-25T15:22:00.000-07:00

Suppose you had a fragrance to sell -- a fragrance you created and had a very good feeling about -- suppose you had this great fragrance to sell ... and NO fancy packaging. None. How, then, would you go about selling your fragrance?

It is hard to even imagine being in this position. It is hard to think of a perfume stripped of its packaging. Perhaps the last person to pull off this trick was Gabrielle Chanel -- in 1921. But, then again, her No.5 is still a best seller.

And this leads me to believe that it could be done -- selling a new, wonderful fragrance without any "push" from a beautifully designed package. But how would you go about doing it? Oh, and did I forget to mention? This is to be an expensive perfume!

Notice how hard it is to think of a perfume without its packaging. Notice how badly we want to connect the perfume with a "celebrity" or with some tangible, physical presence that is NOT the scent itself. Notice how lame major advertising is for a fragrance when the issue of words arises.

Tresor? "love is a treasure" -- but what does it smell like? My Insolence? "dare to be yourself" -- but the perfume??? Euphoria? "live the dream" -- but what will I smell when I open the bottle? Armani Code? "the secret code of women" -- code? What code? And on it goes.

The issue of the fragrance -- the scent -- is ignored because the advertisers haven't a clue as to how to write about it in a compelling manner. Is this an inherent problem with the fragrance of a perfume or is it simply a lack of advertising skill on the part of the advertisers?

Is fragrance -- the scent of the liquid in the bottle -- really so intangible that it can't be described?

Food advertisers seem to have no trouble talking about the contents of their packages. Is this simply because we are more familiar with the taste of lemon, sugar, cranberry, tomato juice, chocolate chip cookies, tangerines, mangoes -- for example? But is our familiarity with these tastes the result of them being talked about? Has our talk made the taste of these foods seem less abstract? Suppose we talked more about the scents of perfumes. Would it then, in time, become easier to write about new perfumes by describing their aromas? Is this just a part of our language which is not well developed (and not likely to become well developed, if perfume advertisers continue to shun the topic!)

Getting back to our expensive perfume without a packaging budget (or a celebrity!) ... is there some creative solution -- creative breakthrough, actually -- that would allow us to sell it successfully?

I feel confident that a solution can -- and will -- be found. And that it will be the beginning of the next big creative wave in perfume marketing.

Pricing A New Fragrance For Men

2008-04-14T09:18:00.000-07:00

I am awaiting delivery of a new perfume compound -- a men's fragrance which I will market as a "cologne," even though it will be perfume strength by its use of alcohol.

I have always tended to "cheat" a bit when it comes to deciding the ratio of compound to alcohol for a men's product. Fillers sometimes complain but customers appreciate the fact that my fragrances are "long lasting," which surprises them because most men's fragrances are not.

Being generous with quality is good business but let's get right down to the big issue -- packaging and pricing.

I am assuming that my new male fragrance will be a "hit." It was intended for a special audience -- not the mass market -- and I'm hoping that those for whom it was intended will like it enough to give me repeat orders. I will offer samples to let them try it first. Men who like a fragrance (teenagers excepted) tend to wear it for many years. Teen guys are still experimenting, exploring "mass" taste, finding their own taste, and they can be a very fickle market, just like teen girls.

But lets assume in advance that my new project will be a hit. Let's focus on the really big issue -- packaging -- which is the issue which will determine the price I can charge.

While I would like to think that my fragrance is so spectacular that it, alone, will draw orders, the reality is that most sales will be closed by the credibility of the packaging. If I have "nice" package, I can charge more. If my packaging is less distinguished, I'll have to settle for less. But I have two big problems here -- first, I am not a package designer, and secondly, I am planning to fill at most a few hundred bottles of my new fragrance and I don't want to offer this product for sale unless I can sell it at a profit.

Does this "problem" sound familiar?

Frankly, I don't know a graphic designer I could both afford and trust with the project. I'm sure that if I had more money to spend I could find one but my "account" isn't sizable enough to attract designers who will give me highly professional presentations "on spec." That's the current reality.

Then there is the issue of quantity. Printers have minimum runs. I have yet to find a "stock" box that fits my needs nicely so any box or tube would have to be "custom" -- which means a minimum order in excess of 1,000 units -- or perhaps even 5,000 -- even though I might only want from 100 to 500.

Now for this project there is an additional "complication." I am planning to offer my new fragrance in three different sizes -- sampler size, a 50ml "sprinkler neck" bottle (no spray pump), and (possibly!) a rather nice 100ml bottle with a glass stopper (which will cost me an arm and a leg!)

So now you see my limits and my ambition. How would YOU deal with the pricing? It is, after all, critical to the success of the project.

There must be a consistency in my pricing structure. When measured on a "per milliliters of fragrance" basis, my sampler has to be the most expensive and my middle size "ordinary" bottle has to be the least expensive. The large, exotic bottle can command a premium price due to its unusual beauty.

So let's look at some possible pricing.

Suppose I decide to price my big, beautiful, 100ml bottle at $240. Ignoring the cost of the bottle and packaging, that puts the price of the fragrance at $2.40 per milliliter.

Now let's address the price to be charged for samples. I plan to use a 3ml spray vial here. I have them in stock already. So if the price of the fragrance in my sample were to match the price of the fragrance in my big bottle, the sample would be priced at $7.20.

But I don't believe that a single sample vial will be large enough to "hook" new customers on my cologne. So I'll want to deliver a package with two sample vials. That brings it to $14.20. By rounding this UP to $15.00 I have now made the fragrance in the sample MORE EXPENSIVE than the fragrance in the "big bottle."

The reason I want to do this is simple. If people really WANT my cologne, I don't want them to be able to save money by buying lots of cheap samples in lieu of regular size bottles. Hence, my samples aren't going to be cheap -- they are simply a way for the customer to make a more affordable TEST of my new fragrance.

Now let's get real about $240 bottles. How many do I really expect to sell? Truthfully? Not many.

My big hope is for a bottle with an intermediate price. As it happens, I have a generous supply of 50ml sprinkler neck bottles on hand along with caps for them. These bottles and caps were acquired at a favorable price so, if I can sell my new cologne in these bottles, I can make a handsome profit. How, now, should I price my 50ml bottles?

At our original number, $2.40/ml, the 50ml bottle would be priced at $120.00. But this isn't a fancy bottle so I can charge less. But I want to keep the price "premium" so I'm not going to try and match the prices of men's fragrances at the mall. (While the packaging of these mass market fragrances may be far more expensive than mine, and while they have been created by perfumers with far more experience and talent than mine, my compound uses far more expensive ingredients than theirs AND the scent of my new fragrance would never make it in the "mass market" as it would be far too controversial for most men, far too "far out," far too "edgy.")

So on the one end of the scale, I have a top price of $120 and on the other end of the scale, a "mall price" of say, $45. I want to be in the middle so I'm going to go with $85.00.

Now ask, "why not $84.99?" Or even $79.99? To boost sales by giving a perception of a lower price.

The answer is simple. I don't want the perception of a lower price! I want the perception of "this IS the price. If you can't afford it, it isn't for you." Yes, I want a price that says, "My fragrance is for those who can pay the necessary price. Take it or leave it. And, if you leave it, it is probably because you can't afford it ... and I didn't make it for people like you. Sorry, go out and get rich like my real customers. Then buy my fragrance."

As I write this, the compound for this new fragrance is in transit to me from the people to who were entrusted to make it from the formula I gave them. The alcohol I will be using is already here. When the compound arrives, there is the business of mixing the compound with alcohol. Then it all sits for a while and gets nicely mixed. Then the bottling begins.

If you want to follow the progress of this men's fragrance which has not yet been named, go to this web page where it will be offered for sale. The samples should be available around May 30th, 2008. Now here's that link:

http://www.FrankBush.com/mens_originals/xm_001.php

Why you MUST develop the ability to sell

2008-03-30T04:42:00.000-07:00

Two days ago I was talking to a customer who was working on the packaging for a new perfume, having learned to sell perfume successfully. He asked me about my own sales and I told him candidly that, at present, I am more interested in learning to make perfume than to sell it, although I have several fragrances for sale at one of my websites, and I "give away" a growing amount of perfume with the books I sell, as examples of what can be done with a very limited budget.

But getting back to selling. SALES are the difference between a hobby and a business. To be in business -- any business -- you have to develop the ability to make sales.

SELLING is a skill that can be LEARNED. That is why giant corporations run training sessions for their sales STAFF. If they relied on the ability of a handful of "naturals," they could not do business on the scale they do.

Once acquired, the skill of selling works equally well in good times and in bad. In a down economy, it is interesting to see who is doing the most advertising and selling. You can't be in business if you stop putting substantial attention on sales!

Today there are more opportunities than ever to make money with perfume. But SELLING is involved. And selling -- successful selling -- involves creative thinking about products and markets and the ART of perfumery.

Today the raw materials of perfumery, the raw materials of packaging, and the "raw materials" of sales promotion are available to ANYONE who can put together a few thousand dollars in capital. Five thousand dollars can be a GIANT budget for the independent perfumer, more than enough to get the product and the message out there.

So what do you REALLY need to make sales in your own perfume business? Start with perfume -- a perfume that grabs you ... and others -- add PACKAGING -- packaging which is APPROPRIATE for the people to whom you want to make sales (and cost-effective for you!) -- and finally you need PEOPLE -- people who will buy your fragrance, because you have sold it to them.

That is a business and it can be very profitable. If you understand the importance of developing YOUR OWN ability to make sales!

5 Day Perfumery Course In New York City, May 5-9, 2008

2008-03-10T09:11:00.000-07:00

Greetings --

This may be considered a "commercial" announcement but I believe that it is important to independent perfumers who are looking for new ideas, informations and contacts. Hence, I have reproduced our recent press for a 5-day perfumery course in New York City that we are co-sponsoring:

=========

For Immediate Release:

Maybrook, NY, May 10th, 2008 -- How often do fragrance, fashion, beauty biz professionals, and business owners have the chance to roll up their sleeves, reach for bottles of aroma chemicals, and work "hands on" at creating a perfume of their own?

This May 5th through May 9th a select group of industry insiders will have the opportunity to become students again when iconoclastic British perfumer, Stephen V. Dowthwaite, brings his 5-day "The Art and Technology of Perfumery" immersion course to New York City. Students will observe and take notes as Dowthwaite creates an original perfume and answers all questions concerning the process. Then, in afternoon sessions, they will create their own individual fragrances which will be completed by day four of the course.

If this sounds impossible, look to the results achieved by 42 youngsters, age 10-18, who recently took Dowthwaite's course at Harrow International School. After just six hours of training in smelling techniques, odor classification and basic fragrance creation, each had created their own personal fragrance, working from their own personal perfume brief.

Far from being a weapon to destroy the perfume industry, Dowthwaite's perfumery training courses give students a greater appreciation of both perfume and the work of perfumers. Dowthwaite believes that perfumery -- like art and music -- is a creative form that can and should be enjoyed by a far wider range of men and women than those selected for salaried positions in industry.

And -- good news for the fragrance industry -- Dowthwaite's students are far more likely to build vast personal libraries of new fragrances than the average man or woman.

Besides "hands on" creation, the course will cover a range of technical and aesthetic issues including aromatherapy and spa theory, perfume applications including cosmetics and toiletries, cosmetics ingredients, perfuming for functional products, dealing with perfume inquiries, marketing the language of smell, product trouble shooting, quality control, safety, standardization and packaging.

On May 7th, Hugues Thibaud, head of of O.Berk's luxury packaging group, will be explain the technology of semi-automatic bottle making which is now being used to produce custom and factice bottles in runs of less than 50 bottles. Thibaud's most recent project was a signed, limited edition set of decorative bottles created by legendary package designer, Pierre Dinand.

Dowthwaite, trained at Picot Laboratories in England, claims authorship to over 300 fragrances and flavors currently on the market. Based in Bangkok since 1989, Dowthwaite helped launch Thailand's first perfume compounding facility and currently consults for all three of Thailand's major fragrance houses. He is also a consultant to Thailand's National Science and Technical Development Agency and has been teaching perfumery at the university level and to private students since the early 1990's.

Attendance is limited to fifty. Advance registration is required. The course is sponsored jointly by PerfumersWorld, Ltd. (PerfumersWorld.com) and Lightyears, Inc. (PerfumeProjects.com)

For more course details and registration information, visit www.PerfumeProjects.com.

"The retail price of a bottle of perfume is largely determined by the environment in which it is sold."

2008-02-27T14:39:00.000-08:00

One of the first lessons I was taught in the mail order business -- lifetimes ago, so it seems -- is that the retail price of any particular item should be the price at which profit is maximized.

Sometimes profit is maximized by keeping the retail price low and selling in volume; other times the price is maximized by restraining volume and pumping up the price.

In the mail order business, as it existed in the days of old, the optimum price could be determined by "price testing." Ads were run offering the identical item at several different prices. Then, analyzing sales volume, merchandise cost and advertising expense for each of the test cells, the most PROFITABLE retail price could be determined. From that point on, the item would be sold at that price.

Notice that, in this model, setting the price has nothing to do with the COST of the item. In fact, the most profitable price could be one at which the item is sold at a LOSS, although I hope this never happens to you.

This method of pricing ignores the concept of a "standard" markup, be it 3 time cost, 5 times cost or even 10 times cost. Instead, the retail price is set based on
CONSUMER BEHAVIOR.

Now how does this apply to perfume?

What does a buyer EXPECT to pay for a bottle of perfume?

Think quick. If you see a perfume in a dollar store, what do you expect to pay for it? Certainly not $45. No, you expect to pay ONE DOLLAR. Conversely, it you saw a bottle of perfume priced at one dollar in Saks, Bloomingdales or Neiman-Marcus, you would ask, "What's the gimmick?" The price would not seem right. If you saw a one-ounce bottle of Chanel No.5 EDP in WalMart's prices at an "everyday low price" of $145 -- you would ask, "What is Chanel No.5 doing in WalMart?" because you might feel that something about this bottle and price was "not right" -- "not right for regular WalMart shoppers because regular WalMart shoppers don't buy real Chanel No.5; "not right" for anyone else because they would question how WalMart happened to have obtained a Chanel perfume.

The simple truth is, the perfume buyer goes into a particular store EXPECTING to find perfume prices within a certain RANGE. The more desirable -- "hot, new" -- fragrances can be expected to be at the high end of this range, the proven standbys in the middle, and perhaps a few "economy" fragrances at the lower end. But the buyer HAS a price range in mind for ALL of the store's offerings and a fragrance prices outside of this range will seem "wrong" -- and will be harder, or even impossible, for the store to sell.

The cost of making your perfume

When a major fragrance marketer plans a new fragrance, the FIRST step in the process is to determine a retail price point. From there, an acceptable manufacturing COST can be determined, based on the margin the manufacturer wants for this product. (Major fragrance marketers DO NOT "price test" in the way mail order people once did, but they do have huge amounts of accumulated data on what consumers have been willing to pay in the past for particular fragrances.)

For the creative perfumer, the fragrance itself comes first and cost is secondary. Big companies rein in this tendency. The small, independent perfumer is not so constrained but this lack of constraint can cause problems by allowing the perfumer to build a fragrance that costs more to produce than it can fetch at retail.

So you, the independent perfumer -- just like the mass market perfumer -- MUST give consideration to the retail price that your creation can reasonably fetch -- and build your formula accordingly.

This issue is particularly important for independent perfumes who use a lot of NATURAL materials in their compositions as these can pile on the costs VERY quickly.

The selling environment

Where are you going to sell your perfume? What kind of retail outlet? Let's look at the LEAST likely first.

A Website -- IF you are mad enough to think you can make money selling your fragrances on a website, the "aura" you create for that website will largely determine what price you will be able to get for your fragrance, assuming you are ABLE to sell it at all on the internet -- which is a tough proposition, so don't give up your daytime job!

"Fancy graphics" are necessarily the component needed to create the aura needed to sell perfume at $85 an ounce and up. Remember how Chanel build a perfume empire stressing SIMPLICITY -- but also by stressing Chanel!

How you create a website aura that will allow you to get the price you want ... is YOUR problem to work out. But unless you can do it, forget trying to make money selling your perfume "web only."

A retail boutique -- IF you are really into it, with money to burn, you might try your own retail boutique. A few companies have done it; none too successfully. Giorgio tried it in New York, as did Helena Rubinstein (for her husband!) If you own your own store and have lots of money, you can create whatever retail environment you want. The danger is you won't be able to sell enough of your perfume to cover your expenses.

Somebody else's retail store -- Most people making their own perfume at least HOPE they will be able to retail it through someone's existing store. THE BIG FANTASY for some is that the fragrance will become a huge hit and be taken in by a major retailer. I know of NO instance where this has ever happened. Coty, Estee Lauder, Gale and Fred Hayman all came close to this ideal but none of them opened the doors to major retail sales outlets by simply having a "good" fragrance. Each of them engaged in a LOT of selling!

A more realistic approach is to deal with stores -- boutiques -- where you feel comfortable shopping and where you feel comfortable working out a deal with the store's buyer. Buyers know their customers. They KNOW what customers want AND WHAT THEY WILL PAY. Assuming they are willing to give YOUR fragrance a shot, they know pretty well how to price it.

What this means is that the price for your perfume will be determined by the STORE ... not by you. If you've put your all natural fragrance into an eighty dollar bottle and the store says they can't price it above fifty-five dollars ... you've got a problem!

Conversely, if -- because of the selling environment of the store -- they want you to price your perfume at $135 ... you don't have to tell them that your cost comes to less than six dollars a bottle!

Website Essentials: Your NEXT product

2007-11-02T07:56:00.000-07:00

A wise man once explained the secret of mail order (read "internet marketing") success to me: Before you put money into selling your FIRST product, have your SECOND product ready!

Let me explain. It's hard to make money with a business that has only one product to sell. It simple costs too much money to ACQUIRE a customer. The big profit is made in getting REPEAT SALES from a customer. The person who likes your first product is a very good candidate for your second product.

So if you don't have a second product, you've lost out on an opportunity. Your business struggles rather than flourishes.

If your "first" product is a perfume that took you a year to develop, can you afford to wait another year until you have a second perfume? Certainly this would slow down the growth of your business but, perhaps, you can find OTHER products that COMPLIMENT your perfume.

The classic line extension for a perfume is the soap, bath oil, linen spray, candle routine. But this is tricky as, not only does it involve a significant cash investment, it also requires a good deal of technical skill -- the skill of a cosmetic chemist perhaps. Going down this path may not be appealing to you.

But there are alternatives: scarves, costume jewelry, (somebody else's) soap and bath products -- items that can be purchased through normal, wholesale, "gift boutique" channels. You won't get the markup you might like on these products but you can buy them in small quantities and these other products -- if well selected -- can put the icing on your cake.

You might have a better idea for a "second" product -- but those "second products" will speed your way to business success.

How to succeed in marketing your own perfume

2007-10-31T07:47:00.000-07:00

I once knew a not very good artist who, to my amazement, sent me an invitation to a show he was having at a prestige gallery. I went, out of curiosity, (the paintings were junk) and observed him making sales!

We can argue over tastes in art but the fact was he was a far better salesman than he was an artist. And this should give us all hope.

Creating a successful perfume is not easy. Just ask anyone at Estee Lauder, Elizabeth Arden, Inter Perfumes, IFF, Givaudan, Firmenich, or whoever. For every fragrance that "makes it" in the market place, an uncounted number die -- because they weren't "the right" fragrance at the right time and place, and because they were not SOLD successfully.

Yes, you can make profitable sales with a less than brilliant fragrance. If you couldn't, the perfume industry would be quite different than it is today.

Marketing people often don't have much choice about what they are called upon to sell. In advertising circles, the mantra is, "there are no dull products, only dull copywriters/artists/art directors."

The simple fact of business life is that you have to work with what you have ... sell what is in front of you ... generate a profit for your company from a product that might not be as great as what your competition is selling.

If you don't, your company will be out of business, your employees will be out on the street, and your spouse and children might start to wonder about you and your business sense.

Yes, you have to learn to sell what you have, to be enthusiastic about it, to find its good points, to find customers who can appreciate it, and convince them to pay you, not a "fair" price, but a price that allows your company (especially if it is a 1-person company!) to flourish.

BUT.

But while you are selling the perfume that you HAVE, the perfume that you have made already, it is essential that you keep working on your NEXT perfume, using the feedback (or lack if it!) gained from your current fragrance, working toward new fragrances rather than sitting idle.

I was recently reminded that, when Gabrielle "Coco" Chanel first tried to make a comeback in fashion, at the age of 70 after being out of the business for 16 years, her collection was a disaster. But when her financial backer tracked her down, she was already working on her NEXT collection. Which proved a huge success.

Life does not revolve around a single fragrance. As a perfume creator, you have the opportunity to create many scents. You don't know which of them might be your big breakthrough. But if you keep selling hard with what you've got, and keep developing new fragrances, there's a good chance that you will, in time, find yourself with a very good business.

How Do You Sell Your Unknown Perfume Successfully On The Internet?

2007-10-24T12:29:00.000-07:00

Here are some points that may help!

Point # 1
The first step in selling perfume successfully from a website it to establish your yourself as a credible merchant. The websites used by successful internet merchants differ radically from "corporate information" websites that may be built around beautiful images, music and animations, all of which delay navigation from one page to the next. To sell on the internet, your website has to function like Google or Yahoo. Navigation must be simple and rapid. Pages must pop up quickly -- with the information buyers are looking for. Ordering has to be functional -- simple -- straight forward -- crystal clear -- and easy to navigate.

Point # 2
The next step is building traffic -- traffic from potential buyers. Traffic from non-buyers only serves to help the search engines take an interest in your site. Your traffic mix must include a good percentage of qualified prospects for your perfume.

How do you achieve this when your perfume is unknown? The search engines can't bring you traffic if nobody is looking for you. Shouting "My New Perfume" at your website won't help.

Since your perfume -- and, probably, you -- are unknown, you will need some sort of CONTENT at your website that people ARE searching for, and, to be effective, it should relate to the possible internet searches of people who might be good prospects for your perfume.

Articles, information, solutions to problems all offer you opportunities to build the right kind of traffic on your website. Don't fall for the line that these will make your website look ugly. The only people who tell you that are people who don't have to sell something from a website.

Point # 3
Let the customer sample your wares. Unless you are a VERY good advertising writer, or unless there is some VERY special association with your perfume, it is unlikely that you will generate sales without offering samples. Samples will not eliminate the need to "sell" your perfume -- as you now must "sell" the visitor on taking action to request your samples. BUT, if you price your sample order so that it appears "generous" (i.e., you don't appear to be trying to make money by selling your samples!), it will be far easier to sell a few samples for the cost of postage and handling than it will to sell a full size bottle.

And remember, if they DO NOT like your samples, they are telling your something! Perfume is a VERY personal product and, if a person likes what you are selling, they will PAY. But if your perfume does NOT strike them as being special -- more special than anything they would buy at the mall, they will not order the full size bottle.

Today consumers have many fragrances to choose from at the mall and, if you are simply trying to imitate a fragrance that is already a success, you have little chance of making a sale. To succeed in selling your perfume or cologne online, it had better be special! -- or your promotion for it had better be special! At least to your target buyer!

Point # 4
Once you have, through your samples, attracted a consumer for your fragrance, make it affordable. If you need to get $50 on ounce or more for your perfume, consider selling it in 1/2 ounce -- or even 1/4 ounce bottles, so that, at least for their first order, the customer don't have to shell out such a big chunk of money.

In the early days of the Coty perfume business, the company prospered by offering its perfumes in a range of different size bottles. Those who had little money could still enjoy a Coty fragrance by purchasing a small (almost tiny!) bottle. Those who had more money could buy a larger bottle. How did rich woman distinguish themselves from their less fortunate cousins? Why they could use MORE perfume and perfume themselves more often!

Let me know how these suggestions worked for you!

Fragonard's unique approach to perfume marketing

2007-09-03T04:32:00.000-07:00

Parfumerie Fragonard, named for grassoise French painter Jean-Honore Fragonard, was founded in Grasse, France, in 1926, in an historic factory building. Fragonard has been in the business of creating perfume for others (i.e., Elizabeth Arden's 1936 Blue Grass) and of marketing perfume under their own name. Fragonard's contemporary marketing technique is worth studying.

Fragonard, under the management of the founder's granddaughters, has created a perfume museum in the old factory building. The museum offers tours, both of the museum, with instruction on perfume making, and of Fragonard's modern factory and laboratories on the outskirts of Grasse. As with most such tourist tours, the final stop of a gift shop where visitors have the opportunity to purchase what they have just been primed for -- Fragonard perfume.

Backing up on site sales is a website that allows new converts to reorder -- and gives those who failed to order at tour's end a second bite at the apple.

So for Fragonard, sales promotion involves getting tourists to visit Grasse and -- since Grasse was once the heart of the French perfume industry -- once in Grasse it is only natural that they would want to see a perfume museum and perfume making,and once they have signed up for the tour, it is only natural that they would want to try a bottle of one of Fragonard's excellent perfumes. And, if they really liked it and now felt an affinity for Fragonard, the chances are excellent that, in time, they might reorder using the website.

This is very much like the promotional strategy used in the U.S. by small wineries.

How could you put this strategy to use? If you owned a B&B, you could feature a tour of your perfume "laboratory", demonstrate a few simple accords, romance your product a bit and take orders. (Be sure to have your perfume available in affordable sizes!)

If you do not happen to own a B&B, consider working with someone who does. For them, to be able to offer a visit to a perfumery would be a plus. For you, this would be a sales opportunity.

Of course the key to it all, besides having a few decent fragrances to sell, is to create a home perfumery that is visually interesting and a "tour" that holds the visitors interest. Probably some hands on lessons would be appropriate -- to get the people involved. And once they are involved, sales can be made. And, of course, you'll need a simple website that can take reorders.

A wide open opportunity to sell your own perfume -- if you can make it sell

2007-08-26T05:02:00.000-07:00

Yesterday I was talking to a woman in a small clothing boutique. I had taken her for a sales clerk -- which she was -- but, when she started talking, she revealed that she was much more.

This lady had attended a rural college for fashion marketing and was now employed in a rural fashion boutique in a college town -- a town in which she had grown up. She had no interest in working or living in a big city.

In addition to her duty as a sales clerk, she also was responsible for purchasing and displaying the merchandise -- women's garments, for the most part. This boutique happens to be a magnet for women (such as my wife) who are looking for clothes that are a bit more fashionable and unique than those found in the mall stores. I suspect that they have a strong turnover as they have survived for a number of years in a tough market and have a constant flow of potential customers ... with money.

Now in this boutique, soaps and a few decorative items were on display, but no perfume. Could they sell perfume? Would they sell perfume? I don't know. (And I was caught without samples, having just returned from vacation.) But I do know that it would be easy and comfortable to talk to this woman about the possibility of their carrying a perfume -- yours or mine. So here is an opportunity.

But wait. There is more. It won't do you any good to have a store display your perfume unless that display can make sales. Making a display that will sell your perfume is still up to you.

This, unhappily, is the biggest challenge that confronts the independent perfume maker. Any store will be happy to display your perfume if it is making money for them.

In my mind, to make your display successful, it must have some kind of a hook ... a device that compels the consumer to purchase a bottle of your fragrance. A "hook" is more than just a nice looking display. A hook is something that gets into people, draws them to the product, makes the product fascinating to them and tips the scales in favor of their spending money they hadn't intended to spend ... because your perfume, as it was displayed, offered them a gratification that went beyond the aroma itself.

How do you do it? Perhaps you don't. Perhaps you enlist the assistance of somebody who is very clever at developing sales gimmicks. And, of course, you or this sales promotion guru must be able to relate to people like the woman who is working in this boutique, and to draw her into your plans, and get her feedback as to what her customers want and what they will not go for. The intelligent retailer must be your partner too!

But if you can put this all together, it is an opportunity for you.

By the way, did I mention that the woman in the boutique hopes to own her own boutique some day and has taken this job, in part, to gain essential experience?

I think I will go back and talk to her some more. This time, about perfume!

All Or Nothing Marketing

2007-07-23T08:27:00.000-07:00

I recently wrote about "Selling Your Perfume Texas Style." This is a continuation on the same "take it or leave it" theme.

Let's assume you are making perfume, as a hobbiest, and your perfume is good -- very good -- but you don't need the money. On the other hand, you certainly would like to make some money from it.

Let's assume also that you know of a retailer or some sort of marketing company that has a "spirit" that is very compatible with your ideas about perfume -- but this store or company has never sold perfume, although you believe that they could be selling perfume quite successfully.

Now if you were a perfume making company selling to a perfume marketing company, you would have your sales person approach the marketing company and try to get your company on the list of companies that would be "briefed" when the marketing company was looking for a new perfume. That means that, if they "accepted" you as a qualified vendor, you would be asked for submissions -- samples of a perfume that fit their requirement -- in competition with whatever other companies were being asked for submissions. Unless you "won" the contract to supply the perfume to the marketing company, none of this would earn you a penny.

Now since you are creating perfume at your own pace, without commercial pressures, you don't want to be involved in competing with the other perfumers and then being forced to supply the required amount of your perfume on the marketer's schedule. This calls for lots of administrative effort. But, going back to the "Texas Style" approach, here's a plan that might work well for you.

You have a TARGET -- the store or company that is not currently selling perfume but, you believe, could be very successful at it.

Why not develop a fragrance FOR THAT COMPANY ALONE. Forget even the possibility of selling it to anyone else! Just work, work, work on what YOU KNOW would be right for the target company. Work until you are satisfied that your fragrance is perfect.

Now go sell it to the store for which you created it.

Impossible? Too difficult? Consider your situation. You have created a BEAUTIFUL and APPROPRIATE fragrance for this company that has never sold perfume. At the least, they should be FLATTERED that you have done this, with them in mind exclusively. (Be sure to tell them this!)

But how do you make your sale? You do it by teaching them what needs to be done to sell your -- "their" -- perfume. And, since marketing is still quite new to you, you offer them your -- "their" -- perfume on consignment, that is, they pay nothing up front and you only get paid for any bottles they actually sell. They can't lose!

Since they can't lose, there is a good chance that they will take you up on your proposition and put your -- "their" -- perfume on sale in their store or catalog or whatever. Now, if you were right about the fragrance AND about this store being the right place for it to be sold, your perfume will sell. And you will make some money.

As a "footnote" to this plan, think a little about how the store should present your perfume to its customers. No doubt you already have ideas about how you would like your perfume to be displayed and sold. Be sure to communicate these ideas to the store. It is to their advantage to see that your perfume sells successfully. You BOTH stand a good chance to make money. Perhaps even serious money ... if you both do it right!

Selling Your Perfume Texas Style

2007-07-21T18:16:00.000-07:00

At a ranch in Texas, the menu had two options: take it or leave it. The other day it struck me that this attitude could be of some use to the independent, part-time perfume creator. The idea goes like this:

Let's assume that over the months and years you've developed a number of quite good perfumes -- perfumes that would be plenty good enough for a small marketer wanting an original perfume to sell but not wanting the expense (and uncertain results!) of going to a professional perfumer who will charge, say, $10,000 to develop a fragrance.

So Small Marketer -- "Business Guy" -- finds you. He smelled your Fragrance "A" on a woman at a party. You don't know where she got it but you know she got it free, from some samples you distributed among friends. Business Guy likes it and wants to make a deal.

You, of course, are thrilled at the thought that someone might market one of your fragrances and pay you something. It is like a fantasy come true. You might get $3,000 to $5,000 for exclusive use of your Fragrance "A" for a year or so. And it's just been sitting on the shelf all this time, never earning a penny.

But here's the problem and I'm giving you this from years in the business world, dealing with people like Business Guy. Business Guy is going to ask, "What else have you got?" (Although he has just told you how much he loves your Fragrance "A" and wants to market it because it's so special!) Then, after you've shown him everything you've ever made, Business Guy is going to say, "Is that all you've got? Couldn't you add a little something to something and make ... and your price, can you make it cheaper?" He may even add some comment about how your perfumes aren't really that good.

By now you realize that what you thought was your big break is really a nightmare. And you've already demonstrated to Business Guy that you're willing to bend on ANY point! You feel insulted and degraded. Business Guy is the reason why you never tried to sell your perfume to a marketing company.

But remember Texas. "Take it or leave it." Suppose, when you show Fragrance "A" to Business Guy and he asks what else you've got you simply say, "This is what's available." And, when the request comes to make changes, you simply say, "I will not have my fragrance spoiled." And, when Business Guy asks if you can make it cheaper, "I don't deal in cheap perfume." (Take it or leave it!)

Now you do have other fragrances and, possibly, you could make a few adjustments -- trials -- if you wished. But why? Business Guy is no nose. He's just busting your chops, trying to assert himself and make you small and desperate to please him. For him, this is great. What he really wants is a super low price on Fragrance "A". If he can shake your confidence in your creation, if he can make you grovel like a worm, if you are fawning all over him because you think he's going to buy from you, you'll probably give him the price he wants -- and establish yourself as a source of cheap, original perfume. He may even send his friends to you!

None of this is good for you. You lose your pride. You lose your creativity. You lose the joy you feel when you work on a new perfume. After all, you've had Formula "A" for years and never made a penny from it so why throw out your pride now for money you don't need?

Give Business Guy the Texas menu. You might not make this sale but you're going to feel a lot better about your perfume AND about your negotiating skills. In time you will sell perfume but to the right people, people who appreciate your gift, who respect you, and who are willing to pay a fair price.

"Take it or leave it" IS a negotiation. And if making your own perfume is a part time pursuit for you, "take it or leave it" is a negotiation you can't lose.

Marketing People Have Egos Too -- (Why Partnerships Can Have Bitter Breakups)

2007-07-04T06:27:00.000-07:00

"Creative" people -- artists, writers, musicians and, yes, perfumers -- can have big and fragile egos. They can be tempermental (though perfumers are often restrained by the corporate environment in which they work.) Some of the greatest promoters (read "sellers"!) have succeeded in making creative people rich by stroking their egos, catering to their whims, and understanding that these "creatives", if handled right, can make the company lots of money.

But what about the marketing artists ... those people who go out and sell it to the public ... who make the cash registers ring? Would it surprise you to hear that THEY have big egos too?

Yesterday I wrote about how a perfume creator with NO selling ability might prosper by getting involved with a person talented in selling. Yes, this suggests a PARTNERSHIP and many fear partnership due to the horror stories that are told about partnerships breaking up. (And, YES, I've gone through that too!)

But look at the "partnership" issue realistically. Some partnerships break up because of dishonesty on the part of one or the other of the partners. But this is a rare. In fact, it is a police matter. In truth, more partnerships break up over EGO issues ... becase marketing people have egos too.

What happens when egos collide? ACCUSATIONS! "You're ripping me off..." the perfumer cries. "No!" says the marketing person, "Look at our agreement!" "But you took advantage of me!" the perfumer shoots back. "Until I met you, you didn't have a pot to piss in!" the now very annoyed marketing person replies. "I made you what you are!" And so it goes. Two egos clashing. Nothing more. No true dishonesty. Just hurt feelings. Feelings that are hurt because one side does not appear to APPRECIATE the contributions made by the otehr side.

How can these problems of partnership be resolved for happy endings? First, both sides need to cool down. Second, a third party, who both sides respect, may need to get involved to LISTEN to what each party is saying and help find a BALANCE between the complaints.

Holding a profitable partnership together makes tremendous good sense as in so many cases, once the partnership breaks up, neither side benefits. In fact, it may be the end to both partners' success.

So how do you keep it all together? Beware the egos! Focus on points of mutual respect. Try to talk things out before they get out of hand. A good partnership can be a very profitable way to do business.

Can You Sell Your Own Perfume Successfully, Even If You Have No Sales Ability At All?

2007-07-02T16:29:00.000-07:00

Suppose you are making your own perfume but you have absolutely NO sales ability. Can you develop a successful business SELLING perfume if you simply CANNOT SELL? The answer is ... "maybe". Here are my thoughts.

First of all, your perfume is going to have to be GOOD! And by "good" I mean that OTHERS (not just your family and friends) must be DRAWN to it. Your fragrance will have to "sell itself" when absolute strangers encounter it. But having a perfume that is really great is only a starting point. Your perfume that can "sell itself" can't really sell until SOMEONE goes out and sells it. But that someone DOES NOT have to be you.

Recently two major perfume manufacturers merged and some of the world's top perfumers found themselves out of work. Now certainly these people could, on their own, make wonderful fragrances ... but I'm betting that they won't (or most of them won't) try to go it alone making and selling their own perfume. More likely, they will continue to work, one way or another, on MAKING perfume -- just as you may be doing.

The ability to sell successfully is a special skill, gift, art or trade, just as the ability to make beautiful perfume is a special skill, gift, art or trade. Both, to an extent, can be learned. But the key to it is the MOTIVATION (or PASSION!) Some people are motivated to sell things. They love to do it. They love to watch sales curves rise and the money roll in. They live and breath sales -- and marketing -- and deals -- and building effective sales organizations. They are a special breed of people and they are WORTH a lot of money because they can MAKE a lot of money for you -- if your perfume is really good.

And, as in any marriage, the numbers aren't necessarily 50-50. They can be 10-90 or 90-10, depending on who has the reputation, who has the track record, who is contributing what. But 10% of a successful business can give you, the perfumer, a lot more money than 90% of a business that goes nowhere. Think in terms of what you GET from the deal, not how the deal LOOKS.

In short, if you are a talented perfumer and want to make money selling your perfume but have absolutely no sales ability, think in terms of working with someone who may know nothing about making perfume but can quickly learn what needs to be learned to sell it ... and who will put just as much into selling it as you are putting into making it.

It won't be easy to find such a person and you might encounter a few failures along the way. But the "right" person to work with will be enthusiastic about your perfume and, rather than asking you for a fee up front for their work (always a negative!) will talk about -- and demonstrate -- what they can do for you.

And, oh yes, you will need a feeling of good rapport with this person. You must feel free to offer suggestions -- and be willing to take suggestions. You and this other person must be able to listen to each other, you must share certain core values, and you must be able to establish a mutual respect.

Now that's a formula for successful perfume sales, even if you can't sell at all!

A Simple Test

2007-06-20T05:37:00.000-07:00

The story is told of a perfume marketer who, with an atomizer filled with her new perfume, sat with friends in a restaurant and puffed out a bit of aroma as people passed by. She was trying to judge their reaction.

Whether this Chanel story is true or not, the interesting point would be that she wasn't spritzing people -- the way aggressive salespeople at perfume counters are wont to do -- she was just filling the air with aroma -- no name, no brand, no price -- just aroma. And, of course, she could judge people's reactions as she sat at the table -- good ... bad ... indifferent. (Indifferent was the most negative possible reaction!)

If you assume that the customers in the restaurant were typical of the people to whom the perfume might be sold, isn't this an excellent test?

If there is no reaction, you fold your cards and walk away from it. If those who smell the aroma -- not knowing what it is or where it comes from -- appear to have a positive response, isn't this a good omen for your fragrance?

How could you use this technique?

Today, of course, you would have to be careful about what kind of restaurant you sprayed in. Be aware of the "clean air" rules that ban smoking -- and, in some people's minds -- the use of perfume. So you might want to find a restaurant with outdoor tables. That should work. But what then? Here is my proposal:

Have your atomizer bottle to spray around your table when likely people walk by. Then, if someone shows curiosity or interest (in a positive way, of course!), without speaking, hand that person a sampler atomizer of your perfume glue gun glued to a slick business card size card that names the fragrance and gives information on where more can be obtained -- your store, website or whatever.

Try this technique and see what response you get. You might make sales but, more likely, you might get people talking about your fragrance and that's good too!

Paris or Perry? Where Would You Put Your Money?

2007-05-18T10:53:00.000-07:00

Say you are trying to build a business selling your own perfume. If you had a choice of a license agreement with Perry Ellis or Paris Hilton, which would you choose?

Is this a no brainer or a question to give us pause? Certainly Paris is currently hotter than Perry. She could be hot for years. But will that translate into perfume sales for Parlux, the holder of her license?

Recently Parlux sold it's very favorable Perry Ellis license to raise money to put behind celebrity fragrances such as its Paris Hilton brand. Ironically, Parlux has earned far more over the years from it's dull, non-celebrity licenses than it has from its celebrities. But certainly having a celebrity name gets you press and into stores.

Would you have made that choice? A clothing brand such as Perry Ellis -- or Guess?, another Parlux license -- is marketed by its owner. The owner works to enhance the value of the brand, regardless of what happens with the fragrance. Yet the sale of the fragrance helps promote the sale of the clothes, and the sale of the clothes helps promote the sale of the fragrance. This mutually supportive relationship helps explain why "designer fragrances" have been so successful over the years. To the consumer, both the clothes and the fragrance are seen as coming from a common source. The advertising of both the designer and the fragrance marketer support this view.

But "celebrity fragrances" have a different dynamic. Can Parlux run cost-effective advertising for its Maria Sharapova or Andy Roddick fragrances in tennis magazines? Can Parlux sell these fragrances at tennis matches? They might have more success with beer and hot dogs. And where do you sell Paris Hilton perfume? Hilton hotels? Parties? In fact, you're more likely to find it in a drug store. And it's hard to imagine Paris Hilton bonding with "her" perfume when she can afford any fragrance she might desire.

As for Parlux, nothing Parlux does to sell Paris Hilton perfume will make much of an impact on Paris Hilton's lifestyle. So the question for Parlux is, is Paris Hilton doing something that will make people seek out and buy "her" perfume? And, if this does happen to be the case, how long will the trend last?

Building A Brand

Regardless of how small your own perfume business may be, two elements can guide you. First, there is a matter of your perfume itself. Connecting with the public is not a one-shot, all-or-nothing proposition. Sometimes it takes a number of tries before you come up with a fragrance that explodes into sales. So you have to keep working at it.

Your second guide element is marketing focus. This is your company and your perfume and, if you are to tie up with a "celebrity," however small, you'll want your celebrity to share your goals for building a brand. You'll want commitment that will make your celebrity's name valuable for years into the future. You'll want a celebrity who WANTS to help sell your fragrance because the income is meaningful to them, even if they just give it away to charity.

In short, you want a celebrity who will become, in a very real sense, your partner in perfume. A famous name unsupported by the enthusiastic cooperation of the famous person is a risky bet for building a perfume brand.

Bursting Out Of Your Own Store(s)

2007-04-25T11:28:00.000-07:00

There are still a few examples around of perfumes that get their start as a store brand and then branch out to additional sales outlets.

This was once the story with French designer fragrances. Today it is the story of Victoria's Secret. Tomorrow it could be you.

Victoria's Secret lingerie and other garments are sold ONLY through Victoria's Secret stores, catalogs and website. But Victoria's Secret fragrances are also available through other marketers -- Amazon.com for example.

Why does Victoria's Secret let others sell their fragrances? Two good reasons suggest themselves. FIRST, it is more expensive to launch a new perfume than it is to launch a new bra. By expanding the distribution of their perfumes, Victoria's Secret can take advantage of economics of scale and put more money into both fragrance development and package design and still achieve a lower cost per bottle and a greater profit on each bottle sold.

The SECOND reason is even more obvious. The perfume advertises the brand. When people see Victoria's Secret perfume for sale, they are drawn to the company's stores, catalog, and website. This is exactly what French fashion designers were doing back in the 1930's and 1940's. Pierre Balmain even put his phone number on a fragrance, just as he might have done with a business card.

So, the lesson? If you have a store, stores, catalog or website where you are selling, successfully, your own perfume, look around and see who else might want to sell your perfume -- particularly if the labeling on your bottle could bring new business back to you!

How NOT To Advertise Your Perfume

2007-04-23T07:30:00.000-07:00

I'm looking at an ad in the January 2007 issue of ELLE magazine, U.S. edition, for Guerlain's "Insolence" perfume described in the ad as "the new feminine fragrance." A bottle of "Insolence" is shown on the page which is filled with a head and shoulders photo of Hilary Swank. The largest type on the page reads, "GUERLAIN." Lines at the bottom of the page read "Hilary Swank for Insolence" and "Available at Macy's."

This is pretty much a standard perfume ad, so why would not NOT want to use this as a template to advertise your own perfume? Why? Because you would be throwing your money away.

But let's look at this ad. There are two photos, three famous names, and two lines of copy. The oldest of the famous names is Guerlain, once a family business that was responsible for creating some of the world's great perfumes, now a conglomerate brand. Second in age is Macy's, a department store star ascendant. Finally there is Hilary Swank, a newcomer to the walk of fame.

The Guerlain name is engaged in a struggle for survival, hence it's prominent size on the page -- to remind you that Guerlain still exists. Macy's, of course, is where you would go to purchase Insolence. And Hilary Swank is the celebrity chosen to draw fans to the fragrance. Since not everyone would recognize her, the advertiser rightly includes her name at the bottom of the page.

So let's start by asking, "where is the sell?" The Macy's line is obvious. Get the viewer to Macy's and they are certain to buy something. It also lets us know that Insolence is currently available.

The Hilary Swank photo draws us to the page (hopefully) and thus we become aware of this new perfume with which she had associated herself. Certainly it is good publicity for Hilary Swank -- to keep her face in front of the public.

So if this was YOUR deal and you had your perfume in a store and had a celebrity to advertise it, you would be giving nice publicity to your celebrity and to the store. Of course, you're not Guerlain so your own name on the page would be less meaningful or not meaningful at all. But let's get back to the real issue: selling perfume. How much selling does this ad do? Without the names "Guerlain", "Macy's", and "Hilary Swank", the answer would be "none."

For Guerlain, the purpose of the ad is pretty obvious. Macy's won't stock the product unless it is being advertised. Guerlain's arrangement with Hilary Swank may also call for a certain level of advertising support. So to "do the deal", Guerlain is obligated to advertise Insolence. Creating and running an ad is no guarantee that sales will be made as a result of the ad's appearance.

So if you were the advertiser, following this template, you might be paying off your obligation to your celebrity and the store which agreed to take your fragrance. But would the ad be SELLING any perfume for you?

Companies new to advertising overestimate the power of an ad and assume that just because an ad is ordered and paid for, sales will result. This is not the case. Even a very expensive ad can -- and will -- produce zero sales unless the ad does some genuine selling.

As an individual or small business selling your own perfume, you cannot afford to do what Guerlain is doing. Guerlain may lose some money on their ad but you will lose ALL of your money. Guerlain can afford to lose some money. You cannot afford to lose ALL of your money. Not if you are serious about wanting to sell your perfume.

As the unknown perfumer with no track record, you need a really big marketing concept for your ad, a concept far more powerful than the celebrity endorsement ads you see in major publications. How to you get a winning advertising concept? The answer is simple. You avoid wasting your money on big, splashy ads that do nothing for you and, instead, spend your money going face to face with as many prospects as possible, developing your sales pitch verbally until you have a line that works for your perfume with the right people. Then you can start to work -- with that knowledge -- to build a marketing campaign ... and an ad with a true selling concept behind it.

Chinese infomercial producers are waiting for your perfume!

2007-04-18T09:15:00.000-07:00

Would you believe it? In August of 2006 the government of China cracked down on the direct marketing television industry and ordered an end to all those popular infomercials for weight loss, breast enhancement and height improvement. Zao Zhao and Youcheng Ji report that as many as 20 percent of all infomercial producers in China could be driven out of business by this distressing development. But this could be an opportunity for you.

Just like weight loss and breast enhancement, perfume is a high markup product. If an infomercial could sell enough of your perfume, you could make out nicely, the Chinese infomercial industry would be saved and men and women all over China would be enjoying the fragrance you created.

Can you develop a great infomercial idea to sell your perfume? How would you approach it? What would you say -- on TV -- to make hundreds of thousands of people want your perfume? If you can come up with the right idea, you might want to start talking to Chinese infomercial producers. If your mind goes blank ... well ... selling your perfume may turn out to be a problem for you.

The easy way to get big orders for the perfumes you create

2007-04-17T10:05:00.000-07:00

Where do you go to find a big bunch of the world's top perfumers? The answer, of course, is a fragrance house such as IFF (International Flavors & Fragrances). IFF churns out perfume for such famous names as Estee Lauder, Coty, Elizabeth Arden, L'Oreal, Liz Claiborne, Banana Republic, and lots more. IFF markets its perfume making services to these companies -- in return for being the exclusive supplier of the finished product.

The strategy is nothing new. Back in the 1930's and 1940's -- before IFF existed -- Roure Bertrand (now merged with Givaudan) trained and employed many of that generations top perfumers who cranked out fragrances for Dana, Carven, Christian Dior, Lucien Lelong, Schiaparelli, Balmain, Nina Ricci, Robert Piguet, Givenchy, and others.

Roure's owners then, like IFF's owners today, saw the profits in setting other people up in the perfume business -- people (such as the great French fashion designers of the period) who had ready made markets for perfume. Roure sold the fashion house on the idea that they should be selling perfume. The designers had celebrity status, women bought the fragrances that carried their names, and Roure made lots of money from it, just as IFF makes lots of money today off the celebrity status of David Beckham and Viktor & Rolf.

If you are making perfume -- good perfume -- but want to stick to making perfume rather than getting involved in consumer marketing, consider turning yourself into a one-person IFF or Givaudan. Find organizations that could profit from selling their own "signature" fragrance. Then offer to supply it to them.

Of course you're not likely to snag Tom Ford or Estee Lauder as a client but you may uncover some hidden gold in local organizations that can sell just about as much perfume as you, working alone, can create.

Maybe it won't really be so easy to get that all important first order. But it's a business plan that has already proven itself to be profitable. And it could be both profitable and emotionally rewarding for you.

Three Rules For Smart Perfume Marketing

2007-04-13T09:14:00.000-07:00

Follow these three rules and you are very likely to make money. Ignoring them can lead to time wasting, expensive failures.

Rule # 1 -- Don't expect others to sell a fragrance you can't sell yourself.

It's your perfume, can you sell it to consumers -- anonymous consumers, people you have never met before? Can you approach a man or woman with confidence in your fragrance and make a sale to someone who has never heard of you?

If you can't sell your own perfume, don't expect others to be able to sell it. Don't think that just because a popular store agrees to take a small order on consignment you will suddenly be making sales.

If you are fortunate enough to find a store that will take your perfume, you'd better plan to spend some time at that store doing some personal selling. Then, when you have the winning sales patter down, you can train others.

Rule # 2 -- Test on a small, affordable scale before you blow a wad of money.

I have worked with people who committed too much money to projects that failed. Had they tested their ideas on a smaller scale, they might have gotten the data they needed to straighten out their project and take a better shot at the target -- or they might have realized they were headed for disaster and quit while they still had money in the bank.

Thirty years in the mail order business have made me a great fan of testing on a small scale. I have seen unexpected failures where I was sure I would see success -- and I have seen huge successes arise out of the most unlikely tests.

Major perfume marketers, like mail order entrepreneurs, know that only one out of three ... five ... or even ten projects will result in a genuine success. So they budget money for testing -- for trying this and that without betting the farm. The one genuine success that comes out of these tests gives the company its profit -- and its capital to do the next round of three ... five ... or even ten tests.

Be sure, through testing, that you have a winner before you mortgage your home.

Rule # 3 -- Go with your winner.

When the "numbers" -- the sales results -- show that you have a winner, invest in your project. Make your sales while the market for your fragrance is hot. Work it with all your energy. This is the point at which you make your big profit -- and put away the capital needed to develop your next round of fragrance tests!

If you make it in China, don't plan to sell it in China!

2007-04-12T12:50:00.000-07:00

A recent article by Simon Pitman in Cosmetics design-europe reported that Chinese consumers are increasingly unwilling to pay more for foreign cosmetic's brands (and, presumably, perfume.)

While Pitman cites several reasons for this trend -- revealed in a report by Vincent Chan -- one possible reason is pretty obvious: most of our (U.S.) consumer goods are made in China and the push to use of Chinese facilities to produce more and more consumer goods in accelerating.

For many years China has provided raw materials for perfume and cosmetics. China currently provides packaging components for both mass market and "prestige" perfume lines. Why would someone in China pay a premium price for a Chinese-made item assembled in the U.S. or Europe and then re-exported to China? It doesn't make sense.

The implications of this trend are vast. Companies that are looking at China as a huge, untapped market may find themselves out in the cold because of the price structures they wish to impose on Chinese consumers.

Think of China as a giant Wal-Mart forcing small competitors to close and large competitors to (with great pain!) match the everyday low prices charged by Chinese companies to Chinese consumers.

Perhaps the best strategy to survive the growing dominance of China in the market is to (1) get absolutely fixated on product quality and (2) knock yourself out to provide far better service than any competitor.

Funny how these two strategies work well for small U.S. and European companies -- and individuals -- trying to sell their own perfume under the noses of the dominant perfume marketing giants.