Retailing products

[Father1*]

I’m in the process of setting up self employed beauty therapist and I will hopefully be renting a room very soon! I’ve got my insurance and I’ve registered with HMRC but I never done this before and I am really not sure how to start with retailing…I feel fairly confident about my selling skills as I’ve been working in cosmetics and skincare retail for many years so I feel confident to bring that through with me into my treatments and selling. My main questions are and sorry if this is very naive but do I just bulk buy the products I want to sell from salon services or even Amazon and then I do I make up whatever prices I want to sell them for?
How much should I charge above what it costs me to buy in the items, say I buy an item for £6, should I sell for maybe £8? I’m just so clueless and need some help please! X

 

[Trinity]

Rule of thumb is double cost price then add VAT, whether you're VAT registered or not is irrelevant, you would have been charged VAT on your original price so it needs to be offset in your retail price.

 

[Father1*]

Thank you trinity! And would you just buy supplies from salon services as I could get products like Kaeso cleanser or cuticle oil etc?
I’ve also seen some therapists that use temple spa or nuskin for their treatments so they must be selling those too…is that going to be more a commission they will be getting for being a rep and do you think this is a good avenue to explore?

 

[RosieR]

If I could jump onto the thread and offer my ten penneth. Buying from a warehouse is convenient and sometimes easier than through a Rep. However the choice of products from a warehouse is often limited and individual companies will have reps that can advise specifically on their own product lines and provide brand training.

I have both.
a) Warehouse products- I double the price for retail not adding the vat as I'd never sell anything. Retail is tough and sometimes I think why do I bother?
b) Professional Beauty skincare - these lines usually come with a RRP so makes life a bit easier and no calculations are needed. The rep takes a small commission but my rep worked her socks off for my brand training , so she really earned it.

Obviously when it comes to retail you can charge what you like it's all down to your selling ability, and I am not that good if I am honest.

 

[TheDuchess]

I’d advise caution when starting out. It takes time to build up a client base and it’s best to offer the products that suit your particular clients.

PreCovid/Brexit/cost of living crisis I averaged 25% turnover as retail product sales. Now I’m right down. I’ve had to focus my efforts on upselling and cross selling services (as I’m not fully booked) and retail has withered. My best services are not great for retail opportunities and I’ve pretty much stopped recommending products as I can’t afford to invest in stock and a disappointing display never sells.

Bearing in mind that I’m used to selling £2500 of products every month, it’s been quite a chastening experience. I like selling to my clients but I think I’ve lost my confidence.

With retail you can often be surprised at the products that do and don’t sell. I’ve had more successes than failures but I filled an entire display unit with stock when I opened 7 years ago that I couldn’t sell for love nor money.