Do you agree with minimum orders?

[happyfeet]

hey geeks cant sleep, husband snoring so as you do things go through your mind. My question (out of curiosity more than anything) is do you agree with companies who specify a minimum order?

My thoughts. . . I actually avoid these companies like the plague. I don't want to be forced to spend a certain amount or buy a few items i need to only have to buy more to make that minimum order. Now business sense prevails that we buy larger quantities or size of items as in the long run it saves us money. However I'm just starting up and whilst i have the bulk of my equipment and kit i do have times when i just want to order a couple of items that don't add up to fifty minimum order. For me i guess as I'm a newbie and self employed my stock quantity is naturally lower at the moment as I'm building a client base. I understand i have to pay for postage more often this way but sometimes i do only need the odd item here or there. Now i have to say when i order off sweet squared i can very easily spend fifty pounds simply because i can't seem to stop myself ha ha but i like that there isn't a minimum order. I don't like being told how much to spend lol. I don't believe companies set a minimum order out of the goodness of their heart to help a tech or therapist out, i believe its done to ensure a good turn over for them lmao!

So geeks i hope I've explained my views I'm wondering what yours are? Do you avoid? Can you easily spend fifty pound? Do you over buy simply to make it up to that minimum order? Even if you do need to spend more than fifty would you use a company that specified a min order or use a company that lets you the consumer/professional decide?

 

[gemgem55]

I understand where you're coming from but i just try and plan my shop, I'm still better off spending the 50pound minimum than driving to one of the stores as it saves me in fuel,

I top up with couch roll, tissues, cotton wool, things I'm happy to store and know will always be used without expiring

(Thank goodness for salon geek and early unwanted wake ups!!)

Sent from my GT540 using SalonGeek

 

[Mike16300]

Oooooh, you've got me going now! lol

Like you I hate these tricks to relieve you of your cash. Imagine trying the same tactics in your salon?

I'd love to do your nails, but unless you have a a facial and book in for a total body wax, bringing the total to over £69.99, I can't do it!

A similar thing is happening at my "wholesaler", and I say wholesaler in inverted commas because they hardly have any stock. I keep a small stock to keep costs down, and don't mind the frequent trips to the wholesaler to top up as they are close.

The thing is, sometimes they only have 2 on their shelves, forcing me to consider buying more the next time they have had an order. So we, the small shops, are acting as their warehouses, and more importantly, they have had all our cash. We won't see a profit until we have sold 80% or more of the items. Grrrrrrrrrrrrrr!

I'd better go and mop the salon floor, or the first client is going to get it!! lol

 

[misslady]

Hi happyfeet I totally agree with you. I have also just started up and I'm fed up of not being able to buy a few things because it doesn't come to £50. Being in business is all about risk, and it's risky enough without spending money on things that you cannot be sure you will use. That's just plain foolish, especially in the early days. I did order from a supplier that had a min order but that was when I wanted my wax kit which went way over the £50 mark. But now I hunt down suppliers where I can order however much I want to. X

 

[Lynne Baker]

I'm both a consumer and a supplier so I can see it from both sides.
As a consumer I try to order as infrequently as possible simply because it cuts down on the admin associated with logging the invoices on my spreadsheet. It also helps with stock taking too. I can usually get a bit of discount if I order in bulk, and get free postage too.
I absolutely understand that this is not always possible for a startup though and it's a very myopic supplier who alienates this sector of the market because people have long memories...
From a supplier point of view, first as a supplier of services and then as a supplier of goods.
I no longer offer lip waxes on their own. By the time I've got the client in the door, exchanged pleasantries, got them on the couch, checked for changes in their history, done the deed, rebooked them, exchanged pleasantries again, 20 minutes have passed, and all for £8. Er, no. I have a sort of unwritten rule that the minimum appointment is £12.
It's worthwhile considering why people are in business. We're in business to stay in business, not to go out of business.
From a goods supplier point of view:
I have many resellers of varying sizes, everything from the mobile bridal makeup artist to the big salons and spas.
I hope that I treat them all with the same courtesy and respect no matter the size of their order.
However, I have a couple of customers who ring up, exchange pleasantries, vent about how their business is suffering, and how such and such salon has gone out of business, about how their dog died last month and how they've lost their mojo ever since, etc, etc, and then order one eye pencil for about £6, and then moan about having to pay postage.
The entire conversation takes over 30 minutes, then add that to the 20mins to do the pick, pack and post, and I've made about 75p.
How am I going to stay in business on 75p per hour?!

 

[Martin Duffy]

So far I've never come across a company who had a minimum order policy. All the ones I have ever used just had an amount below which postage was applicable. I don't think I'd be happy using a company that wouldn't let me order just one of something if I needed it!

 

[Lynne Baker]

Did decleor not have a minimum startup order, Martin? Or did you just decide to stock everything at the outset?

 

[izzidoll]

I don't have a problem with minimum order, although I prefer spending over a certain amount to get free postage!

Only 1 company I deal with has a minimum order and it is only £50 so it isn't really a problem.
I am a soletrader and have just recently relocated my business and am building it up from scratch, but I can't see when I would need to order just one thing and even if I did I could easily make up the fifty pounds min spend with disposables.

 

[Curlywurly82]

from a business point of view it costs a supplier to process your order as well as the packaging and actual postage cost.

I used to work for a large B2B online and DM IT reseller as a product manager. We were always told by the directors that each order cost the company £7.00 to process. Therefore it cost us money to send out small orders.

Therefore I can fully understand why wholesalers and distributors have minimum order levels.

Regarding those who have high minimum order levels in the hundreds or thousand of pounds it is part of their way off controlling what sort of customers they attract i.e. large established salons

 

[Mike16300]

Years ago, and I know things have changed, you had to buy stuff in bulk, gross of this, big box of that.

I had a friend that would split boxes and sell things in small quantities. She picked up loads of customers, like one girl bands etc.

I suppose one size doesn't fit all, so I can understand a big supplier only wanting to send a full load to a customer, but then his customer isn't the sole trader.

What seems to be missing in the market is a wholesaler that caters to the small user. Having a lot of stock is money tied up.

 

[fozzyo]

There is a big difference between an opening order an a minimum order. The opening order helps restrict accounts to Pro's and those serious about their business.

Min orders all depends on the amount. £50 I think is very reasonable, I generally try to order enough to get free delivery.

Mat

 

[Katelisa]

I think in some instances they will be losing themselves trade won't they. So I don't really see why they do it?

What really annoys me, is postage charges. You know when you want one tiny thing, but the postage is 6, 7, even 8 quid!! It sucks! Costs more than the item sometimes!

 

[Katelisa]

With regards to Lynnes lip wax scenario, I have set my prices to a minimum £6.50 for a 10 min app. So eyebrow wax, brow tint, lip wax, underarm, mod bikini all £6.50 minimum. I do reduce the price of a lip wax with another treatment though, to £3.50. And a brow tint and wax is £8.50, still only takes 10 mins.

But I think this is different to a cash and carry. The time at the till (which would be like our service time) is barely any different for a £10 order, to a £50 order to a £500 order. I don't get it.

 

[Lynne Baker]

It very often costs more than a single item for postage because we are required by HMRC to add VAT to the postage costs, plus there is the cost of the packaging material and the time taken to actually post it.
For instance: take the order for a single eye pencil for £6.16.
The jiffy bag costs 25p.
The cost of the actual postage is £2.35 (100g, 1st class recorded, and we have to send it out recorded because otherwise things go "missing")
I have to add 20% VAT because HMRC decrees that the service of postage and packing attracts VAT, even though there is no VAT on buying the stamp)
So, we're so far up to £3.12, and that's not taking into account my time.
It makes much more sense to order a few things at a time but I appreciate that not everyone can.
I have no intention of introducing a minimum order though; I just encourage people to keep even a little stock because they WILL sell more if they actually have it on the shelf. People are less likely to buy if they have to wait for you as the salon owner to order it in.

 

[Katelisa]

What's funny, is I'd rather pay more for the product and think I'm paying less postage. Lol.

 

[ecologieVenetia]

I order certain items via an on-line wholesaler where there is a minimum £50 order level, but I get a much better rate, so am happy to pay the £50. With other sites who offer free postage on orders over £50, again I am happy to put in a single large order every now and again. I am not so sure about about order levels over £75 for free postage, so avoid those where possible. If I need one-off items in a hurry, I shop locally and know it will cost me more; the item itself, petrol, my time and I try really hard to stick to my shopping list otherwise the bill is alot higher!!

 

[Martin Duffy]

Did decleor not have a minimum startup order, Martin? Or did you just decide to stock everything at the outset?

Sorry, I thought the thread was referring to ongoing minimum orders. Yes, Decleor has a start-up cost b after that I have been able to order as much or as little as I like. That said, I don't think I've ever put an order in for less than £350 as the products seem to fly off the shelf!!

 

[happyfeet]

Wow geeks fabulous responses! I'd completely forgotten Id written this till just now.

I actually dont have a problem with postage, I accept that charge. Invariably Ill wait it out as long as I can but if I forget something and I really need it I will swallow the charge (off to get Scrub Fresh in a minute doh! Though in all honestly me thinks another couple of things may sneak in but not as much for free delivery so again I dont mind).

I admit there aren't many that have a minimum order.... I can think of 2 that effect me but it really does make me think I'd certainly look elsewhere before I ordered from them. Quite simply at the moment I dont have the money to put £50 order in each time and I really don't need the stock as I am really new. I do most of my shopping my S2 but I do source my polishes elsewhere and have just bought some items for my pedicure treatments elsewhere. This was only pedi bowl, clippers etc but my products come from S2.

I understand that that there are two sides to this and appreciate everyone posting about it. However I have other companies where I can literally buy one thing (think scrubfresh) and they dont tell me I need to spend £50 for the priviledge, it may be at cost to the seller but its also costing me a tiny tiny business at the moment lol!

Geeks thanks for taking the time to reply and I hope I didnt come across as a whinger... I'm not but as my lovely Mummy always says.... take care of the pennies and the pounds take care of themselves

 

[Zo Zo]

I think when a company imposes a minimum order it is quite simply a business decision not to faff around spending time (which equals money) on packing a small order which quite simply may not include any profit...

I don't impose a minimum order, but I admit I have been thinking about it. Frankly if someone orders one bag of wax or one bottle of jasmine oil, the time it takes to pack and despatch, it really isn't worth it.

 

[Katelisa]

I don't impose a minimum order, but I admit I have been thinking about it. Frankly if someone orders one bag of wax or one bottle of jasmine oil, the time it takes to pack and despatch, it really isn't worth it.

But don't you think you have to take the bad sometimes to get the good?

For instance, they may go elsewhere for just one item, or even change brands, then continue to put in their big orders with the other company too. You could end up losing far more than the loss made on one small order if you look at the bigger picture.