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COSMETICS BUSINESS HBS B255
This manual answers the question: "How would you go about starting a mail order cosmetic (or similar) business." It covers but a few of literally thousand of possible approaches, some of which you will no doubt be able to visualize as you review this plan.
To take advantage of the advice presented here for many other similar products, just substitute jewelry, stockings or fabrics for our eye shadow box example. The procedures described here have all been "tried and tested," but that doesn't mean that they can't be improved or better adapted to fit your particular situation.
There are three basic objectives in the mail order cosmetics business:
find a product that you can sell, at a profit,
sell additional products to the same buyers,
and build a mailing list.
It is imperative to strive to achieve all three simultaneously.
You first and perhaps most critical initial consideration is to find a product "leader" that you can sell at a bargain price (preferably $2 or less) and still make a reasonable profit.
It should be something that can be adequately described in a small inexpensive ad and serve as a "door opener" to allow you to offer a additional products to customers who have demonstrated an interest and willingness to buy that type of product.
To illustrate this point, we will use a 15 section eye shadow case to sell for $2.00 plus 50 cents Postage and Handling (P & H). These were advertised recently for $12 per dozen wholesale (GEM International - see Business Sources) or about $1.05 each with postage. Although you will "gross" 95 cents apiece on these items, your overall profit will not be significant on this sale alone, when you consider the cost of advertising, your time and effort to obtain, process and sell them.
Your real profit will come from subsequent sales to the same customers -- your "captive audience"!
The 'smart" way to proceed would be to purchase an initial supply of say, 500 units from a company that can ship up to 5,000 more on short notice if necessary (don't make the mistake of buying the last 500 they have). With an investment of $500 in stock, place your ads and wait for orders to come in.
It is also possible to have the items drop-shipped and avoid the investment in stock. Under this system, you fill out a shipping label for each individual order (with your return
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