Is Susan's business an Avon type business

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diary_room

30-05-2011

Originally Posted by Jo09:
“Yep smaller businesses like John Lewis. If the business isn't tuning over 70k it doesn't need to be VAT registered. I don't care about the history.”

There are rules about whether you have to register for VAT but there is no law that says you have to *display* your VAT number on your website.

Tvchild_2011

30-05-2011

Originally Posted by totalwise:
“I thought i'd weigh in here, I was involved in doing a ppc campaign for a startup skincare company, and I had a lot of insight on how this works.

The skincare product was a "side project" for a pharmaceuticals sales rep, products are dirt cheap to buy wholesale, a few pence per tub and you can buy them by the truckload, usually it's the same stuff that's rebranded in different containers and with different perfume and "flavours", aloe vera, vitamin e, coca butter etc.

The wholesaler wlll even label and package the products to you with your own cutom branding on it.

That's skincare for you, the just moisturise and give temporary boose to you skin, and the rest is just hype an marketing.

So, has she got a thriving business? who knows, you can get into the skincare business for a couple of grand and grow from there, but if you ask me, it didn't strike me as though she knew how to sell, and her team were right to be annoyed with he because she talked herself up so much and didn't deliver.”

That's very true. Funny how a bit of branding changes your perception about one product from another when a lot of the time they're exactly the same thing!

barbar

30-05-2011

I find this all difficult to believe otherwise everyone would be doing it. Most high cost articles have already been 'cracked'. Like spectacles. I expect others to go soon as well like teeth implants. If it was so cheap to make, supermarkets which sell these products would have cut them by now.

trollface

31-05-2011

Originally Posted by barbar:
“I find this all difficult to believe otherwise everyone would be doing it.”

That's an argument from personal incredulity. Just because you don't believe it doesn't mean it's not true. Both Lord Surallen and Susan said that the mark-up in the cosmetics industry were enormous, second to none. Were they both either mistaken or lying?

Quote:
“If it was so cheap to make, supermarkets which sell these products would have cut them by now.”

Why would supermarkets reduce the price of something that they make a shedload of money on and which people buy in droves?

barbar

31-05-2011

Well now ten million people know about it. Let LS start selling it! I still think only a branded product sells. I used to have shares in Bellair cosmetics http://www.manchesterprofessionals.c...trevor-edwards which went bankrupt.
Its not that easy.

trollface

31-05-2011

Originally Posted by barbar:
“I still think only a branded product sells.”

You seem to be making a counter-argument to an argument nobody has made.

Quote:
“I used to have shares in Bellair cosmetics http://www.manchesterprofessionals.c...trevor-edwards which went bankrupt.”

Companies go bankrupt for all sorts of reasons. Going bankrupt does not mean that you didn't have big profit margins on the goods you sold.

The profit margins on the treatments and stock the candidates had was huge 9 the spray tan, let's not forget, allowed them a profit of something ridiculous like £3 per minute. And yet still the winning team came back with a profit of around £200 - not enough to employ 6 staff for 8 hours at minimum wage, let alone lease a room and pay for a stall.

Quote:
“Its not that easy.”

It not being "that easy" to run a successful business doesn't mean that there isn't a huge mark up on beauty products.

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