This article was written for retailers. By retailer, I mean a business that sells to consumers, and I am addressing those retailers who want to significantly grow their sales and profits to consumers despite the difficulties we are facing. 
An important part of a retailer’s business plan should be properly forecasting future sales and profits. This not easy in the current economy, yet it is vital to surviving in today’s Natural Essences retail environment. 
For instance, if you are not forecasting sales increases well in excess of 10%, you will not be growing your business or perhaps even be going backwards simply because inflation will keep increasing costs on everything, including bottles, labels, and ingredients, shipping, insurance, legal, and accounting services.
Improving sales forecasting is sometimes far too low on the list of priorities for retailers, but for a small business competing against very large companies in a turbulent market, proper sales forecasting depends on continually improving your marketing strategies and your supply chain relationships as well. 

1. Marketing Strategies

• Expand what you currently sell. If you are a Natural Aromatherapist what about also being a Natural Perfumer as well? What about Natural Candles or Natural Skin Care?
• Make sure when you expand with a new product category that you also expand your knowledge of the product, by taking relevant professional courses designed to make you a better business and an expert in that new category within your market community.
• Identify and add value to your business and products whenever possible. 
• Identify all the true costs of products that must be recovered by retail prices.
• Price products based on the value and benefits to consumers, rather than just a percentage increase above costs. This is a must when forecasting sales of products with higher pricing.

 
2. Supply Chain Relationships

• Remember that you are in the High-Value Natural Essences Community, so your forecasts are in some ways the Community’s forecasts. Suppliers and their sources depend on successful retailers that understand the importance of others within our supply chain.
• Share your plans and market information with your suppliers and find out what opportunities, prices or obstacles may be ahead.
• Seek out information from growers, processors and others that could add value to your business and products.

Proper sales forecasting means businesses must improve the way they are currently forecasting, and improvement always implies some potential risk; but the potential risks of taking necessary action are far lower than the certain risks of inaction.

Learn more about business and marketing in the natural perfumery  environment by enrolling to Terry's 6 weeks intensive Business and Marketing Course starting on February 14.   

Last month’s newsletter article discussed three value-market fundamentals every business should practice in these very challenging times. Let’s expand on these basics starting with the first fundamental:
To develop a totally value-based business to differentiate you from the competition and persuade growing numbers of high value customers there is greater value in your products than that of other competitive products. 
A key word here is “differentiate.” 
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To succeed against stronger, well-financed competition, businesses can attract more customers by giving them better choices (differentiation) for what they purchase. This is where value and value-added come in. Competition, by the way, is much stronger than most people think it is with budgets the way they are.
If you sell to consumers, you are competing with everything they need to purchase or want to purchase. That’s quite a list!
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To attract and keep customers you will be needing every value-added tool available. Why should consumers purchase your perfume or essential oil instead of something else? Can you give them ten reasons why? Twenty?    
Establishing yourself as an expert in Natural Essences within your community is empowering because it gives you the capacity to help your community make the right choices for healthier and safer lifestyles.
Obviously, anyone who wishes to become and continue to be an expert in Natural Essences must have a great deal of accurate knowledge about Natural Essences, which is where the value of continuing education comes in. 
If you are a Natural Perfumer, you also need expertise as an aromatherapist, and the reverse is true for Natural Aromatherapists needing Natural Perfumery. Having knowledge of the history of perfume also has important benefits and needs to be studied. 
Continuing Natural Essences education along with effective messaging of the value of Natural Essences will lead to clear, positive distinctions between your up-to-date expertise and the lack of expertise from your competition.

Three Action Steps to Implement Beginning Today

1. Identify and include in your value proposition all the things you do that make you and the products you sell more valuable to consumers than competitive alternatives. Careful sourcing. Commitment to natural. School accreditations. Certifications. Experience.
2. Keep making yourself and your products more valuable by regularly adding value. Continuing education is a superb way to accomplish this.
3. Focus on being an expert within your local community. Use your continually growing value to effectively communicate your expertise to those who need to know.