Higher Sales Goals for High-Value Essences

By Terry JOHNSON, IPF US Chairman,
New Luxury Business and Marketing Expert

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.