How to Start a Perfume Business

You don’t need a degree in chemistry to start your own perfume production company. There are two major businesses centered on the perfume industry.

 The businesses are the wholesale/ retail aspects of perfume business and the perfume production. You can combine the two businesses into one profitable enterprise.

You will make lots of money personalizing and customizing perfumes. All that is required is adequate perfume making skills and effective marketing.

The perfume business is highly competitive and challenging. You will have to deal with established brands, high net worth corporations and local manufacturers.

Perfumes are all about branding, lovely fragrances and pricing. Getting ahead in the perfume business needs a certain mind set, lots of experimentation and a few good products.

Appropriate pricing and packaging is important in the perfume industry. You need to decide on large scale or small scale production.

You can also align with other people and form a partnership. There are a few things to consider before starting your perfume business.

How to Start a Perfume Business
Write a Vision and Mission Statement

Why the interested in starting a perfume business, is it based on passion or profit.  Write a vision and mission statement to guide your business through tough decisions.

To succeed in the perfume business you need to provide quality perfumes that are devoid of harmful chemicals. The perfume should not have any side effects when used by anybody.

The perfume should be appropriately priced and available to every class of people. Other parameters are continuous improvement of your product and customer satisfaction.

Write a Business Plan

Write a good business plan that covers three major aspects of your perfume business. The plan should focus on manufacturing process, marketing your goods and sourcing adequate startup capital.

Other things to include in your business plan are a mission statement and goals. Others are start up cost, cash flow, profit and loss.

 Register your Business

Once you have your business plan the next step is registering your business.  Register your company as a limited liability company. Then go through local government registration and certification on food, drugs and other allied matters.

Every country has its own laws guiding the production of perfume.

Rent an Office Space

You need to determine if you want a storefront or work from home. You also need a laboratory or workshop to produce your perfumes.

The business format you choose will dictate your expenditure on getting an office or shop. You need to factor this in your start up budget.

The Manufacturing Process

To manufacture perfumes you need adequate training in perfume mixing. Then invest in a clean sterile laboratory with specialized equipment.

Always source your chemicals from reputable dealers for the best results. There are four basic elements in perfume making Methyl Alcohol, Fixatolide, Perfume Concentrate and Perfume Oil.

Create a Unique Product

The only way to make money from perfume is to sell a unique product. The perfume must have a nice smell and no effect on the skin.

Perfumes go through a multitude of tests, public sampling and opinions before hitting the market. Make sure you work diligently to discover unique scents that propel your brand to the forefront.

Investigate Perfume Smells

Perfumes are all about aroma, receipts and scents. You should experiment and explore different scents. Find scents that appeal to you and try to create something better.

If you have a nice brand you will sell lots of perfumes.

Study Perfume Bottles

Perfume bottles are uniquely designed to look appealing and elegant. There are many bottle makers that can customize your bottles.

You might decide to buy bottles wholesale or in batches. Find a bottle that complements your perfumes brand and image.

Create a Cool Logo

Perfumes have tantalizing names and logs to attract sales. Choose a name that embodies the aroma you wish to bottle

For the best results hire a graphic artist to design your logo. Then register your perfume name so you have the patent to the product.

Cost per Unit

An important consideration when manufacturing perfumes is the cost per unit. The cost per unit affects the price of your perfume and your profit margin. Let us examine 3 major perfume brands in the market today.

The parameters used in determining cost per unit are methyl alcohol, Fixatolide, perfume oil, perfume flavor and box. Others are transportation costs and the perfume bottle.

	Methyl alcohol	Fixatolide	Perfume oil	Perfume flavor	box	transportation	bottle	cost	profit
HugoBoss	5	8	6		2	21	11	56	64
Addidas	5	8	6		2	20	11	55	65
Lomani	5	8	6		2	18	11	53	67

They al sell at 120

Create a Beautiful Package

Packaging is very important in the perfume business and adds to the value of the product. The package is the first thing a perfume shopper notices before trying out the fragrance.

Create a unique bottle for your perfume and package it accordingly. Get a top box maker to create your perfume box. The entire ensemble from the perfume, box and packaging define the brand.

You might decide to mass produce your perfumes. There are many reputable companies that handle packaging, labeling and shipment. Work with established companies that have a history of prompt delivery and efficiency.

Branding

Your perfume is only as good as its brand. Top perfume producers know this hence millions of dollars spent entirely on branding. The name of your perfume is almost as important as the content.

Target Customers

You need to target the right customers for your product. The pricing dictates your target market.

If your perfume has a low price tag it more likely attract upper lower class and lower middle class customers. Segmentation also defines your target audience such as family, youth, women, men.

Budget

You need to have a good workable budget for your perfume production and marketing. Try to produce perfumes with better quality than the ones obtainable in your locality. This will lead to customer satisfaction and approval of your brand.

Marketing

Like any business venture you need lots of marketing. The perfume business is tough and there are many players. To stand out you need to market your product to wholesalers, retailers and paying individuals.

Market your brand through advertisement and social media channels. A powerful tool is creating a referral program for your product or employ sales representatives.

Other advertisement options are the print media, electronic media which helps in brand awareness.

The referral program can leverage on relatives, friends and family. Social media advertisement platforms that work best are Facebook Adverts and Google Adwords.

Retailing your Perfume Product

There are many retail options to sell your perfume products. You can sell your perfume at gift shops, malls and stalls. Another good place to get many customers is online.

Build a website to showcase your perfume and include description, image, price range and discounts.

Finance

The amount of money you need depends on the scale of your operation. Do you want to mass produce your fragrance or customize them?

The larger your operation the more money you need to produce and reach customers. A small perfume making business can start up with $1000.

While a larger operation might set you back $10,000. The financial implication includes equipment, registration, laboratory, storefront, training and marketing.

To raise funds try target saving or small loans from banks. It makes sense to start small and later grow your market base. You will save costs while gaining valuable knowledge and experience along the way.

Build a Website

Regardless of your intentions to sell offline you need an online presence. Having a website dedicated to your perfume products is important.

The reason is because it provides a twenty four hour channel for business transactions. A Website is usually about 5 pages of information such as homepage, about the company and contact information.

The homepage displays the product and all relevant information about the fragrance, color, size and packaging. Other information is price, shipping information and stores where they can purchase your perfumes.

How to Start a Perfume Business

1             Write a Vision and Mission Statement

2             Write a business plan

3             Register your business

4             Rent an office space

5             Consider manufacturing the perfume

6             Investigate perfume smells

7             Create a unique product

8             Study perfume bottles

9             Create a cool log

10          Cost per unit

11          Create a beautiful package

12          Branding

13          Target customers

14          Budget

15          Marketing

16          Retailing your perfume

17          Financial considerations

18          Build a website

Perfume Guide

It is rather difficult for the untrained nose to differentiate between different types of perfume. The reason is because there are an overwhelming number of scents available in the market.

The different fragrances and concentrates constitute a challenge. Perfume makers know this so they usually include the fragrance concentration on the label.

The strength of the perfume is regarded as the concentration. Perfumes that contain higher fragrance concentrates are known to contain less alcohol and more essential oils.

The major fragrances are categorized into eau de toilette, eau de cologne, eau de parum and eau fraiche.

Parfum

Parfum is of the highest grade of perfume available in stores. They are regarded as pure perfume because they contain from 17% to 40% fragrance. Major perfume makers peg the concentration at 22% to 30%.

This deluxe perfume is long lasting, expensive and gentle on the skin. The low alcohol in Parfum reduces evaporation and helps it last up to eight hours.

Eau de Parfum

The next luxury perfume in ranking to Parfum is Eau de Parfum. Its fragrance concentrate is about 20% and it lasts about five hours. Eau de Parfum has more alcohol content and is not as expensive as Parfum.

Eau de Parfum is good on sensitive skin and good for daily application.

Eau de Toilette

The fragrance concentration for Eau de Toilette is 4% to 17%. Eau de Toilette is far cheaper than Parfum and Eau de Parfum and readily available in stores. The perfume lasts about two hours and is popular for daily use. It is common in the market and moderately priced.

Eau de Cologne

This perfume type has the same fragrance concentration as Eau de Toilette. The perfume has a higher concentration of alcohol is cheaper than the first three and lasts two hours.

You get more liquid perfume in a larger bottle when you choose Eau de Cologne. People with very sensitive skin are not advised to use Eau de Cologne.

Eau Fraiche

This is the cheapest brand of perfume available in the market. It has only 3% fragrance and lasts two hours. It does not contain high amounts of alcohol or fragrance.

Starting a perfume business is moderately challenging because of the stiff competition you get from big manufacturers. To succeed in this business you need a good product, adequate marketing and many sales outlets.

If you like the perfume business another venture you might like to consider is bead making.