Becoming a Gelousy distributor if you do not already own a beauty supply store

Posted by Erick Westcott on 1/8/2020

Being a distributor of nail products is a tough job. To be successful you must work hard to build a large and stable customer base. You should also not expect to start making money right away.

The old and well used example is that you open a business hang up a sign and then customers will beat a path to your door. It just does not work that way.

It requires a commitment to building your business every day. Going out and doing product demos at salons and schools. Booking and completing classes and training. And you must have a place to do this, unless you are planning on doing a lot of traveling.

Are you also going to try to maintain a nail business working on clients? Distributing nail products is not a part time business.

Let me give you an example of how much you would make if you sold a certain amount. This is not a promise of results, just a demonstration to see how hard you would have to work to make a certain amount.

Let’s say you work for a few weeks every day to visit 100 nail techs. Then let’s assume the 10 of those techs start buying products regularly at $100 per month.

First, how far do you need to travel to reach 100 nail techs that are willing to meet with you? If you are in a big city, perhaps only 20 square miles or so. But if you live in a rural area, that could easily be a 200 mile radius.

Now you have 10 good customers. You would gross about $400 per month.

But what are your expenses?
Are you going to deliver or ship?
Who is going to take the orders?
Who is going to pack the orders?
If you are doing nails, how are you going to take orders when you are with a client?

You can count on about 100% of your gross revenue going towards expenses at this level. The more clients you get the less your expense per customer will be, but that takes a while.

Plan on at least two years until you might see any kind of a net profit at all. That means you will be working for two years to build a business, with little to no returns during that time. Would you be willing to work for two years for nothing? Also, there is a chance that you will never get even one customer. Are you willing to make a huge investment in money and time and loose it all? Those are some of the questions you need to answer before going into business for yourself. Will you get discouraged after you visit 20 nail techs in one day and no one buys anything from you? How about if that happens every day for a month?

Another factor that you must consider is inventory. We have at the time of this article 68 colors. Just having five of each in stock means you will have 340 little jars of gel to account for. You may be thinking “I’ll just carry the most popular colors”. You customers will inevitably want a color you don’t have, and you will lose them as a customer.

Being a distributor can be profitable, but you must be willing to put in the time and effort to make it a successful business.

This is not an offer or solicitation.

Add Comment