Beginning a beauty brand starts with a good idea, a strong commitment to making it happen, and not only a vision, but a solid plan for the future. All of these pieces are vital in approaching a cosmetic manufacturer for a quote, but the final one, strategy, might be the most influential.

Creating a long-term relationship with clients is one of the ways manufacturers make money. If you can demonstrate a strategy to grow and scale your business, an initial small order turns into a long-term large order. Entrepreneurs with this kind of vision have a good shot of negotiating contracts with a smaller minimum order.

One of the traits of successful entrepreneurs is the ability to sell themselves and to secure funding from the right resources. A potential manufacturing facility can be thought of as an investor, who needs a full business plan and reasons to grant slack on MOQs.

Along with a strong plan for future growth, it can help to showcase how the business will benefit the cosmetic manufacturer in other ways.

For example, according to JP Morgan Chase, more than 99% of US companies are small businesses. That’s a huge customer base for manufacturers, particularly the businesses planning on expanding once they’ve tested their products on a smaller run. The IRS reports that nearly 40% of all businesses have under $100,000 in revenue, so odds are, there are beauty entrepreneurs out there with dollars to spend on a new venture, but not enough funding to pay exorbitant fees and place huge minimum quantity orders. Opening up to this new market is the future of skin care manufacturing.

Additionally, manufacturers operate on a B2B model. This means that they are selling their services to businesses, instead of directly to consumers. The Incite Group states that 91% of all B2B purchasing decisions are influenced by word-of-mouth. Since entrepreneurs tend to hang out and network with other, like-minded individuals, that recommendation should mean something. It can’t hurt to point out that word-of-mouth referrals are worth up to five times the value of any other form of marketing, and offer a social media post if the results are satisfactory.

 

Stay on Top of Trends

Finally, requesting a low minimum order quantity doesn’t need to be framed in terms of funding shortages. In the beauty industry, trends are the rulers of the marketplace. Any cosmetics manufacturer that loses the ability to follow spur-of-the-moment trends will lose out. Smaller minimum orders allow the flexibility of brands to capitalize on the hottest ingredients, environmental recommendations and cause-related promotions. They also have the ability to advertise “limited runs” of a product, increasing the appeal.

All of these advantages can help an aspiring beauty entrepreneur broker a satisfactory manufacturing deal. But finding the right fit is about more than just an affordable contract.

Pay attention in seeking out a cosmetic manufacturer. Those completely unwilling to negotiate on order minimums or future commitments are probably not invested in the success of their clients.

A manufacturer is a supplier, yes, but due to the nature of the beauty industry, manufacturers and entrepreneurs need to work closely together to develop the right formula, put together a timeline and packaging options, at the minimum. The best cosmetic manufacturer will understand that the success of their clients leads to larger profits for them.

As technology continues to help the world shrink, business owners have more consumer power than ever. It’s time for manufacturers to recognize that and provide more flexibility. The clear benefits for both parties make a convincing case for lowered MOQs and a greater investment in client success.

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