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A Powerful Partnership, Part 1

By: Sarah Burns
Posted: June 18, 2008, from the July 2006 issue of Skin Inc. magazine.

page 2 of 3

Minimum reorder requirements. Various vendors establish a set dollar amount of continuous reorders on a monthly or quarterly basis. Reorder minimums can begin at as low as $200. This is to ensure that you will sustain and properly recommend the product lines.

Some suppliers only sell products that come in predetermined quantities, meaning that you would have to purchase six, eight or 12 of the item. This typically is based on how many products come in a box—often known as “cases.”

In certain situations, if you do not order within a specific amount of time, your account will be terminated. In this case, you would have to establish a new account, meet all the start-up requirements and place another opening order.

Trade-out programs

Trade-outs, also referred to as “buy-back programs,” provide a win-win situation for both parties. They allow the spa owner to return current inventory to the supplier for a credit toward a new product order. So if you have $500 of ABC brand and you want to work with XYZ brand, XYZ brand will buy back your existing ABC inventory and put it toward your opening order of XYZ brand.

This works when a spa has an elevated amount of product inventory that it doesn’t want to carry anymore. It solves the problem instantly without losing time, requiring discounts or deceiving clients into purchasing a product that no longer is going to be available.