A Boutique GMP Factory That Makes Handmade Natural Products. Formulated By Pharmacist


How To Increase Sales When You Are At The Peak Of Your Skincare Business?

Hi all,
today i would like to share with you an experiment we (me and a client of mine did)

This client is a founder of a brand in Malaysia and her brand has been around for quite sometime (close to 5 years)

She has a lot of products line and she also has a lot of customer's database as well.

Her problem was she was stuck with one figure and wasn't moving up in-terms of sales.

Upon discussing with her; we realise that though she had a lot of 'customer's database'; many were not repeating orders from her every month. They only purchased probably twice a year because most of the things she sold were cosmetics.

So although she makes a consistent amount of sales monthly; it wasn't the same customers buying from her.

When i asked her what her per invoice sales was on average; she said it was around RM 150. Her aim was to double up her revenue next year and so we started planning. (current revenue at 10mil a year)

If there was something that i learned from Jay Abraham ( Author of Getting Everything You Can Out Of All You've Got; one of my many virtual mentor); he said that there was only three ways one can increase their revenue:

  1. Increase the number of customer
  2. Increase the average transaction per customer
  3. Increase The frequency an average customers buys from you.
Since this client of mine was already at the saturation point where the same amount is sold monthly for close to a year now; we decided to test out the (2) and (3) theory.

Now since the customers database was already there; it wasn't that difficult to up-sell them with something else. Since they were already purchasing makeup; surely they will need other things; such as skincare too. 

So the next thing my client did was to ask her current customers; what were the problems they were facing and turns out; they had 'dry' skin.

So what we did was we produced a cleanser and a moisturiser that was specifically for dry and sensitive skin; took me a bout a month to come up with the whole R&D and once ready; my client gave her customers that as sample and collected testimony.

Less than a month later; she started selling the real pack size; and guess what? All 10'000 pcs sold out within a day! And the next pre-order was already on its way!

But the best thing; when i asked what was per transaction sales like; it had increased by RM 75 to RM 225. Thats 50% increase by just adding 2 new product line to current existing customers! 

But that wasnt it! Since this time her addition was a skincare; she mentioned that her customer were purchasing more often; ie instead of twice a year; its 4 times a year. 

Now you do the math; what kind of increase is that? 50% in average transaction, and double on frequency of transaction! Just by adding 2 product line; im sure she will be making RM 30 mil next year (200% higher than this year)

The best thing is; it doesnt just end there.

The last time i spoke to her we have decided a whole 5 years plan of product launch so that once she covers all skincare; she will go for haircare, baby care and men care. Its the same customer buying! only instead of buying just for herself (the customer alone); she can buy for everyone else in the house too 9husband and kids) :-)

Im just so glad we did this little experiment because i could actually share it with you especially those business owner's whose been stuck for a while now. 

Just remember that its not always about looking for new customers; sometimes by just tweaking things; you already can make the sales with the current customer you have:-)

Just imagine instead of this route my client focuses on looking for new customers (just like what all the other business does); that like needing to get 100'000 new customers to get the same amount. Compared to just adding cleanser and moisturiser into the product line. Which do you think is easier:-D

I hope this experiment helps you a little too:-)

If you are stuck; and for those of you who have an existing cosmetic or skincare business and wants to expand but not sure what products you should go for; feel free to email me here for a chat.

Till then; good luck..


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