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Success
Smells Sweet At Designer Fragrances
Arnold Eisman
has a catch phrase he likes to use when touting his fragrance
and cologne lines: “You’ll love the way
you smell. I guarantee it.”
No, it’s not the most original pitch. And so the forthright
owner of Designer Fragrances Inc. readily admits it’s a play
on the well known Men’s Wearhouse ads. But the line does
not have to be original, it just has to work, and it has. Sales
at Designer Fragrances have been growing by 100 percent annually
over recent years.
Indeed, the, “I guarantee it” line is easy to deliver
when the salesperson knows the strength of his products; when he
knows the profit margins on the items can rise as high as 600 percent.
When compared to the competition, his original and alternative
fragrances always get the job done. Just like his catch phrase.
“The scent of our product on your skin lasts seven times
longer than the fragrances sold by others,” said Eisman,
from the company headquarters in Flint, MI. “People like
fragrances that last for a very long time for a reasonable price.
I feel that is something that makes our line attractive to retailers
and consumers. We pride ourselves on having products that are better
than everybody else’s. Our product would sell at some retail
stores for anywhere from $60 to $80 to $100 a bottle. What we do
is allow our retail partners to sell them for $20 to $25 a bottle.
And we encourage them to use ‘buy one, get one free’ campaigns,
which work extraordinarily well.”
Ten years ago, Eisman and business partner, Larry Chimovitz, decided
to shutter their successful print shop, Chimco Prints, and turn
their full time attention to what they thought was a more lucrative
business in fragrances. The company now offers dozens and dozens
of wide ranging perfumes at www.designerfragrancesinc.com.
Along with an array of private label perfumes for women and men,
the wholesaler also sells lines that employ the same chemical combination
as those sold under designer and/or entertainment based brands
like Sean John, Britney Spears and Jennifer Lopez, among many others.
"
These alternative products are completely legal as long as the
packaging is original. And Designer Fragrances has its ducks in
a row on this issue.
So when the perfumes smell the same and last as long as the originals
for half the price, what’s not to like? Twelve new products
will be available from the company this fall, just in time for
the holidays. “For alternative fragrances, we work closely
with our chemists to get the character and substance of the designer
originals,” said Bonita Lawrence, sales and marketing manager
at Designer Fragrances. “One thing we have to allow our customers
to understand is that our products are not dollar store. We have
higher-end products.”
The items usually retail for $19.99 and up, while wholesale prices
vary, although some lines are available for $3.25 per bottle and
low-end closeouts can be available for $1.50 per bottle. What’s
more, if a retailer wishes to buy only six bottles, he can buy
six.
Designer Fragrances, one of the largest distributors of fragrances
and colognes in the U.S., has no minimum order. It encourages retail
partners to communicate what products are selling to their demographic.
The company promises that retailers will convert sales.
“If somebody is having problems, we put them on speaker phone
and brainstorm until we get whatever needs to be fixed…fixed,” Lawrence
said. “We do not require a contract, we offer free shipping
and free testers. With our kiosk partners who are just starting
out, we really work with them to help get the ball rolling. And
once they get going, what we like to tell people is that if you
are selling X, why not add Y to your profit line? Why not add more
product diversification to help you make more money?”
Keep Buyers Rolling In
Since its launch four years ago, DesignerFragrancesInc.com has
continually grown as a sales and marketing tool for the company.
Ongoing upgrades have become the norm at the company. For the holidays,
the site will be implementing the VeriSign Security program in
order to guard against fraud and make customers safer from theft.
The improved website will also feature a revitalized creative feel,
fresh content and photography and new package specials.
In addition, Lawrence said that the firm uses the site to explain
company history and illustrate the differences between alternative
and original fragrances. She said the website is an educational
sales tool that’s open 24 hours a day, seven days a week.
“The biggest challenge is to get all of our products online
and to keep it easy for our customers to navigate,” Lawrence
said. “In the last six months, our inventory has grown by dozens
and dozens of products. You just can’t send out catalogs all
of the time. So, you want to make your website as accurate, useful
and secure as possible. I think it’s going to continue to escalate
in importance for our wholesale business. And I think the business
to business community is becoming more Internet savvy all of the
time.”
Designer Fragrances has increased the frequency of its email campaigns
during recent months. But the wholesaler isn’t getting sloppy
with its messaging. It makes sure that the offers and products
are relevant to the entirety of its recipient list.
“The percent of web sales has truly grown over the years,” Lawrence
said. “Part of that reason, I believe, is because we use email
to let our customers know of the new package specials we have. We
just did a summer warehouse clearance to get the facility ready for
the new merchandise. I think email works terrific in about every
respect. Is emailing part of our success? I would say so! Customers,
no matter how large or small, they want to feel like you care about
their business. Email helps accomplish just that.”
DesignerFragrancesInc.com also lets the firm offer fast and accurate
service from its 25,000 square foot warehouse. The company takes
pride in getting orders out the door in one to two days.
The target demographic for its products is far reaching because
young adults, college students, the middle aged and senior citizens
alike want to smell nice. And for this wholesaler, the website
is not just a tool for capitalizing on the December gift buying
season for Christmas and Hanukah.
“I make sure my customers do not forget about Valentine’s
Day, Mother’s Day, Father’s Day and Back To School,” Lawrence
said. “After all, perfumes are the number one gift item. People
want to smell great. And that’s where our products come in.”
Top
Alternatives & Originals
Four months
ago, Eisman opened up a retail location on the Las Vegas strip
that, according to the company’s projections,
may top $1 million in sales by the end of the year. Designer Fragrances
has also seen burgeoning revenue at its second retail location
in Frankenmuth, MI, which is a Bavarian styled tourist spot in
central Michigan and a polar opposite to the glitz of Las Vegas.
The huge sales at the culturally varying locations underscores
the ability for the fragrance line to sell in all kinds of markets.
“Like I mentioned, we encourage the two for one campaigns with
our retail partners,” Eisman said. “They really work.
Our partners that listen to that advice end up doing the best. You
have to give the customer real value in this day and age.”
Without question, value adding deals remain a big part of the pitch
for Eisman’s firm, not only in B2C but also B2B. Recently,
Designer Fragrances has been offering a Counter Top Display deal
that includes alternative fragrances for the scent lines of Tommy
Girl, White Diamonds, Tommy Hilfiger, Cool Water and Drakkar Noir.
Each package or profit center offers 48 perfumes, six free testers
and two display signs for $288 per unit. The retail price of $12.99
per bottle should reap at least a 117 percent return on investment.
DesignerFragrancesInc.com also offers French original lines like
Gapardis and Lamis for affordable prices.
“I consider our company to be a one stop venue for fashion
shops, beauty salons, gift shops, vendors at flea markets and trade
shows,” Lawrence said. “People have told me that the
products to me are like my children. I don’t like to hear that
they are not doing well. I want them to succeed. And I can work with
anybody’s demographic. Some perfumes sell better in African
American markets. Some fragrances sell better to Hispanics. Some
sell better to white people. I can tailor what we have to every marketer’s
demographic situation.”
Lawrence said that the displays can be customized to include the
retailer’s brand and a desired price point or offer. “You
have to remember we used to be a print shop,” she said. “I
use the computer and PhotoShop [software] to create the customized
signs for our customers. They are making an investment in us, putting
our labels in the stores. We are right there with them.”
Lawrence said that Designer Fragrance chooses its product additions
carefully.
“We are growing off the charts,” she said. “But
we can’t just jump on the bandwagon and make everything. For
us to make a product, we have to invest almost $75,000. We have to
purchase around 5,000 minimum units for our warehouse to make the
investment cost effective.”
Interestingly, Designer Fragrances likes to keep its company advertising
all in the family. For instance, the firm has used Eisman’s
daughter, Amanda and son in law, Erik, as models for versions of
Burberry and Lawrence’s daughter, Kathryn and company dog,
Vegas, as models on Paris Hilton.
“We really are like a family owned business,” Lawrence
said. “The kids work for us. The dog’s right here.” Eisman’s
son, Justin, and Lawrence’s son, Bob, manage the inventory
system along with the inbound and outbound shipping tasks. Both Eisman
and Lawrence have grandsons that will probably be part of the family
styled business in the not so distant future. “Pretty soon,
they’ll be on the packaging too,” she said. And they’ll
like the way they smell. The boss guarantees it.
For more information, contact:
Designer Fragrances Inc.
Attn: Bonita
2925 Corunna Road
Flint, MI 48503
Tel.: 810-232-5800
Email: sales@designerfragrancesinc.com
Website: www.designerfragrancesinc.com
Or www.wholesalecentral.com/designerfragrances/store.cfm
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