Not a Hair Related Vendor (yet) but...

[ilong]

Unfortunately, this year I am forced to raise prices for products that I sell in my business. While putting together some communication on the price increase (when, how much, why, etc) and new policies I thought about LHCF. I've seen (not so positive) posts regarding vendors and pricing, I thought I would share my business experience.

• One of the primary reasons I must raise prices is MOST customers want "a deal" ALL the time. Unfortunately, if a customer buys one item then return to purchase a second item they want "a deal" because they made the previous purchase. (I offer numerous incentives but buy one get one at a deal is not one of them)
• Next, is shipping costs - customers frown at the necessity of paying shipping costs, if required. (In today's cyber world that is crazy but it happens more often than not). And they frown at the cost, something not determined by the business. USPS,UPS, FEDEX, DHL, etc does not offer discounts to small businesses. We pay the same rates as consuers. lAs you all are aware, especially for shipping between countries, shipping can be very expensive and it
• If I give a flat price for an item - it includes taxes BUT unfortunately consumers seem to ***forget*** that taxes must be paid.
• Consumers want it yesterday, and to do this requires employing additional help, which comes with a payroll, funded by business sales - so price increases would be necessary to fund a payroll.
• My business policy is to NOT upcharge on certain items that I offer, attempting to make my products available and affordable for MOST and consumers are aware of the policy - until it's time to pay for purchases. (For example my costs for a size 12 shoe is the same as for a size 9 shoe.)
• It is also my policy to keep product costs low to make them affordable for everyone, compete with the big houses and foreign competition, while still being able to meet business expenses and be profitable.
• Asian business community is a VERY strong, united, tight business network. Wholesale pricing to "outsiders" is higher than it is to businesses in "their network" to ensure "outside businesses" do not have the competitive edge.
• Credit card theft/fraud - consumers charge their purchases then file unjustified disputes with credit card companies.
• Theft is another issue - and believe it or not GROWN @&%Adults steal more frequently than young people.

The above factors as well as others, are predominant reasons small black businesses fail.

Unless persons are or have been a business owner their is a lack of understanding/knowledge regarding expenses which must be funded by product sales. Consumers should not be concerned with these expenses; however, when consumers want products "for cost", an awareness of business expenses is usually necessary. The sale of one product must satisfy countless ( at least 25) expenses and the hard work of a small business owner is rarely compensated.

As we all experience in our day-to-day living, american, and certainly black owned businesses are becoming extinct due to foreign control and domination.

I am not looking for advice or empathy in terms of this post or my business.

I am simply asking that the next time you want "a deal", free shipping, etc. to consider the affect it will have on struggling small businesses, especially small black businesses.

Thanks in advance for taking the time to read this post!


Happy New Year to All!!!

 

[Ogoma]

Thanks for the info @ilong. I try to take these into account when complaining, but I can most certainly do better.

 

[Crackers Phinn]

So you have basically just shaded your customer base because your initial pricing structure wasn't sufficient for your companies financial needs.

For every bullet point made above there are volumes of resources providing insight on how small businesses can navigate their way into a profit. But nope, in the name of black business, you rebuke your customers into acting right.

I e-like you OP, but your vent is offensive.

 

[ilong]

Ogoma - thanks!

Some vendors raise prices unnecessarily (i.e. the price gauging from vendors selling Pakas Hair Treatment due to recent purchases by LHCF members) and those vendors make it difficult for vendors who price fairly.

 

[Saludable84]

The needs of the many outweigh the needs of the few, or the one.

I get the purpose of the post, but it's more like putting people in their place. If the people causing this are few or one, it is sad that it is hurting the many. Also, I think that there is more than enough of us who order online (proven in use your stash, use one buy one, what's on sale this month, what did you buy this month and vendors threads alone) so it is more than evident that we buy online and we support our business and know the shortcomings of ordering with small black businesses.

The problem is that a lot of black businesses either charge a pint of blood for a product like they are owed reparations or take a day and year to ship because of how many million problems. Gates happen for a reason. I take everything you said into consideration but what I don't appreciate is waiting weeks to a month for a product. Most of us share this concern. It takes a while to start a company so you need to learn what is more of a demand. While many of us want "handmade" if your product can survive 1-2 years after being made unopened, why is it is a problem to make a few products and keep them in stock for future orders? Vendors know what sells after a while, yet we still wait. Why? Half the time, my products sit on a shelf for 6 months anyway. What is another month in your garage?

I had a friend who ordered from Beija flor naturals and this lady took over 2 weeks to ship. When my friend was about to open a dispute with paypal, she marked the item as shipped to not have to process a return, but the item didn't actually ship until a week later. I almost made her call her bank.

So while we understand your demands, you have to understand ours too. We pay you not the other way around. We just ask for what we pay for. If you don't want to give a deal then don't but once you do, that's just what people will expect unless you specify terms and conditions. If your products are reparation-priced, expect people to ask for deals. In the end, people are going to ask for deals. I LIVE in Banana Republic and Ann Taylor and I have yet to pay full price and nothing less than half-price for anything. Yeah, they are established, but it goes to show that when there is a will there is a way. People are going to ask for a deal; understand that and establish your rules. You cannot make everyone happy. When you open a business, you have to understand at times it will be glitter and other times it will smell like kitty litter marinating with kitty vomit.

And I'm not touching the Asian response. We really need to stop comparing ourselves to other people.

Sent from my iPhone using LHCF

 

[marta9227]

As an online vendor myself I agree with many of the points you've made, OP. I actually do sell hair related/hair growth products. What I've noticed is that people appreciate the attention and specialized concerns that a small business person can and will provide, requests that the big corporations would laugh at, like personalized formulations based on allergy and personal scent preference, or selling a specific size just for one Custome. But at the same time they want the same trimmings that come from a company that runs off products by the thousands and hundreds of thousands, such as rock bottom pricing, free shipping along with near instantaneous delivery. You can't have it both ways, there is no such thing as a huge corporation run by your home girl Denise who you can call up on the phone when ever you need anything. Don't get me wrong, most customers understand the difference, and I thank God for each and every one, but there are those few who expect the sun and the moon for 3.99 with free shipping included. That's called Walmart, and the free shipping is your car, but they aren't going to make you a special lavendar/rosemary blend.

 

[Ogoma]

I do think most consumers have reasonable demands and just want companies to honor what they stated at the beginning of the transaction AND most business are upfront and make the efforts to honor their own stated policies. Then there are the businesses at the margins that create the problems.

I like discounts as much as the next person, but I understand it is psychological. The reason Ann Taylor can offer me 50% off every month is because their products are overpriced in the first place. Despite understanding this, I still get a thrill out of "getting the deal". My base assumption for any vendor offering huge discounts is that the product is over-priced to begin with. Such a vendor would probably have low returns in-between sales and would need to hold frequent sales.

 

[hypnologic]

Saludable84 actually she took almost a month to ship after leaving me in electronic shipping received hell for 1 week. after saying that the total processing/ship time is two weeks.

To the OP, I appreciate this post but I do have to echo some of the sentiments expressed on this thread. IMO, many of the problems with small black owned business do really have to do with lack of business experience and not understanding how to price products to cover business expenses.

All I'm asking from business owners is transparency about how long it will take for them to produce my product, timely communication and a consistent product. In my mind, all this takes is the proper business knowledge and adequate preparation (especially before a sale). That isn't something to put on the customer. A vendor doesn't have to make custom products and in fact some vendors have outright told me they won't make custom formulations, that's their right to make the rules that make sense for their business. But if you're going to stick to a policy on shipping, custom orders or whatever, be transparent/consistent and most importantly if you're a new business, seek a mentorship or some sort of adviser that can help you plan and project your offerings. Get a business plan. Find competitive vendors. I don't mean to make it sound so easy, but knowing that there are resources there that are willing to help minority owned/female-owned businesses get off the ground means that business owners can do a lot more to keep themselves solvent and not have to make excuses.

Also, as far as I can tell, don't the costs of raw ingredients call for the increase of prices, not just deals that you want to provide to the consumer? In the first year you can't expect to be making a ton of profit, if you make any at all, but after you have been around for a while, I would think you have a good enough following/knowledge of your best-sellers that the excuses can stop, but who knows that just may be my lack of knowledge showing.
I'm just going to say here that the you in my statement isn't me targeting you in general OP, but I'm just using it generally.

Anyway, good luck with your business in the New Year ilong.

 

[ilong]

Ladies - I appreciate all of the comments and feedback on my post. Nevertheless, I would like to clarify a few points.

First, I've owned my existing business for over 16 years and a previous business for ~7 years. Since establishment, my existing business has evolved and divested to keep up with changing demands and markets. My capital investment in my business is extensive. I have perhaps engaged in more business related training, seminars, conferences, conventions and business resource assimilations than perhaps necessary for a business of my size which I still do "to keep my hand on the pulse". I hold a US patent for a product. I am not an inexperienced businessperson with a start-up, craft business. I believe a couple of posters suggested that I pursue a mentor or assistance in managing a small business. I am such a resource in my community. I advise on business ownership, and speak on my patent acquisition.

Secondly, the intent of my post was not to shade, rebuke, offend or put anyone in their place. Nor do I recall citing any demands. Any such interpretations are just that - interpretations.

In terms of shipping turn around times, I am in total agreement about the extended waits (unless the orders are custom and prior disclosure on timing executed). Timely shipping is important to a consumer, but it is critical to a business. There is no excuse for the extended delays and lack of communication.

Regarding, "comparing ourselves to other people" - it is not a comparison of people but a reality of the business world that certain markets are controlled by a specific foreign influence. I only mentioned one instance in my statement regarding Asian dominance. however there is another foreign market whose financial power is almost beyond anything imaginable. Their interest is not in small commodities, but large global commodities, such as communications, technology, financial institutions (banks, insurance companies, stock exchanges, etc.). Additionally, their acquisitions consist of purchasing large volumes of real estate. Their extremely closed, private network operates under a sovereign wealth domain and makes the asian manufacturing/distribution network appear null. So my statement pertaining to Asian dominance is anything but "comparing ourselves to other people".

Although, statistics on why small businesses fail still indicate poor business planning as one of the main reasons, foreign competition is quickly overtaking the number one slot. This is evident by observing business owners in any community. The cry of "no black owned businesses" will soon be silenced (forever) by the deeds of the people.

Thanks again to all who posted in the thread!

I am simply asking that the next time you want "a deal", free shipping, etc. to consider the affect it will have on struggling small businesses, especially small black businesses

 

[Froreal3]

ilong. I'm glad you put the business perspective out there, especially small business. I do believe that as consumers, we don't always understand what goes into pricing structure and all the other behind the scenes. I didn't feel offended by your post because I don't feel you were speaking for those types of business that have inspired the recent gates as well as well as very much deserved complaints (due to shipping delays, product not as advertised, etc. etc.) I believe you were addressing small business in general.

While I love a great deal, I do understand that the products I'm purchasing are hand made mostly by one woman start-ups. The only things that I expect when purchasing are clearly stated delivery time frames, product presented to me as advertised, and prompt handling of customer issues. Anything else is icing on the cake.