This is the Math You Need to
set up a Profitable Perfume Venture

The most important point to think about when you think about selling your own perfume is ... "How am I going to make money?"

Before you go to work developing you perfume itself, do a little math. Here are some calculations you'll want to make. Initially the numbers you will use are estimates but, for these calculations to be meaningful, your estimated numbers must be honest. They must be based on the size of the market you have identified and the likely selling price of your perfume.

Gross Sales

This is the total amount of money you receive from the sale of your perfume. It is found by multiplying the number of individual bottles you expect to sell by the price of each bottle. (For now we are assuming that all bottles will be sold at the same price.)

EXAMPLE: If you expect to sell 1,000 bottles and get $35 for each bottle sold:


Gross Sales = 1,000 x $35
=$35,000

Gross Profit

This is the money you are left with after paying for your perfume and the expenses involved in selling it.

To determine your Gross Profit, subtract your Product Cost (the total amount of money you spent to develop and package your perfume) and your Selling Expense (the money you spent to get buyers for your perfume) from your Gross Sales.

EXAMPLE:


If Gross Sales =$35,000
and Product Cost = $3,500
and Selling Expense = $3,500
Then
Gross Profit = Gross Sales - Product Cost - Selling Expense
=$35,000 - $3,500 - $3,500
=$28,000

Looking at these numbers puts reality into your project as you go forward. You now know (approximately) how much money you will take in if your promotion is successful. You now know how much money you can spend to create your perfume. You now know how much money you can spend to sell it.

If the numbers don't "work," you are in trouble. To make your perfume promotion profitable you may have to find a larger market, or reduce the amount of money you spend to create each bottle, or — and this can be tricky — raise your price.

Keep playing with these numbers — market size, order size, cost per bottle, selling expense and retail price — until the numbers "work" and you are looking at a practical chance to make the profit you desire.

If developing a new perfume is your interest, you will understand the process much better by reading Creating Your Own Perfume With A 1700 Percent Markup! But before you spend money developing a new fragrance, it is smart to give some thought to how you might be able to sell it. A little knowledge can make your venture considerably more profitable.


archander
Perfume and Flavor Materials of Natural Origin

Steffen Arctander's Perfume and Flavor Materials of Natural Origin was first published in 1960 and is the classic, authoritative reference for natural products used in perfumes, scents, flavorings, foods, and medicine throughout the world. Part One defines and describes processing methods used to extract or refine the products into usable form; Part Two includes more than 500 monographs on the natural raw materials used to produce perfumes, flavorings, etc. Appendices include a classification of important materials by their scent, and worldwide production figures for major products. Fully indexed, the book also includes 62 pages of photographs, making this the standard reference work on natural materials for perfumers and flavor chemists. The preface contains practical descriptions of available materials, their origin, production and processing methods, appearance, odor and flavor type with brief notes on their main constituents, replacements and common adulterants.


Creating Your Own Perfume With A 1700 Percent Markup! (3rd edition)

Perfume is famous for the markup it can achieve, even for a middle market fragrance. While "everybody knows" that perfume costs next to nothing to make (not completely true) the making of it is often considered an esoteric secret. "Creating Your Own Perfume With A 1700 Percent Markup!" details how a 3-person company with no experience created their own fragrance in response to a marketing opportunity that was too good to pass up. The book explains exactly what was done to create a fragrance for that opportunity but it is far more than a history of the author's project. "Creating Your Own Perfume With A 1700 Percent Markup!" lays out every step in the process of creating your own perfume, either as a do-it-yourself project – and without the benefit of automated equipment some compromises and workarounds are required – or full bore professional production under your supervision. Either way you will be producing a quality fragrance at a remarkably low cost. Do you have a marketing opportunity that would be wildly profitable if only you could obtain your fragrance at a ridiculously low cost? "Creating Your Own Perfume With A 1700 Percent Markup!" is the guide you need to do it.


Naming Your Perfume And Protecting Your Name

A really great name, a special name that is just right for a particular perfume or perfume marketer (or entrepreneur with money to invest!) can be worth a ton of money. But few individuals with great ideas ever manage to cash in on those brilliant ideas. Instead they wait while others "discover" their idea, acquire legal rights to it and make all the money while they are left out in the cold without a penny having been earned for what was once THEIR idea.

If you are struggling to name your perfume and are looking for a name that will have real value, "Naming Your Perfume And Protecting Your Name" will help you weed out low value names and point you to names that have better marketing value plus the potential to become valuable assets in themselves.

If you have a great name you want to protect but no fragrance, "Naming Your Perfume And Protecting Your Name" will guide you through the simple steps you must take to acquire a legal right to that name before someone else grabs it! Best of all, "Naming Your Perfume And Protecting Your Name" shows you how to gain strong legal protection for your name without a lawyer and without spending more than pocket change.

Never had an idea for a product name? Never thought much about perfume? "Naming Your Perfume And Protecting Your Name" may stimulate your interest in a whole new game that, when played well, can make you lots of money without your having to leave the comfort of your home office.


How To Launch Your Own Perfume Company: A Simple Business Plan

You can build a perfume business of your own using this business plan as a guide. By following its detailed strategy you learn to identify motivated groups of potential perfume buyers. Members of these groups are near the tipping point of desire for a new perfume. You don't know these people and they don't know you but you know a marketer they trust, one who does not currently sell perfume and might never think of selling perfume were it not for your approach. Here is where you step in with a professional plan, promotion, and perfume to take advantage of this ripe opportunity for mutual profit. Before your first promotion has peaked, you will already be developing a relationship with your next marketing partner. Following this plan, you will gain more and more profit with each new marketing partnership.


Creating your own perfume from dropper bottles: Methods, mechanics, and mathematics

Now when you make your own perfume you can make it fully "commercial" meaning you will be creating a product ready for regular, continuous sales to friends, relatives, and the public! If the fragrance you've made has already won praise, why not share it with others? Some might pay you for it and want it for their web stores or retail boutiques! Creating your own perfume from dropper bottles: Methods, mechanics, and mathematics guides you through steps that can turn your hobby project into a perfume business. Discover how close you are now and how little more you must do to take what you made with essential oils and dropper bottles into a business of your own! For an introduction to this book, watch this video.


How To Create A More Valuable Name For Your Perfume

When you name a perfume you create a valuable asset – the name itself. To sell your perfume you want the most effective name possible. But a good name can have value beyond the edge it gives your sales. In naming your fragrance you are creating a trademark and a trademark can have value independent of the product. The value of that trademark can vary. Much depends on how well, in naming your perfume, you follow the trademark "rules." How To Create A More Valuable Name For Your Perfume first helps you develop a name that will be effective in selling your perfume. It then prods you to make use of certain techniques that can turn a good name into a great trademark, strong and valuable. If you have questions about how to protect a name, How To Create A More Valuable Name For Your Perfume will answer many such as:

  • Can you protect your name yourself or do you need a lawyer?
  • Can you register a trademark without a lawyer?
  • What does it cost to register a trademark?
  • How do I enforce the rights I have established?

How To Create A More Valuable Name For Your Perfume covers both state, federal, and international protection.


For article updates, etc., add your name to Phil's mailing list.

Photo of Phil Goutell
Philip Goutell's Signature

Philip Goutell
Lightyears, Inc.