Getting license from Brands to sell perfumes?

[mystic]

Hey guys, I just started selling perfumes but did a lot of research on selling designer perfumes and lot of things don't add up so I am coming here to ask for your opinions please if you won't mind?

Ok, to begin, I read that in order to sell designer perfumes, one needs permission from the Brands in order to be legal. Now here's the dealmaker, I called up 2 brands Corporate Sales offices, the first, Dolce and Gabbana told me "we do NOT sell our products to ANYONE, we only sell off of our own Retail outlets". The second, Ralph Lauren told me "we only sell to Major department stores and do NOT have any distributors".

Now if you walk into ANY perfume store anywhere or visit any online store you will see both brands mentioned above being sold so with regards to D&G, where does Macys and other big players get these items? Also, where do all local and online stores get both brands?

When I questioned a few local Retailers about this, their answers were:

1] Those 2 brands do have distributors but since I am only a retailer calling in to get info they will not bother with me.

2] We purchase from Distributors so we have no idea where they get their products from.

What does the above suggest? That even Macys are selling D&G products illegally? That the 2 Corporate Offices lied to me? For what possible reason? That EVERY local and online and ebay retailer are not licensed to sell these products? If the latter, then why aren't all retail stores closed down?

[GreenBean]

Originally Posted by mystic

What does the above suggest? That even Macys are selling D&G products illegally? That the 2 Corporate Offices lied to me? For what possible reason? That EVERY local and online and ebay retailer are not licensed to sell these products? If the latter, then why aren't all retail stores closed down?

Welcome to the forum

Here's my .2cents which I hope may give you some idea of 'branded perfumes'.

The clue is in the word BRAND. Those companies that manufacture, distribute & sell such goods have what is called the IP ( or Intellectual Property) rights to them.

They can do what they want with 'the brand'. It is even labelled as theirs.

Outsiders like you are sadly regarded as small fry in their conglomeration of selling. Unless you were presenting yourself as an authentic LLC, it would not be their policy nor need ( in fact) to let you sell.

They also have no need to tell you about how to be able to sell their items. for want of a better term, it's safeguarding their monopoly.

Lies would be hard to substantiate.... regard it more as bending truths.
Hope that helps somewhat.

[GreenBean]

Here's another site, created by a user here. She gives a whole lot more detail on the topic...

Tabberone. Great fabrics and collectibles.

read that to get more info which could guide you with selling.

Good Luck

[mystic]

Thanks for info guys. I did tell them I am a retailer with a registered retailing license but you see the response I got. What makes this even more complicated is I am being told that selling "Grey Market" products is the way to go because it's perfectly legal to sell the imports in the US but even if you sell the grey Market products, won't you still need permission from each brand you are selling?

[MM78]

Originally Posted by mystic

Ok, to begin, I read that in order to sell designer perfumes, one needs permission from the Brands in order to be legal. Now here's the dealmaker, I called up 2 brands Corporate Sales offices, the first, Dolce and Gabbana told me "we do NOT sell our products to ANYONE, we only sell off of our own Retail outlets". The second, Ralph Lauren told me "we only sell to Major department stores and do NOT have any distributors".

Now if you walk into ANY perfume store anywhere or visit any online store you will see both brands mentioned above being sold so with regards to D&G, where does Macys and other big players get these items? Also, where do all local and online stores get both brands?

When I questioned a few local Retailers about this, their answers were:

1] Those 2 brands do have distributors but since I am only a retailer calling in to get info they will not bother with me.

2] We purchase from Distributors so we have no idea where they get their products from.

What does the above suggest? That even Macys are selling D&G products illegally? That the 2 Corporate Offices lied to me? For what possible reason? That EVERY local and online and ebay retailer are not licensed to sell these products? If the latter, then why aren't all retail stores closed down?

Both of those brands sell to wholesalers and retailers, why they told you any different is beyond me. My Aunts all sell perfumes(original) and buy from specific wholesalers but the profit margin is so small which is why I never got into selling on ebay.

[rsot]

Welcome to the forums. Nice website GB.

[mystic]

Originally Posted by MM78

Both of those brands sell to wholesalers and retailers, why they told you any different is beyond me.

That is what I figure because I have a few wholesalers who told me if anyone asks any questions "please refer them to whatever authority", this tells me they are authorized to sell the items to Retailers but the problem with this is I am being told that any "Retailer" needs permission from the brand itself to sell their products? Is this correct? If so then I don't understand how a retailer can get this permission if the Corporate people are saying what I've mentioned?

[unkown5454]

You need to be one huge operation if you think that you are just going to call up companies like D&G and Ral.ph Lau.ren and they will just let you start peddling their products online.

These companies have reputations to protect. That is why only major corporations will have access and authorization to sell them. Also, none of those department stores or retailers have to tell you anything remotely true. They can tell you whatever they want.

Lastly, what you see in many small, random, no name stores and kiosks is more count.er.fei.t than you realize. The money to be made in the industry is huge, and some how these small time come-and-go "businesses" miraculously have the newest colo.gne and per.fume from HUGE name brand companies at 50% off the retail price. C'mon now, it's time to start thinking a little bit clearer.

I'm not trying to be a downer, but despite your research, you still seem to know very little about this industry and think that you can just call up world renown designers and just start selling their products just cause you saved up a few extra pennies and you like smelling random things in fancy bottles.

[mystic]

I am simply seeking to open a legit storefront in PA sir . I am trying to figure out how best to go about getting permission from the brands to carry their products, that is all.

From my research on the net and talking to other local Retailers I am being told to contact the brands to get their permission and also get their Distributor's info.

Since that is not working, I am asking around the net on how to get started, that is why I came here.

[AmazonStealth]

I do not think that perfume is a very good way to make profit as a single small store owner. Big box stores dont even make that much money on them, and that is why they include so much free extra crap with them. I believe this is similar to Apple, where the price doesnt really get lower.

Do you think Best Buy makes money from their iPod? Absolutely not. In fact they dont make much of iPods at all. They make the money from the cases, accessories, warranties, etc.

I think you need to rethink your plan. You can make wayyy more money if you stay away from these high brand items.

[MM78]

Actually you are right Amazonstealth, the profits in perfumes is very small, theres only 2 major times you can make a profit and those are Valentines and Christmas.

[Packattack12]

You said it perfect. Good luck trying to become a reseller of those brands. Most brands pay like a mil just to have counter space at say Younkers or Macy's as well. It does suck but it's the truth. That's why those brands are so exquisite.

Originally Posted by unkown5454

You need to be one huge operation if you think that you are just going to call up companies like D&G and Ral.ph Lau.ren and they will just let you start peddling their products online.

These companies have reputations to protect. That is why only major corporations will have access and authorization to sell them. Also, none of those department stores or retailers have to tell you anything remotely true. They can tell you whatever they want.

Lastly, what you see in many small, random, no name stores and kiosks is more count.er.fei.t than you realize. The money to be made in the industry is huge, and some how these small time come-and-go "businesses" miraculously have the newest colo.gne and per.fume from HUGE name brand companies at 50% off the retail price. C'mon now, it's time to start thinking a little bit clearer.

I'm not trying to be a downer, but despite your research, you still seem to know very little about this industry and think that you can just call up world renown designers and just start selling their products just cause you saved up a few extra pennies and you like smelling random things in fancy bottles.

[PhillipV]

PROFITS FROM COLOGNE SALES:

In reference to cologne profit margins, I must put this information out there that I have two sources that manufacture cologne and the profit is literally off the charts sky rocketing. That being a truth of the industry what you don't consider is the massive advertising campaign that is the launch, the sustain and the after marketing required is also very massive. When I say massive, I mean it's world wide with heavy emphasis in key countries and cities within the countries targeted.

A person commented earlier on this forum that you make more money during holidays. That is numbers increasing, not having anything to do whatsoever with the cologne itself. It's the number of purchases rises due to public demand for holidays. Inferring anything beyond that (you may or may not have been) would suggest that profits increase because you can make more off the manufacturers perhaps lowering the price for the season.

What I would say is that in short, cologne companies have created a falsified market and consumers have been 'conned' into their high prices. If they'd stop buying colognes at the high prices, they manufactures would be forced (quite literally through force) of the people to lower them to a price of reasonable earnings. Unfortunately, people's selfishness and greed, personal want for cologne on the launch date so they brag to friends has created their own crippling domino effect thus, they get what they deserve because they built it with their own greedy hands. Who is stupider? Customer or manufacture? I say both....because they're both greedy. Both feed off each other.