What returns can we expect as a Lanopearl distributor?
– A return of 10-15% per year can be expected (e.g. invest $100 get dividend $10/year)
– In the start-up phase do not expect to get a return within the first two years
– Dividends should pay twice yearly to shareholders
– Expect sales to increase by at least 15% per year
– Your operating costs will be minimal
– Expect a profit margin (GP) before expense of at least 45%
– Your marketing budget should be at least 10% of your profit margin
– Your brand message must be strong and consistent
– We offer profit sharing for staff and agents
– We offer very high customer support and after sales service
– We have very experienced staff and have board management support and experience (shareholders)
– We offer a competitive advantage as we have our very own certified organic farm and factory
What key strengths does Lanopearl have over competitors?
Lanopearl is deeply committed to quality and safety. We have our own organic research farm and factory where we source all our native Australian botanicals that go into our products. We are the pioneer and market leader in placenta based skincare products and invest in keeping abreast of the latest skincare technology.
Our aim is to work at becoming your long term partner, whereby we focus on helping you grow as Lanopearl grows and increase our distribution around the globe.
If we are a Rebirth distributor do we automatically receive distribution rights for Lanopearl?
We prefer one distributor to carry all our products and are keen to establish long-term partnerships. So yes, if you stock one of our brands we prefer for you to stock all of them, provided your sales are strong and you focus on developing the brand through your own sales and marketing.
What is the minimum order for a sole distributor?
There is no set minimum order as it differs from country to country. For example the minimum order from a small country may be approximately AUD$20,000 per year whilst a minimum order from a large country may be closer to AUD$50,000 per year.
On average, our target is to have a purchase order of AUD$14,000 – AUD$17,000 per month for initial orders which can be increased as sales increase.
What do you think is a reasonable target for the first year?
If for example you are operating in Malaysia and your target is AUD$17,000 per month this will likely only be achieved if you have an extremely strong sales, marketing and promotional team. AUD$10,000 per month is a more realistic target for the first year.
What support does Lanopearl provide?
We help our new distributors by providing samples that can be handed out to consumers. It is best to request your samples when you put through your first order.
We also supply sachets that can be used for promotional purposes, although the amount we supply is limited. If more are requied they can be purchased at cost.
Advertising – If you have a clear business plan for your first year’s forecast we help you with 20-30% of your advertising costs. We also offer you products at a lower cost which allows you to do your own advertising.
The advertising material we supply includes brochures in both English and Chinese although we cannot translate these to any other language. You can also request advertising artwork to support your advertising campaign.
Exhibiting – If you plan to participate in an exhibition please provide us with your plan and budget as we may be able to support you.
Training – To help with your product training we will provide you with a manual that will give detailed information on each product from our range. Additionally, for a cost of AUD$2,000-$5,000 we can travel to your country and provide training to you and your staff.
Will Lanopearl provide any further promotional support?
Due to limited resources, the best assistance we can offer is to provide stock at low prices which gives our distributors enough margin to do their own marketing. Once the brand is established you will see rewards within 3-5 years and after that period it will be easier to run the business.
To operate profitably you will need to gain at least a 40-45% profit margin (GP) and then spend approximately 10% of your profits on marketing. Your operating costs should be less than 25% of your profits to enable you to make approximately 10% net profit.
These figures are based on a business model from Thailand. Although we suggest that our distributors have a similar business model, the best strategy is to undertake your own research to determine which products would sell well within your market. Please contact us if you require assistance with this.
How do we apply for certification to sell your creams and vitamins?
Please check with your national health department on how to apply for certification and provide us with a list of requirements. Once we have this information we can prepare the documentation for you. Generally creams are easier to gain approval for than vitamins.
How much does it cost to apply for certification?
Generally the cost is not high though it differs for each country. We can prepare most of your documents free of charge however there is a fee for the embassy stamp, the Australian industry stamp and the notary public stamp.
How long does it take for Lanopearl to prepare the documents?
If the documentation is not complicated it is completed within 30 to 60 days. However we suggest you allow longer in case there are any issues e.g. labels need to be changed to meet country specific requirements.
What do we do if the health department needs clinical studies, test result and data to prove the anti-wrinkle claim of Rebirth products?
We haven’t undertaken any formal tests on our anti-wrinkle products as this is not required for the Australian market. However if we were to commission research from Sydney University it would cost approximately AUD$15,000-$20,000. If you require clinical trials to be conducted please contact the Lanopearl head office so we can evaluate your needs.
Are you able to prove that Rebirth is a leading brand in Australia?
We know we are the number one selling placenta based skincare brand within Australia as we are so unique, however we have not conducted any formal research. As such, depending on which country you’re selling into, bottle labels may need to be changed.
For example suggesting that placenta is good for cell production is not permitted in Malaysia and certain ingredients must contain more detail than is required within Australia. Please contact us so we can discuss your specific needs.
What happens if we do not get the export certificate? Can we still import?
You cannot import without the correct documentation however you can ship small quantities of our products using international couriers. By having a small amount of product you may be able to test the market first.
During this period (6-12 months) we require a deposit of AUD$5,000-$10,000 which will be used towards your first order upon approval. We will return the deposit if your application is not successful.
Can I register a Lanopearl website in my country e.g. Lanopearl.com.th?
Yes, with our permission. Your final web design must be approved by Lanopearl to ensure that you are consistent with our branding and corporate identity.
Once I have my website can I start to sell online?
Yes, you can if you have our approval however please note you can only sell online within your own country. Please be aware that pricing for online sales is different in each country.
How does Lanopearl market its products?
– Our budget for marketing is at least 10% of all profits after sales
– We have an experienced sales team to help our retail outlets
– We distribute a quarterly newsletter and/or email news to all our customers
– We create a promotion every 2-3 months with a free gift
– We offer good customer service to support products
– We conduct price comparisons and market research to analyse the market and do a competitor analysis to improve our marketing and promotional activities
How do we get artwork from Lanopearl Australia?
Lanopearl is happy to provide artwork to its distributors for a yearly cost of AUD$1,200. Supplied artwork can be used for newsletters, posters, signs, advertising, shelf design, picture libraries, award designs, testimonials and interviews etc. Please note that if graphic design work is required a fee will be charged.
Do I need to supply my artwork to Lanopearl Australia for approval?
Yes. We request that you submit all artwork to Lanopearl Australia for approval. We will need to check that the correct corporate colours and the right corporate identity is used.
How will I prepare for a sales promotion?
You need to plan your promotion at least three months in advance to allow enough time to order all products and sales gifts included within the promotion.
How do we ensure strong sales for Lanopearl?
To ensure continuously strong sales it is important that you personally use and understand our products and listen to customer feedback. Additionally, every process of the sales, marketing and public relations must be handled professionally. This includes promotions, advertising, customer complaints and returns, shelf displays and exhibitions.
Can we make another product in our own brand?
We prefer you concentrate on promoting our brand only.
Can I sell other brands from different companies?
Yes, provided products are not similar otherwise both brands will suffer.
Can I share your formulation with anyone?
No. Information about Lanopearl and its formulas is strictly confidential and legal action will be taken if this confidentiality is breached.
How can we manage a sales team?
It is vital you have an experienced sales team who have experience in the health and beauty industry. Ensure that you provide ample training to your sales staff including three days training at the end of each month for promotions, research and new product training.
How should I price products?
You should aim for >45% profit margin, and research competitor pricing.
Can I set a higher price then lower it if sales are poor?
We believe it is best to have low prices and high sales volume. Promotions are a good way to encourage sales and if you are selling a high volume of product you may be entitled to discounts from Lanopearl.
Should I reduce my price for big customers?
You should always take very special care of your largest customers and treat them like VIP’s. The best strategy is to give them bonus products – for example buy 10, get one free.
How often will Lanopearl increase its prices?
Lanopearl does not increase prices often. Some items are still the same price they were 10 years ago. Sometimes price changes are out of our control, for example if oil prices rise then we need to increase our price. We will inform you of any price changes one month in advance.
Can we find out how much other countries sell their products for?
Yes we can advise you on how much Australia, Thailand, Malaysia and Hong Kong sell products for.
How often do I need to do an exhibition?
To help increase your exposure and develop a relationship with your customers we suggest you do a health and beauty expo once or twice a year. We also recommend you have a system on your stand enabling you to collect customer details so you can build your database.
What is the return policy for products?
We have a 100% money back guarantee within 14 days of purchase. If customers have an allergy or any other problem with products then we are happy to return. To avoid a high return rate it is important that your sales staff are well trained and able to recommend the right products to your customers.
Always ask customers if they’re allergic to perfumes or chemicals to lower your return rate. If a customer has an allergy ensure you recommend products that are suitable for sensitive skin.
The products most likely to cause allergies are the whitening products, fade out cream and sun block. Our catalogue has a chart advising which products are allergy-free.
How will I know what the key selling points are for each product?
We will supply you will product catalogues and documents outlining what the key selling points are for each product. It is also important that you are well trained in our entire product range and use the products yourself.
What is the lead time on orders, how do you export products and what is the cost?
We advise you allow two months for orders to be filled. Usually we can send products within the week however it depends on the quantity required. In order to save on costs we prefer to send stock by sea freight which means you will need to order at least 30 days in advance.
The cost of freight varies but generally it is between AUD$400-$500 for each order. The best way to lower your costs is to place larger orders, less frequently.
What is the best way to monitor stock?
The best way to monitor stock is to use an accounting program whereby you can produce a report once or twice a month. It is also advisable to produce a monthly turn over report so you know how much stock you’ve sold each month.
What is the best way to manage our warehouse?
Your warehouse should not be too hot and should always be lower than 30°C. If the temperature is over 35°C it can damage the products by changing their colour and causing them to evaporate. Also never expose products to direct sunlight.
The shelf life of products is usually three years, please ensure that the shelf life of your products is over 24 months. It is important that you check expiry dates every month. If you would like to get rid of stock that is about to expire it is best to have a promotion with those products.
If any of the products change colour or evaporate please report them to Lanopearl head office immediately.
How do we ensure that we stay profitable?
To ensure your business stays profitable it is vital that you hire a good accountant. Also do a monthly profit and loss statement to monitor your company’s financial performance, and track your operating costs.
What credit terms should I give to customers?
Our credit terms are generally 30 days but for our good customers we offer up to 90 days. It is also vital that you ask customers to complete a credit application form so you can check their credit history.
How can I ensure customers pay their bills?
To ensure you don’t have a problem with customer debt it is always important that you check their credit rating. We also suggest you ask for a deposit in advance and offer a 3-5% discount for early payment.
What makes Lanopearl’s Touch & Young serum so highly recommended?
Lanopearl’s Touch & Young serum contains 15% placenta extract and is targeted at a younger audience aged 25-35 years. It is cheaper than Lanopearl’s Bio Peak serum which contains 45% placenta extract.
We also have a new Bio Peak product: Bio PHD ( P = placenta, H = herbs, D = DNA ) which contains an impressive 60% placenta extract. This premium product is tailored to an older audience of 45 years and over.
Is Rebirth Eye Gel and Lanopearl Eye Defying Care the same product?
Rebirth Eye Gel is a superior product as it is lighter. If you stock the Rebirth Eye Gel you needn’t stock Lanopearl Eye Defying Care.
What is Lanopearl’s Placentex Detox cream and is Rebirth Emu similar?
Placentex is a new series of products from the Lanopearl brand. This advanced formula contains placenta, herbs and vitamins A,C,E. It will be available in early 2014.
What makes Pentamax Gold Serum special?
Pentamax Gold Serum is a luxury product that contains real gold flakes. It is also very light and perfect for oily skin.
What is the difference between Bio Peak day & night cream and Mt. Retour face cream?
Bio Peak Day & Night cream contains the highest number of botanicals in the world, whilst Mt. Retour is certified organic and is ideal for people with sensitive skin or allergies. We recommend you stock both creams.
What are the benefits of Lanopearl Bio PHD Skin Serum?
Lanopearl Bio PHD Skin Serum contains 60% placenta, herbs and DNA which makes it ideal for women aged 45 years and over.
Which products do you recommend we import?
We recommend the following products as they are very popular and receive good reviews.
– Rebirth Original: RB01, RB02, RB03, RB05, RB13, RB14, RB18, RB19, RB34
– Rebirth Dare to change: RD02
– Rebirth Maximum: RM01, RM02, RM05
– Mt. Retour: MR81, MR82, MR83, MT08, MT04
– Mt. Retour Organic Essential Oils: MR01, MR02, MR03, MR04, MR06, MR0
– Lanopearl: LA07, LA21, LA22, LB71, LB73, LB74, LB49, LB70
– Lanopearl Bio Peak: LB01N, LB02N, LB16N, LB32N, LB34N, LB36, LB41, LB42, LB43, LB27, LB28
NB. We recommend that you request a sample of each product to try before you order.
What is the target audience for each of your brands?
We have four skincare brands that each cater to a different market. They are:
Lanopearl: This is our flagship brand that is aimed at a premium market, aged 35-45 years. It is designed specifically for anti-ageing and is stocked in department stores. Its direct competitor is Clinique, however Lanopearl is priced much more competitively sitting at around AUD$10-50.
Mt Retour Organic Skincare: Mt Retour is primarily aimed at the luxury market, those appreciative of truly herbal based products, however there is also a secondary market, being people with sensitive skin and allergies. It is stocked in day spas and high end department stores, is priced from AUD$15-60 and competes against Jurlique.
Rebirth: This is our economical brand for price-sensitive customers as it is priced from AUD$3-18. It is stocked in chemists and its direct competitor is L’Oreal. Rebirth is popular amongst the 20-30 year old market.
Purarose Cream: At AUD$2-6 this is an affordable brand for the mass market and tourists. It is stocked in discount stores such as Watson and Seven Eleven.
How do I know which brand and products will work in my country?
We suggest you call us to discuss which products we believe would suit your market.
How often do you change your products?
Customer feedback is incredibly valuable to us. As such we are constantly improving our formulas and packaging, with some products being changed every 6-12 months.
Why do your aromatherapy products have different expiry dates?
Different oils last for different amounts of time. For example essential oils are the most stable and can last a very long time (some more than 5 years), whilst oils that are blended with jojoba oil, like rose and chamomile have a much shorter shelf life.
We are not required to print expiry dates on aromatherapy products within Australia however for exported products we generally do. Please advise if you would like us to print the expiry date on your products.