Every day we receive questions from customers on our website and it is a delight to read your suggestions and comments about our products. One question that comes back quite often is “Why are you cheaper than your competitors?” “Do you sacrifice quality to make your products more affordable?”.
We believe that our prices are not affordable but “fair” for the end users. Every company needs to make profit in order to survive and it is not different for us. However, there are different ways to reach your objectives.
Companies have different channels to sell their goods. These rules are not only for cosmetic or aromatherapy products, but for every industry. Most companies choose to use distributors, which is an understandable strategy. A good distributor will give your business exposure and communicate about your brand and products.
However, many intermediaries will ask between 30 to 70% of commission. As a consequence, many companies end up increasing their prices in order to maintain their margins. If the price is too low the only person profiting from this transaction is the distributor and not the company creating the good.
The problem is that the person that ends up paying for this strategy is YOU; the person that purchases the product. The lion's share of profit is not given to the company that crafted the oil that you love so much but to the whole system that includes many intermediaries.
At Florihana, we decided to take a different approach. We work with a select few distributors that are reasonable, trustable and that share our values.
However, we sell our products mainly through our online portal; directly from us the manufacturer to you, the end users. As a consequence, we can give you a “fair price” while also focusing on the quality of the products.