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Frequently Asked
Questions
Q: Don't I need
to be a chemical engineer to make cleaning products and cosmetics?
A: You would if
you were starting from scratch, making the raw ingredients, formulating the compounds, etc.
But you don't need to be a chemical engineer to follow a recipe
and blend ingredients together - in much the same way that you don't need to be a chef to follow a cake
recipe.
More importantly, however, you have the benefit of my 28 years
experience in the production of these manuals and formulations - it's experience which, until now, could not be
bought.
The instructions are easy to understand, written especially
with the beginner in mind.
And once you have a little practice, you will be able to
experiment and make your own formulations using my recipes as a base.
Q: I've seen some
recipes which use soap flakes and bi-carb to make laundry detergent - is this similar to your
formulations?
A: No -
definitely not. My formulations are all professional grade, none of them uses ingredients purchased from the
supermarket - all are in bulk from raw ingredient manufacturers.
These "soap flake" type of detergents are not very effective
for cleaning clothes, and not suitable for retailing. Detergents need to be able to perform the following four
functions: 1. neutralise the acidity found in most soil; 2. remove oils and grease by emulsifying the particles,
making them water-dispersible; 3. break down carbon, dust and clay into super-fine particles; 4. keep the soil in
suspension so that the dirt particles do not redeposit themselves onto clothing during the rinsing
cycle.
Formulations made from soap flakes are not able to perform the
above functions. It's actually quite easy (and a lot cheaper) to make detergents which meet all the necessary
requirements, using raw ingredients.
I have seen one home-made detergent recipe which says that you
should end up with a bucket of "gelatinous slime". Again, the quality of the recipe is dubious, but more
importantly, I doubt that you would find any consumers interested in buying a product with this description or
consistency, or any retailers interested in stocking it.
Q: I've seen some
recipes for making bath and spa products - are these similar to your formulations?
A: Again, no.
These recipes might be ok for personal use or to give as gifts for friends if you're a handcrafter - though I'm not
sure in many cases that I would personally use many of these formulations on my own skin. But they're generally not
suitable to sell in retail outlets.
Most have few, if any, active ingredients. They might smell
nice, but they have no therapeutic value - if consumers don't feel a benefit, they will be less likely to buy
again. Making skincare and make-up products with active ingredients allows you to produce top quality formulations,
for which you can charge top dollar. You can use exactly the same actives as many of the leading cosmetic
companies - and they'll only cost you a tiny fraction of the retail price.
More seriously, however, many handcrafters' recipes don't
contain the necessary ingredients to prevent the formation of bacteria. The co-existence of water and oil in
cosmetic products can promote the growth of nasty molds and potentially serious bacteria - unless the
correct ingredients are used in the correct proportions (which is not difficult to do, but always kept
secret). Also, some of the oils in body/bath/skin preparations can easily go rancid if not correctly prepared. If
you want to retail your products, they need to have a reasonable shelf life and be safe for use on the skin - even
items given as gifts may not be used for six months. Many handcrafters' recipes may have a shelf life of only two
weeks before the formation of bacteria begins.
Extreme caution should be exercised in the use of handcrafter
recipes for retail sale. My formulations are for the person who wants a serious
business, with serious profits.
Q: I have seen
some formulations for cleaning products, detergents, cosmetics, etc - but they all contain pre-made
proprietary blends, so you have to buy your supplies from that particular manufacturer, or you won't know
how to make the product. Are your formulations like that?
A: No. All my
formulations show you how to make your products from scratch, using bulk raw ingredients. These are
not company formulations that you mix with water and fragrance. This is just another way the big players try
to keep their strangle hold on the industry, by forcing you to continue buying pre-blended bases from them, never
letting you in on the actual recipe. It's just another way of preserving their secrets.
You can purchase the ingredients you need for my formulations
in bulk from any number of raw suppliers. You have the actual recipe, containing the raw chemical ingredients -
just like the major multi-national manufacturing corporations. This allows you to make the maximum possible profit,
without being at the mercy of any suppliers.
Q: Do I need
permission from the FDA to sell products to the public or retail outlets?
A: No. This is a
common misconception - again, part of The Great Cosmetics & Chemical Manufacturing Conspiracy. In the US and
most other countries, cosmetics are not required to be tested by the FDA, or any other
authorities.
The FDA simply requires that you label your products
accordingly and not use any prohibited ingredients or pathogens.
Because all my products have been professionally formulated,
the ingredients comply with all regulations. You will be making products using the same ingredients as the major
manufacturing companies.
Q: How much extra
do I need to spend to get this business started?
A: To produce a
large sample range of products, you will need approx $100 for simple mixing containers, and approx $100 for raw
chemical ingredients. You'll also need some packaging bottles and jars, and labels for the products you choose to
manufacture.
Once you begin receiving orders and producing in larger
quantities, you can buy larger mixing vessels to suit the quantity you intend to manufacture.
Then, you'll only need to buy your raw ingredients and
packaging in the quantity required to fulfill each order.
Q: Where will I
find everything I need - chemical supplies, packaging, label printing, etc?
A: My manuals
provide you with a list of suppliers for all these requirements.
You will be able to find many more in your local Yellow Pages -
I direct you to the categories.
Q: How many different products do I need to
manufacture?
A: This is
entirely up to you. Some of my licensees make just one product with different aromas. For example, you could
specialize in air fresheners, anti-bacterial/industrial hand cleaners, body butters, baby products or lip
gloss. You could supply a complete range of hair or spa products to salons. Or you could make a small to medium
sized range of household cleaners. Or you could specialize in supplying bulk industrial/commercial cleaning
agents.
Q: Can you give
me some idea of how I could start selling the products I make?
A: I have made
some of my biggest profits from joint venture fundraising. Sports clubs, schools, churches, service organizations,
charities, etc are always looking for new ways to raise funds. The most commonly sold fundraising products - such
as chocolates, candles, cookies - offer the club or school only about 25% profit.
You can offer them a much greater profit margin than this - you
can offer them 100% and you will still be making an excellent return. The club or school will find your products
easy to sell - they are everyday necessity items.
You can label the products especially for them. As an example,
some years ago I approached a popular sports club known as the SweatHogs, and showed them some samples for
SweatHogs No Sweat Anti-Perspirant Deodorant. They loved the idea and it made both me and the club a lot of
money.
I've done these "joint ventures" for marathons, dog shows,
cheerleaders, and so many others - with a little imagination, the possibilities are endless.
Q: I had no idea
how much money can be made from making cleaning products and cosmetics. Why haven't I heard before how lucrative
this is?
A: Let me ask you
this: If you had a business where you made a product for as little as 25 cents (from your own home), which you
sold for $5, and there was a huge market of regular, repeat buyers, would you tell anyone how much profit you were
making?
I suspect not, but a word of warning: If you're the kind
of person who wants to brag to your friends and neighbours about what a fantastic profit margin you make, this is
probably not the business for you. Chemical and Cosmetic manufacturing is so incredibly profitable partly because
so very few people know anything about it. If you decide to take advantage of this opportunity, I highly advise you
to keep this information for yourself - keep the secret a secret.
If you saw the secrecy contracts the big-name conglomerates force their employees to sign,
you would know why you never hear anything about the profit margins or formulations from those who work within the
industry.
Q: Isn't making
cosmetics and cleaning products too competitive?
A: Absolutely not
- in fact, that's largely the reason why the retail prices are so high and the profits so
astronomical.
There are many, many more sales to be made other than to
supermarkets or pharmacies - this is where the big players concentrate their efforts - which means literally
hundreds of other hungry and extremely profitable markets are completely overlooked.
You've probably seen "price wars" in many other industries.
This kind of discounting rarely, if ever, occurs in the chemical or cosmetic manufacturing industries. In fact, the
strength of the industry and its secretive nature allows it to maintain a high level of
profits.
When you look at the number of customers who purchase cleaning
products and cosmetics, compared to the number of companies making these items, you will realise it's a monopoly
with few peers.
For anyone already involved in the cleaning industries, or
anyone using cleaning products on a daily basis, the savings to be made by manufacturing your own are
astounding.
Q: I would like
to sell cosmetics and toiletries over the internet - is there a big enough market for this?
A: The market for
cosmetics continues to expand, offering new opportunities to enter this exciting industry. According to a recent
article in Cosmetic Design Magazine, the sale of cosmetic and toiletry products over the internet has "continued to
grow significantly, now representing 4 % of total sales, making it one of the fastest growing retail
channels."
Other studies have shown that 4 %, or approximately $1.7
billion, of the total $42 billion spent on US beauty products, is accounted for by sales derived from the internet.
Approximately 10% of women of all ages now make cosmetic and toiletry purchases over the internet on a regular
basis.
This sounds like a big market to me - it's no wonder the
manufacturing companies are among the wealthiest in the world.
Q: Do I have to
use the AustraLab name and trademark?
A: It's entirely
up to you - this is your business. The AustraLab trademark is a great marketing weapon. Around the world,
Australian products are held in high regard for their quality. "Made under licence from AustraLab Australia" and
use of the Aussie logos gives your business and your products instant credibility - which could otherwise take
extra time and money to establish. It could even open up export opportunities for you. Also, the graphic designs
will save you a small fortune.
Research has shown that the kangaroo is one of the most
recognisable symbols in the world - you have a unique selling proposition from day one. All the hard work has been
done for you.
However, if you would like to create your own brand names, I
give you all the advice you need to get started. There's no reason you couldn't create a new name,
manufacture items and establish a concept store for your products. You could then franchise your stores - The
Body Shop is just one such example. You can still use the words "Made under licence from AustraLab Australia ©™ "
on the label.
Maybe you have an existing business and you would like to
manufacture products under that name, use them yourself and sell them to your customers.
Some of my biggest contracts have come from businesses who have
become tired of promoting another company's brand, which can be purchased from thousands of different outlets. I
have helped them create their own products and develop their own brand loyalty amongst their customers, who must
then return exclusively to them to buy more.
This is known as private label manufacturing, and it's a
booming industry - there's no reason you couldn't offer your services in this field.
Q: I find
chemicals scary - is it dangerous?
A: The word
"chemical" is probably one of the most misunderstood, especially since the word "natural" became so popular. There
are many "naturally" occurring toxins, which have the potential to cause much greater harm than synthetically
produced substances.
Technically speaking, everything is a chemical. Chemistry is
the study of matter and its interactions with other matter. Anything made of matter is therefore a chemical. Any
liquid, solid, gas. Any pure substance; any mixture.
Water is a chemical. Everyday we use chemicals. Regardless of what ingredients they contain, soaps, shampoos,
toothpastes, lipstick, etc are all chemicals. Partly because of the lack of government regulations, there's a lot
of confusion about the meaning of "natural" products - depending on the definition you use, it can mean many
different things and be misleading.
When you follow my simple, common-sense safety procedures,
chemical and cosmetic manufacturing is safe and easy. In fact, I'm not joking when I say my wife has more accidents
in her kitchen (between cuts from sharp knives, burns from hot stove tops and other assorted mishaps) than I've
ever had in a laboratory.
Q: What makes you
so sure I would be able to succeed in this industry - I don't have much education and I've never done anything
like this before.
A: For the past
few years before retiring, I have tested my system with many different people from many different
backgrounds (you can read their Success Stories). Some have had very little
education, some have been students, some stay-at-home mums, some retirees, and some highly educated. All had one
thing in common - they wanted an easy to operate business, with low overheads, low competition, and high profits.
None had any previous experience in this industry. All were highly successful - of course, this means different
things to different people. Some were thrilled to be able to make an extra $1000/week, working a few hours from
home, while others realised the sky is the limit in this industry, and really attacked their chosen markets, making
the kind of profits many people only dream about.
Q: I'm convinced
this is a good business but if too many people get into it, won't the market become flooded?
A: This is highly
unlikely as these are consumable items used in every household and business, every single day.
To safeguard against saturation, only a limited number of
trademark licenses are available.
The particular market you decide to focus on will determine
which products you manufacture. It is highly unlikely that any two licensees would manufacture identical products
for the same markets or individual retailers. Also, your products will still be entirely unique as a result of your
chosen labelling, packaging, coloring, fragrances and properties - there are, quite literally, thousands of
different combinations you can make.
Q: This business
sounds like the answer to my prayers - is there a catch?
A: The only catch
is that you must be prepared to put in some effort! Like any business, to make it work you have to work at it. In
this business, like any other, you must be prepared to invest a certain amount of effort to reap its great rewards.
However, I know from my own experience and that of my licensees, that the return on investment in this industry is
like no other.
Q: I love the
concept, but it seems like a lot of money.
A: If you paid
$50,000 for this business, it would still not be too much. If you focus on the income potential and
flexibility this business can give you, you will realise it is not expensive.
You can expect to pay a minimum of $40,000 for a lawn-mowing
franchise, home cleaning franchise, or even dog washing franchise. You are restricted by geographical territories.
These franchises cannot offer you the tremendous income potential of manufacturing cleaning products or
cosmetics. You will either have to suffer with conventional, small profit margins or get stuck paying constant
royalties to a franchiser. If you want a franchise (or any other business) which brings you a reasonable
income, you can expect to pay at least $150,000.
With AustraLab, you get to keep all the profits you make and
you can operate your business anywhere you choose, with absolutely no restrictive boundaries. It is your business
100%.
In most other businesses, you are selling another company's
brand and products. The problem with this, apart from the fact that they are making the bulk of the profits, is
that you are advertising for them whenever you promote an item to your customers, who may in the future make a
repeat purchase, but from another retailer. You're also at the mercy of that company, who can increase their prices
without notice, change their formulations, withdraw a product from the market, stock a neighbouring outlet, stop
supply, etc etc.
Because you own the formulations, you have complete control of
your future.
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