Beauty wholesale unit with trade counter

Salons, barbershops, spas, independent beauty retailers and online sellers who want fast restocking without long supplier lead times.

Margin on products sold at trade prices, with extra from volume deals, delivery fees and regular account orders.

• Buying and negotiating with suppliers
• Inventory management
• Building trade relationships
• Basic bookkeeping

• Health Canada cosmetic requirements, including labelling and notification, and whether any products count as drugs or natural health products
• Municipal zoning, business licence and fire rules for the unit and how stock is stored
• Commercial general liability, product liability and contents insurance
• Provincial sales tax rules for reselling, such as exemption certificates, and GST/HST registration, check with your provincial tax office and the CRA
• Expired or slow-moving stock, and cash tied up in inventory and unit rent
• WCB/WSIB coverage if you hire staff, rules vary by province

Estimates suggest startup costs are typically around $25,000 to $100,000, depending on your unit rent, range of brands and stock levels. Cash tied up in inventory and rent is a key cost to plan for.

Monthly revenue is typically estimated at around $10,000 to $40,000, depending on your brand range, trade customers and delivery area. Watch for expired or slow-moving stock, which can hurt returns.

Check Health Canada cosmetic requirements, including labelling and notification, and whether any products count as drugs or natural health products. Also check municipal zoning, licence and fire rules, insurance, provincial sales tax exemption rules, GST/HST, and WCB/WSIB if you hire staff.