two things I wish I would have known

Sandra Velasquez
Apr 19, 2022

La Onda is a newsletter by Sandra Velasquez, founder of Nopalera, with actionable insights around brand building and selling.


I felt fortunate to have a sales background before launching Nopalera because I understood how margins and selling into stores worked.

However, there are still two things I wish I would have known before launching:

1/ Big beauty retailers like Sephora and Ulta take a 60% margin.

2/ A fulfillment center will cost you 20% of your monthly revenue.

I don't share these things to scare you or keep you from aiming high. And certainly not to scare you into doing your own shipping for the rest of your life!

I share these things to prepare you to run a profitable business.

How would this knowledge have changed how I launched?

I would have positioned my products differently, priced them higher, and focused on lowering my COGS more from the start.

Let's break down this math real quick.

A margin is the percentage of revenue one gets to keep once the costs are subtracted.
Example: If your body butter sells at Sephora for $20 on shelf, they want to keep 60% of those $20.
60% of $20 is $12.
That means they need to buy it from you for $8. (20-12=8)
And if you want to make a 60% margin as well, that means you need to make it for $3.20.

Here's a screenshot of the custom margin calculator I built for my Margin Magic Masterclass.


As for fulfillment centers....shipping is expensive regardless of whether you do it or you pay someone to do it.

The thing to remember is this: you live and die by your margins.
So, make sure they are strong out of the gate!

If you need clarity on COGS and Margins, I am inviting you to the next Margin Magic Masterclass next month.

Details here:https://lu.ma/lo8mk960


​​​ICYMI
Here is a recap of topics covered in previous posts.
You can always visit my page and scroll down to see all posts.
If you haven't yet read them all, do so. Lots of gems in each post.

How to find suppliers and co-packers in beauty: here

My short list of BIPOC bookkeepers/CPAs: here

​​​​​Building your email list and outsourcing shipping: here

​​​​​Trademarking your name: here

​​​​​Building a team and Paid Ads: here