Like many business owners, Yasmin Border has boot-strapped her business since she first founded her luxury bath salts brand, The Soak Life, back in 2016.
And now that the business has grown to be stocked in 32 retailers around Australia, Yasmin is searching for the right way to grow so her business can expand.
“I’m a little bit stuck. I’m trying to decide whether I continue to manufacture myself and bring on staff and rent the equipment that I need and get a warehouse on my own,” she said.
“Or do I start getting it manufactured by a third party with my formulas, and get them into a 3PL warehouse. It’s a catch-22.”
The challenge she sees is that her cost of production is so low currently that her margins are cost-effective, compared to the manufacturing costs for a reasonably small quantity.
“I have been approached by big retailers overseas and I have turned them down because of the manufacturing capacity,” Yasmin said.
“At the moment there is a big change in the margin for the cost of goods sold compared to what I make myself as opposed to the quotes from manufacturers.”