Fragrance 101
Operators can make their own products for higher profits

A subtle spray of air freshener has the power to trigger precious memories and a multiplicity of emotions that can lift spirits, improve mood, enrich driving experiences and lead to an overall feeling of pleasure and happiness. Fragrances have long enhanced the perception of a variety of products. In fact, experts claim that fragrances contained in household and industrial products, from laundry detergents and air fresheners to industrial degreasers, are near synonymous with their perceived quality and sense of value.

Carwash operators sell fragrances to their customers in a variety of ways, such as paper air fresheners, scent pouches, scent-infused plastic and even car-vent air fresheners. Many also sell liquid fragrance in small spray bottles. While some products can’t be replicated by the carwash operator, liquid air fresheners are easy to make. Operators who want to maximize the profit on liquid air freshener sales can buy fragrances directly from a fragrance manufacturer, mix them to create the scent they want, bottle them and even put their own private label on them.

Many fragrance manufacturers want you to think their blends are a well-kept secret. This keeps you loyal to their products and controlled by their production schedules. The fragrance industry has many secrets, some of which will be explored in this article.

There are two types of fragrances sold in the marketplace today, with the main difference being the carrier fluid.

Water-based fragrances. The most common fragrances you’ll see on the market are water-based fragrances. These fragrances are available in all scents and colors and are the weakest form of fragrances. A typical scent sprayed into the confines of an office, household or vehicle will last only from three to five hours. However, this form is safer on fabric and carpets than its oil-based counterpart.

Oil-based fragrances. The longest-lasting fragrances sold today are oil-based. Typical carrier fluids that may be used in oil-based air fresheners are Isopar-M, OMS, DOA, DEP or a mixture of all four. As with water-based fragrances, they come in all scents and colors with one key difference: A typical oil-based scent sprayed into an office, household or vehicle will last from three to five days. But this longevity comes with a price. The oil-based form must be sprayed with caution on fabric and carpets and should be tested in a non-visible area prior to use. To avoid this pitfall and keep the longevity of the scent, many manufacturers spray oil-based fragrances on oil-absorbent stock or “kitty-litter” and place the medium on surfaces so that no leeching of the oil will occur.

It is a common practice for industry professionals to mix finished fragrances to achieve a unique scent. For example, to create the scent of a Hawaiian Punch-type fragrance, you would mix 25 percent cherry, 25 percent orange, 25 percent strawberry and 25 percent watermelon together. Listed below are additional formulas that will increase your fragrance offering without significantly increasing your capital expenditures.

• Apples and cinnamon—apple + cinnamon + vanilla
• Almond cream pie—almond + vanilla + pie crust
• Baby powder—rose + vanilla
• Cherries and cream—cherry + vanilla
• Cookies—almond + vanilla + pie crust
• Caramel apples—caramel + apple
• Chocolate mint—chocolate + mint
• Dreamsicle—orange + vanilla
• Hawaiian Punch—cherry + orange + strawberry + watermelon
• Musk—clove + vanilla
• Pink lemonade—cherry + citrus
• Pina Colada—coconut + pineapple + banana
• Kiwi-Strawberry—kiwi + strawberry
• Vanilla coffee—coffee + vanilla

To mix fragrances, you will need an empty steel drum and a PVC paddle. Try varying the amounts of fragrance oils for a truly unique scent.

Assuming you have the raw materials in stock necessary to manufacture fragrances, choosing to make your own fragrances is an easy call. The average cost to manufacture water-based fragrances is around $2 per gallon including labor, labeling and packaging, while the average sales price is approximately $4.50 to distributors and $8 to $10 per gallon to end users.

Meanwhile, the average cost to manufacture oil-based fragrances is around $9 per gallon: one pound of fragrance oil $5; seven pounds of OMS $3.50; and container and labor 50 cents. The average sales price is between $18.50 and $25 to distributors and anywhere from $30 to $65 per gallon to end users.

Now let’s say you have customers interested in purchasing fragrances from your company, but you are not interested in blending these formulas or stocking the additional inventory. Consider this option: There are companies around the United States that will blend and package any product you wish assuming you have a formula and the capital to procure them.

If you choose to use a toll or contract blender, here are some steps to guide you through the process.

1. First, you need a formula for a product you would like to have manufactured.
2. Next, fax a confidentiality agreement to the contract blender to protect your formula.
3. Fax your formula to any contract blender in the United States, and that company will produce the product to your specifications.

The blender will do all of the chemical ordering, blending, packaging, labeling and shipping work for you. The company will even utilize your label to provide seamless integration with the rest of your product offering. This option saves you from having to invest in blending equipment, hiring personnel, purchasing and storing raw materials, etc., and it also lets you focus on selling the products versus blending the products. The cost of using contract blenders is roughly 30 percent more than doing it yourself; but it can still be well worth, it since you could save up to 70 percent on off-the-shelf products.

Fragrances currently provide and will continue to perform a beneficial role in adding to the quality of each of our lives. The link between a product’s scent and its perceived quality becomes a competitive advantage in today’s marketplace. Considering these facts, the need for innovation is now more important than ever. By adding innovative new products, your customers will better appreciate all of the services and products you have to offer.

Jody Soileau is the President of Innosol, Inc., a manufacturer of bulk fragrance oils in Houston. He can be e-mailed at jody.soileau@innosolinc.com. 

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