This one is super easy for me to write as I am obviously a big advocate for private label, remember private labeling fits across all industries – skin care, hair care, make up, and nail care.
Benefit #1: The guess work is taking out of creating a formula
And that’s a HUGE benefit. Creating a formula by scratch takes a tremendous amount of time and money. There are stability issues, raw material suppliers to be found and negotiated with, packaging to be tested and so much more that goes into creating a formula. Not to mention the regulations side of creating a formula. Depending on the category, you have to be sure that your formula complies with all FDA regulations, cosmetic, soaps, otc.
A private label formula has already gone through all of those detailed but necessary details.
Benefit #2: Time
Private labeling saves you time. When you private label a product, all your biggest decision include branding, logo creating, and packaging design. In other words, you get to focus on the business side of your business vs. the formulating side of the business.
Good product is a given, however, a good business that includes a marketing plan, customer service plan and a way to make a profit is a must. Too many times, start up business owners (or sometimes long term dabbler) have spent more time working and to worry about the product and not enough time on the actual business side and what happens when we don’t mind the p&q’s? We get stuck with lots of awesome product hanging out in our garages. Private labeling gives you the time and space to work on developing the overall business.
Benefit #3: Cost and initial investments
A private label formula is generally cheaper. This is because the manufacturer makes it in large batches and their cost are significantly lower. When you buy a private label formula, you can negotiate to purchase it either in stock packaging or provide your own. If you take stock, often times you will have access to better quality packaging at lower minimums vs. buying your own. If you want to provide your own and need low minimums I love containerandpackaging.com and cprsale.com for airless packaging. For low minimum boxes, I recommend boxcoop.com
This is part 1 of 2 next, I’m going to share with you how to make a private label product your own.