Posted by Alimar Private Label on 9/25/2014 to
Private Label is an inexpensive vehicle for introducing a new product or multiple products to your line. It can also be a cost-effective alternative to creating your own product line from "scratch".
Expected initial cash outlay for a private label product (outside of "normal" business expenses) should include:
- Initial Product Cost - The cost of the product itself in a retail container.
- Label Cost - The cost of graphic design labor + label printing costs + label delivery
- Inbound Shipping Costs - The cost to ship your finished private label product to you.
- Outbound Shipping Costs - The cost to ship your finished product to your consumer.
- Liability Insurance - Your manufacturers insurance does not provide you with liability coverage, you will need to purchase sufficient coverage to protect your business against potential claims.
- Advertising Costs - The cost of getting your product in front of potential consumers. This includes things like your website, business cards, professional photography services and other "leave behinds" like sample products.
- Supporting Materials Cost - The cost of brochures, line sheets, product education sheets, etc.