Associated Costs: What To Expect With Private Label
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.

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