Posted by Alimar Private Label on 4/13/2014 to
Education
Private label products are typically those manufactured or provided by one company which are then offered under another company's brand.
Benefits of Private Label include:
- Market pre-manufactured, pre-tested product as your own
- Easily enhance and/or expand your company's product range
- Saves you time, money and effort as compared to product development from scratch
- Flexibility in setting your own prices
- Low start-up costs
- Manufacturers experience minimizes your risk
- Higher margins
- Better control over inventory
Risks of Private Label include:
- Not every manufacturer has experience with your specific type of cosmetic product
- Know the difference between pharmaceutical and cosmeceutical ingredients/products
- Private label manufacturers rarely produce the marketing and point-of-sale materials to promote your line of products, so you will need to develop these materials.
- Minimum order requirements
- Minor formulation “tweaks” may incur major costs
