Things to Consider When Choosing a Private Label Manufacturer

Posted by Daily Manufacturing | Feb 25, 2021 12:10:24 PM

Things to Consider When Choosing a Private Label Cosmetic Manufacturer

With private labeling, you can create your own line of cosmetic products without putting in extensive time and money for the research and development of a product formula. At Daily Manufacturing, we produce items that can be sold with your packaging and branding materials. We produce industry-acknowledged formulas and have a diverse set of manufacturing capabilities and advanced design services, allowing us to create a variety of products.

There are many benefits to private labeling; however, there are various factors to consider when selecting a private label cosmetic manufacturer to ensure optimal results.

Overview of Private Labeling

Private labeling involves contracting with a third-party manufacturer to create your products and label them with your brand. This allows you to reap the benefits of your own products without the research and investment involved with designing, formulating, testing, and producing them. Long popular in the fashion industry, private labeling has expanded to encompass products from food and beverage and cosmetics to pharmaceuticals and consumer goods.

Benefits to Private Labeling Cosmetic Products

When using a third-party manufacturer for your products, there are two common methods: private labeling and white labeling. With private labeling, you source your products from a manufacturer, which are then exclusively sold under your branding. With white labeling, manufacturers create generic products, which are sold by many retailers under their own name. Private labeling has the added benefit of being able to customize and develop products to incorporate your brand identity and style.

Other benefits of private labeling include:

  • High-quality products. Due to product innovations and improved manufacturing processes, private label products have a reputation for having higher levels of quality and consistency.
  • Bulk purchasing. With private labeling, you can buy your products in bulk to further reduce unit costs.
  • Brand loyalty and exclusivity. Since private label products have a reputation for quality, customers tend to remain loyal to one brand. Having your own marketing identity creates a certain level of recognition and demand for your product.
  • Higher profit margins. Private labeling eliminates the added cost of marketing, packaging, and manufacturing, which allows for higher profit margins.
  • Reduced operating costs. Since private label products are created and shipped (typically in bulk) to a single retailer, it results in lower operating costs.
  • Market stability. Since private label products are chosen for their quality, affordability, and consistency, they typically maintain steady sales even in economic downtimes.

AdobeStock_216593113Things to Consider When Looking for a Private Label Cosmetic Manufacturer

With so many choices in selecting a private label manufacturer for your products, it's critical to evaluate them as carefully as you would any business partner. Some questions to ask and suggested steps to take as part of your research include:

  • Can you own the formula? Ensure you and the manufacturer are in agreement about who will own rights to product formulas.
  • Are ingredients safe? Verify the manufacturer complies with all required testing, standards, and regulations.
  • Sources and raw material quality. Investigate the origin and quality of product ingredients and materials.
  • Certifications. Check that the manufacturer is certified to produce your products.
  • Product samples. Any reputable private labeler can supply you with product samples so you know precisely what you're purchasing.
  • Manufacturing costs & fees. Be sure to understand all costs and fees involved in creating your products.
  • Defective or damaged products. Explore how damaged or defective goods are handled and who bears any costs involved.

Private Label Cosmetic Manufacturing Services from Daily Manufacturing

At Daily Manufacturing, we have decades of experience manufacturing premium cosmetic and personal care products in our ISO 9001-certified, 45,000 square-foot facility. Our expert team is ready to bring your product and brand to life. Whether you're a small business or a global brand, we welcome the opportunity to be your private labeling manufacturing partner. Contact us today to learn more about our capabilities, or request a quote for your private labeling products.