Skincare is a multi-billion-dollar industry in which many entrepreneurs want to stake a claim. It is easier to get your foot in the door now than ever before, but there are drawbacks to entering the industry alone.
Many new brands work with manufacturers called private labels, which oversee product development, fulfillment, packaging, design, and more. Most business owners are stretched thin, and private labeling can seamlessly bring your vision to life. If you have done research about this industry, you know that formulating skincare products is no hayride if you lack a chemistry background. As a result, working with a third-party manufacturer may be the most effortless and fiscal approach for many upstarts.
However, there are some disadvantages to working with the wrong private label.
Here’s what you should know about private labeling and common problems brands face when working with a third-party manufacturer. We will also share how Cosmetic Makers take a different approach to private-label skincare products.
Larger Order Quantities
In general, private labels produce goods for multiple brands, making larger orders for their retailers. As a result, some retailers cannot afford the minimum order quantity, as it’s too great an investment.
The product unit can be detrimental in the beginning stages of a fledgling brand when there is still uncertainty over the success of its product line.
Little Control Over Quality
An important aspect you should know about private labeling is the potential for inferior products. You did not make the product, and, in most cases, you don’t know the ingredients used. However, once the product(s) is distributed under your brand, you become liable for its poor quality in the eyes of your consumers.
It’s important to note, this is not the case across the board. At Cosmetic Makers, we take pride in our clean, all-natural ingredients and we’re transparent about what goes into your skincare products.
You Become a Hostage to the Private Label
"Hostage" may sound like an overstatement, but when faced with a company that owns the rights to your formula and has the power to dictate what your supply chain looks like, you’ll come to realize that “hostage” is an understatement.
“(At this point), customers wonder if they’ll go out of business or worry about finding the money to keep their company going,” said Zion, founder of Cosmetic Makers. “In many cases, they go out of business.”
National brands that invest in private labels have shared similar problems, which boils down to a lack of customer loyalty.
Your brand is not the bottom line for most manufacturers - making a profit is.
Why Cosmetic Makers is Different
We have no doubt that working with a private label has its advantages. For example, you can tap into a wider market, you have control over choosing your customer base, and the “under one roof” approach offers more convenience.
We are not opposed to private labels – after all, Cosmetic Makers is a Private Label skincare manufacturing company located in South Florida. However, we are aware of the drawbacks and believe changes must be made within the private labeling industry.
When you launch your skin care product line with Cosmetic Makers, we will help bring your vision to life by creating formulas, packaging, designing, and much more. We will assign you to an account manager who becomes your point of contact if you have questions or concerns.
This may sound like your run-of-the-mill private label, but here’s how we do things differently:
- You own the product – if, theoretically, you wish to switch manufacturers in the future, we’ll be sorry to see you go, but we won’t hold you hostage. You can take your product to another manufacturer whenever you want.
- You will know the ingredients – we will we create the formula, but it’s still your product, and you should know if the ingredients our chemists use will meet your standards.
- Smaller number of units for your custom order – there are many disadvantages to producing a large custom order, particularly if you’re an upstart, uncertain about the success of your brand.
Contact Cosmetic Makers
We are not your typical private label. This is a mutually beneficial partnership, and we guarantee your success with our 5-Step Private Label Success Model.
When you’re ready to get started, call us at (786) 966-0421 or email sales@cosmeticmakers.com for a FREE consultation.
