How to define the best strategy for creating a new cosmetic product

How to Define the Best Strategy for Creating a New Cosmetic Product?

So you have decided creating your own brand and want to know the best strategy to create the product line. Contract cosmetic manufacturers will tell you how to make it happen. Just read this article thoroughly and understand the things they will share through this post.

The cost of private labeling of products Private labeling cost is usually higher than custom manufacturing or making your cosmetic products in your own facility.

It can be anywhere from $1 to $5 higher per unit compared to custom manufacturing according to the category and volume of units purchased by you.

The cost exceeds if you create your brand, apply the labels, artwork, packaging and marketing.

Now the big question comes – how can one saves his money with private label companies?

If you want short term benefits, you won’t get them! The advantage of paying more upfront eventually saves your money in long run. It simply means you don’t have to arrange huge inventory while launching a new line or expanding into a new market. This saves your time as well because you already have the marketing strategy for the product.

Next benefit is that you don’t need to buy any of the ingredients or components. From labels to packaging, everything is done by your private label cosmetic manufacturer. This saves a lot of money.

Custom manufacturing cost and its benefits Custom manufacturing involves making of unique formula with the help of contract manufacturer for your company. This is used when the customer either provides the formula, works with manufacturer’s in house to create a formula, or use one of the manufacturer’s formula and introduces minor changes.

The purchased volume and individual product define the cost of custom manufacturing. For instance, a stock private label hair cream may cost $10 for 100 units of 10oz. bottle. However, the cost may become $5 for the same 10oz. bottle when you purchase 2000 units.

Benefits of custom manufacturing-

Custom manufacturing gives you unique product. This enables a brand owner multiple advantages in marketing their products range to potential consumers.

When you have lower price points, you can decide marketing budget, distributors, wholesalers, etc.

Custom manufacturing gives you control over manufacturing cost by offering formula ownership.

When you own formula, you have right to move manufacturer’s as required as relationship changes, your business develops.

So now you know exactly what you need to do. If you want more units, you can consider custom manufacturing option. If not, contract cosmetic manufacturers will be the best to bet.

Source: How to Define the Best Strategy for Creating a New Cosmetic Product?