Here is the second rule you should follow when planning the start of your own private label. Rule number two will help you choose what method is right for you and your brand. Remember, you have options! Once you decide how much time and money you are willing to invest, you can choose what type of private label model you want.
Choose the model that is best for you (and by model, we aren’t referring to an attractive person). Everyone wants to have their cake and eat it too, and stay skinny too! Unfortunately, everything is a tradeoff in life. Ideally, everyone wants to have a brand that they built from scratch. It’s great to choose the packaging, pick the formulas, and test the fragrances. Understand that the more customization you seek out; the longer the lead times, larger the minimums and bigger the cash drain. Determine how much time and money you are willing to invest to achieve your goals with your brand before you choose the proper method of private labeling. More conventional private label options find customers limited to formulas and packaging pre-selected by the private label supplier. As a result, you will want to have confidence in the integrity of the products the respective company has pre-developed for you. However, even many of these more traditional private label suppliers still have considerable minimums. There are a few more turnkey options that allow you to have your own brand with little or no minimums, yet allow you to enjoy the benefits of having your own brand. In summary, customization means more time and higher minimum. You must evaluate your capability in inventory and how important hand selecting each feature of your brand is. You may conclude that a simple, turnkey approach with less personalization allows you a more cost effective approach to achieve your goals.
This concludes rule #2 in our recipe for success in launching your private label. Our 6 rules will be revealed one at a time, so stay tuned to read them all!