How Much Does Private Labeling Cost?

Private labeling can be a much more cost effective way to introduce new products to your customers than opting for customized formulas. The reason? Beauty brands can sidestep the costs associated with research, development, and prototyping by skipping ahead to the end of the process, utilizing existing formulas that are ready to be sold.

Strategic Investment

One of the biggest risks when launching a new beauty brand is investing heavily in products that may not come to fruition. While working with an experienced cosmetic manufacturer can ensure access to the best raw ingredients and formulations, brands don’t get a true taste for their product until a prototype has been developed. Private labeling enables you to test products with your audience base before scaling up.

So while private labeling may not look to be a significant cost saving technique on the surface, it can help to minimize wasted investments at the early stages of research and development. 

Worth the Cost?

When considering whether private labeling is worth the cost, it’s important to look at how private labels perform on the market. Over recent years there has been growing demand for private label products, and today it’s estimated that private labels outperform branded products threefold. Why? According to Nielsen, 67% of consumers are attracted to the value for money they get from private labels, boosting sales.

Value for Money

It’s important to remember that you’re most likely to get full value for money from a private label formula if you select the best manufacturer for your needs. Always look for a manufacturer that focuses exclusively on the cosmetics and beauty industries to ensure expertise and comprehensive understanding within the niche, which should enable the manufacturer to research and develop top performing formulas for brands.

With over 2000 formulas developed for private label purposes, contact us today to begin your project.