Private Label Cosmetics Line VS. Contract Manufacturing Cosmetics Line
Most people are not clear about the difference between private label and contact manufacturing. The end goal of both is the same however the formality is different in each of them.
What is private label manufacturing?
Products made my one company and sold to other companies under their brand. The manufacturing company comes up with the formula to make the product, choose the shades the products will come in and the packaging. For an example you purchase the premade products from the manufacturing company and add your logo to the products.
What are the advantages of private label manufacturing?
-Lower marketing and selling cost
-Small start-up minimums
-Hassle Free, Low risk, High profit margins
What is contract manufacturing?
When you find a manufacturing company to use your formula to make products or come up with a formula to make products for your brand. the manufacturing company has no control over the products.
What are the advantages of contract manufacturing?
-Ownership and complete control of products
-Manufacturing company can not use or sell your formula to another brand
-More options for shades and packaging
-Unique products exclusively for your brand
-Your company owns the formulations