Thinking about teaming up with a private labeling company to manufacture your own products?
There’s no denying that this can be a very lucrative way forward for a new business. A good private label manufacturer will help to guide you along the right path, sharing their knowledge and expertise to give your business a step up.
With that said, as much as you should be able to rely on your private label manufacturer, it always pays to have some know-how of your own. If you’re new to the world of product manufacturing, read on as FLPL shares 10 of the most important keys to success.
1. Choose the Right Manufacturing Location
The fact that your private label manufacturer will already have a network of factories available for your use is a big advantage. However, in some cases, they’ll have a few different factories that your products could potentially be manufactured at. At FLPL, for example, we work with factories in the USA and Asia. Our clients can choose where they want their manufacturing base to be. However, this does require a fair amount of thought…
It goes without saying that having your products manufactured in Asia is cheaper. This is why more and more companies are choosing this option. However, there are some downsides to this too. Sure, you won’t have to deal with the language barrier since we’ll be liaising with the factory for you but lead times can be longer.
Plus, many consumers these days are often mistrustful of products that are manufactured overseas. Although our overseas factories adhere to our strict quality control measures, consumers don’t know that. As a result, they seek out the ‘made in USA’ label as much as possible. They’re often happy to pay more for this too, negating the higher costs that you’ll have to pay a USA-based factory.
This is why it’s important to have an understanding of your target audience before you choose a manufacturing location. Once you have that knowledge, the right factory choice will be a no-brainer.
2. Do Plenty of Planning and Testing
While you may have a fantastic business idea in mind and feel ready to get those products manufactured, never skip over the planning and testing stage. This is one of the most crucial keys to success.
Of course, this is easier said than done. Usually, the only way to know if a product is or isn’t going to work is to actually have it made. This is why every good private labeling manufacturer will create prototypes for you before sending your order in to a factory. You can then either approve the samples or take things back to the drawing board. Whether you want to experiment with new ingredients, different materials, or anything else, planning and testing are vital if you want to see your venture succeed.
3. Make Sure That You’re Manufacturing Something That Customers Want/Need
It’s so easy to get caught up in a seemingly incredible idea. You take this idea to your private label manufacturer, approve the samples, and then have your products manufactured. However, once they’re shipped to you and you start selling, you then find out that your customers don’t actually have a want or a need for those items.
This is a position that you never want to be in. The only way to avoid this is by doing plenty of market research before you even begin manufacturing your prototypes. No matter how great your initial idea may seem, it’s not going to bring you a profit if no one wants to buy it.
This doesn’t necessarily mean that you’ll need to ditch your initial plans. Instead, all they may need are a few tweaks to get them to the stage where customers are clamoring for them. However, the only way that you’ll know is by speaking to your target market and finding out their thoughts.
4. Be Disciplined With Your Finances
Manufacturing costs can quickly mount up, often taking new businesses by surprise. Sure, you may already have an established budget but once you get started on the manufacturing process, there will often be extras that you’ll need to fork over for. Many companies end up taking a dive midway through the manufacturing process because of this.
It goes without saying that if you drain your finances too soon, this isn’t going to bode well for your business. This is why another one of the keys to success that every business needs to practice is disciplined budgeting.
Ideally, try to find out all of the costs in advance, before you even begin working on your prototypes. This will give you plenty of time to then adjust your budget to accommodate these figures. You may still end up with unexpected fees to pay but, hopefully, these won’t be enough to cripple your company.
5. Respond to Market Demands
We’ve already talked about how important it is to make sure that your customers want what you’re manufacturing. However, even once you’ve ascertained this and are making a profit selling your products, you need to continue to keep market demands at the forefront of your mind.
Every market experiences trends and fluctuations. One of the keys to success is the ability to keep up with this. Say, for example, you have a business that produces heated hair styling tools. After witnessing great sales, the following year brings in a trend that sees customers ditching the heat in favor of more natural hairstyles. Rather than continuing on with what you were doing only to find that no one is buying your products anymore, work on adapting your strategy to stay in line with new demands. You don’t need to completely abandon your original products but introducing, say, hair care products into the mix would help to keep your business relevant. This is essential in a constantly evolving marketplace.
6. Practice Good Record Keeping
Good record-keeping is another one of the keys to success that every business should be embracing. Unfortunately, this often doesn’t happen. Why? Mainly because record-keeping can be pretty tedious! It requires a certain amount of diligence, which can be difficult to provide when you’re running a business that sees you being pulled in so many different directions.
However, there will come a point in time when you’ll regret not keeping detailed records. Whether you need to take one of your prototypes back to the drawing board, adjust your marketing strategy, or assess changes in quality control, good records make everything so much easier.
Ideally, as soon as you get started with your business, make an effort to document every single thing that happens. This may require some extra time but it will enable you to respond much faster when problems arise.
7. Be Aware of Lead Times
Every factory will have its own lead times, and this is something that you need to be aware of in advance. The best way forward would be to make sure that you know what the various lead time options are when choosing which factory to work with. This is particularly important if you’re considering having your products manufactured overseas, where lead times are usually longer.
While shorter lead times are always going to be more beneficial, you can make things work with longer lead times too, so long as you know what those lead times are. You don’t want to end up promising products to customers or retailers on a certain date, only for those products to not turn up in time.
8. Consider Sustainability
Sustainability has been a big buzzword for a while. It started as a trend and grew into a movement – one that shows no signs of slowing down.
Research confirms that an increasing number of customers are now choosing to side with brands that prioritize sustainability. They want their purchasing decisions to align with their values and their eco-conscious ideals. As a result, they’ll shun brands that aren’t sustainable in favor of those who are making an effort to be as eco-friendly as possible.
While it’s true that ensuring that your products are sustainable can be costly, it can often pay off in a big way. However, if you choose to go down the sustainable route, do it properly. Not only should the ingredients and materials that you use in your products be sustainable, but manufacturing methods should fall in line with this as well.
It’s common for brands to try to mislead customers when it comes to sustainability, which eventually destroys trust and brand reputation. Make sure that you’re not one of those brands. If you want your products to be sustainable, then do this properly.
9. Arrange For Storage in Advance
The last thing that you want is for your products to be shipped over from the factory you’re using, only for you to then have nowhere to keep them. You’ll be receiving thousands of products in one go, making storage space essential.
The good news is that some private label manufacturers, including FLPL, will assist you with this. Work with us and we can arrange to have your products shipped directly to our LA warehouse. We will then store them for you until you’re ready to collect them or arrange for onward delivery.
10. Repeat the Process For Your Packaging
All of the keys to success that we’ve discussed above have been in relation to the products that you’re going to be manufacturing. However, you then need to follow all of those tips again when it comes to your packaging.
For many businesses, packaging is an afterthought. However, this is a big mistake. The packaging that you use is often the first thing that potential customers see in regard to your product. It needs to be cohesive with your brand image, informative, and attention-grabbing.
Just like when manufacturing your products themselves, start with prototypes. Make sure that your packaging is fit for purpose. Not only should it convey all of the necessary information, but it also needs to protect your products from damage. Test drive your packaging as much as possible in various conditions and environments to make sure that it’s capable of doing so.
Summary
There’s so much to consider when manufacturing products. Neglecting any of the keys to success that we’ve featured above could result in your company’s downfall. However, this becomes much less likely when you’re working with a good private label manufacturer. This will significantly reduce your risk while giving you access to industry experts who will help to ensure that you’re not making any manufacturing mistakes.
