Have you been on the fence about whether or not private labeling is the right move for you and your business? Well, FLPL is here to make your decision that much easier. Read on as we explain why private labeling can be a fantastic investment in your products and your business, along with how easy it is to get started!
What is Private Labeling?
Private labeling is a pretty simple concept. It involves hiring a third-party company to take control of the manufacturing of your products.
Many assume that going down the private label route would mean that they end up with generic products that other brands will also be selling under their own label. However, this isn’t the case at all. Instead, the products that are produced for you by the private labeling company that you work with are original. You’ll create them and they’ll be completely owned by you.
It’s worth mentioning that in addition to taking charge of the manufacturing process, some private labeling companies, including FLPL, will provide assistance in other areas too. Our services are capable of guiding you through the entire product creation process, from initial research and design to sampling and testing, before mass production begins. We can then also help with the subsequent steps, from setting up an e-commerce store for your business to improving your marketing strategy.
Less Financial Risk
Creating new products for your business will always come with a certain amount of financial risk. From investing in equipment, ingredients, and packaging to testing and manufacturing, things can go wrong at any stage. This can then make all of your investments futile. Things are even riskier if you’re new to the industry you’re entering. You won’t have decades of experience to fall back on. This means that you’ll be taking a much bigger chance with whatever you’re producing.
However, with private labeling, your financial risk drops significantly. This is simply down to how things are far less likely to go wrong. You’ll be working with a team of professionals who will be able to lend their knowledge and expertise to guide you in the right direction.
Say, for example, you want to produce a face cream that contains multiple active ingredients that are capable of reducing the appearance of wrinkles. If you’ve never done this before, the R&D stage will take a while and you’ll likely also falter when it comes to how certain ingredients interact with each other. When working with a private labeling company that specializes in skincare, like FLPL, you won’t need to make all of those initial mistakes. We’ll already know which ingredients do and don’t play nicely together, while our R&D experience will make it a breeze to whip up samples of your future products.
The way in which private labeling streamlines the entire process will be a huge asset to your budget. You won’t end up throwing money away attempting to fix costly mistakes, as you’ll be far less likely to make those mistakes in the first place.
Saves Time
Another way in which private labeling reduces your financial burden is when it comes to the huge amount of time it will save you. After all, time is money, and you’ll have plenty more of it if you work with a private labeling company.
If you happen to be a manufacturing expert with a network of factory connections already in place, then this may not apply to you. However, most businesses, particularly those that are small and new, don’t have this. As a result, the manufacturing process can be extremely time-consuming. From sourcing reliable factories to ensuring that the production process adheres to good manufacturing practices to organizing shipping and logistics, this can all be a downright headache if you’ve never done it before. You’ll end up spending the majority of your time focusing on all of this. This means that the other aspects of your business, such as marketing, could end up suffering.
Working with a private labeling company will free up a large chunk of your time. You won’t have to worry about anything manufacturing-related as your private label company will organize everything for you. This will then give you more time to work on the areas of your business that you naturally excel at, meaning that your new products will be much more likely to succeed!
Ease of Growth, Adaptability, and Diversification
Most industries are pretty dynamic and are always evolving. Whether you’re going into F&B, beauty, fashion, or anything else, it’s important for a business to keep up with the times in order to stay relevant.
In theory, this may be pretty simple. If you spot a new trend that’s on the rise, you may have plenty of ideas on how to jump onto the bandwagon to capitalize on that new demand. However, in reality, doing so can be costly and time-consuming. You would basically have to start the entire product creation process from scratch. You’ll need to do everything from R&D to sourcing factories all over again.
When working with a private labeling company, however, this becomes much simpler. For starters, diversifying your product line by introducing new products will be a quick and easy process. At FLPL, for example, you can pick from a long list of product types that you want to produce. We also have an expansive ingredient catalog that you can select from. Choose the key ingredients that you want to include and we can do the rest. We’ll turn your ideas into tangible samples that can then quickly be sent for manufacturing.
When you’re able to work in this way, growing your product line, as well as your entire business, becomes so much easier. You’ll be able to adapt to changes in the market in no time, often much faster than larger companies and retailers are able to. This will put your business ahead of the curve. It will allow you to snap up a slice of a new market before larger companies do.
Less Stock to Deal With
Another issue that many small businesses encounter when it comes to mass production is minimum order requirements. When working directly with a factory, these tend to be quite high. They need to be in order to make it worth a factory’s time to set up their machines and production processes to create your products. You’ll find that many factories require businesses to place an order in the tens of thousands before they’ll even consider working with you.
For many new businesses, this is simply unrealistic. Not only does this involve a huge risk if you’ve never sold your products before and still need to test the market, but it also means that you’ll have a huge amount of stock to deal with. You’ll need to find adequate warehouse space to store all of your products, which will also cost you more.
However, many private labeling companies, including FLPL, have a much more achievable minimum order requirement. Ours is 5000 pieces. This is enough to give you the opportunity to enter into a market and make a profit without overloading you with excess stock.
How to Get Started With Private Labeling
If you think that private labeling may be the right move for your business, you’re probably wondering how to actually get started. Here are a few tips to keep in mind:
Find a Reputable Private Label Manufacturer
All of the private labeling benefits that we’ve discussed above only apply if you work with a reputable and credible private label manufacturer. Some are known for cutting corners, particularly when it comes to quality. This is something that could quickly make or break your business.
One way to find out more about the products that a private label manufacturer can produce for you is by taking a look at the other brands they’ve worked with. For example, at FLPL, we’ve worked with a wide range of beauty brands. Some are high-end and luxury while others are budget-friendly. However, with both ends of the scale, all of the products that we’ve produced for them have been superior in quality.
Of course, if you aren’t planning on entering the beauty industry, then this won’t apply to you. Ideally, you want to be working with a private label manufacturer that specializes in the industry that you plan on targeting. This way, they’ll have all of the necessary experience in place to ensure that you experience all of the benefits that we’ve mentioned above.
Creating Your Brand Identity
Once you’ve chosen your private label manufacturer and have decided on the products that you want to produce, it’s important for you to ensure that your branding is cohesive with all of this. From creating your logo to designing your packaging to producing marketing material, this all needs to fall in line with the types of products you’re creating.
It’s always easiest to do this when you’re able to work hand-in-hand with your private label manufacturer. At FLPL, we recognize this, which is why we can assist with all of the above. We can help with everything from packaging design to marketing and promotion. If there are any aspects of launching your products that you’re unsure about, you can turn to us for expert advice and assistance. This will go a long way in contributing to your success.
Private Labeling With FLPL
Private labeling can sometimes seem like a daunting process. After all, you’ll be putting all of your trust into another company to create your products for you. This is something that the success of your business will hinge on.
However, as you can see, private labeling also comes with some significant benefits. You’ll save time and money, and won’t need to take quite as many risks. You’ll also be able to soak up all of the expertise that your private labeling manufacturer is able to provide. This will enable you to guide your business in the right direction.
The key to succeeding with private labeling is to pick a private label manufacturer that you gel with. Find one that not only has experience in your chosen industry, but is genuinely passionate about the products that they’ll be producing for you. After all, your success is their success. Working with a private labeling manufacturer that’s fully invested in your products and your business will set you on the right path to raking in profits and growing your brand!
Click here to contact FLPL to find out more about the private labeling services that we offer.
