CONTRACT MANUFACTURING & PACKING
Find the best fit for your brand
There are various factors that influence how you select the right contract manufacturer for your private label products. Mark Woods, managing partner of Aerosol & Cosmetics Works, explores the ins and outs of private labelling and what to consider to help you make the right contract manufacturing choice.
A
private label brand is one owned by a retailer or supplier and manufactured by a contractor or third party, under
its own label. Companies that opt for private label manufacturing pay less for
it does, has a solid foundation, grasps
their products.
and upholds your vision and has a desire
A lower price naturally equates to a
for higher standards, will be critical at
higher profit margin. On average, a private
every decision-making point in your
label retailer experiences 10 percent
business relationship.
higher profit margins than a traditional one. Retailers normally have little, if any, direct dealings with manufacturers. But private label retailers avoid this by
The retailer must be confident that, even during the difficult discussions, the
A manufacturer’s value is different for every retailer because each manufacturer’s speciality is different
manufacturer will be committed to ethical behaviour under all circumstances. Your private label manufacturer must
community in which they operate and to be environmentally friendly, by directing
operating a different business model,
also believe in your brand guarantee,
a strong investment strategy in plant and
which allows them to have control of the
which ensures there is no suffering of any
process improvements.
look and branding of their products.
undue losses.
If you are considering private labelling or
Complementary strengths
have already ventured on this route, you’ll
Long term shared purpose
A manufacturer’s value is different for every
need to find a private label manufacturer
A private label manufacturer should
retailer because each manufacturer’s
that offers the best fit for your business.
invest in obtaining the relevant compliance
speciality is different.
There are a few pointers to consider.
standards. This encompasses cost-
You will have to source a manufacturer
consciousness, awareness and a drive for
with a proven track record, which can
Alignment of core values
quality improvements, as well as service
create your products from materials
This is the single most important factor in
delivery and exceeding expectations and
and label the finished goods with your
any strategic business relationship.
staff development.
company’s custom design and packaging.
Finding a private label manufacturing partner that aspires to be the best in what
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| SEPTEMBER 2019 | P C Review
They should also have a deep rooted desire to have a positive impact on the
Deciding who to use ultimately boils down to what goods you intend to sell.
