What are private label cosmetics?
Let's start with this quote about risk mitigation I've read in a book.
"At a fulfillment center recently, one of our Kaizen experts asked me, 'I'm in favor of a clean fulfillment center, but why are you just cleaning? Why don't you eliminate the source of dirt?' I felt like the Karate Kid."
You may wonder how dirt cleaning is related to offer comparison. You will know after reading this article.
We have written before about how to find a cosmetics manufacturer. Today we'll go one step further and I'll show you how to compare offers you received.
Making impossible, possible.
Before I tell you more about it, I'm going to tell you a quick story about picking manufacturer and how we went from hearing "F*ck that manufacturer, I will never work with them before" 👀 ... to helping achieve over 100.000 $ of revenue in 8 weeks.
While driving on the curly Tuscan roads surrounded by spiky cypress I received an unknown call.
Very furious one. I was surprised, but manage to calmly ask several questions about what happened.
The calling lady lost 4 months of a frustrating period working with a certain manufacturer, who wasn't able to create their formula as planned. They already should be starting preorder!
The task seemed impossible. "Create me the best formula in our niche in 3 months"
But hey, we can at least analyze it and see if we can do something about it.
We did just that, and after one week, we had settled on 4 months of time and started working with a client.
Yes, at times this project was difficult. Initial samples were not ideal. But, with each iteration we were closer to the goal.
And then we received reply from Client: "This is the best fucking product on the market!!!"
Today, I call myself an uncle of this product.
3 Mistakes you need to avoid when comparing offers.
1. Apples and oranges 🍏🍊
Make sure to compare the same features and offer components.
List all of the important factors and check all of them in both offers you compare.
As simple as that.
2. Focusing on price 💵
If you will only remember one thing from this article, choose this.
Price is only one of the factors. If you only look at this, you are being short-sighted.
It is easy to pick a lower price and realise 2 months into the project that communication with the supplier is poor or you are last in line for the manufacturing spot because of your small order quantities.
There is a correlation between price-effects-risk-time.
Each of those components is equally important. Each of them consists of many smaller factors.
What good is from having a cheap product but delayed?
Also, no good in a quickly manufactured cosmetic, that your customers won't like and buy again.
Give each factor 25% of importance.
3. Short-term thinking 🤔
It is partly connected with the previous point.
We often judge by what seems ok at the moment, but we are not thinking ahead,
Sometimes because we don't know about the next steps
Other times, because we think we know everything.
Think how this project can grow 12 months from now, 24 and more.
Is communication friendly enough to spend several hours per week with this supplier?
The good way.
While comparing offers ask yourself the questions below. If you don't have answers, push and ask your supplier. Then compare again.
Communication and Trust
- Are they trying to understand your plans, project and business goals?
- Are you feeling their expertise?
- How is the communication with the supplier going? Are they responsive? Will you receive their reply in 24 hours? or 2 weeks?
- How long do you have to wait for the offer?
- Who will you deal with on a daily basis after you start a project? Can you talk with them now? Sometimes you are being sold by a sales expert and then you are getting to the junior coordinator.
- What are their available hours? Can you reach them when you have time?
- Are they trustworthy?
- What is their energy towards small projects?
- Do they seem friendly?
- Do they answer all of your questions? Or hide something?
Effort
- Are they taking time and effort into explaining the process to you? Are they patient with your lack of knowledge?
- Are they making effort to show you interesting solutions?
- Are they offering out-of-the-box packaging?
- What are the prices? Are the differences small or large?
- Are they flexible? Willing to negotiate in your best interest?
- Are they willing to offer better payment terms once you work for some time?
- Do they handle just manufacturing or just formula creation? How about laboratory testing and documentation?
- How much of your own work will be needed? Are they taking as much of your effort as possible?
Experience and Risk Mitigation
- What is their mission? Where are they heading with their plans?
- Who is behind the company?
- Are they familiar with industry novelties? Are they digitally competent?
- Who have they helped already?
- Are you the centre of attention? Or your money?
- Do they have insurance?
- Can they be a Partner who will help solve problems along the way?
- Are they working with everyone or with Clients similar to you?
- What is your gut feeling?
Future
- Do you consider them a good business Partner for a long term?
- Will they be an extension of your business?
- Can they share their contacts with you to help you with other areas of brand creation?
- Can they accelerate your ideas?
- Are they A-players? or riding on the wave from the 90s? ;)
- What are they planning for the future?
Final question
- Are they helping you or are they pushing to sell or they don't care at all?
Action points for you
Do you want it done cheap or do you want it done well?
Spend two-three weeks on this decision.
It will affect at least 12-24 months of your work life.
Better decision -> better outcome -> better profitability -> more time -> more money
Eliminate the dirt (mistakes, red flags, bad people, bad suppliers) instead of cleaning it later and losing time and money.
Pick well 🎯
Written by Andrew Suwara, CEO of Cleansery, who is on a life mission to make private label cosmetics and cosmetics manufacturing projects more accessible and stressless.
What are private label cosmetics?
- You don’t have ownership of the formulation
- Your product line won’t be unique – there may be many brands selling the exact same product
- You can’t change the formulation or choose what it looks or feels like
- Customers can feel betrayed if they find out your product is not unique so you have to align this kind of product launch with your brand values and buyer personas
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