3 of the hardest choices you will make in private label
Asking the hard questions when getting started with a private label manufacturing company is critical when thinking about your next product. When a reseller (or retailer) employs the services of a third-party manufacturer to make a product on their behalf, this arrangement is known as the production of a private label product. The most significant difference is that you, as the reseller or merchant, have complete control over every aspect of the product. You are, for all intents and purposes, developing the product yourself, but you are contracting out the manufacture of the product.
Private-label manufacturers strike partnerships with individuals or brands to sell the latter’s products without attributing them to the former under the manufacturer’s name. The products can be sold on their own or in conjunction with other products.
Private label however does come with some challenges and here are the 3 key challenges to consider when looking at private label products:
How many items to purchase and Minimum order Quantity (MOQ)
If you don’t yet have an accurate forecast on what quantity you might potentially purchase, ask for the company’s MOQ for that particular item.
Minimum Order Requirements – Also known as MOQ. Many private label companies have a high MOQ. This means that the quantity you would have to order for the company to work with you might not work with your particular project. You run the risk of sitting on unsold inventory or having to pay for more of something you don’t really need. Look for private label programs that don’t require you to purchase large amounts. Our MOQ is quite low. Depending on the item we can do as low as 25 units. However, keep in mind that the higher the qty purchased the lower the individual price will be.
Is it better to look for high-quality or cheaper manufacturing in a private label product?
Don’t Skimp — Identify Manufacturing Partners That Are High Quality and Low Cost. Good manufacturing partners are a tremendous asset while bad ones are a terrible liability. Take the time to get it right. There are tens of thousands of manufacturers that can make things. Find the manufacturer that meets both your price and quality criteria.
This might take a while if you have to source manufacturers on your own. This is where POP Creative comes in clutch! We have vetted all of our factories and you can rest assured that each factory we use one of our employees has been on the factory floor both overseas and domestically. POP Creative is known for high quality and best cost for all of our clients.
What are the right questions to ask a Private Label Company?
Ask the private label company you plan to work with the hard questions;
Ask about their turntime. Our rule of thumb is approximately 2 weeks for a sample and then 30 days for bulk production NOT including shipping. Shipping times will vary based on the clients due date and the item. Smaller items can ship via air more economically. Larger qty and bulkier items will have to be shipped via ocean. We have recently partnered with a shipping company that is at most 21 days on the ocean and they guarantee their time in transit. This reduces your transit from 8-10 weeks to 4-6 weeks.
Reduce New Product Development Time; Find a company that is dedicated to working with you to work WITH your timeline. We are fast. We get things done quickly and correctly. We have a dedicated art department that is ready to get your idea onto paper and to sample. AND we have references !
Ask about sampling fees upfront. Many private label companies require you to pay for samples upfront. Usually that is because the private label company has to pay their overseas factory a fee to create your sample. HOWEVER, not all private label companies are the same. POP Creative does reserve the right to bill for samples BUT only if you do not place the bulk order. And here’s a hint; it is very rare that we bill repeat customers for any samples regardless of rounds of sampling and if bulk production occurs.
