Private Labeling vs Contract Manufacturing
Private labeling is the process of choosing pre-existing formulas and customizing to preference from a selection of shades, fragrances, and packaging.
Private labeling allows companies to focus on the selling and marketing of products under their own branding & logo without the concerns and expense of creating the products themselves.
Private label companies like ours handle the research, product development, and manufacturing processes so brands don’t have to. This allows brands quality control, low startup costs and high profit margins.
Contract manufacturing is a fancier term for outsourcing and often times called co-manufacturing. Contract or co-manufacturing is a formal agreement between a manufacturer and another company (usually at a larger scale).
A manufacturer will develop a product a company does not have the capacity to produce at their own facility. An example would be a company who decides to launch a new product line may not have the parts or components to produce in-house.
The company may incur more costs to produce themselves and understand the expenses and risk factors. In this process, products are made over a mutually agreed period of time. It is feasible for larger businesses who want a steady, reliable source as a limited part of their manufacturing process.