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Three Reasons to Private Label

If you’re starting your own beauty brand, it’s probably safe to guess that you prefer to have control over your business. We get it. Loosening the reins and trusting a team can be scary. However, working with third-party manufacturers—like e2e Pharma— can actually keep the control in your hands.


By partnering with a full-service private labeling company, you get more control and visibility of what goes into your products, lower risk, and higher profit margins. But how? Let’s dig into the 3 reasons private labeling your products could be the right decision for your brand.


High Profit Margin

Daily business functions are already time consuming and costly, and that’s before you take into consideration the actual manufacturing costs. Formulating products can be tricky and confusing when you’re not working with experts or have a lab with scientists and formulators on hand.


Here are some key ways private labeling can increase your profit margin.

  • You are buying into an existing infrastructure, avoiding the cost of expensive equipment

  • Able to provide input on how your product works, looks, smells, etc.

  • Do not need to source ingredients


Lower Risk As with any brand, starting your own product line comes with a large amount of time commitment, money, and risk. From quality control and testing to managing the ingredients and packaging the product for sale, most brands never take off because the risk is greater than the reward. Another factor to consider is certifications. Depending on the type of product you are looking to sell, the right certifications are crucial to delivering quality goods. However, obtaining these certifications takes time, money, and resources many brands do not have.


Depending on your industry, it is vital to find a private label partner who already has these certifications in place. Save your brand the time and resources it takes to prepare for and acquire these certifications by working with a company like e2e Pharma. Necessary certifications include cGMP (good manufacturing practices), HACCP (food safety), NSF (cosmetics and supplements), and NASC (pet products).


Exclusivity

When starting to look into private labeling, you might see the words “white label” pop up too. While these are used interchangeably a lot, they are actually very different. Each has its perks, but private label services are for those seeking out a more exclusive experience for their customers. This is because private labeling allows brands to explore new formulations versus white labeling which is the same exact product used across multiple brands.


Read one of our recent articles, White Label v.s. Private Label - What is the Difference? to learn more about the differences between the two.


Now that you know some of the many benefits of private labeling your products, it’s time to get the ball rolling. Reach out to the experts at e2e Pharma today and start your private label journey today!


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