Comments on: Could You Start Your Own Cosmetics Business? http://chemistscorner.com/could-you-start-your-own-cosmetics-business/ Cosmetic science resource site where you can learn all about cosmetic chemistry Thu, 09 Sep 2010 14:31:16 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Doug Erick http://chemistscorner.com/could-you-start-your-own-cosmetics-business/comment-page-1/#comment-1638 Doug Erick Mon, 30 Aug 2010 02:09:01 +0000 http://chemistscorner.com/?p=94#comment-1638 As a owner of a cosmetic company that either makes its own products or has them made, you should be actively involved in the quality. When you first set up an agreement with a contract packager. Insist that you get copies of all signed blend sheets to insure that all ingredients are added in the correct quantities and in the right order. Understand the QA parameters. Make them explain any that you don't understand. Take notes. Audit the blend sheets routinely. This insures quality and insures that you have the current formula. Any company that wants to sell you product but refuses to allow you to insure that you get what you paid for should be taken off your list of potential manufactures. Before any formula changes take place insist that you approve samples and understand the reason for and the exact formula change. They are selling you a service... negotiate before you buy. Sign secrecy agreements after your lawyer has reviewed them. Be ware some of the companies believe that your formula can be altered by the smallest amount and sold to others as a new formula. Check this with them before you buy. I do agree with Perry when starting out there is not much advantage in owning your own formula. Keep your eyes open and good luck. As a owner of a cosmetic company that either makes its own products or has them made, you should be actively involved in the quality. When you first set up an agreement with a contract packager. Insist that you get copies of all signed blend sheets to insure that all ingredients are added in the correct quantities and in the right order. Understand the QA parameters. Make them explain any that you don’t understand. Take notes. Audit the blend sheets routinely. This insures quality and insures that you have the current formula. Any company that wants to sell you product but refuses to allow you to insure that you get what you paid for should be taken off your list of potential manufactures. Before any formula changes take place insist that you approve samples and understand the reason for and the exact formula change. They are selling you a service… negotiate before you buy.
Sign secrecy agreements after your lawyer has reviewed them. Be ware some of the companies believe that your formula can be altered by the smallest amount and sold to others as a new formula. Check this with them before you buy.
I do agree with Perry when starting out there is not much advantage in owning your own formula. Keep your eyes open and good luck.

]]> By: Dr. D http://chemistscorner.com/could-you-start-your-own-cosmetics-business/comment-page-1/#comment-1637 Dr. D Sun, 29 Aug 2010 16:01:17 +0000 http://chemistscorner.com/?p=94#comment-1637 Dear Perry, Thank you!!! I look forward to hearing from the consultant. Dr. D Dear Perry,
Thank you!!! I look forward to hearing from the consultant.
Dr. D

]]> By: Perry http://chemistscorner.com/could-you-start-your-own-cosmetics-business/comment-page-1/#comment-1636 Perry Sun, 29 Aug 2010 15:46:22 +0000 http://chemistscorner.com/?p=94#comment-1636 Great question Cam. When people are first starting out, I believe using a stock formula from a private label is the best option. This will let you know if your brand is appealing. However, starting with a custom formula is also a good idea because it might help your brand stand out. I don't see any advantage to owning your own IP formula. In general, marketing sells products initially. Product performance gets people to buy it again. Great question Cam. When people are first starting out, I believe using a stock formula from a private label is the best option. This will let you know if your brand is appealing. However, starting with a custom formula is also a good idea because it might help your brand stand out. I don’t see any advantage to owning your own IP formula.

In general, marketing sells products initially. Product performance gets people to buy it again.

]]> By: Perry http://chemistscorner.com/could-you-start-your-own-cosmetics-business/comment-page-1/#comment-1635 Perry Sun, 29 Aug 2010 15:43:06 +0000 http://chemistscorner.com/?p=94#comment-1635 Dr. D - I forwarded your request to one of the consultants I know in the industry. Hopefully he can help you. Dr. D – I forwarded your request to one of the consultants I know in the industry. Hopefully he can help you.

]]> By: cam http://chemistscorner.com/could-you-start-your-own-cosmetics-business/comment-page-1/#comment-1633 cam Sun, 29 Aug 2010 03:06:46 +0000 http://chemistscorner.com/?p=94#comment-1633 I am in the process of starting my skin care products to sell online. Can you tell me if I am better off starting off with a manufacturers stock formula with private label, custom formulating with a manufacturer, or owning my own IP to the formula. I have been trying to locate an independent chemist to formulate a skin product prototype and give me the right to the formula to then take to contract, however; it has been almost impossible to do. Most do not seem to want to give you all rights. Now I am thinking I should consider changing to another course as I am reading here to manufacturer with a good exculsive formula w/ a manufacturer and grow from there. I like what I read here in this forum that mentions "once your sales increase I will have more control." If I opt for this, what is the "most" important element to be sure I establish going signing on with a manufacturer? Thank you and Best of Luck to All:)Cam I am in the process of starting my skin care products to sell online. Can you tell me if I am better off starting off with a manufacturers stock formula with private label, custom formulating with a manufacturer, or owning my own IP to the formula. I have been trying to locate an independent chemist to formulate a skin product prototype and give me the right to the formula to then take to contract, however; it has been almost impossible to do. Most do not seem to want to give you all rights. Now I am thinking I should consider changing to another course as I am reading here to manufacturer with a good exculsive formula w/ a manufacturer and grow from there. I like what I read here in this forum that mentions “once your sales increase I will have more control.” If I opt for this, what is the “most” important element to be sure I establish going signing on with a manufacturer? Thank you and Best of Luck to All:)Cam

]]> By: Dr. D http://chemistscorner.com/could-you-start-your-own-cosmetics-business/comment-page-1/#comment-1632 Dr. D Fri, 27 Aug 2010 17:33:29 +0000 http://chemistscorner.com/?p=94#comment-1632 These are great comments. I am a physician and have NO business experience. I have found great difficulty in finding a laboratory to manufacture my wrinkle reversing product. I have emailed hundreds of companies and laboratories and have made hundreds of phone calls. I need help in developing the final formula of my product. I have used my formulation on my own skin, my friends' skin and my siblings' skin. The effect is remarkable, so much so that I think millions of women would want this product. I then need to find someone who is experienced in this industry and partner with them so that my product can be marketed effectively. Any advice is greatly appreciated!!! These are great comments. I am a physician and have NO business experience. I have found great difficulty in finding a laboratory to manufacture my wrinkle reversing product. I have emailed hundreds of companies and laboratories and have made hundreds of phone calls. I need help in developing the final formula of my product. I have used my formulation on my own skin, my friends’ skin and my siblings’ skin. The effect is remarkable, so much so that I think millions of women would want this product. I then need to find someone who is experienced in this industry and partner with them so that my product can be marketed effectively. Any advice is greatly appreciated!!!

]]> By: greatzaza http://chemistscorner.com/could-you-start-your-own-cosmetics-business/comment-page-1/#comment-1596 greatzaza Sat, 14 Aug 2010 21:38:03 +0000 http://chemistscorner.com/?p=94#comment-1596 "My only concern is if I am unhappy with the services of the manufacturer and I want to sever the relationship, they own the formula. Any thoughts, advice??" Hi, Sara - I can share some experience on this topic. I work for a company that is currently trapped in a situation with the one product that has been manufactured out of house - our lotion. We want to go in-house with our production, but apparently a couple of years ago we asked our manufacturer to make a minor modification, and now they claim our modified formula as their own proprietary information (I was not employed there then and am hearing this second-hand). At any rate, we are stuck, and have to start from scratch or buy it off them for a 5 figure sum. We are a small-ish natural/organic line that sells in most Whole Foods, etc., and feel very vulnerable in this situation for an interruption of stock or a major difference in the product. If you foresee marketing your products to large companies, my strategy would be to develop my own formulations, consult with a lab and your raw ingredient suppliers to hone the formula's stability, etc. and maintain ownership of a quality formula you feel good about. Especially now that there are huge changes looming in the bodycare industry with the FDA and labeling, certification of organics, etc. which would allow you the flexibility to change up an ingredient or two if you needed to. I hope this helps, but obviously my perspective is coming from the natural/organic sector. “My only concern is if I am unhappy with the services of the manufacturer and I want to sever the relationship, they own the formula. Any thoughts, advice??”
Hi, Sara – I can share some experience on this topic. I work for a company that is currently trapped in a situation with the one product that has been manufactured out of house – our lotion. We want to go in-house with our production, but apparently a couple of years ago we asked our manufacturer to make a minor modification, and now they claim our modified formula as their own proprietary information (I was not employed there then and am hearing this second-hand). At any rate, we are stuck, and have to start from scratch or buy it off them for a 5 figure sum. We are a small-ish natural/organic line that sells in most Whole Foods, etc., and feel very vulnerable in this situation for an interruption of stock or a major difference in the product. If you foresee marketing your products to large companies, my strategy would be to develop my own formulations, consult with a lab and your raw ingredient suppliers to hone the formula’s stability, etc. and maintain ownership of a quality formula you feel good about. Especially now that there are huge changes looming in the bodycare industry with the FDA and labeling, certification of organics, etc. which would allow you the flexibility to change up an ingredient or two if you needed to. I hope this helps, but obviously my perspective is coming from the natural/organic sector.

]]> By: Doug Erick http://chemistscorner.com/could-you-start-your-own-cosmetics-business/comment-page-1/#comment-1346 Doug Erick Wed, 24 Mar 2010 14:03:23 +0000 http://chemistscorner.com/?p=94#comment-1346 Sara 1. You have no desire to manufacture. 2. You seem happy with the products. 3. You are unhappy with the price. 4. You can always seek prices form other manufacturers and use then as a bargaining chip. You can do this at any time as long as your contract with your current mfg doesn't restrict you. As your sales increase your clout will also. As for not having the formula you do... the ingredient list includes every thing in the formula by law. some things in that list are at set percentages so part of the formula is easy to pick apart. The rest can be roughly figured out by a chemist. There are companies that will for a price do this for you. Other contract packagers employ these type of people and use them to get new business. They will do this for free for your business. If you current supplier falls flat on his face with service, all is not lost. Be smart in your contract with your current supplier make sure a lawyer looks it over. Then you are free to do your job. sell sell. good luck. Sara
1. You have no desire to manufacture.
2. You seem happy with the products.
3. You are unhappy with the price.
4. You can always seek prices form other manufacturers and use then as a bargaining chip. You can do this at any time as long as your contract with your current mfg doesn’t restrict you. As your sales increase your clout will also.
As for not having the formula you do… the ingredient list includes every thing in the formula by law. some things in that list are at set percentages so part of the formula is easy to pick apart. The rest can be roughly figured out by a chemist. There are companies that will for a price do this for you. Other contract packagers employ these type of people and use them to get new business. They will do this for free for your business. If you current supplier falls flat on his face with service, all is not lost. Be smart in your contract with your current supplier make sure a lawyer looks it over. Then you are free to do your job. sell sell. good luck.

]]> By: Sara http://chemistscorner.com/could-you-start-your-own-cosmetics-business/comment-page-1/#comment-1302 Sara Sat, 13 Mar 2010 18:20:21 +0000 http://chemistscorner.com/?p=94#comment-1302 Hi I am in the process of starting a skin care line. Several contract manufacturers offer a route to formula ownership after a set number of years and sales. However it is very expensive. What are peoples thoughts on formula ownership? At first thought, I wanted to own my formulas. But I now I am not so sure, considering I will have a contract with the manufacture giving me exclusive rights to the formula. I also have no real desire to manufacture the products myself. My only concern is if I am unhappy with the services of the manufacturer and I want to sever the relationship, they own the formula. Any thoughts, advice?? Pros - Have ownership Can change manufactures Can manufacture the products myself. Cons - Very expensive!! to purchase formulas Hi

I am in the process of starting a skin care line.
Several contract manufacturers offer a route to
formula ownership after a set number of years and sales.
However it is very expensive. What are peoples thoughts on
formula ownership? At first thought, I wanted to own my formulas. But I now I am not so sure, considering I will have a contract with the manufacture giving me exclusive rights to the formula. I also have no real desire to manufacture the products myself. My only concern is if I am unhappy with the services of the manufacturer and I want to sever the relationship, they own the formula. Any thoughts, advice??

Pros –
Have ownership
Can change manufactures
Can manufacture the products myself.

Cons – Very expensive!! to purchase formulas

]]> By: Perry http://chemistscorner.com/could-you-start-your-own-cosmetics-business/comment-page-1/#comment-693 Perry Mon, 01 Feb 2010 02:26:16 +0000 http://chemistscorner.com/?p=94#comment-693 Doug - thanks for the info! Doug – thanks for the info!

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