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Trouble Finding Manufacturing Partner in the USA/Canada
Hello Chemists Corner Community!
My partner and I have developed a unique formula but we are not in a position to manufacture our formula in bulk and fill them in our facilities.
We have reached out to countless manufacturing labs and they all either have high MOQs or the price for lower quantity orders are absurd and leave us with no margin to make any money.
We want to work with a company in the USA that understands that by giving us better prices early on, it will allow us to scale faster and in-turn provide them with large orders.
With that being said, can anyone recommend a manufacturer that has fair prices as well as low MOQs that is in the USA or Canada?
We will provide the containers as well as the packaging. We are looking to start with anywhere from 500 to 1000 pieces.
We are a beauty business that already has a large fanbase and want to launch an array of skincare products.
Thank you!
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10 Replies
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What is the product? A cream? A balm? You just want it in buckets or filled?
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Thank you for your reply. It’s a cream. Ideally, we are looking for someone to manufacture the formula and fill it into our containers.
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BetterBeauty said:Thank you for your reply. It’s a cream. Ideally, we are looking for someone to manufacture the formula and fill it into our containers.
I think the concern for those who can do smaller MOQ (and charge more for it) is that you will outgrow them. Plus smaller quantities of raw materials cost more. (This the charge to you) you might have to bight the bullet yourself initially, but if you really can move your product..it will get cheaper with high MOQ
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Cosmetic Lines survive more so from strong Business practices. In my opinion, only, I would look at my budget and look for funds. I have had clients go this route. Any profits are minimal at this lower level and the smaller inventory can be a barrier. Scalability is an issue. With an effective marketing plan, you could easily outstrip small runs. I have seen this scenario and you may be posting “out of stock” products during the time it takes to develop a new manufacturing relationship for more traditionally sized Commercial runs.
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I don’t have an answer for you beyond calling more companies to find someone to work with. This is a good resource. https://www.happi.com/contract-manufacturing-private-label-directory/personal-care-products/
But I will add that you might need to change your approach. Contract manufacturers set order minimums for a variety of reasons, but a primary reason is to weed out the unprofitable hobbiests. If you don’t have enough money to meet a minimum run, it’s a reasonable bet that you aren’t yet a serious business. Now, maybe you are, but CMs get contacted by people all the time who think they’ve got the next greatest brand idea. They order once & never again. Then the CM is stuck with excess chemical & packaging inventory. If this happens to them with a lot of clients, their warehouses would fill up & their business becomes much less profitable.You shouldn’t expect to be profitable in your first year or two.But you might also take the approach of getting customers to commit to buying your product before you make any product. Follow the Kickstarter model of raising enough funds before you make the product. At least that way you don’t have to get a loan to produce your first run & you’ll know you have interested consumers.-
I appreciate your insights and the resource you shared. It’s indeed a challenging journey to find the right contract manufacturer, especially with the order minimums in place. Your advice to change the approach and demonstrate seriousness is valid.
Considering the Kickstarter model is an exciting suggestion. It aligns with building a customer base and gauging interest before committing to large-scale production. It’s a strategic way to ensure there’s demand for the product and could potentially help with financial aspects.
For those exploring financial options, platforms like https://fitmymoney.com/loans-like-opploans/ can provide insights into loans that might suit their needs. Thank you for the valuable advice and resources!
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Perry said:I don’t have an answer for you beyond calling more companies to find someone to work with.
I agree.
I think there is no problem for them with the cost of your ingredients and packaging if you supply them yourself. Maybe the problem is that you already have the formula? They will be responsible for whether they can make your cream successfully, they will probably have to test your formulation first. In general, it seems to me that they will have to complete a series of one-time activities that will not take less time than a larger order.
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Thank you all for your responses!! They are very much appreciated. All of your insight is invaluable to us. This community has been such a great source of knowledge for us through out the years.
We have continued our searches and have found some manufacturers that can work with our 1000 piece MOQ. We have accepted internally that our first few runs will simply not be very profitable (if at all). As you all have mentioned it is just a matter of getting over the initial hump so that we can break into the higher order thresholds.
We are considering limiting some of our more expensive ingredients for our first cream, and then down the road introducing a more ‘advanced’ product.
Another consideration is buying the formulas in tubs, and filling/packaging them internally. We have some filing machines ready to go.
Thank you again! You have all raised some excellent points. Our journey continues
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Call Topiderm/ Topix in Amityville NY
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Thank you for the recommendation Kimberly!! I’m going to contact them today
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