Home Cosmetic Science Talk Formulating Cosmetic Industry First CM job. I do t know what to charge.

  • First CM job. I do t know what to charge.

    Posted by Rockstargirl on December 13, 2020 at 8:49 pm

    I have an esthetician who wants a moisturizer branded under her name. I’ve made some samples and she really likes them. I can make enough to supply her. I e also sourced the packaging and will help with label requirements etc. Do I charge hourly? Do I charge a lump sum? Really lost as this is my first request for this service from me. Any direction helpful. 

    Rockstargirl replied 3 years, 3 months ago 6 Members · 9 Replies
  • 9 Replies
  • suswang8

    Member
    December 13, 2020 at 9:46 pm

    Charge a lot…and then give everyone on here half 8~~}

    On a serious note, what do you mean that you can “make enough to supply her”? Are you planning to manufacture this product on an ongoing basis for her?  So you now need to bill her for both the original product development and the ongoing delivery?

  • Rockstargirl

    Member
    December 13, 2020 at 10:02 pm

    Lol. Yes that’s correct. I will make it for her on going and I can price that out. I will keep IP. But all the work and stability testing etc. I’m not sure to charge hourly or one big lump sum. 

  • oldperry

    Member
    December 14, 2020 at 1:25 pm

    The price you charge depends on a lot of factors.
    Some CM will give development time for free with the guarantee of future production. (or charge $500 that is credited to future production).
    But that arrangement assumes you have a lot of customers.
    Some formulators would charge ~$25,000 but then give up the IP.
    I would guess somewhere between $1000 - $2000 but it just depends.

  • Rockstargirl

    Member
    December 14, 2020 at 1:53 pm

    Thanks Perry. That’s the ball park I’m in! Appreciate the help 

  • Alomgir91

    Member
    December 15, 2020 at 4:16 pm

    Hey! Based on CMs i’m working with they charge around 600-700 for the initial development costs and then price per unit thereafter, with around a 20-30% mark up.

  • graillotion

    Member
    December 15, 2020 at 11:45 pm

    Copy and paste below…from Essential Wholesale lab:

    • Semi-Custom Formulation (3 rounds in the lab) making 1-3 “simple” ingredient adjustments in an existing Essential stock product: $475.
    • Full Custom Formulation (5 rounds in the lab) making 1-5 from-scratch prototypes to end up with exactly what you want. Most people need fewer than 5 rounds but if you need more, we can accommodate that. Custom formulation services start at $2,100.
  • Rockstargirl

    Member
    December 15, 2020 at 11:48 pm

    Thank you! I did a $600 deposit with 3 rounds of samples. Then $1500 for final completion/packaging sourcing/ stability etc. Feel much better about my guess now. Thanks everyone 

  • pattsi

    Member
    December 18, 2020 at 8:42 am

    Don’t forget to explain about IP to your customer and state it in the contract.

  • Rockstargirl

    Member
    December 18, 2020 at 1:01 pm

    Pattsi said:

    Don’t forget to explain about IP to your customer and state it in the contract.

    Indeed! Thank you 

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