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Men’s grooming line private label
Hey there,
I’m looking to start a men’s grooming line in the USA. I want to go private label because it would be easier for me to start. I want to start with:- After shave ($1.5 for 100ml manufacturing and filling)
- Shaving cream ($1.25 for 150ml manufacturing and filling)
- Face wash ($2 for 100ml manufacturing and filling)
- Body wash ($3.5 for 240ml manufacturing and filling)
Bottling, label not included. Where should I start? -
9 Replies
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I think your proposed costs are way too high.To give you an example, I would put an upper limit of 75 cents on the contents for a 240mL body wash.
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Remember that you have to charge at least double what you pay to make a profit. And unless you sell direct, what ever store you sell to has to charge double what they pay you to their customers.
So, if you’re paying $3.50 for a body wash, you have to sell it for $7, and the store has to sell it for $14. How many people do you think are able and willing to pay $14 for a body wash? -
Start by checking out the competition. First decide what product line is your competitor. Then check the retail prices for those products. Then divide the prices by six. The resulting amount is roughly your upper limit for manufacturing and distribution (including ALL costs.)
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One thing I learned is: don’t try to compete in a cheap product area. I can equally well design a body wash or an anti-aging cream. You can find adequate body wash in a pump bottle for heaven’s sake, for a dollar. Could I source just the pump bottle alone for 16 cents? Of course not! There is no point in my trying to compete in that market sector, at least not until I am buying pump bottles in 10,000-off.
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@Belassi makes a very good point. In most cases, it’s impossible to compete on price when the large competitors can buy components in 100,000 lots, etc. So, you need to determine what sort of products in what categories consumers will pay a large premium for.
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Hey thanks for the advice. @Bobzchemist and @Belassi
I thought my proposed costs were too low from the numbers manufacturers were giving me. I’m not trying to go into the lower end of the market. I’m actually looking for lower pricing, how/where do I get the prices you’re suggesting?How much do I estimate for filling costs?I’m okay starting with 500 units per product too. -
And…there’s your problem. Manufacturing and filling costs don’t scale downward, even with private label.
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Exactly as Bob said. For instance, if I make a 20Kg batch it won’t really take longer than making a 200g lab sample.
I use a spreadsheet to calculate prices.1. Sum the material costs per kilogram of finished product.2. Apply a loss factor to the result (typically 2-5% depending on the process)3. Add the labour cost per kilo.4. Divide by the package size to get the cost per package of ingredients and labour.5. Add the label cost6. Add the package cost7. Multiply by 6That will give you a retail price. If you find it is uncompetitive with similar products, then you’re in the wrong market. -
the filling cost depends very much on the process
if it’s automated, and runs at a fairly high speed, the filling cost per unit will be negligible compared to that of the materials
if each unit is filled and/or sealed by hand, the filling cost per unit will be high!
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