Can we talk about private labeling?

Soapmaking Forum

Help Support Soapmaking Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
Joined
Sep 27, 2022
Messages
487
Reaction score
1,344
Location
NJ
So, a company reached out to me and asked about private labeling a few of my products. We're not talking massive numbers, and I've clarified that there is no possibility of consignment with privately labeled goods. They're fine with that, and we'll meet in a few weeks to discuss the details.

I'm happy for the opportunity. It's a new but unconventional market – which is my niche – and my lineup fits their profile perfectly. It also gives me a chance to explore some really off-the-wall fragrance combinations that suit their market but not mine, so it's a chance to be creative, which is always welcomed.

Mr. E, however, hit the ceiling when I mentioned it in passing. To the effect of, you don't get the credit, you should charge more for putting their logo on your label, etc. And I'm like, yo, where's the beef? It is an exclusive but not high-traffic location, so it's not like I'm giving up on gobs of exposure. It is near zero extra effort and expense to adapt my labeling. Other than not being able to slather it all over social, I'm not seeing any difference with a private label situation than the arrangements I currently have.

But maybe there's more I should be considering... so I turn to the collective wisdom of SMF... what kind of questions should I be asking when it comes to considering private labeling products?

Happy New Year all!!!
 
Happy New Year.

I wouldn't. I just can't bring myself to private label. I've worked so hard to be what I am, I don't want to sell my stuff at a lesser price to someone else so they can sell it for more. I know other companies do it but I won't be.

It's up to you.
 
One thing I have done instead of private labeling is create a signature scent for that company, that is only sold there.
Or a line of products? For example, I’ve stayed in hotels that feature a customized line of L’Occitane, or Aveda products in the bathroom. The supplier keeps their branding and it’s mutually beneficial.
 
Thank you all so much! This is a fun opportunity, and I’m excited about it. I’ll be creating some signature scents for them, which is a huge draw for me—I love developing unique fragrances and creative packaging just as much as making product. For legal reasons, my company name will still be on the label.

I guess I'm not bothered by private labeling becuase it makes sense to me given the customer base is relatively small and very focused. It’s a exclusive, membership-only resort with a growing line of high-end branded lifestyle products. Having my products fully reflect the resort just feels right.

I’m not really giving up much exposure—there’s virtually no cross-pollination between this location and other buying opportunities. It's not like I'm in farmers' markets, or anywhere else in the area. I primarily wholesale anyway, and this collab is structured the same way, so it fits my model.

What does draw me to this is how it aligns with my bigger, long-term goals for the company. I ultimately want to focus on destination-based partnerships and use the business to travel to beautiful places. This feels like a step in exactly that direction.

Mr. E's reaction was so strong, I guess it makes me feel like I'm not considering something.

I really appreciate the opportunity to talk this through, and I'm immensely grateful for you all taking the time to help weigh in on this.

Thank you all!
 
I own a small business that's not soap related, but the same principles apply.

At first I was like Mr. E -- no way I'm not going to sell product unless my biz name is on it! As my business has grown and I've had to respond to a wide variety of customer requests, I've changed my tune.

Retail customers get products marked with my business logo; they don't have an option otherwise.

Customers who place custom one-of-a-kind orders, I usually mark items discreetly with my logo, but I will omit the logo if they specifically request that. I don't offer this, but I'll honor their request.

For wholesale customers, I'll mark my product any way the customer wants -- their logo, my logo, or no name at all.

Being open minded about things like packaging and branding can bring good customers in the door and keep them coming back. IMO, keeping my business running smoothly and remaining financially sound is more important than dying on this hill.

I don't custom mark my products for free, if the marking requires different procedures than my usual. If I have to get special tooling with the customer's logo or name or if I have to spend more time to do the special marking, these extra costs get built into the per-item cost.
 
Thank you so much. At this moment in time, I'm very interested in exploring possibilities. I'm lucky to have built a strong base in my market, and its gratifying that companies liking what they're seeing and reaching out to me. This isn't the type of account that will make or break my year, but it does present learning opportunities in a small, controlled manner, which is very appealing. I am a calculated risk-taker 🤣

Mr. E surely sees how hard I work, and probably found it appalling that I'd so casually toss my name off the label and slap on someone else's logo, but I'm enjoying the entire experience of building a business, and welcome the idea of trying different ideas on for size. I guess if I find I hate private labeling, then I simply don't have to do it again. Nothing ventured, nothing gained.

Thank you so much. Have a happy New Year!
 
Last edited:
Back
Top