Private Label Pricing

[heather s]

Hi everyone! I am new here and haven't yet gotten the hang of posting so excuse me while I figure it out
I recently turned my soap making hobby into a business and immediately got a request from a local farm for private label. Is the pricing for the product minus up front costs for label design etc similar to wholesale? For wholesale I determined my costs and doubled them (then doubled that for retail).
Is there anything based on anyone's experience that is important to put in writing?
Thank you and I look forward to getting to know you all!!

Heather

 

[Lindy]

I charge a set-up fee of $250 (one-time fee) which allows for set up and creation of labels, scent choices and extra work to set up.

 

[heather s]

Lindy,

Do you determine the price of the soap the same as wholesale? For example if I wholesale my bars at $3 and retail for $6 would I do private label for $3 as well?

 

[Lindy]

Hi Heather, yes they get wholesale pricing because you are paid for the set-up initially which covers design and such which you would simply use the next time.

 

[heather s]

Ok! That is what made sense to me but having never done it before I wasn't sure if it was a different pricing structure Thank you.

 

[Lindy]

You are most welcome.....