Issue link: https://www.ascpskindeepdigital.com/i/787884
64 march/april 2017 MAKES DOLLARS AND SENSE Private-label products are really "phantom brands." One company makes it, and another business sells it under its chosen name. This maker-seller relationship offers tremendous revenue potential for the seller because, more often than not, creating a private-label product, line, or back bar is much less costly than going with a mainstream, known brand name. In fact, the markup potential with a private label can be anywhere from three to five times more (or even greater) than with a brand name, which means you pay less and make more profit. Some private-label companies are masters at research and development and innovate constantly to be on top of the newest trends. Look for reviews and accolades online. If you go to trade shows, speak to the company representatives personally about what they can do for you. Ask for samples to try out their wares. Reputable private-label companies have no problem sending samples to potential customers—and they also offer guarantees. Understanding this, it behooves all skin care professionals to check out private-labeling options to fill any gaps in the lines they carry. No, you don't have to go all the way and scrap your relationships with your current brands, but you can make your retail offerings a little more interesting and lucrative. So, for those of you who are tossing this idea around in your noggin, let's go through a step-by-step primer of how to approach the addition of private label in your business. STEP 1: RESEARCH Your keyboard brings the world to your fingertips. Use the internet as a resource to see what's out there. There are so many options and types of companies— take a look at who advertises in trade magazines or sponsors trade shows. Look at their endorsements and certifications. Speak to other professionals about what they use and their experiences, both positive and negative. Once you narrow down your list, contact the companies to get the nitty-gritty on pricing and choices on formulations, packaging, minimum orders, marketing support, merchandising selections, etc. Private-label companies can hot- stamp packaging with your name and logo, create custom labels, and even have creative bottle/container options to make your product stand out in a crowd. Sticking to a budget until you know how your new product will sell, and doing business with a company that doesn't require minimum orders, is helpful when you're just starting out.