Issue link: https://www.ascpskindeepdigital.com/i/787884
www.ascpskincare.com 65 STEP 2: MAKE YOUR CHOICES Private label is not all or nothing. If that's what a private-label company tells you, run away. Don't be overwhelmed and think you have to change up everything you already do. This is where it gets fun. Once you make your decision on a company to use, it's a matter of making choices on what will work for you and your clients. Your new product should solve a problem—a problem you may have and/or one your clients need to solve. Test the waters at your business with specialty items. Call them "limited editions" for the season—this gives you an out if the product doesn't work for your business. Consider creating a universal product that all your customers use, something that not every line has. Why compete? Think about high- demand, antiaging specialty items like serums, eye treatments, masks, acne treatments, or even seasonal color cosmetics—niche or instant gratification products. Next, consider the offerings. Private-label products are stock formulations—they are tried and true. The product is "fixed" or unchangeable. This saves time for you and the private-label company when filling orders. (Private labeling is not custom manufacturing, where you choose the ingredients or recipe and you tweak formulas with your own ideas, which takes a lot of time, research, and formulating, not to mention money.) STEP 3: GET IT IN WRITING If you're just buying private-label products and sticking your label on the bottle yourself, you usually do not need a contract. If the private-label company is doing your labels or hot-stamping your name on the bottle, this may require a contract. Take care to negotiate a clear, spelled-out contract that covers your needs well. Pay attention to minimum-order requirements. 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. Have the guts to kill the arrangement if the product just doesn't move off the shelf. Ask every question you can think of, such as what happens if you run out early and need more, what's the lag time between ordering and receiving the item, and if there is a chance they may discontinue this formulation any time soon. What if you change your mind and don't want to use the manufacturer anymore; what are the terms? Ensure that you lock in your pricing structure for six months to a year, or on renewal of your contract. Beware: it is not unusual for a private-label company to change pricing on a product you buy. Be up front and ask the company representative when and if they will change pricing on your product; if they do, you'll have to charge clients more to cover your costs. Read the fine print and know there are other companies out there that also want your business. STEP 4: CREATE YOUR STORY Show and tell and you will sell. What made you decide to add the product? Why did you want to bring this to your customers? Tell clients about the ingredients and promote the fact that you have your own product—one that took years in the making, and one that you had a hand in designing. Emphasize that top research and