While it is typically a bigger up-front investment per product due to minimum order requirements and custom labeling, private label products do not cost much in comparison to the opening orders many are used to placing.

There are three levels of private labeling to choose from:

• The spa’s logo on standard packaging/formula
• Custom label on standard packaging/formula
• Custom label on custom packaging/formula (most protection)

If considering the plunge, here are some important factors to keep in mind during the search for the perfect partner.

WHERE TO START

Look at current best-sellers. This will make the investment much less risky. If the private label company chosen has a product close to what the spa is used to selling, it will be an easier transition for clients and require less re-education. Replicate, but also improve, best-sellers.

The easiest product for most aestheticians to have success with is cleansers. They are typically one of the cheapest products to private label, and they are a skin care essential that all clients should be using on a daily basis. Cleansers also have a faster turnover due to their heavier daily use, so inventory will not sit very long.

WHEN TO LAUNCH

Consider how quick of a turnaround on products is needed. While some companies can turn orders in two weeks for private label, others will require over eight weeks. Some companies have pre-made product waiting for labels, while other companies make the product once the order has been placed.

CREATING A PROPRIETARY FORMULA

Most private label companies on the market offer custom formulas. In most cases, research and development (R&D) fees will apply, lead times are very long for testing purposes, and order minimums can range from hundreds to thousands of units to be purchased at a time. If just starting out, it may be a smarter move to find a company that allows small adjustments to be made to their existing products – like adding scents to create unique products.

BRAND EXAMPLES

Does the private label company have examples of brands they have worked with? If the answer to this question is yes, second guess working with them. Confidentiality is extremely important in the private label industry. Chances are, if they are willing to share others’ information with the spa, they will also share the spa’s information with others.

Utilizing private labeling will allow professionals to provide their clientele with more power-packed ingredients like stem cells, peptides, and specialty extracts. They can also gain the confidence of stability testing and less risk of products causing harm. There are certain brands that do allow buying in bulk and repackaging. With this option, the professional can claim that they make their products in small batches at their location.

Creating brand awareness with private label does require more upfront work and expense, but the return will always be more fulfilling knowing the spa is investing in its brand. A branded product line adds value to business when it comes time to sell.