If you are looking to introduce a new product, but not interested in manufacturing it yourself and prefer using the services of a independent Co-Pack manufacturer, then here are a few true – false assumptions you should know prior to signing on with a manufacturer.
A client is typically surprised when I cover the services offered by the Co-Packer once it is determined they will take on your product. There are a number of misconceptions floating around, so listed a few points allowing you clarity in expectations and reality.
Truths about the co-pack manufacturer:
- There are a number of domestic manufacturing facilities that want added volume in their plant.
- Are conservative and reluctant in taking on risk.
- A responsible and professional manufacturing plant will require signing a Non-Disclosure Agreement (NDA).
- Will ask for an upfront deposit or secured funds.
- Will offer recommendations on your finished product or flavor ingredient.
- Can clone your product and formula and possibly create an improved product.
- Product characteristic may vary slightly in different manufacturing plants even though a formula was followed.
- You are responsible to invest in all ingredients unique to your product.
- Will not charge in advance for non-proprietary ingredients.
- Has better buying power than you.
- Will have a minimum order requirement per flavor or per order.
- Large manufacturers typically do not take on small start-up product lines with no sales history.
Untruths of the co-pack manufacturer:
- Will quickly return your initial call
- Will purchase ingredients and request money at a later time.
- Is very excited to take on your product line.
- You can make a more consistent product than a Co-Pack manufacturer.
- Will substitute ingredients as they see necessary without notifying you.
- Does not require a order lead time.
- Can utilize packaging that you used at another facility.
- Will fill any size package that you want.
- Will sell & distribute your product.
- The plant manager will always shuffle aside other accounts when you have an order emergency.
- The facility’s warehouse will store your slow moving ingredients for as long as it takes to use them up.
- Will run undocumented product from any ingredient supplier.
- Will accept proprietary raw ingredients in their facility.
- Offers 90 day payment terms.
- Will conduct a test run to see if you like the product.
Confusing? Contact Darryl to know what you need to before picking up the phone. Your wallet will thank you.
Darryl David is a seasoned consultant in the business of ice cream, frozen plant based and infused products. Offering business consulting and hands-on assistance to all size of companies. Tap into 30 years industry experience and learn more about Darryl and the services he provides by reading his articles, on LinkedIn .
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