White Label – Private Label – Co-Pack Manufacturing

Private labeling products, now referred to as white labeling, are being sought out more than ever before, but do the people seeking a white-label manufacturer really understand their ask?

The article is an effort to highlight common myths, assumptions, and possibly how to avoid embarrassment when contacting a co-pack manufacturer to make your product.

I have a great idea! Now what?

Standing at a whiteboard illustrating to colleagues and possible investors, what your product idea is and how it works. A timeline shows the anticipated date of launch and becoming the next colossal success.

Concept to launch planning is the easy part, executing, in reality, is the more difficult step.

Hype vs reality:

Many times the person standing at the dry erase board has experience in marketing, sales (no they’re not the same), and maybe even an entrepreneur venture capitalist any of which had lost sleep due to a huge brainstorm.

Who’s not part of the dry erase pitch and presentation session?

In my opinion, a key component of the endeavor is known as “the operations guy”. If this person was invited, the attendees would get a better understanding of the “how-to” tasks.

Typically the person presenting a new concept is there to show the big picture, however, inviting operations up to the board can offer a more realistic picture of the timeline and estimated cost. It’s not as exciting, but crucial. 

Look at the operations side of an idea as the fuel for a concept car. No fuel, no car. That’s where many good ideas stop and the reason, more involved than initially thought. 

New product or simply a variation of one already in the market? 

Example of a variation of an existing concept:

• Frozen dessert – lower in calories and fat and without added sugar, launched pints or novelty

Example of new idea and concept:

• The light bulb, the telephone, the automobile

Is the whiteboard pitch an idea that fills or fixes a void or simply another variation to jump on the money bandwagon?

I suggest, products and concepts that fix a-void, are ones with longevity and greater potential for a higher ROI.

Back to the whiteboard:

The folks illustrating how a proposed new product concept will be a winner and speak only to marketing aspects and growth potential will be surprised when it is time to get to the manufacturing portion.

Who will make it, should be looked at as importantly as “who’s the customer?” If the question is raised without an experienced person to answer, “we’ll just find a co-packer”, will be the boilerplate response.

A Co-Pack manufacturer does not:

• Create a product formula for you
• Produce just  any amount requested
• Order or research your ingredients, packaging or flavors 
• The same enthusiasm about your product as you 
• Hold responsibility for un-sellable product when following your formula 
• Warehouse your products
• Have room for remaining packaging and ingredients 

What does the Co-Pack manufacturer offer?

• Manufacturing your product – only

Several times a week I receive calls from a start-up or marketing firm requesting the need of a co-packer and if I could make a recommendation as a manufacturer is needed quickly. Pre-orders to fill and launch-ready for a new and exciting product, but nowhere to make.

In software terms, it’s selling vaporware.

For the caller, my response is mostly disheartening as I go over the reasons I will not recommend, primarily because I have zero understanding of the concept, product, or special handling requirements.

Necessary steps prior to making the introduction to a co-packer.

• Formula – works and proven
• Product – thoroughly tested for it’s specific finished intent 
• Suppliers – identified
• Packaging and ingredients – ready to order

Back to the frustrated caller. 

After explaining the tasks and detailed services Darryl’s can provide, there is a quick change in tone by the caller saying, I really don’t care to understand any details of the product, I just need to find a place to make it. Boom!!

The sole reason I avoid recommendations to a non-client is my reputation. The manufacturers I work with, know that when I make an introduction, the products have been properly vetted and the client fully understands all that is required.

When you are ready with the next bright idea, make Darryl your first call to schedule time. It’s the difference between dreaming of being a success and actually becoming one.