Planning to start a private label business but thinking about how much it will cost? But does a private label business cost much? Can you start a private label business with minimal cost? After learning about private label, I guess you want to try it now, right? But there’s only one problem… budget. Perhaps it’s a bit tight right now, or you just want to test its potential before going full blast. Whatever it is– it doesn’t matter. If you’re looking for a way to start private labeling at minimal cost, I am happy to help.
Understanding Private Labeling Further
Just so we are on the same page on how private labeling works, don’t confuse it with White Label and Wholesale. Let me explain those terms. In white-label, you are putting your own brand name to someone else’s product. But that product is already developed, controlled, and service by the other company. Sounds like private labeling? Not entirely. Private labeling is when you contract your brand name to be put in someone else’s product that has your own specification. Confusing? For instance, remove the brand name of Pepsi in its bottle and replace it with your own. That’s white-label. Now, imagine putting the Pepsi soda into a different bottle that you designed and has your own brand on it– that’s private label. On the other hand, wholesale is when you purchase goods from the supplier and simply resell it.
Now, to answer our ultimate question for this blog. Private label with minimal cost? Yes, it’s possible! In fact, resourceful entrepreneurs have done it with $400 to $700 investment only. Pretty amazing, right? However, like all businesses, keep in mind that your profit still depends on how much you invested. But it’s better to start with something than nothing. So how can you start a private label with minimal cost? Here are some tips:
Choose low-cost high-selling products
When looking for the product to put your private label effort, choose those low-cost but high-selling products. I suggest starting your search on Alibaba. The reason why you need to start with this kind of product is that you need to get a profit sooner. So that you can also increase your investment for the sake of growing your business.
Start Small with Specifications and Pour Effort in Marketing
The more your product specification or customization you require your manufacturer to do, the more it will cost. Start with a single or couple, simple yet unique customization on your private-labeled products. You can, later on, add everything else you have in mind when the business is booming. Instead, focus your effort on marketing strategies to make a sale.
Ask for Free Samples and only Pay for Shipment
Before you start your private label business, asking a sample from the manufacturer is important. Doing so is another cost. But there are manufacturers who are willing to give you a free one and you only need to pay the shipment fee. Just keep in mind that you should be the one to ask for it.
Designs? Packaging? Do It Yourself!
Hiring an artist to create designs for your private label business will cost a lot. Yes, artists aren’t cheap, especially the great ones. But if you have time to learn a few tricks, you might as well do it yourself to save money. There are many online websites and apps where you can create magnificent designs easily even without experience. I could probably name a few such as Canva, Picsart, Stencil, and Snappa. Learning how to use them and create your logo, product design, etc. is just a few videos away on Youtube. Even packaging can be learned by watching tutorials. Just hire a professional one when your business budget can handle it. After all, product design should be improved in time just to keep your customers satisfied. Other than that, if you have a good friend or a family member who can do it for you in exchange for a bit of money or a cup of coffee– try to ask them.
Test the Water
Once the sample for your private label product is okay– you start with the other process. But I suggest starting with a small order. Perhaps the minimal order that your manufacturer requires. It will be easier to manage, and at the same time, you’ll get used to the process. That way, you won’t lose much if you made a mistake.
And that’s it for the tips! But let me end this blog with a special tip. If you want to start a private label business with a minimal cost– then prepare a list. Write down all the things you need to have for that business. From marketing strategies, the platform where you will sell it to the product itself. Take your time on researching for the cost of those things and group them by importance. If it cost too much, look for an alternative. If it’s not really important and can be done at a later time– park it. Add it later. That way, you can start with a minimal budget.
See Also : HEARD ABOUT PRIVATE LABEL?