August 02, 2022

    Why can’t you just give me a price?

    Why can’t you just give me a price?

    I get asked this question all the time, so here goes! 

    I would love to be able to do that at the beginning of our partnership. However, there are many factors that enter in when pricing of an item as follows:

    #1. What is the cost for the ingredients in the formulation?  In order to get this information, we must get the cost of each ingredient, and the percentages that go into the formula.  Sometimes we need to order some raw material that we may never have had before and have no idea of the cost.  So, it is imperative that we get the exact costs of the ingredients and the percentages.  In order to do that, the chemist must make the sample to see if it works and is stable and the correct viscosity. Then enters the formula into the data base, and we send it to the customer for approval. If approved and signed, then it goes to the next step.

    #2.  What type of container is it going in, and how many ounces etc.  Is the customer providing the container, or are we doing that part? Once we have determined the cost of the container, and closure.

    #3. the next step is to determine how long it takes to fill, cap, label, shrink and pack the product and into what size shipping box. That is so that there are no surprises during production.

    #4. Is there any box that the product is going, (single item)?  Does it have an inert?  How many are to go into a master carton? And do we need to order the mater box for the production.

    #5. What is the cost of the label, and who is designing the logo and name?  If we are doing that in house, then what is the cost of the artwork, logo design, and ingredients, and hat kind of label is going on it.

    All these items compose what we call a BOM, or Bill of materials.  Once we have that worked out then we can then determine the price. 

    There is a final factor that also determines the pricing, that is the quantity. When one is ordering over 5,000 pieces, there is a substantial discount, as we save money doing long runs of the same product, and don’t have to sterilize the equipment as often, and tar down all the machines to clean them as often, during long runs. 

    We here at Private Label Skincare Florida would love to give you exacting prices on the spot, but as you can see there are many factors that determine pricing.  Please understand and don’t lose heart!  We want you to have the pricing as soon as possible as well.   


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