3 Factors To Consider When Evaluating Private Label Manufacturers

Because of Joseph Strauss, the “Half Way to Hell” club exists. Strauss, however, is not a member of the club. The club consists of nineteen men who cheated death while working on the construction of the Golden Gate Bridge in San Francisco, California.

At the time, Strauss was the Chief Engineer and responsible for the safety of the workers on the project. From his experience, Strauss knew that there would be accidents, and unfortunately death, during a project of that scope.

Strauss insisted on the highest of safety standards for the project

One of the safety measures he required was the installation of an expensive safety net beneath the entire span of the bridge. It was this safety net that caught nineteen workers that fell from the bridge during the construction phase. In the end, the Golden Gate Bridge was completed with a very good safety record. This can be credited to the due diligence and foresight of Joseph Strauss.

Doing your due diligence when choosing a private label manufacturer will give you the foresight you need to make the right choice. Sure, it would be quicker and easier to simply rush into an agreement with a manufacturer.

But trust me, there’s a good chance that the relationship will end in disappointment and regret. The extra effort made while selecting a private label manufacturer will reap dividends later on. In this article, we’ll cover the three areas to focus on when choosing a private label manufacturer to work with. They are:

1. Communication
2. Testimonies
3. Pricing

Let’s get started by discussing communication.

Look for timely, concise, and transparent

Communication between supplier and vendor works so much better when these three qualities are present. They all speak for themselves, but we’ll run through them quickly. Communications need to be timely.

There is seldom a worse feeling that a business owner gets than this — an urgent decision needs to be made but there isn’t enough info to make that decision. An email or text gets sent to a supplier, and the response is very slow. It’s nerve-racking! Also extremely frustrating is when phone calls aren’t answered or messages not returned.

Vague emails are the worst, would you agree?

No one likes having to respond to an email with a request for clarification. As a very busy business owner, this is a huge waste of time. Emails from a supplier need to be clear and to the point, without missing details.

Questions should be answered in one email, maximum two. When you are vetting potential private label manufacturers, if you’re finding communications to be challenging right from the very beginning, this is a red flag. Don’t expect it to improve. Be prepared to look at the next manufacturer on your list.

However, if emails, texts, and phone calls are efficient and easy, you may have found a winner. It’s time to move on to the next point: testimonies.

What’s been the experience of their clients?

A great way to get an idea of how your relationship with a private label manufacturer will go is by consulting their current clients. Are they pleased with the quality of the product they are receiving? Are they happy with the supplier—vendor relationship they’ve established?

Testimonies are a great source for answers to these questions. Doing a little investigation into a potential manufacturer is time well spent.

Look for testimonies on their website. If they have social media pages, check them out. Look for reviews and read the comments. It all helps get an idea of who they really are.

Testimonies are crucial to your business success

Your clients and customers rely on them for making decisions about buying from your business. And so should you when you’re deciding on a private label manufacturer. Ask a potential manufacturer for a list of referrals.

They should be happy to share this list with you. If they aren’t willing, then that is another red flag. Remember, this list of referrals will be hand-picked on their part. The list will contain their best clients. Most likely, all the client referrals they provide you with will give glowing reviews of them. This is still valuable, but take it with a grain of salt.

If you aren’t seeing any red flags when it comes to communications and testimonies, move ahead to the next and final point: pricing.

Pricing may appear to be the deciding factor

It isn’t. While the quote you receive for producing your product is very important, it doesn’t overrule the previous two points. Of course, the cost of production needs to fit your business model. Unless you are aiming to be the most expensive brand in your market, then hiring the most expensive manufacturer doesn’t make sense.

To make a decision based on the quote you receive, you’ll first need an estimate of the maximum cost of production you can allow and still stay profitable. Don’t forget all the additional costs involved in finally bringing a product to market.

The least expensive is very seldom the right choice

If you’re contemplating choosing the manufacturer who provided the lowest priced quote, please, for the sake of your business, very thoroughly vet them. Their communication needs to be spot-on, and the testimonies for them must be very positive. A common practice when selecting a supplier is to disqualify the highest and lowest quotes. I’m not saying you should disqualify the lowest quote — just be very careful.

The best choice is strong on three aspects

If you find a private label manufacturer that is fabulous at communicating, is easy to contact, and is very responsive to your requests, they should be near the top of your list. If the testimonies and referrals you find for them are positive, that’s another point for them.

I’d even suggest going as far as choosing a private label manufacturer before you ever get a quote from them. If their quote for production comes within that range you need to have, they may be perfect for your business.

Photo by m0851 on Unsplash

But what about self-manufacturing?

You may be contemplating having your business manufacture your product. This isn’t entirely a bad idea. However, in the beginning, when first starting a new business, there are a million and one things to do. Manufacturing your own product may simply be too much to take on.

Read my article “Why hiring a private label manufacturer will jump-start your e-commerce business without cutting into your bottom line.” I discuss how hiring a private label manufacturer saves time and money.

Having a supplier manufacture for your product frees up time for you to spend on growing your audience, connecting with them, and getting all the business systems in place. Perhaps in the future, when your new business has momentum, then may be a good time to start self-manufacturing.

Let’s have a look at a men’s grooming products business, shall we?

TenX Beard Products didn’t exactly luck out when they choose a private label manufacturer.

First, a disclaimer — I am the owner and founder of TenX Beard Products. When I started TenX Beard Products, I knew the products I wanted to create, but I didn’t know how to manufacture them.

I could have invested the time and energy to learn production. However, I knew this would come with much trial and error, and at a high cost. Right from the beginning, hiring a private label manufacturer appeared to be the right choice.

There was no luck involved in finding the right manufacturer

It was easy finding suitable manufacturers to create our beard products. But one supplier stood out immediately.

It was easy to communicate with them. They were very quick and responsive to all of my questions and inquiries. They were an established business and had thousands of very positive reviews of their products. I knew they were a high-quality manufacturer.

Finally, their quote for manufacturing our product was exactly in line with what we needed to be profitable. Well, come to think about it, maybe I was lucky after all. They ticked off all the right boxes and it’s been an amazing relationship right from day one.

In summary, we’re looking at a three-legged chair

Each of the three legs of this chair is critical to keep it upright. If any of the three legs is missing, the chair falls. This is what it’s like in choosing a private label manufacturer for your business. You’ll want all three aspects to be a sturdy leg for the chair. The three aspects we covered included:

1. Communication
2. Testimonies
3. Pricing

Choosing the right private label manufacturer for your business is all about doing your due diligence. This vetting of manufacturers is like the safety net for your business. Just as Joseph Strauss knew from experience that something needed to be done to save lives during the Golden Gate Bridge construction. Strauss’ safety net allowed nineteen men to enjoy another day.

Thank you for taking the time to read this article. If you found it helpful to your business, please share it on your social media. As previously mentioned, a great second article to read is “ Why Hiring A Private Label Manufacturer Will Jump-Start Your Ecommerce Business Without Cutting Into Your Bottom Line.”

Thanks, and take care.