If you have a business that uses or retails cosmetics, skincare, makeup, body and bath products, hair care, toiletries, etc, have you ever asked yourself:
Who is really making the profit?
Of course, it’s the cosmetics manufacturers — they’re among some of the wealthiest conglomerates in the world.
When you consider that a hair, skin, beauty, body or bath product retailing for $50 costs between 10 cents and $3 to make, it’s easy to see how these companies become so wealthy.
So, what’s stopping you from making private label cosmetics? Why not make your own brand cosmetic and beauty products, and label them to suit your own business?
There’s no need to contract a laboratory to manufacture for you — this will only dilute your profits. Manufacturing cosmetics is easy — its many advantages include the ability to make only what you require, without the expense of minimum orders. You can control the quality of the ingredients — including essential oils, plant and fruit extracts, fragrances, etc — and make products of an even higher quality than the leading manufacturers.
You’ve probably heard many myths about making your own private label cosmetics:
1. You need an expensive laboratory
Not true. You can make private label cosmetics, makeup, skincare, haircare and toiletries in your own home, workshop or shopfront using basic and inexpensive equipment.
2. Professional quality recipes are prohibitively expensive — the average industry rate for one cosmetic formulation starts at $400.
It’s true that buying private label cosmetic formulas singularly is extremely expensive. Purchasing multiple formulations need not be costly — in fact, it can be highly cost effective.
3. You need to be a cosmetics chemist and have a degree in science or chemical engineering to be able to make private label cosmetics and toiletries.
Not true. If you can follow simple instructions, you can easily mix together the required cosmetic ingredients to make lotions, creams, liquids, gels, foams and any other form of cosmetic, beauty or toiletry product. Of course, you must use professionally formulated cosmetics recipes — homemade or handcrafters formulas are not suitable for wholesaling or retailing.
4. You need permission from the FDA to be allowed to make private label cosmetics to sell for wholesale and retail purposes.
False. The FDA requires only that you follow certain simple rules regarding correct labeling and the use of approved, non-pathogenic cosmetic ingredients. You do not need permission or a license from the FDA. This misinformation is just another example of the multi-nationals trying to keep their stranglehold on this mega-profitable industry. If you use professionally formulated cosmetic formulas, you will be complying with FDA regulations.
Manufacturing private label cosmetics can add a new and highly profitable dimension to your business. You can even offer your services as a private label cosmetics manufacturer to other hair, beauty and spa salons, pharmacies and a diverse range of retailers.
Sam Stein is a retired cosmetic and chemical engineer from Australia.
He is the founder of AustraLab Australia, a unique business concept revealing the high profit secrets behind the cosmetic and chemical manufacturing industry To learn more about how you can become part of this multi-billion dollar industry, see http://www.australab.com
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