In this article
In this article

Breaking Down the Steps of Launching a Product Line

Many think launching a product is always pricey, but it’s not. While custom products needing lots of changes can cost more, private label manufacturing is often a good choice. This method makes a special product just for your brand. The cost? For each product type, it’s usually between €1,000 and €15,000. Choosing this approach can balance quality and cost, giving your brand a unique edge.

1. Choosing Private Labeling for Your Production

When launching your own product line, the production method you choose plays a pivotal role. While options like white label and contract manufacturing have their own advantages, private labeling stands out with its unique benefits.

With private labeling, manufacturers create tailor-made products for brands. Essentially, this method offers brands the autonomy to dictate the formula, design, and customization of the product. Once crafted, these distinctive products are exclusively sold by the brand, offering them a unique position in the market. Private label manufacturing is a perfect balance between affordability and customization, allowing brands to offer distinct products without bearing the costs of full-scale customization.

2. Finding a Manufacturer and Negotiating MOQs

Finding a manufacturer can be a challenging step when starting a product line. It may seem like the manufacturers are infinite, and it’s impossible to find the perfect one. This can delay the production process for weeks or months until all the negotiation and sampling process is done. This gets even harder if you’re trying to negotiate with people from other countries who might not speak the same language or have the same habits as you. A good way to solve these problems is to join the Wonnda platform, which can streamline the process and connect you with the right manufacturing partners.

When it comes to the minimum order quantity, it is the lowest number of units a manufacturer is willing to produce and must be one of the first aspects to be negotiated. It exists because, to produce a personalized product, it’s necessary to adapt to the machinery and set up the production line. This is a very costly and time-intense process for the manufacturer. For many products, it is simply too expensive to produce small order quantities because this would either lead to an unattractive price or the manufacturer would lose money before even manufacturing the goods. Therefore, manufacturers have minimum order quantities, and it is important for you to be realistic here as well.

3. Product Cost

Product costs are the money you spend to make your products, which includes the cost of materials and associated labor costs. Each product’s costs to launch private label products can be different, and a lot depends on the type of production you choose. For most items, you might spend anywhere from €500 to €1,500. However, the time it takes to make, any extra fees, and the steps in the process can change this cost.

4. Shipping Cost

The cost to ship your products usually depends on their size, weight, and how you choose to transport them. Shipping and handling can be around 30% of your product’s price. Often, the price your manufacturer gives you doesn’t cover these shipping charges. They usually give you the FOB (Free On Board) price, meaning they cover the cost only up to the closest port. From there, you’re responsible for shipping expenses to your storage place. So what affects your shipping costs?

  • how heavy your products are,
  • their size,
  • the tax rate for those products.

It is also important to remember that shipping prices can change and might differ a lot.

5. Barcode Purchase

When selling your private label products on platforms like Amazon’s seller central, Walmart, or Target, you’ll need to set up specific listings. These platforms often require a GS1 barcode associated with your brand. The cost of such a barcode can range from €5 to €250, depending on the product. However, if your sales are exclusive to Amazon, there are more affordable barcode alternatives to consider.

6. Design and Customization

Designing your private label products effectively strengthens your brand’s presence and can drive sales. You shouldn’t overlook essential elements like perfect logo design, packaging, and labeling. Firstly, identify what your chosen manufacturer offers in terms of design services. Some might even provide diverse customization options.

Key design considerations include:

Product Logo

A unique logo is crucial. Beyond packaging, it’ll feature in business communications. A professional designer might charge between €15 and €100 depending on the design’s complexity. They can also advise on packaging aesthetics.

Product Label

Some manufacturers might assist with label design. If so, supply them with your logo and cover any customization fees. When choosing a brand name, ensure its availability for both website and company registration. If designing is not your strength, consider hiring a professional. Depending on design details, you could spend between €500 to €2000 on product labeling.

7. Samples

Many people jump straight to asking manufacturers for samples when they have an idea. However, samples are actually one of the last steps in the process of launching your private label products.

How does sample ordering process work? First, you provide a detailed description of your desired product. Once the manufacturer grasps your vision and determines if it’s feasible, they present samples. These samples might be free or come at a cost. It’s your job to check them out and see if they match your expectations or if adjustments are needed.

It’s important to be transparent when giving feedback and respond to the manufacturer as soon as possible. Don’t be afraid to make changes or ask for something different, manufacturers will tell you if your idea is doable or not. They will often react, adapt to your request, and send another version.

8. Advertising

When it comes to advertising, marketing costs for startup brands can vary widely, often depending on several factors. On average, businesses allocate 7% to 10% of their revenue to marketing. Here’s a breakdown of potential costs:

Web Design

A website is like your online shop window. It’s super important because it’s often the first thing customers see. If it looks good and is easy to use, more people will want to buy from you. You can make a basic website using various tools for about €10 to €30 every month. Custom-built sites might cost between €6,000 to €100,000, depending on the features and functionalities.

Social Media Marketing

Using social media for promoting the products or services is popular, but many brands try to handle it themselves to save money. However, with the increasing competition and challenges like Facebook’s limited organic reach, getting noticed is tougher than ever. Because of this, it’s often smart to hire an expert in social media management. If you decide to go this route, expect to spend between €500 and €3,000 monthly. The cost will depend on your specific goals for social media and how many platforms you use.

Content Marketing

Content marketing is about putting videos, articles, pictures, and other things on your website to get people interested. It includes coming up with ideas, making the content, and sharing it. If you want to do it well, it can cost between €2,000 and €10,000 every month.

Email Marketing

Emails are a great way to promote your business because they’re affordable and can bring in good profits. Effective email marketing means planning how to send the emails, writing them, designing them, and checking how well they work. The cost of email marketing tools can vary widely based on the features they offer, the number of subscribers or contacts you have, and the volume of emails you send.

Many platforms offer free plans for small lists, often up to 500 or 1,000 subscribers, with limited features. Once you start to grow or need more features, you might pay from €5 to €50 per month.

Influencer Partnerships

Incorporating influencer marketing into your strategy can boost your brand visibility and credibility. Especially for certain product niches, collaborating with social media influencers becomes essential. Depending on the influencer’s reach, costs can range from a few hundred to several thousand euros per post or campaign.

Create your next product line with Wonnda

Our platform lets you source, launch, and scale your product line with over 250 trusted European suppliers. So whether you’re looking to request products from our private label catalog of over 1,500 items or develop custom products from scratch, Wonnda has everything you need to get started. Best of all, it’s free to start today!

Set up your account in less than 3 minutes and begin your journey with Wonnda. Unlock endless possibilities for your business, bring new products to market and streamline your sourcing process from idea to launch on one single platform.

About the author
Barbara Jankowska
Meet Barbara Jankowska, an upbeat and curious writer who originally comes from Poland. She moved to Berlin to pursue her Master's degree in International Marketing, where she developed her skills in research and analysis. Always eager to learn more, Barbara remains up-to-date with the latest trends and enjoys exploring new topics. Currently, Barbara is participating in an Erasmus exchange program in Porto, where she is discovering the unique culture and traditions of Portugal. Barbara's natural positivity and love of discovery make her a valuable new member of Wonnda. Her research and analysis skills, coupled with her ability to write engaging and informative content, ensure that she provides her readers with valuable insights and fresh perspectives on a range of topics.
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