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Pricing Strategies for Private Label Skincare


One of the biggest challenges for new skincare business owners is what to charge for their products. When you take the private labeling route, determining the right price point is critical.

The truth is you can’t just drive down the price of your products in the hopes of beating your competitors. Remember that the price of your product determines the market you’ll be interacting with. Furthermore, it affects the perceived value of your brand.

To help you out, here are some strategies that can help you determine the right price point for your private label brand. Let’s get started.

Start with Your Landing Costs

Landing cost refers to the cost of creating your product plus all the other expenses you incur to get it to your customer. In other words, this is your manufacturing cost, shipping from the manufacturer to your warehouse, and shipping to your customer. You should also factor in distribution costs if you’re selling in retail stores and if there are fees associated with selling on certain platforms.

One way to lower your landing cost is to purchase materials in bulk and to manufacture products in bogger quantities. However, many skincare products have a set shelf life. This means you need to be able to sell your inventory, otherwise, you’ll run the risk of wasting capital and losing profits.

Indirect Cost

Apart from landing costs, your skincare business can also incur indirect costs or fixed overhead costs. This includes all of the expenses needed to set up your business including insurance, website maintenance, electricity, renting office space, and salary for your staff.

This should also be factored in computing for your product prices.

Suggested Retail Price and Profit Margin

A general rule when pricing private label skincare is that your profit margin should be at least 33 percent. However, the cost of raw materials can fluctuate from time to time which raises your landing cost.

To prevent you from having to change your pricing constantly, you need to set your selling price with a good profit margin. A lot of skincare products on the market are actually priced between five and six times its landing cost giving a profit margin of at least 80 percent. 

This means if your landing cost is $10, then your sale price should be at $50 to have a profit of margin of 80 percent. This gives you a $40 profit per unit.

Final Words

Setting  a reasonable profit margin for your business is important if you want your business to succeed. Otherwise, your brand will just end up burning through your cash.

However, with the right strategies, you can sell your products at the right price not just to cover your landing costs but to also give you enough profit every time.

Why Finding a Manufacturer That Tests Their Products is Important


As a skincare brand, one of your goals should be to bring products that deliver what they promise to the public. However, getting an effective formula is just half the battle. 

Some people may be more sensitive to certain ingredients than others so before you release any product to the mass market, it has to be tested widely. 

If you’re partnering with a manufacturer, you need to make sure that they do their due diligence when it comes to testing. Otherwise, you may face ramifications like poor consumer ratings, negative publicity, and even lawsuits.

Here’s how working with a manufacturer that tests their products properly can help your company:

  • Compliance with FDA Regulations

Companies are required by the FDA to follow certain regulations about the manufacture of their products. Testing gives the FDA proof that you and your partners are takings steps to follow regulations. 

  • Gives Insight Into Future Products

Before selling a new product, a company needs to test it in order to ensure that it’s actually going to sell. The test most useful in this case is the stability test. This will tell companies if their product is in danger of separating, changing colors, or ending up with foul odors and thus becoming aesthetically unpleasant while on the shelf. They’ll also learn from this how to label it; if consumers should be given specific instructions on proper storage, practice and how long realistically they can use the product after opening before it expires. 

  • Improves the Quality of Your Products

A benefit that goes along with marketability and product planning, quality is an aspect of any product that should be kept in mind. Any company can devise the most eye-catching packaging or quick methods of getting a consumer to buy that first item, but the quality of the product guarantees repeat customers. By testing their cosmetics, companies are making sure that their products will last long enough at home for the customer to fall in love. Deterrents to such ends are things like changes in the smell of the product, mold growth, separating of liquids in the cosmetic, and skin irritation. All of these things can be detected with testing and remedied before the product ever reaches the consumer.

  • Ensures the Safety of Your Products

The number one reason why a company should test their products is safety. The concept of most cosmetics is that they’re temporary and always changing. When safety fails, it could lead to permanent damage, usually to the skin but also to the eyes. Danger to the consumer means danger to the company. By not testing their products and ensuring that they are safe for use, companies are taking the chance that something could go wrong and they could end up with a lawsuit, FDA involvement, and product recalls, all of which are very expensive and not conducive to the future of any company.

Pick a Skin Care Niche to Stand Out


The skincare industry is as exciting and wide as can be. There’s an endless array of possibilities for a brand. You can address several skin concerns and release an even bigger range of products your head will spin!

But unless you’re trying to work yourself to the bone pleasing every single customer out there then being a jack-of-all-trades isn’t the way to go.

In order to stand out in this industry, you need to focus on a niche market and perfect your product lineup. In this blog, we’ll be talking about how and why you should pick out a niche in the endless pool that is the skincare industry. Let’s get started!

What is a Niche Market

A niche market is a subset of a larger market. It is a smaller group of people with specific characteristics and needs that set them apart from the general population.

The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality, and the demographics that it is intended to target. It is also a small market segment. Not every product can be defined by its market niche.

In the skincare business, this means catering to the needs of a specific group of people. For example, your niche could be skincare aficionados with an affinity for caring for the environment. Or your niche could be women with mature skin who are dealing with sensitivity. Your niche could also be pregnant women who are looking for safer skincare alternatives.

Reasons to Pick a Niche Market

There are three main reasons why you should be focusing on a niche market for your business:

1.     You Will Benefit Financially

When you have a niche market to focus on, you can be smarter when it comes to spending money on inventory and marketing. 

Having a narrower target range means you don’t need a whole lot of ingredients to include in your formulations. This lessens your production cost while increasing your profit margin.

Moreover, promoting your products to a niche market lets you create a more streamlined voice and branding. You can focus your marketing messages much better and you don’t have to spend on multiple ads just to hit multiple demographics.

2.     You Become the Go-To Brand for Specific Pain Points

Focusing on a niche demands that you get into the nitty-gritty details about your target market. You need to have a laser-focused understanding of what people demand from your brand. This allows you to create a strong positioning statement for your brand.

With a well-crafted message about your products, your brand becomes the solution to your target market’s needs. Your commitment to a particular skincare niche puts your brand at the forefront of addressing specific pain points.

3.     It Takes the Guesswork Out of the Equation

When you have a narrow niche to focus on, you understand every little quirk your customers have. You know where they hang out, what they struggle with, and how much they’re willing to spend to solve their problems among others.

These pieces of information are crucial in every aspect of building a successful business. You don’t have to guess what formula your customers will like or what promotional materials to use for your next marketing campaigns because all you need to do is anchor everything on the information you already have.

How to Build Your Skincare Brand on Instagram


The skincare industry and Instagram go hand in hand. In this blog, we’ll be talking about how you can create a devoted following in this social media platform. Let’s get started!

Have a Clear Branding

Instagram is a highly visual platform and lends itself well to getting your brand out there. It’s a great platform to showcase your logo, brand colors, and the overall design aesthetic your business has. Think of your feed as a vision board that reflects your brand.

Choose your images wisely as well. If your skincare brand is all about luxury, you wouldn’t want to post anything related to dogs or babies. Stick to the main story and message you want to tell about your brand.

Capitalize on Hashtags

Hashtags are important especially on Instagram since it’s the easiest way for people to stumble upon your brand. Research the best hashtags for your brand and optimize them. A crucial thing to remember about hashtags is scale. If you have a smaller following, your posts might get lost in a sea of other photos in a hashtag that contains millions of content. Start small with niche hashtags and build it up slowly.

Get Your Photos Right

Don’t just snap and upload photos haphazardly. Get your photos right with good lighting, good use of colors and elements, and interesting framing. Use the right subject matter and avoid advertisements.

Time Your Posts

As with any other social media platform, there are specific hours when your followers are active and would most likely see your posts. Test out different times of posting and see which hours have the best engagement for your posts.

Stick to Lifestyle Shots

Instagram is a great platform to showcase your products but there’s the right way to do it. Avoid using catalog-style images. Instead, show your products in a way that your users will find appealing. In-use shots and lifestyle shots work best. You can also post images of how your products are made.

Don’t Forget to Tell a Story

Instagram isn’t only a great way to visually present your skincare brand but it’s also an awesome platform to tell your story. You can micro-blog in the caption section by telling people about the photos you post. You can also tell people how your products can benefit them. You an even post inspirational messages if you want to so long as you connect with your audience.

5 Things You Need for Amazing Skincare Product Photographs


Good product photography plays an important role in your success as a skincare entrepreneur. Visual content is especially helpful in the beauty industry since it serves as a driving force of engagement, conversion, retention and overall customer lifetime value. 

With the help of compelling photographs, you can catch the attention of your customers and informs them how your products can address their most pressing concerns.

Moreover, branded product images help build your brand as you communicate with your audience.

In this blog, we’ll be talking about five things you need for amazing skincare product photographs. Let’s get started!


Light is crucial when you’re taking skincare product photographs. Natural light is a great way to highlight your products’ true features since it is generally softer and more diffused. You can photograph your products outdoors or near a big and brightly-lit window. It’s best for in-use photographs for social media.

Meanwhile, artificial light like candles and bulbs shines smaller but more focused. It is great for closeup product images that you can use for your online store.


The way you stage your photographs makes them more visually appealing. Don’t be afraid to use props to create a story within your photos. If your products are made for cleansing the skin, you can add bubbles and foam. If your face mask is made from natural ingredients like pumpkin seed oil, you can include pumpkin seeds in your photographs.


The background color of your photograph helps in making the product more visible out of the entire image. Some background colors go perfectly matched with the product, whereas some create blunders.

You can go for plain colors that go well with the color story of your products especially if you’ll be using the photos in your online store. Meanwhile, for social media posts, choose backgrounds with interesting textures to help you tell a story.


Taking photos using the front angle shows exactly what your product is and this is great for your e-commerce store. However, you don’t have to limit yourself to this only. You can use different angles to convey different stories about your product.

Using the top angle provides a bird’s eye view of your product while letting you be more creative in terms of styling. Macro shots are great for showing off the details of your products. For example, if you’re selling a facial scrub, you might want to show off the texture that the exfoliants give to your products. These are great for in-use shots for social media.


Depending on the platform you’ll be using your product photographs in, you need to determine the right dimensions for your photographs. For social media like Instagram, your photos need to have equal dimensions so it will fit the platform. For Pinterest, opt for vertical photos that take up a lot of screen space.

How to Create Skincare Packaging that Sells


Labels and packaging play a vital role in the success of your skin care business. You need an appealing visual presentation of your products that is not only memorable but is also easy to notice.

The truth is even if your product is the best in the market, uses the best ingredients, and can truly help your customers in solving their skin issues, you still need packaging that pops from the shelves.

Your customers need to first gravitate towards your products in a sea of competitors. Today, we’ll be talking about some useful tips when creating packaging for your private label skincare line. Let’s get started!

Understand Your Audience

You product packaging has to speak to your desired audience and customers. Everything from the color choices, font, and style of packaging has to be appealing to your target demographic. For example, anti-aging products could be designed in solid colors with a more premium feel. Meanwhile, products designed for a younger audience like teenagers can benefit from bolder color choices. 


Be Smart About Displaying Information

Apart from attracting customers, packaging also serves another purpose: to provide information about your products. It’s a good idea to follow the FDA’s cosmetic label guidelines such as:

  • Identity statement on the principal display panel that indicates the nature and use of the product.
  • Net quantity of contents.
  • Name and place of business
  • Distributor statement
  • Material facts
  • Warning and caution statements
  • Ingredients
  • Other indicators such as organic, vegan, cruelty-free, alcohol-free, or hypoallergenic


Tell Your Brand Story Through Artwork

Every brand has a vision and a unique story to tell and your product packaging has to reflect that if you want to truly connect with your customers. The keywords you use, color palette, symbols, and imagery should evoke the feeling of your brand.

For example, if your brand prides itself in being environmentally-friendly then your packaging should use recyclable or recycled materials.

Create an Experience for Your Customers

Your product’s packaging is a great way to give your customers a one of a kind experience they can only get from your brand. When people unbox your products, it should bring them excitement and thrill.

Create a visual experience that your customers won’t forget. You can also include thank you notes for an added personal touch.

Be the Best Girl Boss with These Beauty Business Tips


Have you ever pictured yourself as the ultimate girl boss of your own beauty business? Creating your own line of skincare products is a great business venture. Not only does it take as low as $2000 in startup costs but it can also be operated right in the comfort of your own home.

If you would like to make it big in the beauty industry then this blog is for you! Today, we’ll be talking about five things you need to know in order to jumpstart your beauty business. Let’s get started!

Have a Solid Business Plan

If you’re going to be the best girl boss the skincare and cosmetics world has ever seen, you need to have a clear vision of what your business is going to be. You need to put a lot of effort into developing a business plan that can guide your business decisions along the way.

Some of the things you need to identify beforehand include:

  • A beauty brand and mission
  • Niche and customers
  • The product/s you are going to sell
  • Competitors
  • Marketing strategy
  • Retail strategy
  • Funding
  • Financial forecast

Stay Ahead of the Curve

If you want to be a beauty entrepreneur, you need to be on top of trends in the cosmetics and skincare industry. Stay informed about what drives your target market today. Consider buzz words like organic beauty, cruelty-free formulations, and sustainable beauty.

The world of cosmetics and skincare is ever-changing because of the new trends that pop up every day. As a girl boss, you need to be innovative and responsive to what’s on everybody’s radar in order to stay relevant in your niche.

Use Social Media Wisely

The great thing about running a business nowadays is you have the power of social media to help you reach your customer base. You can market your products on social networking sites, increase brand awareness, and even interact with your target audience much more effectively. 

The best part about using the internet to market your business is it costs a fraction of what you would normally spend on traditional marketing methods. This way, you can allocate your funds to other important things like building inventory or funding product development.

Be All-Ears to Your Customers

Listening to customer feedback will set you apart from your competition. You can use reviews, opinions, and comments to improve aspects of your brand. You may find that people like a certain texture or kind of packaging better than what you currently have.

When you listen to what your customers say, you are able to shape your beauty business in a way that engages your customers better. By satisfying the needs of your customers, you will get repeat business and brand loyalty.

The Benefits of Starting Your Own Private Label Skincare Business

private label

Do you want to take your passion for skincare to the next level? Why not start your own product line through private label!

You don’t have to have an army of formulators and scientists and your own high-tech laboratory to get started. Today, we’ll be talking about five benefits you can get from starting a private label skincare business.

Higher Profit Margins

Private labeling lets you slap your own brand on already existing formulations. For all intents and purposes, it is your own product line which makes your profit margins higher. This is because when you sell another company’s brand, you’re likely required to pay a portion of their marketing and distribution expense.

When you sell your own products under your own brand, you can set the price however you wish with lower overhead costs since you get the products directly from the manufacturer while maintaining the quality you and your customers expect. 

You Have No Direct Competition

If you’ve been selling skincare products from other brands for a long time, then you know that direct competition can be tough. You often have to keep dropping your price to compete with other sellers or accommodate the manufacturer’s decision to slash prices.

While there is still competition when you sell private label skincare, you can rest assured that you are the only seller of your product. This means you can create a successful business with its own following You can focus your energy on drawing new customers to your brand and improving your marketing efforts to retain customers.

You Can Customize Your Products                   

Private labeling makes it easier to jump into the beauty industry because most manufacturers already have formulas that are ready for selling. However, you also have the option of creating your own blend that speaks to your target market.

You can ask the private label manufacturer to create fragrance-free or vegan formulations for your product line. You can also incorporate trendy ingredients that skincare aficionados are loving.

Furthermore, you can customize the packaging of your private label skincare line to suit the preferences of your target audience.

Faster Turnaround Times

The beauty industry is always abuzz with new trends. From product consistency to new ingredients, there’s always something new that pops up to keep you on your toes as a business owner.

With private label skincare, you can respond to trends faster by working closely with manufacturers. You can test out ideas on a much smaller scale and then ramp up or down depending on the response it gets from your market.

You Get to Build Your Own Brand

With the help of private label manufacturers, you can focus on building a strong brand for your business. They can take care of formulations and product packaging while you can work on the marketing side of things. You can focus on building a lifestyle brand that caters to the needs of your target audience while reeling in sales and profits.

For more information call (800) 320-6891 or Contact Us for a Free Quote!