What is the difference between White Label and Contract Manufacturing? Both styles of manufacturing are prevalent in our industry. Done well, the end goal of both white label and contract manufacturing is the same- to produce great products that consumers will love and buy often, but what are the advantages/disadvantages of these two styles of manufacturing?

What is White Label Manufacturing?

Perfumarie offers formulas for products for companies to sell and market under their own label. As the manufacturing company, we retain control over the product (specifications, quality, etc.). We remain the product owner, while our clients can tap into a low-cost alternative for turnkey production under our care. 

Contract Manufacturing

On the other hand, contract manufacturing is a custom, a la carte, and outsourced production process. The owner company gives the product's specification along with specific units of the products to be made. Unless Perfumarie is hired for project management or product design, the contract manufacturer has no say in changing its specifications. In other words, the contract manufacture is hired to execute the processes.

White Label Manufacturing

  • Lower minimums & design costs

    Since most of the technical design is already complete in this scenario, the overall cost of goods and the minimum for manufacturing will generally be lower for the client.

  • Control of product

    The manufacturer retains control of the product; Perfumarie can change and tweak the specifications, the ingredients, the formula and other things as we see fit.

Advantages of Contract manufacturing

Setting up a manufacturing team and equipment is extremely expensive and time-consuming. Contract manufacturing is an attractive option for those looking to reduce marketing risk and maximize operational efficiencies. 

  • Lower marketing risk
    The production run is made to order for specific quantities.

  • Economies of scale
    Contract manufacturer usually takes bulk orders. We work with multiple customers to maximize economies of scale.

  • Advanced skills
    Our technical experts are deeply focused on developing our skills to innovate, improve production processes, improve quality, and lower our clients' costs.

Are you interested in learning more? 
Set up an exploratory call with us.