If you are launching a product line and are not planning on manufacturing it yourself, but rather using a Co-Pack facility, then here are a few True and False assumptions you should know about before signing with a plant.
A client is typically surprised when I explain to them the services they can expect to receive from a Co-Packer willing to make their product line. The plant contracted to make their product will not also become their private lending institution. The assumption the co-packer will order all of the necessary unique ingredients and packaging and sell it back as the finished product is made, Is Not True. The reality is the co-packer will not take an investment risk on a new product line with little or no sales history. There are a number of misconceptions floating around, so I outlined a few points to allow you to have clarity in expectation as well as get an idea of the investment You will need to make.
True
- There are a number of domestic manufacturing facilities that want added volume in their plant.
- A responsible and professional manufacturing plant will require signing your Non Disclosure Agreement (NDA).
- The manufacturer will be able to clone your product and formula and possibly create an improved product.
- Product may vary slightly in characteristic in different facilities even though the formula was followed.
- You are responsible to invest in all ingredients unique to your product.
- The manufacturer will not charge in advance for shared ingredients.
- The manufacturer has better buying power than you.
- The manufacturer will have a minimum order requirement per flavor or per order.
- Large manufacturers typically do not take on small start-up product lines with no sales history.
False
- The manufacturing plant will fund your endeavor 100%.
- You can make a better product than the Co-Pack facility.
- A responsible manufacturing plant will substitute ingredients as they see fit.
- A manufacturing plant will not require order lead time.
- A manufacturing plant will always use packaging that you own prior to agreement.
- A manufacturing plant will sell & distribute your product.
- The plant manager will always shuffle aside other accounts when you have an emergency order.
- The facility’s warehouse will store your slow moving ingredients for as long as it takes to use them up.
- The manufacturer will run undocumented product from any ingredient supplier.
Contact Darryl, to help determine the prefered co pack manufacturer for your product.
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