Private Label vs. White Label vs. Custom Formulation: What's the Difference?
If you're new to the beauty industry, the jargon alone can be overwhelming. Private label, white label, custom formulation, contract manufacturing: here's what each one actually means, and how to tell which one is right for your brand.
What is private label (or white label)?
For all intents and purposes, private label and white label are the same thing. You take one of a manufacturer's existing stock formulas, which comes in blank, generic packaging, and they put your branding on it.
Private label is ideal for:
- Startups and new or indie brands
- Founders who don't want to take on a ton of inventory
- Products where it doesn't make sense to reinvent the wheel
- Marketing tests, small runs, holiday orders, and seasonal drops
The trade-off: with private label, you take the formula as is.
What is custom formulation?
Custom formulation is when a product is made specifically for you. You work with the manufacturer's lab to develop something that isn't in their stock line. That might mean:
- Reverse engineering a product you love (a benchmark)
- Combining a few products you like into one
- Validating a formula developed at another facility
- Inventing something totally new
With custom formulation, you control the formula and the final product.
What is contract manufacturing?
It's what it sounds like: you're contracting a manufacturer to make a product for you. Many cosmetics and skincare factories, including us, call themselves contract manufacturers, or CMs.
How custom can custom get?
Short answer: everything is customizable, depending on your budget and timeline.
- The formula: color, ingredients, texture and feel, scent, and flavor. This involves lab time, which means more money and a longer timeline.
- The packaging: stock components keep minimums low. Fully custom components are possible, typically starting around 10,000 pieces.
- The branding: your logo, labels, or hot stamping on the exterior of the package.
- Shade names: even on private label, the name is yours. Our "Pink Cloud" lip oil can be whatever fits your brand identity. This is where people have a lot of fun.
Do I need a custom formula to start a beauty brand?
No, and that's exactly what we specialize in at Lady Burd. Private label gets a bad rep, usually because a lot of manufacturers have limited private label options. So founders feel pushed toward custom formulation. Then they hear about the development fees, testing, timeline, and minimums, get scared, and never launch at all.
Private label can be such a powerful tool when you're getting started. You'd also be surprised how many big brands use private label for small runs, market tests, holiday orders, and seasonal drops. And just because you can do custom doesn't mean you have to.
Private label vs. custom formulation at a glance
- Minimums: private label from 50 pieces per SKU with your labels. Custom formulation typically 5,000+ units.
- Timeline: private label first orders in about 3 to 6 weeks. Custom formulation 12 to 18 months.
- Budget: private label can start at a $150 stock order. Custom formulation starts around $35,000 for bulk and labor, and more with custom packaging and boxes.
- Control: private label means choosing the formula, shades, branding, and names. Custom formulation means controlling everything.
Maybe your dream is custom formulation, but while you're on a private label budget, private label is an amazing place to start. Browse our stock formulas or book a free consultation.