Introduction
You’ve got a great idea for your next batch of cosmetic products, but have you thought about how much it will cost to develop? Who has the skills to take your concept and turn it into reality? How long will the process take? How much will it cost in total? These are just some of the questions that you need to ask when starting a new cosmetic development project.
This article will help you understand the importance of planning and ingredient impact costing early on in your development program.
Understand the cost impact of ingredient selection on your beauty brand
To understand the impact of ingredient selection on cost, it’s important to first look at the total cost of goods (TCOG). This includes all direct costs including raw materials and packaging as well as indirect costs such as factory overhead and labor.
In recent years, ingredient prices have been increasing due to rising commodity prices, increased demand for natural products, new regulations on testing and environmental impact assessments. If you’re not sourcing the right ingredients then this can mean taking back control of your in bottle formulation costing strategies is more difficult than ever before! Building deep relationships with your suppliers is an essential first step towards achieving this goal
Develop a response to rising ingredient and formulation costs for your beauty brand
You should consider the impact of rising ingredient and formulation costs on your business.
If you’re not already using Cost My Formula, it’s time to start. Cost My Formula is a powerful tool that allows cosmetic brands to quickly locate which ingredients are driving their cost increases, as well as find ways to reduce costs by using the “right” ingredients. With Cost My Formula, innovators can innovate with new ingredients more freely knowing immediately their impact on formulations’ total cost of goods sold.
Evaluate your ingredient suppliers and their processes
A critical step in any cosmetic innovation process is to evaluate your ingredient suppliers and their processes. This includes understanding how much product you need for a first production run, as well as the best way to approach your raw material selection.
When beginning a new project, it’s easy to get excited by all the possibilities and lose sight of what is actually feasible within your budget. It’s important not only that you have enough money in place but also that it will cover all costs associated with producing your idea at scale without having to cut corners or compromise on quality.
Work with the right contract manufacturing partners for your brand
When choosing a contract manufacturer, it’s important to consider the impact they will have on your product development process. Here are some questions you should ask:
- What type of ingredients are core to your existing inventory and fresh innovation?
- How flexible are you in terms of ingredient selection criteria? Can I make changes as we move through development or do I need to lock them down early?
- Will the contract manufacturer allow me access to their formulations for validation and testing purposes (if needed)?
Once again, these considerations will help streamline your cosmetic innovation process by ensuring that all parties involved have clarity around expectations from day one.
Cosmetic brand formula innovation that produces the best results will be efficient, effective and cost-effective.
Cosmetic innovation is a process of continuous improvement. In order to achieve this, it’s important that you understand the impact of ingredient selection on cost and consider how you can respond to rising costs.
In order to do this, it’s important that you evaluate your ingredient suppliers and their processes as well as work with the right contract manufacturing partners.
Conclusion
Cosmetic innovation is a critical part of the beauty industry, but it can be challenging to manage. It’s important to understand the impact of ingredient selection on cost and develop a response to rising ingredient and formulation costs before launching into new product development. You should also evaluate your ingredient suppliers and their processes so they are able to provide quality ingredients at competitive prices while still meeting regulatory standards. Working with the right contract manufacturing partners will help ensure that your products reach consumers quickly while maintaining their efficacy over time.