Choosing the right spice partner can be challenging. If you choose the wrong partner, you can potentially lose sales, time, and your reputation.
What is the cost of private label spice production
Pricing is based on the ingredient cost of the product, the type of container, the net weight of the product in the container, and the size of the order. A product packed in 4-oz glass bottles will cost more per ounce than if packed in PET plastic or bulk. A production run of 10,000 jars will cost less than a run of 500 jars on a per jar basis. We work with you so that the pricing makes sense and enables you to profitably commercialize your product.
Is there a project management fee?
We are pleased to invest in the relationship and provide guidance to help grow your brand. We won’t nickel-and-dime with project management fees or similar charges.
What are the minimums?
We understand that high minimum order quantities are prohibitive for many customers. Our minimums reflect our commitment to help you commercialize your products without an unreasonable investment. The minimum order quantity is 100 lbs for a custom blend or bulk order and four cases (48 units) of a standard product that is privately labeled.
How do you market and sell a new brand?
- Access (You can visit the facility, talk to expert decision-makers
- Transparency (Recipe ownership)
- One-stop-shop (R&D support, low minimums, fulfillment, packaging design)
- Authentically care about customer service and your success (They are a partner, not just a vendor)
For additional insight, please reference our recent post, How to Choose a Spice Manufacturer.
Can I visit your manufacturing facility?
Absolutely!
Who owns my formula?
You own your spice formula and always will, regardless of whether we make changes based on your request. Be confident in the fact that it is YOUR formula. If we create a formula for you, we will share it once an order is placed.
Should I sign a non-disclosure agreement?
We strongly recommend that both parties sign an NDA before sharing proprietary information. This includes recipes, samples, and anything else related to your product and brand. You need to feel at ease when sharing this information and know that it will never be disseminated beyond the parameters of your relationship with your business partner.
Are there quantity discounts?
Higher quantities allow greater production efficiencies and spread fixed costs across more units. Higher quantities and forecasts over time could also allow better purchasing. These efficiencies and lower costs are passed on to customers.
Can my order be expedited?
Lead times are a function of production scheduling and ingredient availability. We do our best to honor requests to expedite orders without adversely impacting other customers.
What costs are involved in selling my products?
This question requires a two-part response. The first regards the costs that contribute to the production of your product. These include ingredient costs, packaging costs, and production costs. These combine to determine the cost of the product to you. The second consideration is the cost of selling finished goods to a consumer. These are dependent upon the sales channel(s). There is a cost to set up and maintain an ecommerce site. There may be slotting fees, marketing charges, and distributor fees if selling in grocery stores. There could be a cost associated with having a booth at a farmer’s market. There are fees associated with selling on Amazon. There are marketing costs, such as maintaining a social media presence or attending tradeshows. All of this sums up your customer acquisition cost.
What margin/markup do grocery stores take?
Grocery stores generally require a 40% margin in the spice/seasoning category. If a supermarket costs $1.00, they would charge at least $1.66 for the product. You should also consider the cost of promotions.
Distributors are often necessary to get your products into larger grocery store chains and can potentially help expand your product reach. Distributors generally require a 30-35% margin, while brokers typically take 5%.
Can you provide samples? Is there a charge?
R&D support is critical to the brand and product launch process. We will provide samples of custom blends developed per your instructions and continue to sample until perfected and approved. We will gladly provide samples of our standard products (stock formulas) that can be privately labeled and packed however you’d like. We have over fifty standard seasoning blends.
Can you provide references?
References will be gladly provided on request.
Do you toll blend/pack?
We toll blend and pack for competitive rates of high quality. We have the capacity to assist with your tolling needs.
Where are you located?
Our production and warehousing facility is located in Windsor Mill, Maryland, a suburb of Baltimore. Strategically located within 1-2 day transit of 45% of the US population. We are a convenient shipping source to anywhere in the U.S. and beyond.
Does it matter if my spice packer is local to me?
Most importantly, your spice packer should be a trusted partner who cares about your relationship and brand. Proximity would be convenient for two reasons. First, you can easily visit the facility. Second, shipping to you would be less expensive if you’re nearby. Those two considerations should be weighed against the spice packer’s quality systems, pricing, fulfillment capabilities, and overall commitment to your success.
Can you help with Amazon sales?
Selling on Amazon could be a lucrative way to build your brand. However, selling on Amazon is a complex undertaking. Failure to adhere to any labeling, shipping, and storefront design requirements could lead to costly delays. Understanding the Amazon cost structure is critical to ensure your profitability in that channel. We understand Amazon’s requirements and can ship to any Amazon distribution center. We can fulfill orders placed on Amazon with the appropriate integration. We can provide access to an experienced Amazon consultant who can guide you through the process.
How to sell on Shopify/ecommerce?
We can integrate with your Shopify ecommerce site to make order fulfillment seamless.
I created a seasoning blend, now what?
We will publish an article with step-by-step instructions to take your culinary concept from ideation to commercialization. This includes finding the right co-packer and leveraging the proper R&D support to match your blend, container choices, label development, and sales channels.
How do I place an order?
A classic adage is to never make it difficult for a customer to place an order or pay a bill. You can email or fax your purchase order or call one of our helpful and friendly customer service associates. You will receive an order acknowledgment with an estimated ship date within 24 hours of placing your order.
What should I charge? Retail MSRP?
Your retail pricing should account for all costs associated with the sale of your product. These include the landed cost of goods sold and all selling costs (ecommerce platform, distributor fees, marketing, etc.) Then, determine your target margin or markup and set the retail price accordingly.
What is the difference between a formula and a recipe?
“Formula" is an industry term that describes the type and quantity of materials used. Formulas are written in percentage form by weight, allowing them to be scaled to any batch size. This differs from a recipe generally written for a specific yield amount.
Is there a product development fee?
New customers are charged a $1,000 commitment fee for the first three custom formulas, which will be credited toward the first order. Existing customers are not charged for custom development or formula reformulation.
Can you reverse engineer a blend?
Yes. Please provide a sample of the blend to match.
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