Private label question

[cassie2]

Hello,

There is someone interested in private labeling my candles to sell in her 2 stores. She doesn't want my company name anywhere on the candle because she's going to sell them for more than I do on my website- she has the clientèle that will pay more- and she wants people to go to her for reorders.

I'm fine with all that, as she's paying me a good price and I think she's going to be a steady customer.

My question is... is it legally sufficient to put her address on the label and not mine? If I'm reading this correctly from the Fair Packaging and Labeling Act, she would be the distributor, so her address would be sufficient:

§1453. Requirements of Labeling; Placement, Form, and Contents of Statement of Quantity; Supplemental Statement of Quantity.

• (a) Contents of label

No person subject to the prohibition contained in section 1452 of this title shall distribute or cause to be distributed in commerce any packaged consumer commodity unless in conformity with regulations which shall be established by the promulgating authority pursuant to section 1455 of this title which shall provide that -

• (1) The commodity shall bear a label specifying the identity of the commodity and the name and place of business of the manufacturer, packer, or distributor;

Am I reading it right?

Thanks for any insight...

[bugtussle]

I'll try this. I think you are correct, but it must have both her name (business) & her address. "Name and place."

I would never allow someone else to take credit for my candles even though I know it's done all the time. Is the "good price" she is paying you really worth it? Your hard work is for her, not you. I just don't think it could be beneficial for your business. Who will carry the candle product liability insurance in case a misguided customer burns down her house? Please be careful! Carole

Edited to say: I have a website & sell cheaper on it, but customers who buy from the stores I wholesale to very seldom cross-over & order direct from my website. Those who normally buy from upscale shops won't get on the web to find a better deal! Those who want a deal, will find out who is actually making the candles & will order from you. IMHO

[candlecrazyinwv]

I currently have 7 wholesales and a couple of them are REALLY close to each other. I had thought about doing private labels but I just couldnt bring myself to do it. I work so hard and I am sorry but I want ALL the credit for it. I dont think that someone could pay me to take my name off of my products. I usally just take off my contact info and leave my company name. I may eat my words one day:D if I ever get a really good offer. I know that it works for alot of people to do the private labeling...so good luck and Congrats!

[cindym]

I do private label, most of my private label customers don't mind if I have my info on the warning label. That said, if a customer wants private label , with none of my info on it, then I would have them label them themselves. You can make the labels for the etc..... I do have one customer that does candle tins with none of my info on them so she labels them herslf. The only label I put on is a generic warning label, just because I want to make sure it is there. You need to figure out what you are willing and not willing to do. My name is out there, and most people recognize one of my candles if they see one. Income is income, but you do have to have some limits. One of my private lable accounts does about 4 to 5000 dollars worth of business with me a year and she just opened another store. I am not going to pass that up. One of the things I have learned being is biz is to let go of the emotional attachment you have to your work. It can be hard. But you can still be proud of your work.

[NoOneSpecial]

I do private label, most of my private label customers don't mind if I have my info on the warning label. That said, if a customer wants private label , with none of my info on it, then I would have them label them themselves. You can make the labels for the etc..... I do have one customer that does candle tins with none of my info on them so she labels them herslf. The only label I put on is a generic warning label, just because I want to make sure it is there. You need to figure out what you are willing and not willing to do. My name is out there, and most people recognize one of my candles if they see one. Income is income, but you do have to have some limits. One of my private lable accounts does about 4 to 5000 dollars worth of business with me a year and she just opened another store. I am not going to pass that up. One of the things I have learned being is biz is to let go of the emotional attachment you have to your work. It can be hard. But you can still be proud of your work.

I agree totally and we do the same thing. I don't care if their name is on it or not. Look at huge stores like Publix and Winn Dixie that have their names on private labeled products, do you think the companies providing the services really care? A business is about providing a quality product and making a profit. IMO that is what seperates a true business from a hobby.

[bugtussle]

I can assure you, candlemaking is NOT a hobby for me. It is my business & every decision I make must be about growing my business. I prefer not to private label because I see no growth in letting someone else put their name on my candle. Sure it might bring in a few bucks but there are a lot of things I could do to earn a few bucks.

No one ever answered the question about who is responsible for the liability insurance on private labeling. This would be good to know. Carole

[NoOneSpecial]

From what I was told by the insurance company (and it makes sense) the liability is still with the manufacturer since they are the ones who made it.

[LaurieF]

As far as I'm concerned.....a sale of a candle is a sale of a candle. My label or theirs. And like someone else said insurance wise its still the manufacturers responsibility...which if your protected for whats the difference?

[cassie2]

Thanks for the replies, everyone.

It does feel weird putting someone else's name on my candles, but I think this could be a steady supply of money and I sure do need that. She's very excited about my candles, so I think she'll be promoting them big to her customers. She is several states away in a touristy area, so she'll be selling to people I'd otherwise probably never reach.

I do have product liability insurance, so as long as there is an address and a phone number on the warning label, I'm thinking it should be okay? If, heaven forbid, someone wanted to sue the candlemaker (me), they would contact the store, and the store owner has my info on file.

I am feeling a little nervous about it still, though (I'm a worrywart in general). It's probably worth a call to my insurance company to see if it's just my company name that is covered or my actual product no matter what name is on it. Know what I mean?

Thanks again for your input!

[Kimb]

I have done some very small scale private labeling. I put a code on the warning label of the candles, so that I know they are mine if there is ever any problems. I haven't had any problems to date. Currently I do the customer's labels, but I wanted to be covered in case in the future they wanted to have their own printed.

HTH,

Kim