How do I price customized labels?

[Traveler]

Hi everyone,

I have a potential (wholesale) client who is interested in pruchasing candles and wax tarts from me. But she wants me to put her company logo on our labels. (Basically removing my business information and inserting hers instead.) I have not done this before and I have two questions that I hope someone more experienced can guide me on:

1. I will be using my label stock and printer ink, so I am thinking there should be an additional charge for this service. Would it be a flat fee based on the entire order OR would it be a small fee per label?

2. Also, should the Warning labels I place on the bottom of the candles still carry my contact information? (I would think that would be the correct thing to do from a legal standpoint, but again, not certain what the common practice is in this situation).

Any guidance would be appreciated. I was not sure where to start searching so I thought this would be a good starting point.

Thank you so much!!

[racolvin]

I wouldn't suggest doing a full private label setup unless she wants to carry the necessary product liability insurance and be responsible for the candles in a legal sense.

The label information isn't just for marketing, it's so an end-user can track down party that takes responsibility for the product: either the manufacturer (you) or the wholesaler. Whoever's information is on the label needs to have the appropriate insurance and be ready to deal with that circumstance should it arise.

Your point #2 about leaving your info on the warning label is a good one but that's an avenue for the end-user to track you down and buy directly from you (if you sell that way, via website or whatever), which is usually what a private label account is trying to avoid - they want the customer to think they are the only source for the candle.

I make no claim to be a lawyer or anything close to one so I'd contact both your own attorney and your insurance carrier to see what the ramifications are.

[Traveler]

You know, Ronnie, that is a very good point! I did not even think about the client needing liability insurance because of labeling. (There is ALWAYS something new to learn in this business!!) But it certainly makes a great deal of sense. I will explore it further with the client.

Thank you so much for the advice!

[barncat]

I don't charge extra, unless they want something really extravagant. I do make them order 4 cases.

[sandissoap]

I don't do candles but when I private label my b&b stuff, I still have to put the manufactured by info on there per FDA rules. But I do do a custom label with their info on there and then put the manu by very small along with my website. As for fees I charge them an initial set up fee, usually ranging from $40-$65 depending on what they want and how long it takes and also amount of revisions, if any. But after that I don't charge them anything additional. I consider it a 1 time design charge.

Don't know if any of that helps but thought I'd share....