Many people have a great idea for a business but don’t have the means to produce the products they need. They may not have a factory advantage, i.e., space and equipment to produce the goods they’ve designed. Or they may want to ensure that experts in that field realize their ideas.
That’s where contract manufacturing comes in. Let’s look at what contract manufacturing means and why it could be an excellent choice for your business.
Contract Manufacturing Definition
What is contract manufacturing? We define contract manufacturing as outsourcing the production of goods to a third party with the means and manufacturing factories to produce precisely what you need.
Manufacturing a product only when an order from a customer is referred to as “Made to Order” or “Built to Order” and isn’t necessarily connected to contract manufacturing companies. Contract manufacturers can make bulk orders of products for businesses to stock their shops or online warehouses, so products don’t have to be made to order.
There are various terms used in the contract manufacturing world. We define manufacturer as the individual or company physically making the products, even if those products are later rebranded and linked to a different company. A production contract is an agreement between a business and a contract manufacturer to produce goods for that business.
Why Work With a Contract Manufacturer: Benefits of Contract Manufacturing
Contract manufacturing companies take over the manufacturing or part of the manufacturing process for your product. Some businesses may only have components or ingredients manufactured by a third party, while others will have their whole products manufactured. Pure Source is one company that produces a range of wellness and beauty products for a vast range of customers. But why do so many businesses choose to go with a contract manufacturer?
Contract Manufacturing Can Save Money
Buying materials, equipment, and paying for experienced manufacturing personnel is costly. Outsourcing to manufacturing experts in your chosen product field ensures that everything is set just right to produce exactly what you need, without you having to spend millions of dollars investing in factories and other overheads.
Allows Startups to Get Going
Contract manufacturers allow small businesses or startups with big ideas to start selling to their customers much faster than if they have to try and secure investors for their own manufacturing factories. This is great for consumers, too, as they get more high-quality products to choose from faster.
Working with a dedicated manufacturer means products are typically tested to high standards and meet industry regulations. This is particularly important when selling any products relating to health or wellness, as unregulated products, ingredients, or manufacturing processes can cause businesses a great deal of trouble. That may include fines, orders to cease manufacturing, or a complete shutdown of the business – not to mention the hit on the business’s reputation.
Working with a contract manufacturer that already meets industry regulations and follows rigorous quality standards means peace of mind for you and your consumers.
Types of Contract Manufacturing Services
There are so many different types of custom contract manufacturing services. Here are a few you might be interested in.
Pharma Contract Manufacturers
Pharmaceutical contract manufacturers produce a wealth of wellness products. Contract manufacturing examples of pharmaceuticals include:
- Anti-dandruff products
- Pain relief creams or ointments
- Antiseptic products
- Skincare treatments, e.g., psoriasis relief products
- Antifungal treatments
Ensure your pharma contract manufacturer has the right certifications from regulating bodies like the FDA or the Department of Agriculture.
Anti-Aging Product Contract Manufacturers
Anti-aging is such a massive business with so many products marketed to all genders. Anti-aging manufacturers produce various products for retailers or beauty experts, addressing key concerns like:
- Fine lines
- Age spots
- Sagging skin
Expert lab technicians can create a product that aligns with your exact vision, enhancing your brand image and consistency.
Sun Care Contract Manufacturers
Looking after your skin in the sun is so crucial. Although the sun helps us produce vitamin D, it’s also linked to aging, damaged skin, and even cancer. Companies who want to promote a specific type of sun care can work with an expert contract manufacturer to make their product idea a reality. Sun care products manufacturing include:
- Kid-friendly SPF products
- Water-resistant products
- Sun care products with a focus on natural ingredients
- After sun care products
- Organic sun care products
Body Care Contract Manufacturers
Body care is a wide-ranging product field, including popular product categories such as:
- Stretch mark removal creams and liquids
- Skin toning products
- Skin lightening treatments or those aimed at conditions like rosacea
- Scar reducing treatments
- Self-tan products
- Anti-cellulite products
Your idea for a body care product manufacturing can become a reality after a conversation with a product specialist who knows precisely how to pull your ideas into one cohesive manufacturing solution.
Hair Care Contract Manufacturers
In America, the hair care manufacturing business is worth around $87.9 billion per year. That’s why it’s so crucial that you work with an expert manufacturer to perfect your hair care product idea to ensure it’s safe, high-quality, and matches your brand vision. Contract manufacturers can produce just about any hair care product, including:
- Products for scalp health
- Custom made conditioning products
- Hair volumizing products
- Custom shampoos
- Hair loss products
You come up with the idea that will solve a problem for your target demographic. The contract manufacturer makes that idea a reality that you can sell and that your consumers can benefit from.
If you think contract manufacturing could be the right choice for your business or product idea, contact us here at Pure Source, and we’ll talk you through your next steps.